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PROSPERITYPROSPERITY
2015 SUSTAINABILITY REPORT
FOR LASTINGFOR LASTING
20142015
PERFORMANCE
SNAPSHOTFOR THE PERIOD 2014-15
Losses 9.5
Losses 10.35
DISTRIBUTION LOSSES (%)
Investment 297,731
Investment 45,328
SUSTAINABILITY ACTIVITIES (OMR)
Electricity 3,573
Electricity 4,454
POWER GENERATED(GWH)
POWER PROCURED (GWH)
ELECTRICITY SUPPLIED(GWH)
WATER SOLD(MCUM)
1,000,591
TOTALCUSTOMERS
932,208
TOTALCUSTOMERS
TOTAL EMPLOYEES2,892
TOTAL EMPLOYEES2,821
TOTAL REVENUE (OMR)1.098 billion
TOTAL REVENUE (OMR)806 million
25,121 28,72725,090 28,790 246.5 209
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20142015
PERFORMANCE
SNAPSHOTFOR THE PERIOD 2014-15
Losses 9.5
Losses 10.35
DISTRIBUTION LOSSES (%)
Investment 297,731
Investment 45,328
SUSTAINABILITY ACTIVITIES (OMR)
Electricity 3,573
Electricity 4,454
POWER GENERATED(GWH)
POWER PROCURED (GWH)
ELECTRICITY SUPPLIED(GWH)
WATER SOLD(MCUM)
1,000,591
TOTALCUSTOMERS
932,208
TOTALCUSTOMERS
TOTAL EMPLOYEES2,892
TOTAL EMPLOYEES2,821
TOTAL REVENUE (OMR)1.098 billion
TOTAL REVENUE (OMR)806 million
25,121 28,72725,090 28,790 246.5 209
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TABLE OF CONTENTSChairman’s statement
About us
About this report
Contribution to Oman’s development
Society
Environment
Glossary
GRI G4 Content Index
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10
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40
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98
108
110
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CHAIRMAN’S STATEMENTOn behalf of Nama Holding (NH), previously known as Electricity Holding Company SAOC (EHC), I am pleased to present the first Global Reporting Initiative (GRI) G4 compliant sustainability report for the financial years 2014 and 2015. This report highlights our commitment towards sustainability and presents our performance in environmental, social and economic aspects. This baseline report also serves to share best practices and challenges among our subsidiaries and peers; encouraging improvements across the group and in the sector. Compiling the first report with data on sustainability indicators from our 10 subsidiaries was a challenging task. I am delighted that the Nama Group’s sustainability team and employees from all the subsidiaries demonstrated great team spirit to share information and data in a prompt manner to make this report possible.
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Implementing Group Strategies
Sustainable business development has been a strategic priority for us after coming together under the umbrella of our new brand – Nama. The Group has successfully launched three new brands for the Group: Nama Group, replacing Electricity Holding Group; Nama Holding, replacing Electricity Holding Company; and Nama Institute for Competency Development, replacing Utility Centre for Competency Development.
The Nama brand reflects our renewed commitment ‘For Lasting Prosperity’ through the continued work in growing our network availability to support the economic development of Oman, system and connectivity enhancements to increase shareholder and customer value, in addition to developing relevant competencies within our workforce to meet the needs of our growing business and to provide a safe and balanced environment for our employees and contractors to work in.
The benefits from implementing the Group strategies have materialised since its introduction in 2012 as we witnessed a significant improvement of 64 positions in the World Bank’s 2015 “Doing Business Report”, has been attributed to the electricity sector in Oman. Nama Group has started fully recording the duration and frequency of outages as well as streamlining administrative processes and reducing the paperwork needed to complete transactions. The Group has contributed to these positive changes alongside its partner and suppliers which have driven by a workforce that constitutes of 91% Omanis. Our customer service delivery is also showing a 3% incremental improvement between 2014 and 2015 by the Group’s distribution companies.
Building employee potential and skills
The staff strength of Nama Group as on 31 December 2015 reached 2892, compared with 2,821 employees in 2014. We have taken several measures to upskill our employees through tailored training programs to develop competencies among management and field staff. It is indeed a matter of great happinesIt is indeed a matter of great happiness to see several of our employees participating in volunteering engagements through our associations with Tawoon, the Omani volunteer network and Injaz Oman, a youth entrepreneur organisation. Nama Group staff attended Tawoon’s volunteer training and participated a competition for promoting volunteer activities. Furthermore, group employees are also encouraged to apply to the sustainability fund to promote various causes in the areas of social, economic and environmental campaigns. The fund has successfully supported two activities; one to promote health and safety practice in households in Bawhser called Baiti Amin, and another to promote corporate social responsibility during the holy month of Ramadan – Nama Wa Ibtisama.
As a foundation pillar of our Group strategies, the human resources teams across the group are currently delivering Himam Programme which covers an integrated talent management framework that includes: a performance management framework, a competency framework, succession planning, a high potential to create talent pool (RUWAD) and HR process automation.
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Improved financial and operational performance
Nama Group has recorded significant improvements in its operational and financial performance in the last two years by increasing the distribution and transmission capital assets, connecting more customers and covering new geographic areas, against the backdrop of the population growth that the Sultanate is witnessing. The gross operating revenue of the Group increased by 36% from OMR806 million in 2014 to OMR1.098 billion in 2015. The customer base increased by 7% compared with 2014 to 1,000,591 customers in 2015 and the electricity supplied increased by 14% to 28,727GWh.
We recognize that we have to make significant strides towards meeting the goals of economic diversification as outlined in Oman’s Vision 2020, which emphasizes the importance of energy infrastructure to attract economic investment and the diversification of energy sources through renewables. In reflection, the group companies invested OMR394 million in network expansion compared with OMR363 million in 2014. One of our milestone power plant projects, The Sur Independent Power Plant, came on stream in December 2015; increasing the country’s total capacity for power generation by 2,000MW, which will fuel the growing industrial development and residential growth in the Sharqiya region. Furthermore, our efforts to improve system efficiency through automated meter readings and a comprehensive energy management system is detailed in this report.
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As part of our stakeholder engagement, we have carried out a round table discussion including policy makers, change advocates, suppliers, etc. to generate a white paper on the topic of in-country value.
Demand Side Management
Furthermore, we strive to manage our environmental footprint effectively through judicious use of our resources. We have undertaken several initiatives to achieve our environmental goals, reducing our impact on Oman’s resources and ecosystems. Our main role remains to be focused on influencing behaviour with the objective of reducing the average consumption per customer and the overall peak demand through the introduction of supporting policies through annual awareness campaigns.
Eng. Omar Khalfan Al WahaibiCEO of Nama Group and Chairman of the Sustainability Committee
In 2014, we successfully raised long-term funding to support Nama Group’s capital expenditure of the distribution and transmission network, and to refinance the existing short term borrowings. The Group has also completed the funding of OMR795 million for Tranche One for Oman Electricity Transmission Company (OETC), Mazoon Electricity Company (MZEC) and Muscat Electricity Distribution Company SAOC (MEDC). OETC received an award at the 2015 Middle East Bonds, Loans and Sukuk Awards for a set of 10-year return bonds issued over the year that amounted to $1 billion.
Privatization of the electricity sector and restructuring of the water sector
Based on the request from the Public Authority for Electricity & Water (PAEW), and as per the directives from the Ministry of Finance (MoF), NH initiated a study in 2014 to assess the readiness of MEDC for privatization. In 2015, the first phase of the study was concluded with a review of the precedence and experiences of various countries to assess and evaluate the potential options for privatization. NH will proceed with the second phase of the study in 2016, which will focus on the review of the technical, financial and legal due diligence.
In Country Value for the Future
We focus on enhancing the value we generate for Oman through our operations. We have recently appointed the Distribution Code Review Panel’s Chairman as the In Country Value Chairman to lead initiatives that can support the development of In Country Value from the electricity sector and understand how we can enhance benefits to the Omani society.
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ABOUT US
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DISTRIBUTION/SUPPLY COMPANIES
WADI AL JIZZI POWER COMPANY(WJPC)
AL GHUBRAH POWER AND DESALINATION COMPANY (GPDC)
DHOFAR POWER COMPANY(DPC)
MAZOON ELECTRICITY COMPANY (MZEC)
MAJAN ELECTRICITY COMPANY(MJEC)
RURAL ELECTRICITY POWER COMPANY(RAECO)
MUSCAT ELECTRICITY DISTRIBUTION COMPANY (MEDC)
OMAN ELECTRICITY TRANSMISSION COMPANY (OETC)
OMAN POWER AND WATER PROCUREMENT COMPANY (OPWP)
GENERATION COMPANIES
TRANSMISSION COMPANY
PROCUREMENT COMPANY
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NAMA INSTITUTE FOR COMPETENCY DEVELOPMENT (NICD)
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NAMA HOLDING(NH)
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ABOUT USNama Holding, formerly known as Electricity Holding Company, registered in the Sultanate of Oman on 19 October 2002, is a joint stock company. Nama Holding started its commercial operations on 16 September 2003.
Nama Holding holds shares in ten companies involved in the procurement, generation, transmission, supply and distribution of electricity and water related services. It holds 99.99% of the shares of the Government in eight subsidiary companies in the electricity sector and 98.10% of the shares of Dhofar Power Company. It also runs a training and competency development company called Nama Institute for Competency Development (NICD). The operations of all 10 subsidiaries are spread across Oman, covering the needs of the entire country.
The collective operations and services offered by Nama Holding and its 10 subsidiaries come together under the brand name “Nama Group”
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DISTRIBUTION/SUPPLY COMPANIES
WADI AL JIZZI POWER COMPANY(WJPC)
AL GHUBRAH POWER AND DESALINATION COMPANY (GPDC)
DHOFAR POWER COMPANY(DPC)
MAZOON ELECTRICITY COMPANY (MZEC)
MAJAN ELECTRICITY COMPANY(MJEC)
RURAL ELECTRICITY POWER COMPANY(RAECO)
MUSCAT ELECTRICITY DISTRIBUTION COMPANY (MEDC)
OMAN ELECTRICITY TRANSMISSION COMPANY (OETC)
OMAN POWER AND WATER PROCUREMENT COMPANY (OPWP)
GENERATION COMPANIES
TRANSMISSION COMPANY
PROCUREMENT COMPANY
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NAMA INSTITUTE FOR COMPETENCY DEVELOPMENT (NICD)
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NAMA HOLDING(NH)
01Nama Group consists of the following companies:
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CORPORATE GOVERNANCENama Group is committed to the highest level of governance to fulfil corporate objectives. Good governance provides the framework for creating value for all stakeholders, while upholding legal and ethical obligations of a public company.
Nama Holding’s (NH) management is accountable to the Board of Directors and the internal audit team consistently ensures that the Group applies sound principles of corporate governance. NH’s sole shareholder is the Ministry of Finance.
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SHAREHOLDER
BOARD OF DIRECTORS
EXECUTIVES
Ministry of Finance
Board of Directors
Executive Manager - Group Planning
and Program Management
Group Nomination, Remuneration and Human Resource
Committee
Internal Audit Committee
CompanySecretary
Group Chief FinancialOfficer
Executive Manager - Group Information
Technology
Executive Manager -Group
Communication& Sustainability
Executive Manager -Group Human
Resources
Functional Reporting
Administrative Reporting
Group Chief Auditor
Chief Executive Officer
Executive Manager- Water Restructure
Vice President - Distribution
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NAMA HOLDING’S MANAGEMENT
SHAREHOLDER
BOARD OF DIRECTORS
EXECUTIVES
Ministry of Finance
Board of Directors
Executive Manager - Group Planning
and Program Management
Group Nomination, Remuneration and Human Resource
Committee
Internal Audit Committee
CompanySecretary
Group Chief FinancialOfficer
Executive Manager - Group Information
Technology
Executive Manager -Group
Communication& Sustainability
Executive Manager -Group Human
Resources
Functional Reporting
Administrative Reporting
Group Chief Auditor
Chief Executive Officer
Executive Manager- Water Restructure
Vice President - Distribution
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CREATING A CULTURE OF TRANSPARENCY AT NAMA GROUP
CODE OF ETHICS AND BUSINESS CONDUCT
Nama Group’s Corporate Governance Policy has been built on the philosophy and principles of the code of corporate governance issued by the Capital Markets Authority for SAOG companies. It has been implemented by all subsidiaries, with the view that governance is not just a matter of the board, but a culture that must be absorbed across the Group.
Nama Holding has recently redefined its vision and mission statements. While the new vision informs Nama’s stakeholders on corporate strategy, the mission is to focus on delivering benefits of strategic programmes to all key stakeholders. As an enabling factor, Nama Group conceived values that seek to integrate into all areas of business.
While the governance structure aims to ensure alignment of Nama Group’s strategy and operations to the the vision and mission, the Code of Ethics and Business Conduct has been developed to guarantee ethics and compliance with the law, set forth basic standards of ethical and legal behavior, and help detect and prevent any wrongdoing. The Code of Ethics and Business Conduct applies across the organization, from the Board of Directors and subsidiaries to Nama’s employees, as well as all consultants, contractors and suppliers.
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VISION
MISSION
VALUES
We strive to develop and empower our human resources to deliver safe and sustainable electricity solutions to our customers
To provide electricity solutions by optimising and utilising its resources through implementing five critical strategies, namely:
• Human Resource Development• Health and Safety• Customer Service• Asset Management• Communication
• Team Work• Integrity• Respect• Quality• Customer Focus• Professionalism
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SUSTAINABILITY GOVERNANCE AND POLICYNama Group launched its sustainability policy and the Group’s Sustainability Committee commenced its meetings in 2014. The policy sets Nama Group’s strategic direction to create long-term value for Oman’s economy, society and the environment. Throughout 2015, the Sustainability Committee has been engaging Nama Group’s employees in discussions and activities related to the key sustainability issues.
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KEY ISSUESHealth and Safety
Rapid increasein demand for electricity
Limited energyresource
Young society
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SUSTAINABILITY COMMITTEENama Group’s Sustainability Committee consists of eight members, including three non-executive members. The committee members have comprehensive knowledge of the different elements of sustainability (Social, economic, and environmental). The committee is authorized by Nama Holding’s board to take all required measures to execute the sustainability policy.
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Eng. Omar Al WahaibiCEO, Nama Group
Eng. Ahmed Al JahdhamiCEO of Oman Power and Water Procurement Company
Hon Dr. Fawzia Al FarsiMember of the State CouncilDeputy Chair of the Coordinating Committee of Women, Parliamentarians of the Inter-Parliamentary Union
Eng. Hamed Al MaghderiCEO of Rural Areas Electricity Company
Dr. Mehdi JaaffarIndependent consultant on sustainable development
Eng. Zahir Al AbriCEO of Mazoon Electricity Company
Dr. Hischam El AgamyExecutive Director of International Institute for Management Development (IMD)
Eng. Ali ShamasCEO of Dhofar Power Company
Ms Ghada Al YousefExecutive Manager – Group Communications and SustainabilityCommittee Secretary
Chairman
Executive members Non-executive members
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SUSTAINABILITY OBJECTIVESNama Group has outlined major sustainability objectives which cover the triple bottom line— environmental, social and economic aspects. The objectives provide a tangible way to measure progress and ensure compliance with the sustainability policy. The following illustration highlights the objectives and where this report measures performance.
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SOCIAL OBJECTIVES• We aim to encourage our staff to spend at least one
work day per year on volunteering activities.• We aim to ensure that all customers have safe and
reliable access to electricity across the country.• We aim to reduce the lost time injury frequency
(LTIF) to our staff and contractors to less than one per million work hours.
• We plan to contribute OMR100,000 per annum to charitable causes in Oman.
The ‘Society’ section covers our key initiatives to achieve these social objectives.
ENVIRONMENTAL OBJECTIVES• We have earmarked OMR200,000 yearly for
campaigns to encourage residential customers to reduce electricity consumption.
• We aim to reduce the carbon intensity of electricity and water produced to international standards.
The ‘Environment’ section covers our key initiatives to achieve these environmental objectives.
ECONOMIC OBJECTIVES• We aim to ensure fair treatment of all suppliers and
service providers through the strict implementation of the government tender law.
• We aim to ensure that the Group remains profitable and achieves the targeted rates of returns.
• We aim to spend OMR200,000 per annum on training and developing young talent to help them successfully run micro and small businesses.
The ‘Contribution to Oman’s development’ section covers our key initiatives to achieve these economic objectives.
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INTEGRATED SUSTAINABILITY PLATFORMTo take effective action on sustainable development, it is crucial to measure and monitor KPIs across the Group transparently.
To this effect, Nama Group has opted to develop a Sharepoint-based tool functioning as an integrated sustainability platform to capture KPIs to prepare annual sustainability reports. The tool is a new step in providing for greater transparency among all subsidiaries, helping them track their own performance relative to each other and understand the aggregated data for Nama Group as a whole.
The portal will reduce manual efforts by eliminating the use of Excel sheets that are prone to errors and ensuring accurate tracking of sustainability indicators. The portal is also a repository to store all the documents pertaining to sustainability KPIs. While there were several challenges in gathering and processing data across the Group, the sustainability portal will streamline reporting in the coming years.
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ABOUT THIS REPORT
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ABOUT THIS REPORTThe development and publication of the first baseline sustainability report signifies the commitment to embed sustainability practices across the Group. The report covers environmental, social and economic aspects and covers the operations of Nama Group, including Nama Holding and its ten subsidiaries.
This report has been prepared in accordance with the Global Reporting Initiative (GRI) G4 core reporting guidelines and references elements of the G4 electricity utilities supplement. The GRI G4 framework has ensured that this reportcovers the topics which are most material to the industry and Nama’s stakeholders.
The processes for engaging with stakeholders and selecting material topics to include are outlined in the following pages.
The report covers data from the period of January 2014 to December 2015, unless otherwise stated.
In future, the report will cover progress on an annual basis.
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STAKEHOLDER ENGAGEMENT
Nama Group is committed to engaging with stakeholders to understand their environmental, social, economic and governance concerns. In the reporting period, consultations and discussions have been carried out with the following six sets of stakeholders, which helped us define key material issues.
Engagement is a key process in identifying the material topics for inclusion within the report. Nama Group is committed to enhancing the stakeholder engagement process in the future to enable a better understanding and respond to stakeholder expectations.
The table on the following pages illustrates the different channels used to communicate with stakeholders, based on their convenience, as well as their key areas of concern.
GOVERNMENT ENTITIES AND REGULATORS
CUSTOMERS
NAMA HOLDING AND NAMA GROUP’S BOARD OF DIRECTORS
EMPLOYEES
NONGOVERNMENTAL ORGANIZATIONS
SUPPLIERS, CONTRACTORS AND VENDORS
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STAKEHOLDER ENGAGEMENT METHODS AND AREAS OF CONCERN
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STAKEHOLDER ENGAGEMENT METHOD AREAS OF CONCERN
Government entities and regulators
• Face-to-face meetings, emails and periodic reports
• Business plan preparation• Policy preparations• Annual report
• Efficiency, financial expenditure, and reduction in subsidies required
• Compliance with policies and procedures
• Timely issuance of reports and response to queries
• Reputation
Nama Holding and Nama Group’s Board of Directors
• Face-to-face meetings with subsidiary executives
• Phone calls, emails and reports• Trainings• Off-site visits
• Keeping with annual budget and maximization of profit
• Reputation of subsidiaries• Achievement of corporate KPIs
Employees • Surveys, face-to-face meetings, emails and circulars
• Trainings and workshop• Engagement with unions
• Overall employee satisfaction• Salaries and other rewards• Improvement of the work
environment, with focus on safety and health
• Recruitment effectiveness of HR• Personal development tailored
to departments and employees
Customers • Personal phone calls via call centre• Face-to-face meetings• Email and social media• Customer satisfaction survey
• Bills issued• Speed, quality and consistency
of service• Environmental protection
Nongovernmental organizations (NGOs)
• Quarterly and monthly meetings• Publications
• Performance on social KPIs• Compliance with labour
standards
Suppliers • Email communication• Training sessions and workshops• Issuance of communication reports and
tenders
• Quality• Meeting contractual deadlines• Health, safety and environment
(HSE) policy• Paying invoices on time• Procurement process
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IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
Material aspects are issues considered important for reflecting the organization’s economic, environmental and social impacts, or to influence the decisions of stakeholders, and, therefore, potentially merit inclusion in the report. To identify the material issues, Nama Holding conducted a materiality workshop with stakeholders from all subsidiaries.
During the materiality workshop, the participants mapped the existing stakeholder interactions and concerns. This further informed the prioritization of material issues to include in the report this year.
Stakeholders were invited to rank material topics according to the topics’ importance to them and also in terms of business strategy. The topics were mapped identified as ‘high’ importance to both the business and stakeholders. The topics of high importance to both stakeholders and the business are the ones chosen and used prominently in the report, with topics ranked ‘medium’ being disclosed in less detail. Once topics were ranked they were linked to aspects and KPIs from the GRI reporting framework in order to standardize performance measurement.
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wH
igh
IMPO
RTAN
CE T
O S
TAKE
HO
LDER
S
Low HighIMPORTANCE TO NAMA'S BUSINESS
ASPECT DETERMINED MATERIAL FOR NAMA GROUP AND INCLUDED IN THE REPORT
ASPECT REFERENCED IN THE REPORT, BUT REPORTED IN LESS DETAIL
ASPECTS NOT REPORTED IN THE REPORT
• Human right• Equality• Marketing
• Omanization and ICV• HSE• Compliance• Impact on society• Traning and development• Economic performance• Attracting and retaining
talent
• Customer satisfaction
• Sustainable supply chain management
• Energy conservation and Greenhouse Gas emissions managment
• Alternative energy• Risk management• IT security• Grievance mechanism
• Volunteering and donations
• Employee engagement
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This illustration provides further detail on what each material aspect means and the GRI indicators used to measure Nama Group’s performance.
OMANIZATION AND ICV
TRAINING AND DEVELOPMENT
SUSTAINABLE SUPPLY CHAIN MANAGEMENT
ALTERNATIVE ENERGY
ENERGY CONSERVATION AND GREENHOUSE GAS (GHG) EMISSIONS MANAGEMENT
Ensuring recruitment of Omani talent wherever possible.
EC6 - Proportion of senior management hired from the local community at significant locations of operation.
EC9 - Proportion of spending on local suppliers at significant locations of operation.
Providing skills, competency, and health and safety training to all employees and contractors.
LA9 – Average training hours.
LA11 - Number of employees receiving performance review.
Ensuring that the whole supply chain for raw materials and contractors follows sustainable practices.
G4-12 – Description of supply chain.
EU17 – Days worked by contractor and subcontractor employees involved in construction, operation and maintenance.
Developing renewable energy solutions to diversify energy portfolio.
EU1 – Installed Capacity.
EU2 - Net energy output broken down by source and regulatory regime.
Reducing carbon emissions from the Group’s operations and fuel use, and promoting energy conservation in Oman.
EN3 - Energy consumption within the organization, EN15 - Direct greenhouse gas (GHG) emissions (Scope 1), EN16 - Energy indirect greenhouse gas (GHG) emissions (Scope 2).
Demand-side management.
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COMPLIANCE
ECONOMIC PERFORMANCE
ATTRACTING AND RETAINING TALENT
IMPACT ON SOCIETY
CUSTOMER SATISFACTION HSE
Maintaining transparent relationships with regulators and government and operating in compliance with regulations.
SO8 - Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.
Providing value to shareholders across the group through sound financial performance.
EC1 - Direct economic value generated and distributed.
Ability to attract suitable individuals for different roles and ensure that they stay with the organization for the long term.
LA1 – New employee hiring and employee turnover rates and number.
Making a positive impact on society through responsible business practices, including investment into renewable energy sources and increasing reliability of the Group’s systems.
Disaster planning and emergency response.
Keeping customers satisfied through customer-oriented service.
PR5 – Customer Satisfaction.
Providing a safe workplace for employees and contractors.
LA6 - Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities.
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The list of material aspects outlined by the stakeholders was validated and approved by Nama Group’s Executive Management.
As a first-time report, some challenges were faced in terms of data availability. Some aspects have never been tracked, so historical data was not available to report on for the given time period. This table indicates what type of data was received and incorporated in the report. The team will be establishing processes to close gaps in data availability and Nama Group are confident that within the next few years, more material aspects can be reported on the entire Group using relevant KPIs.
COMPANIES REPORTING
MATERIAL TOPIC MATERIAL ASPECT
GRI INDICATOR
BOUNDARY WITHIN NAMA GROUP - SUBSIDIARIES
BOUNDARY OUTSIDE NAMA GROUP
NAMA HOLDING COMPANY
(NHC)
WJPC GPDC DPC RAECO OPWP OETC MEDC MJEC MZEC
Customer satisfaction Customer satisfaction
G4-PR5 Distribution companies MEDC, MZEC, MJEC, RAECO, DPC
Customers, suppliers
x x x x x
Sustainable supply chain management
Supplier assessment for labour practices
G4-LA14 All Suppliers x x x x
Employment EU17 Generation companies WJPC, GPDC, DPC, RAECO
Suppliers x
Omanization and In-Country Value (ICV)
In-country value: local hiring
G4-EC6 All Government entities and regulators, Suppliers
x x x x x x x
In-country value: procurement
G4-EC9 All Government entities and regulators, Suppliers
x x x x x x x x
Economic performance Economic performance
G4-EC1 All Government entities and regulators, Suppliers
x x x x x x x x x x
Energy conservation and GHG emissions management
Energy G4-EN3 All Government entities and regulators, Suppliers, Customers
x x x
Emissions G4-EN15 All x x x
G4-EN16 All x x x
Training and Development training and education
G4-LA9, G4-LA11
All Customers, Government entities and regulators, Suppliers
x x x x x x
Attracting and retaining talent
Employment G4-LA1 All x x x x x x
Impact on society Alternative energy
EU1, EU2 Customers, Government entities and regulators
x x x
Impact on society Compliance G4-SO8 All Government entities and regulators
x x x x x x x x x x
IT Security IT Security Non-GRI All Customers, Government entities and regulators
x x x x x x
Volunteering and donations Volunteering and donations
Non-GRI All NGOs, Customers x
Impact on society Disaster/ emergency planning and response
Electricity sector supplement
All Customers, Government entities and regulators
x x x x x x x x x x
HSE Occupational Health and Safety
G4-LA6 All Government entities and regulators, Suppliers
x x x x x x x x x x
HSE Water conservation
G4-EN8 All Government entities and regulators, Suppliers, Customers
x x x x x x x x
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COMPANIES REPORTING
MATERIAL TOPIC MATERIAL ASPECT
GRI INDICATOR
BOUNDARY WITHIN NAMA GROUP - SUBSIDIARIES
BOUNDARY OUTSIDE NAMA GROUP
NAMA HOLDING COMPANY
(NHC)
WJPC GPDC DPC RAECO OPWP OETC MEDC MJEC MZEC
Customer satisfaction Customer satisfaction
G4-PR5 Distribution companies MEDC, MZEC, MJEC, RAECO, DPC
Customers, suppliers
x x x x x
Sustainable supply chain management
Supplier assessment for labour practices
G4-LA14 All Suppliers x x x x
Employment EU17 Generation companies WJPC, GPDC, DPC, RAECO
Suppliers x
Omanization and In-Country Value (ICV)
In-country value: local hiring
G4-EC6 All Government entities and regulators, Suppliers
x x x x x x x
In-country value: procurement
G4-EC9 All Government entities and regulators, Suppliers
x x x x x x x x
Economic performance Economic performance
G4-EC1 All Government entities and regulators, Suppliers
x x x x x x x x x x
Energy conservation and GHG emissions management
Energy G4-EN3 All Government entities and regulators, Suppliers, Customers
x x x
Emissions G4-EN15 All x x x
G4-EN16 All x x x
Training and Development training and education
G4-LA9, G4-LA11
All Customers, Government entities and regulators, Suppliers
x x x x x x
Attracting and retaining talent
Employment G4-LA1 All x x x x x x
Impact on society Alternative energy
EU1, EU2 Customers, Government entities and regulators
x x x
Impact on society Compliance G4-SO8 All Government entities and regulators
x x x x x x x x x x
IT Security IT Security Non-GRI All Customers, Government entities and regulators
x x x x x x
Volunteering and donations Volunteering and donations
Non-GRI All NGOs, Customers x
Impact on society Disaster/ emergency planning and response
Electricity sector supplement
All Customers, Government entities and regulators
x x x x x x x x x x
HSE Occupational Health and Safety
G4-LA6 All Government entities and regulators, Suppliers
x x x x x x x x x x
HSE Water conservation
G4-EN8 All Government entities and regulators, Suppliers, Customers
x x x x x x x x
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CONTRIBUTION TO OMAN’S
DEVELOPMENT
41
• Economic performance (G4-EC1)
• In-country value: local hiring (G4-EC6)
• In-country value: procurement (G4-EC9)
• Alternative energy (EU1 and EU2)
• IT security
• Disaster/emergency planning and response
• Supplier employment (EU17)
• Supplier assessment for sustainability issues (G4-LA14)
2015 SUSTAINABILITY REPORT
CONTRIBUTION TO OMAN’S DEVELOPMENT
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The World Bank’s Doing Business report has recognized Oman’s electricity sector as one of the key factors that make it easier for businesses to operate in the Sultanate. Oman has leaped 64 positions in the ease of getting electricity index, which is one of the ten topics considered in estimating the Doing Business rankings. Globally, Oman is 60th in the ranking of 189 economies in the ease of getting access to electricity. The rankings reflect improvements in power supply application procedure, supply outage occurrences and elimination of inefficiencies in the distribution network.
Easy and reliable access to electricity is a factor almost any business would consider prior to deciding to invest in Oman. Nama Group, as an electricity provider, has a major role to play in attracting investments and sustaining economic prosperity across all sectors of the economy. A national energy strategy is being developed at the regulator level to ensure that the nation’s needs are adequately served by the utilities sector in the long term. Nama Group and the utilities sector are proactively evaluating ways to operate more sustainably in preparation for the strategy rollout.
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This section of the report explains Nama Group’s role in Oman’s sustainable development by efficiently meeting the growing demand for electricity and water and by developing local talent in the workforce and supply chain.
Oman’s utilities sector is currently supported by government subsidies on infrastructure and fuel. Led by Nama Group, the sector is implementing measures to reduce government costs of providing electricity and water so that subsidies can be better used elsewhere. To reduce infrastructure costs on the government, the private sector has been invited to participate in generation activities that Nama Group procures from, with a view to ultimately privatize the entire sector and completely remove the burden on the government.
To reduce fuel costs for the government, Nama Group promotes energy efficiency and fuel diversification throughout the sector.
By efficiently providing electricity and water, Nama Group reduces its fuel requirement per customer, cuts the need for subsidies on fuel and allows fuel to be diverted to higher-value economic activities. Efficient power and water production also reduces the sector’s emissions footprint and contribution to climate change.
Rural Areas Electricity Company (RAECO) is Nama Group’s first subsidy to invest in renewable energy to reduce reliance on diesel, an expensive and emissions-intensive fuel. The company is rolling out several small-scale renewable pilot projects to replace its diesel generation sets, detailed in this chapter. Depending on the direction of Oman’s energy policy in the future, Nama Group aims to procure up to 10% of Oman’s 2025 power needs from renewable sources.
2015 SUSTAINABILITY REPORT
PROVIDING RELIABLE ELECTRICITY AND WATER SUPPLYOman’s energy demand has expanded rapidly over the past few years, following continued and country-wide industrialization, population growth and significant infrastructure investment by the Government of Oman. In the past ten years, private sector investment has helped to double Oman’s power generation capacity. In 2015 Oman Power and Water Procurement Company (OPWP) was able to procure 28,790 GWh from independent plants, compared to the 3,573 GWh generated by Nama Group’s own assets at Al Ghubra Desalination and Power Company (GPDC), Wadi Al Jizzi Power Company (WJPC) and Rural Areas Electricity Company (RAECO). Similarly, OPWP procures the majority of the country’s water needs from independent desalination plants (often combined with power plants).
The long-term model for the Group is to continue moving away from energy generation at older assets towards procuring electricity and water from cleaner and more efficient independent plants.
Efficiency improvements have reduced the per-unit consumption of gas by 31% since 2005, these include:
• New high-efficiency turbines• Increasing share of combined cycle
plants• Displacement of older plants• Improvements in economic dispatch
Decommissioning plans are in place to phase out generation at Nama Group’s ageing Wadi Al Jizzi Power Company (WJPC) and Al Ghubra Power and Desalination Company (GPDC). RAECO’s rural diesel operations will gradually be replaced by more efficient combined cycle gas power plants connected to the grid by Oman Electricity Transmission Company (OETC)’s network. For rural locations which are difficult to connect to the grid, renewable power generation or small-scale diesel plants remain an option.
In 2015, Nama Group passed the one million customer mark. Improvements in network efficiency through transmission and distribution efforts by reducing losses enable Nama Group to deliver better value to its growing customer base at lower operational and environmental costs.
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45
2015
28,727
3,573
2014
25,121
4,454
28,79025,090
2015
190
50
2014
156,2
53,63
2015
125,905
874,686
2014
115,599
816,609
Customers connected to Rural electricity system (RAECO) , includes Dhofar (DPC).Customers connected to Main Interconnected System (MIS).
Water generated (m3) Water procured (m3)
Electricity procured (GWh)- ExternalElectricity generated (GWh)Electricity sold
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RENEWABLE ENERGY
OPWP plans the procurement of electricity and water based on an annual 7-year demand forecast. The evidence gathered to make the forecast as accurate as possible includes consultations with stakeholders, such as business owners and the Ministry of Housing to understand what type of expansion plans are being considered. For long term forecasting, a tool called AURORA is used to establish power planning models. The tool takes into account potential future developments between 2025 and 2035.
The existing National Energy Strategy and Energy Conservation plan proposes a renewables target of 10% of 2025 power generation, equivalent to 3 GW. Beyond 10% of renewables, the costs of power generation begin to increase rapidly in the 2025 market scenario.
Subsidies on the electricity sector are an economic burden on the country. Phased reform will move the sector towards a more efficient and commercial operating model.
Nama Group, the sector and the regulator face decisions regarding the sector’s future energy mix. Various scenarios have been planned to evaluate wind, solar, coal and nuclear options to complement the existing capacity. Only renewables provide rapidly deployable, scaleable diversification options; coal or nuclear require minimum 1GW commitment.
46
12000
10000
6000
8000
4000
2000
0
SOHAR III
IBRA
SALALAH II
SUR
BARKA III
SOHAR II
SEMBCORP
TEMPGEN
SOHAR I
DHOFAR GENERATION COMPANYALKAMIL
MANAH
RUSAIL
BARKA II
BARKA I
WADI AL JIZZI POWER COMPANY SAOCGHUBRAH
PEAK
2005
DEMAND
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
YEAR
MW
10% Annual Growth in Contracted Power Capacity (2005-2020)
POWER DEMAND AND GENERATION CAPACITY
PLANNING FOR THE FUTURE
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SYSTEM EFFICIENCYNama Group is committed to improving system efficiency, as it would significantly reduce wastage along with bringing down costs. The three major elements driving the system efficiency in the Group’s generation, transmission and distribution activities are:
RENEWABLE ENERGY LOCATION SUBSIDIARY STATUS
0.3MW solar photovoltaic (PV) power plant
Al-Mazyunah RAECO In operation
0.043MW of solar power on rooftop and car parking
Head office in Sohar Majan Electricity Company
In operation
50MW wind farm Harweel, Dhofar RAECO Future project
1.6MW wind farm Masirah RAECO Future project
2MW solar power Ibri, Al Dahriah RAECO Future project
2MW solar power Al-Sharqiah RAECO Future project
2MW solar power Mudhai, Dhofar RAECO Future project
0.5MW solar power Fatkhait, Dhofar RAECO Future project
0.5MW solar power Harweel, Dhofar RAECO Future project
• SMART METER INITIATIVE (DISTRIBUTION)
• ENERGY MANAGEMENT SYSTEMS (GENERATION, TRANSMISSION, DISTRIBUTION)
• ENERGY CONSERVATION CAMPAIGNS (DISTRIBUTION)
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• DISASTER AND EMERGENCY MANAGEMENT (GENERATION, TRANSMISSION AND DISTRIBUTION)
RAECO’s first solar pilot project is already in operation, with seven other small-scale solar and wind options in the pipeline. The distribution company Majan Electricity Company (MJEC) incorporated solar panels into the roof and car park of its energy- efficient head office. Future planned tariff reforms will also provide a stronger business case for larger-scale renewable projects to replace some of the sector’s fossil-fuel plants in the future.
2015 SUSTAINABILITY REPORT
Nama Group is in the process of installing smart meters for high-value customers in Oman. The Smart Meter Initiative is crucial in providing superior customer service and raising levels of efficiency. These meters would allow for automated meter reading (AMR) and enable distributor companies, as well as customers, to better understand electricity consumption. Customers, for example, can gauge their consumption and effectively conserve energy according to their needs, while distributors can anticipate the market’s demands profile, allowing them to pursue Demand-Side Management strategies with more vigour. AMR can also detect and record instances of electricity theft and leaks due to faulty transformers or system deficiencies. These features help large industrial or high-value customers to limit their electricity consumption and help them reduce their bills.
This would eventually translate into reduced prices for products and services, thus rendering Omani companies more competitive and reducing spending for consumers. Faster meter reading and billing is another key benefit, which help supports distribution companies in securing their revenues. Currently the AMR project is being rolled out on a small scale with the aim of having 8,000–10,000 of Oman’s largest electricity consumers participate.
SMART METER INITIATIVE
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To obtain a high-level analysis for the Group’s expanding networks, the implementation of sound energy management systems is important. This would increase the efficiency of the Group’s operations by using real-time forecasts and scenarios. The next phase of improvements to the system is to connect energy management systems and distribution systems to generate reports using more comprehensive data analysis. This is would support the Group in raising the reliability and accuracy of forecasting.
Reliability
Nama Group further developed processes to deal with power outages more effectively by beginning to record data for the annual System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI).
Recording and analysing the duration and frequency of outages helps us identify and eliminate inefficiencies, and immediately address errors in the system. It is executed through supervisory control and data acquisition (SCADA), which acts as a master control system for the grid. SCADA is connected through its own telecommunications network and can run independently in case of telecom provider issues. This system allows the monitoring of power flow, supply and demand in real time, which can work efficiently to minimize impact in affected areas during outages, and enables a quick response. The system has been integrated, so that it is capable of monitoring supply and demand of electricity while adjusting generation autonomously, thereby maximizing efficiency and simultaneously minimizing uninterrupted electricity supply.
ENERGY MANAGEMENT SYSTEMS
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Further to ensuring system reliability, another key focus area for Nama Group is to reduce the likelihood of a disaster occurring, that negatively impacts the Group’s infrastructure, and have mitigation measures in place to reduce damages for cases where disasters could not have been prevented. The Group monitors and compre hensively reviews risks related to natural disasters and adverse socioeconomic issues, such as strikes and economic volatility. The priority is limiting negative impacts to local communities and natural environment, as well as being able to quickly restore all necessary infrastructure. The Group is investing in competency development to ensure that disaster management is implemented effectively.
As a result, each company provides annual training sessions to its employees on managing disasters and other emergencies. These training sessions are analysed and recorded, sin order to track and monitor progress.
DISASTER MANAGEMENT
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CASE STUDIES
53
IN DISASTER MANAGEMENT AND BUSINESS CONTINUITY
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BUSINESS CONTINUITY
MANAGEMENT FRAMEWORK
BUSINESS CONTINUITY
PLAN
CRISIS MANAGEMENT
PLAN AND COMMUNICATION
GUIDELINES
DISASTER RECOVERY
PLAN
ENTERPRISE RISK
MANAGEMENT PLAN
INCIDENT MANAGEMENT
PLAN
ELECTRICAL EMERGENCY
MANAGEMENT PLAN
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RURAL AREAS ELECTRICITY COMPANY (RAECO) Rural Areas Electric Company (RAECO) has developed a business continuity management (BCM) framework to appropriately address disasters and other emergencies. This framework aids RAECO in managing strategic, operational, financial and stakeholder risks associated with service interruptions. The policy also emphasizes the importance of maintaining RAECO’s capacity to continue business processes with minimum impact in case of interruption.
RAECO acknowledges the fact that a sound business continuity policy and associated planning are fundamental to insure against organizational and reputation risk to RAECO in case of business interruption. All RAECO departments have insisted on developing, exercising and maintaining plans for the resumption and recovery of business functions and processing resources.
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DEVELOPMENT OF EMERGENCY PLANS AT DPC
Dhofar Power Company (DPC) has made significant strides in addressing such issues by implementing an emergency plan approved by relevant authorities. This plan was developed after the storm Chapala and contains seven different scenarios, including environmental, emergency plant and blackout procedures, billing, assessment, business continuity and asset continuity. DPC will review this plan during monthly meetings and continue to update DPC’s risk assessment and crisis response capability. One concern voiced by DPC is that some of the land allocated by the Ministry of Housing is located in low-lying areas prone to flooding. In response to this concern, DPC is currently developing guidelines that outline key requirements in selecting the most appropriate sites. Additional features added by DPC following crisis situations, are to document lessons learnt and to communicate emergency management messages in more languages than Arabic and English so that all communities are adequately prepared.
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With Nama Group incorporating more IT solutions to maintain and plan the performance of its grid infrastructure, IT security is increasingly important for the reliability of the network. Without IT security, these systems are highly vulnerable to attack. In response, the Group began the process of achieving ISO 27001 certification to secure the IT infrastructure across all subsidiaries. ISO 27001 is an international standard that can support the Group in this respect, particularly in terms of information security and data processing. Nama Holding has already conducted the internal IT security assessment and obtained ISO 27001 certification. Most of the Group’s subsidiaries have also either already conducted the security assessment or obtained certification.
IT SECURITY
COMPANY SECURITY ASSESSMENT
ISO 27001
OETC
MEDC
GPDC
OPWP
WJPCO
NAMA HOLDING COMMENCED
DONE
DONE
DONE
DONE
DONE
DONE
DONE
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IN PROGRESS
NOT APPLICABLE
DONE
NOT APPLICABLE
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COMPLIANCE WITH THE SECTOR REGULATIONS
GENERATING ECONOMIC VALUE
Nama Group companies regularly conduct internal and external audits to ensure compliance with the sector and other local regulations. This year, MEDC and MJEC both settled fines for non-compliance with distribution activities.
As in previous years, Nama Group continued to register a strong growth rate for 2014 and 2015 on multiple parameters.
In 2014 and 2015, Nama Group invested OMR363million and OMR394 million respectively across our entire Group in network expansion.
Our customer base has increased by 7% to 1,000,591 subscribers and electricity supplied increased by 14% to 28,727 GWh.
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Omar Al Wahaibi, Group CEO
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Electricity distribution increased to meet increasing demand from existing customers and additional customers to the grid, principally by expanding into new geographic areas.
The Group revenue increased by 36% from OMR806 million in 2014 to OMR1.098 billion in 2015. This demonstrates Nama Group’s ability to deliver strong financial performances, increasing shareholder and board confidence, and easing any concerns regarding profitability.The Group receives revenues in the form of subsidies, which made up over 40% of the 2015 total revenue. In the coming years, the revenue mix will change to reflect the phase-out of subsidies and introduction of cost-reflective tariffs. The subsidiaries have developed near-term plans to ensure financial sustainability as subsidies get phased out. These plans include improved energy efficiency and cost optimisation projects.
NAMA GROUP ECONOMIC VALUE GENERATED AND DISTRIBUTED
2014 2015
Direct economic value generated
Revenues OMR ‘000 832,367 1,098,685
Economic value distributed
Operating Costs OMR ‘000 630,666 888,786
Employee wages and benefits OMR ‘000 63,413 64,808
Payments to providers of capital OMR ‘000 16,908 34,940
Payments to government OMR ‘000 20,749 19,896
Community investments OMR ‘000 45 298
Economic value retained OMR ‘000 69,465 87,341
Companies reported: GPDC | DPC | WJPC | NH | MJEC | MEDC | MZEC } OETC | OPWP | RAECO
Revenue generated 806
Profit after tax 1232014
Revenue generated 1098
Profit after tax 1102015
Economic performance of Nama Group (OMR millions)
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UNDERSTANDING IN COUNTRY VALUE (ICV)
62
Nama Group has adopted the oil and gas sector’s definition of ICV, which is “The total spend retained in country that benefits business development, contributes to human capability development and stimulates productivity in Oman’s economy”. The Group has established an ICV committee to drive the following action areas:
• Develop Omani Suppliers & Contractors (e.g. develop capabilities, tenders awareness, encourage micro and SMEs, transfer of knowledge from international contractors)
• Omani human resources Development (e.g. direct staff development, contracted staff development)
• Omani Products (e.g. purchasing, encourage enhancements, develop new products and industries)
• Establish procurement practices which encourage the participation of SMEs and entrepreneurs, such as requiring 10% of contract value to be met by SMEs.
The Sustainability Committee recently organized a panel discussion with senior business leaders from the country to discuss ICV, its challenges and opportunities in the electricity sector.
The objectives of the round table discussion were to identify mutually beneficial opportunities, develop white papers that can further enable the implementation of the Group’s sustainability objectives, engage the public and media in the topic, and identify new projects for implementation by Nama Group and the industry at large.
The leaders also analyzed issues like creation of jobs for Omanis and technical training of new graduates. The fall in oil prices and its impact on the implementation of the ICV strategy was another topic widely discussed at the forum.
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ICV COMMITTEENama Group’s ICV Committee is chaired by the Distribution Code Review Panel’s (DCRP) current Chairman. The Committee includes representatives from HR, Procurement and the Sustainability Committee who will deliver the ICV objectives across Nama Group
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OMANIZATIONAs Omanization is a key component to Nama’s ICV contribution, the group supports this national priority by developing its workforce’s capacity to enable more local value. As a prominent example, Wadi Al Jizzi Power Company (WJPC) requires all of its employees working in maintenance and operations to be locals, with most staff originating from the Batinah region. With the support of Nama Group’s partners and suppliers, the Omanization program has been successful and 92% of the Group’s employee base is made up of Omanis. The Group’s Omani Career Development Committee (OCDC) has planned and coordinated training with each subsidiary Human Resource manager to provide employees with the key skills that they need to succeed. A particular success in local hiring is evident in the SCADA engineering team, which boasts 100% Omani citizens in its team, considered among the highest skilled teams in the Middle East region.
NAMA GROUP OMANIZATION PER MANAGEMENT LEVEL
2014 2015
% Omanization for the whole organization 91% 92%
% Omanization at senior management level*(includes Board Members, Group and Senior Managers)
85% 79%
*Companies reported: GPDC | DPC | NH | MJEC | MEDC | OETC | OPWP | RAECO
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PROCUREMENTTo ensure the fair treatment of all suppliers and service providers Nama Group implements the government tender law. Nama Holding has developed a procurement policy in line with the tender law which outlines the procurement requirements such as local content requirements and safety responsibilities. In addition, all subsidiaries have set targets to reduce single sourcing procurements on a department-level with internal and external audits aiding us in enforcing these directives.
Moving away from single-sourcing adds multiple layers of complexities and Nama Group has taken measures to mitigate negative impacts on the supply chain. For example, to adjust the lead time for purchases, especially for large primary equipment, the Group incorporates additional time required into overall planning processes and contract durations. However, certain equipment and systems, such as GIS switch gear and SCADA systems, tie the Group to particular manufacturers and therefore limit the ability to diversify the range of suppliers.
In 2014 and 2015, 85% of the goods and services for Nama Holding Company were procured locally from companies registered in Oman, encouraging us to keep measuring this KPI to establish trends and adopt measures to increase this percentage, so as to maximize the generation of ICV.
Nama Group also engages local suppliers on priority topics, such as Omanization, by encouraging them to increase employment opportunities for Omani citizens. The Group facilitates one-on-one engagement, as well as conferences that can also function as a common platform for local suppliers to participate and interact with other suppliers, and identify new business opportunities.
The Government of Oman also requires that small and medium-sized enterprises (SMEs) are involved up to 10% in any major project , so as to support the diversification of the supplier base in the long-run.
Nama Group makes every attempt to purchase local equipment and rely on foreign products only if the products are not available in the local market. We also make sure that foreign procurement is done directly or through Omani firms to maximize the Group’s impact on Oman’s economy.
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NAMA GROUP SPENDING ON LOCAL PROCUREMENT
2014 2015
Total spending on local procurement (OMR ‘000) 642,798 857,075
Total spending on procurement (includes non-local spending)
948,370 1,231,866
% Spending on local procurement 68% 70%
Companies reported: DPC | MZEC | MEDC | OETC | OPWP | RAECO | WJPC | NH
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2015 SUSTAINABILITY REPORT
PROVIDING EQUAL OPPORTUNITIES FOR COMPANIES IN THE SUPPLY CHAIN Creating a transparent procurement process is a key component in embedding good governance and ethical practices within the supply chain. The procurement teams review all suppliers against Oman’s tender law requirements. Local content, cost and safety are the other key elements in prioritizing partners to work with.
Nama Group’s procurement process is currently under review to incorporate requirements that support the generation of ICV and small and medium-sized enterprises (SMEs). The Group is updating group-wide procurement procedures to comply with the Oman Authority Partnership for Development (OAPFD) requirements. NH must ensure all its foreign partners with whom a contract exceeds OMR5million commit to invest 50% of the value of the project to a project for Oman’s development. The project must be pre-approved by the OAPFD. This year, NH’s contract with Oman Cables is subject to the OAPFD ICV requirements.
On a smaller scale, the Group’s support for SMEs extends to purchasing gift materials from five different SMEs in preparation of the 2015 National Day celebrations. MJEC also encourages SMEs to bid for projects by waiving certain procurement prerequisites.
While HSE requirements are already incorporated into RFPs (tender documents), it is difficult to introduce a specific green procurement policy due to the supplier options and market maturity. In the future, this might be a point to consider, should the Group have more supplier options to match all procurement criteria.
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SUPPLIER MANAGEMENT
SUPPLIER ASSESSMENT
Nama Group works extensively with contractors to complete a large variety of projects. Furthermore, to conduct its operations, the Group requires a significant amount of products and services procured from suppliers. Both suppliers and ccontractors have their own social, environmental and economic impacts. As the Group is committed to improving its impact, the supply chain is taken into account. Oman Electricity Transmission Company has stepped ahead and developed an environmental policy aiming to
“As far as possible, purchasing products and services that do the least damage to the environment, and encouraging contractors to do the same.”
The following section covers how the Group engages with suppliers and contractors with regard to safety and transparency.
The energy sector comprises a complex network of suppliers and contractors at the procurement, operations and distribution stages. To maintain and enhance this network, the Group has to continuously engage with new suppliers. The Group assesses new suppliers on sustainability metrics such as compliance with the Oman Tender Law and where required, specific safety requirements within the contract. This year, some subsidiaries report on the number of suppliers screened using sustainability metrics. As the Group’s procurement processes mature, the subsidiaries may be required to incorporate additional sustainability metrics into their supplier screening process.
GROUP COMPANIES TOTAL NUMBER OF NEW SUPPLIERS IN 2014
PERCENTAGE OF NEW SUPPLIERS SCREENED IN 2015
TOTAL NUMBER OF NEW SUPPLIERS IN 2014
PERCENTAGE OF NEW SUPPLIERS SCREENED IN 2015
DPC 79 83
MEDC 150 100 56 100
RAECO 182 100 186 100
WJPC 3,771 31% 7,018 17%
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2015 SUSTAINABILITY REPORT
One such sustainability metric is fair labour practices. To ensure fair labour conditions, the Group needs to monitor the total working days and hours supplied to us by third parties, such as contractors and subcontractors. The table below indicates this for RAECO’s operations. Six different subcontractors carried out construction work and maintenance activities for RAECO in 2014 and 2015.
RAECO Third-party man-days worked on construction, operation and maintenance activities: 2014
RAECO Third-party man-days worked on construction, operation and maintenance activities: 2015
CONTRACTOR SUBCONTRACTOR INDEPENDENT CONTRACTOR
TOTAL DAYS
Kalhat Services & Trading 11 * 301
AL Masa Services Cleaning 10 * 301
Fak Asad Trading 6 * 301
MASHARIF ALWAEDA 1 * 301
Al-Jazer Gulf Trading 8 * 301
Kalhat Services & Trading DCRP 1 * 301
37 1,806
CONTRACTOR SUBCONTRACTOR INDEPENDENT CONTRACTOR
TOTAL DAYS
Kalhat Services & Trading 11 * 305
AL Masa Services Cleaning 10 * 305
Fak Asad Trading 6 * 305
MASHARIF ALWAEDA 1 * 305
Al-Jazer Gulf Trading 8 * 305
Kalhat Services & Trading DCRP 1 * 305
Total subcontractors 37 Total independent contractors
1,830
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SOCIETY
73
• Customer satisfaction (G4-PR5)
• Occupational health and safety (G4-
LA6)
• Employee training (G4-LA9)
• Employee reviews (G4-LA11)
• Employee retention (G4-LA1)
• Volunteering and donations
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SOCIETYThe reliable provision of both electricity and water goes hand-in-hand with economic prosperity and human development. However, in addition to the broader socioeconomic impacts of Nama Group’s core business, the Group can also impact communities positively on a micro scale via numerous sustainability investments and initiatives. These initiatives help us maintain a close relationship with communities across the country and provide support where it is most needed.
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2015 SUSTAINABILITY REPORT
CUSTOMERSAll Nama Group’s customers are members of Omani society. Every resident within the State of Oman requires the services that Nama Group provide, either directly via air conditioning and lighting, or indirectly, by purchasing products and services that can only be delivered by utilizing electricity and water . As a result, customer satisfaction is the central pillar of the Group’s vision.
CUSTOMER SATISFACTION SURVEYThe Group’s key interface with customers is through the distribution companies, namely MEDC, MJEC, MZEC, DPC and RAECO. Nama Group provides a wide range of power and utility services to commercial customers and the general public through all subsidiaries.
The Group conducted a detailed customer satisfaction survey for all distribution companies. This allows the management to better comprehend customer perception on services and delivery channels.
OVERALL MZEC DPCMEDC RAECO MJEC
73.0 66.3 78.7 79.8 65.1 73.2
76
2015 Nama Group customer satisfaction scores (%)
2015 SUSTAINABILITY REPORT
RAECO had the highest customer satisfaction percentage among all customer-facing subsidiaries, with nearly four out of five customers expressed satisfaction with the services offered. MZEC achieves a similarly high satisfaction rate. MZEC’s strong performance, for example, can be partly due to employees within the Customer Service department being provided regular training on customer interaction and customer complains. Furthermore, MZEC informs its customers of expected power outages 48 hours prior to such outages taking place, including the mention of an apology. In case of emergency shut-downs, a similar message is sent across a maximum of one hour after the shut-down has taken place. In additional, customers with special needs, such as elderly people with health issues, receive alternative solutions during the outage. MJEC also utilizes official news channels and social media, Facebook in particular, to announce power-outages. Perhaps the most important achievement to be mentioned here is MZEC’s rate of resolving 90% of customer complaints within 7 days. complaints are only closed upon explicit agreement with the customer. Traditional channels like telephone or mail for voicing customer complaints are giving way to more modern means, such as Twitter, which MJEC is increasingly using to engage with customers and resolve complaints.
To enhance customer interaction further, all distribution companies have begun utilizing innovative technologies. The introduction of kiosk machines for billing, digital meters, interactive voice response (IVR) system are only a few examples. Bills issued by MEDC can also be paid for via Omantel. Online bill payment has already been widely adopted by customers.
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EMPLOYEESNama Group’s people are at the heart of its vision to create lasting prosperity. The Group relies on right talent to provide high quality services to clients. Nama Group is keen to create an enabling environment for the workforce, so that everyone can prosper and contribute to the future success of the group. This section illustrates how the Group provides a safe and fair working environment and gives all staff the opportunity to develop their capabilities.
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LABOUR PRACTICESSince its inception in 2002, Nama Group continue to create job opportunities for Omani citizens as well as expatriates. As of December 2015, the Group’s total workforce stood at 2869.
Open communication with employees is essential to understand what is working well and what is not at an operational level. All subsidiaries encourage frequent communication with all staff, for example, both at the group level, through initiatives such as Nama Group’s brand engagement survey in 2014, and at a subsidiary level, through monthly meetings and annual performance reviews.
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PERMANENT EMPLOYEES BY GENDER
2014 2015
TOTAL MALE FEMALE TOTAL MALE FEMALE
Nama Holding 92 57 35 94 59 35
MEDC 516 452 64 518 451 67
MJEC 399 341 58 412 350 62
MZEC 516 468 48 526 478 48
OPWP 62 45 17 63 45 18
OETC 318 280 38 351 307 44
GPDC 236 231 5 220 215 5
WJPC 75 73 2 68 66 2
DPC 132 114 18 152 131 21
RAECO 473 417 56 482 425 57
NICD 2 0 2 6 3 3
Total 2821 2478 343 2892 2530 362
2015 SUSTAINABILITY REPORT
To provide staff with effective tools to voice their demands, the Group encouraged the creation of trade unions for Omanis at all subsidiaries. The unions represent the interests of all Omani staff below management level. At OPWP, for example, a trade union was established in September 2015, which represents employees in front of human resource managers, thereby supporting them in protecting their rights. At this point of time, trade unions are more focused on company-wide issues rather than personal grievances. As a result, points of discussion mostly revolve around performance results and issues with policies.
The trade union at OPWP consists of self-elected members, with new members required to formally sign-up. The union is run by a president and five support staff. Similar unions exist at all subsidiaries.
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OCCUPATIONAL HEALTH AND SAFETYOccupational health and safety has been identified as one of the most material issues for Nama during the stakeholder engagement exercise. It is particularly critical for electricity generation and transmission companies, as employees in the field are regularly exposed to potentially risky situations, such as exposure to high voltage and falls from heights, due to the nature of their work with physical assets. Employees at the distribution and procurement companies are mostly exposed to health issues like stress, road traffic accidents, bad posture and diseases, such as high cholesterol, occurring from a largely sedentary lifestyle.
Nama Group recognizes its responsibility as an employer for providing a safe and healthy workplace to all employees and contractors. The group seeks to adhere to the highest industry standards developed to date. To raise the standards of health and safety across operations, it is vital that Nama Group focus on developing and maintaining robust safety management systems and frameworks. This would also help the Group sustain a healthy and productive workforce.
All subsidiaries have either already or are in the process of implementing HSE management systems aligned to Occupational Health and Safety international standard (OSHAS 18001) and Environmental standard ISO 14001. A key area of focus in 2015 was conducting HSE audits to understand the Group’s baseline performance. Going forward, the Group aims to standardise HSE systems across all companies so that performance is measured and improved accordingly.
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To create a culture of “safety first”, the Group provides employees regular training and awareness sessions in safety management. All subsidiaries are increasingly focused on purchasing the appropriate equipment that reduces HSE incidents from the outset by being safer to operate. Finally, safety performance is incentivized through monitoring systems. MEDC, for example, has put a special program in place to reduce accident-prone driving by monitoring speeds and locations of their vehicles and by adding stickers to their cars that encourage participants in traffic to provide feedback on driving performance.
Unfortunately, despite the investment in safety, three employees lost their lives at RAECO, OETC, MZEC and OPWP operations in 2014 and 2015. These deaths were fully investigated to understand the root cause of the accident. Nama Group deeply regrets the loss of lives and commit to strengthening safety measures going forward.
Nama Group’s subsidiaries work very closely with contractors and sub-contractors. To protect Nama Group’s contracted community, the Group requests and monitors compliance with all HSE key performance indicators.
Though OPWP does not have hazardous operations of its own, it engages with a large number of subcontractors that implement projects with hazardous components. From the outset, OPWP has been seeking to reduce HSE incidents to a minimum by incorporating requirements set out in the safety standard OHSAS 18001 into tender requirements.
NAMA GROUP HEALTH AND SAFETY PERFORMANCE
2014 2015
Hours worked 35,079,586 34,812,749
Recordable injury rate (includes fatalities) per 200,000 hours
0.32 0.09
Lost Time Injury 54 13
Fatalities 3 3
Occupational Disease Cases 10 1
First Aid Cases 15 75
Companies reported: NH | MZEC | MJEC | OETC | GPDC | OPWP | WJPC | DPC | RAECO | MEDC
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OPWP has also provided NEBOSH training to its workforce, to enable them to audit subcontractors on their HSE performance. These audits are complementary to audits conducted by the respective regulatory bodies from the government. A key lesson learnt is that monitoring the HSE performance on construction sites is significantly more complex than the operations of a power plant. For OPWP, this is a time-intensive process with the short-term goal of harmonizing HSE definitions, such as near-miss and LTI across all contractors with whom OPWP has purchasing agreements. In the long-term, OPWP aims to conduct regular workshops with all generation companies to share best practices in HSE. Manah Power Plant, for example, achieved a total of 19 years without LTI. Such workshops would represent an excellent communication tool to improve industry dialogue on safety. Other initiatives OPWP is currently pursuing are to obtain the ISO 14001 and OHSAS 18001 certifications.
OETC is a leading practice in the Group for championing safety as, until December 2015, they have achieved 12 million hours without LTI amongst either employees or contractors. This is significant, because much of OETC’s work on the grid infrastructure can be deemed hazardous. OETC’s success is due to a rigorous hazard and risk management process, in addition to an emphasis on safe working practices. Internally, monthly reports are published on the current HSE status and more comprehensive quarterly reports for ISO and OHSAS certifications. OETC provides four full days of training on safety for all employees and contractors on an annual basis. OETC also interacts with other stakeholders to meet their health and safety requirements. For example, poles for transmission lines are constructed at least 15 meters away from residential areas and awareness campaigns are conducted, informing farmers that the construction of wooden fences and houses near transmission infrastructure poses a safety risk.
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HEALTH AND SAFETY INITIATIVES AT DISTRIBUTION COMPANIES
EMPLOYEE RETENTION
A number of health and safety initiatives were also carried out at the distribution subsidiaries
• MJEC conducted a campaign on the use of job safety plans for each work activity to identify hazards and controls to be observed during work execution. Other initiatives related to the improvement in the use of Intelex (for improving safety management processes), improved asset security and continued replacement of unsafe stay wires showcases the company’s commitment toward annual health, safety, security and environment (HSSE) plan implementation.
• In 2014–15, training workshops for using Intelex were conducted for MJEC employees and contractors for reporting a near miss and monthly reports for projects. MJEC also posts its monthly HSSE performance on its website and shares learning points from incidents with sector companies, contractors and interested parties.
• MZEC has implemented the HSE management application “Assalama” and has introduced an “incentive/penalty” scheme to the contractors for improving HSE performance.
The Group’s Human Resource Department recognizes the importance of retaining employees with their respective subsidiaries or Nama Group as a whole. The Group invests heaviliy in building employees’ capacity to meet the demands of their job profiles. The table below indicates the performance of a number of subsidiaries in terms of employee turnover.
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One step forward to reduce the employee turnover has been the development of comprehensive job profiles and job skills, which aids in matching them to appropriate candidate profiles. This is important, because only when candidates understand the exact requirements of the position, are they able to judge whether it is the right match for them that allows them to progress with their career plans.
Due to the limited life-span of power plants, it is a common for utility firms to decommission plants. The Power Purchasing Agreement with Wadi Jizzi Power Company’s 325MW plant will expire in 2018. Currently, no extension has been granted and contingency plans are being drawn up to limit the loss of capacities lost to the group and to ensure a smooth transition for all 72 staff. Various strategies are currently being pursued. The priority is to find re-employment opportunities for the majority of the staff at other subsidiaries of Nama Groups.
NAMA GROUP HIRING RATE AND TURNOVER RATE
2014 2015
Headcount at end of year 1542 1634
Total hires 107 107
Total employees leaving 72 68
Hiring rate by age group Total hiring rate 7% 7%
Males < 30yrs 15% 17%
Males 30yrs<M<50yrs 4% 2%
Males >50yrs 5% 6%
Females < 30yrs 11% 14%
Females 30yrs<F<50yrs 5% 6%
Females >50yrs 0% 0%
Turnover rate by age group Total turnover rate 5% 4%
Males < 30yrs 6% 6%
Males 30yrs<M<50yrs 3% 3%
Males >50yrs 14% 10%
Females < 30yrs 1% 4%
Females 30yrs<F<50yrs 3% 5%
Females >50yrs 0% 0%
Companies reported: MJEC | OPWP | OETC | GPDC | WJPC | MEDC
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TRAINING AND PROFESSIONAL DEVELOPMENTThe Group has formulated a three-year road map (2015–17) to align HR processes. The focus this year was standardization, through the following two projects:
• Integrated Talent Management Framework Project, to streamline and standardize employee development. The framework clearly defines the expectations for each role, so that employees can take control of their professional development. It is focused on developing the competency and performance of employees by including standardized and streamlined processes for easing administrative burdens for talent rotation.
• Performance management system, to standardize performance ratings across the group. The system was be rolled out to employees above grade 10 (management) in 2015 and will extend to all other employees starting in 2016.
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Nama Group’s Change Management Committee, formed in 2014, is supporting the rollout of the two new projects. The committee was tasked to develop an effective communication tool to proactively engage employees in the performance management system changes. Over 30 workshops were conducted to engage employees on the new performance management system.
The Group’s performance management system establishes a clear link between organizational, departmental and individual objectives. The system encourages ongoing communication via coaching and meaningful feedback to employees. The goal is to ensure that 100% of employees are able to complete their annual performance review with their respective managers using the performance management system.
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NAMA GROUP NUMBER OF EMPLOYEES RECEIVING PERFORMANCE REVIEWS
2014 2015
Senior management 66 55
Middle management 208 109
Employees not in management 676 667
Temporary employees 5 1
Companies reported: NH | MJEC | OETC | GPDC | OPWP | RAECO
NAMA INSTITUTE FOR COMPETENCY DEVELOPMENT (NICD) The NICD was established in 2014 as a joint venture (JV) with the French company Veolia. The JV aims to equip and inspire Omani companies to practice the highest standards of the profession, develop their capacities in the utilities industry and encourage Omani talents to realize their full potential. NICD has the ambition to promote career opportunities, attract talent, develop their potential, and anticipate tomorrow’s business needs for a sustainable Omanization process in the sector. This can be achieved through developing competencies for better drinking water, wastewater and electricity services in the Sultanate.
NICD offers a complete solution that encompasses competency-based training programs developed to fit the needs and expectations of the employees and the companies in the sector.
Nama Group provides a suite of training courses through NICD, covering technical requirements, business skills, and health and safety procedures. On-the-job training is equally important in developing employees’ skills at Nama Group. The graphic below demonstrates the average hours of training each employee receives. In 2015, the NICD provided 2144 hours of training to Nama employees. As the Group’s HR system evolves to better anticipate employee development needs, training requirements will be linked to competency assessments and role expectations within the Integrated Talent Management Framework.
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NAMA GROUP AVERAGE HOURS OF TRAINING PER EMPLOYEE
2014 2015
Total hours of training 86,609 97,614
Total employees 2,821 2,892
Average hours of training per employee 31 34
Companies reported: GPDC | MZEC | MEDC | OETC | OPWP | RAECO | WJPC | NH | MJEC | DPC
DEVELOPING LEADERSRuwad is one of the developmental initiatives rolled out across the entire group. The key objective of Ruwad is to identify employees showing high performance and potential at every level and groom them to become future leaders. In 2014 and 2015, high-potential employees have been identified and all of them have been receiving coaching sessions through their respective CEOs. At RAECO, 15 high-performing staff has been selected and they have received English language coaching to clear their IELTS exams.
GDP is an 18-month induction program for young, aspiring Omanis. Candidates will start from the HR Department, where they are introduced to HR policies and safety inductions. An introductory workshop will be held about the department’s role with the NAMA Group CEO and the respective head of the department. Five training modules will then be presented: Introduction to Supply Chain, Planning and Economic Development, Project Development, Project Implementation, and Client Contracts and Interface. After the successful completion of all the five modules, a team of experts will evaluate the candidates and eventually, they will be assigned to their respective job positions by Nama Group.
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CASE STUDYKNOWLEDGE SHARING CONFERENCENama Group has been organizing knowledge sharing conferences in Oman on an annual basis, as part of the Group’s commitment to encourage sharing of knowledge and best practices. These conferences help in enhancing business performance, promoting innovation, and developing technical and human resource capabilities to improve the quality of service delivery across the group. The Group invites high-profile local and international speakers to deliver further insights on industry best practices.
The most recent knowledge session was held in 2014 and achieved the following aims:
• Promote and discuss the latest developments in the five Group strategies: Human Resources, Customer Services, Communications, Asset Management and Health and Safety
• Share best practices and latest technologies in the local and international utilities industry
• Contribute “Afkar” or ‘new business development ideas’ that can further support the delivery of the Group’s strategy and contribute towards the development of the next 5-year plan 2016-2020
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SUSTAINABILITY ACTIVITIES At Nama, Sustainability is a key facet of the business strategy to enable targeted initiatives to benefit social, environmental and economic responsibilities. As a social responsibility, Nama engages staff to volunteer and provides them with an opportunity to interact with different sections of the society which forms Nama’s customer base. The Group’s investments in volunteering and CSR bear testimony to the Group’s committment to strengthen relationships with the local community.
From 2014 to 2015, 540 employees were trained across all subsidiaries on volunteering skills for the community. This effort will provide the workforce with the ability tto effectively implement Nama’s social objectives under the Sustainability Policy of “encouraging staff to spend at least one day per year volunteering.” To effectively coordinate volunteering efforts, Nama Group collaborated forms Nama Group’s customer base. The Group’s investments in volunteering and CSR bear testimony to the Group’s committment to strengthen relationships with the local community with Injaz and Tawoon (Omani network of volunteers).
Aside from the pure effort provided through staff volunteering, funding was provided for various initiatives. This table and section below summarizes the funding and impact.PILLAR PROJECT IMPACT AMOUNT SPENT
(OMR)
Social Wiyakim (Volunteering Competition)
95 teams (more than 3,800 members) 34,320
Social Wiyakum (Staff Volunteering) 560 employees attended the Tawoon/volunteers introduction program (20% of Nama employees attended the program )
15,680
Social “My House is Safe” Campaign - Training 400 people- Preparing 6 people to be certified trainers in first aid
22,500
Social “Ibtisama wa Nama” Nama Group Ramadan Gift to the needy families
-Gifts distributed to 1,250 people ( 250 underprivileged families) and 100 orphans. -Gifts procured from 18 home businesses (Omani women entrepreneurs)
18,000
Economic INJAZ Oman/ Sharekati Project 700 students150 Nama staff mentors
100,000
Environmental National Conservation Awareness Campaign
Campaign is ongoing targeting residential, industrial and private sector
61,327
Environmental Environment Society of Oman (ESO) office in Salalah and Tree planting campaign.
-2 direct jobs were created -400 volunteers participated in the tree planting campaigns -1,000 local trees planted
45,904
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INJAZ OMAN“Sharekati” is a programme developed by Injaz Oman, a platform for young entrepreneurs that aims to benefit the local community by encouraging young people to venture into SMEs. It also promotes local products for improving ICV. As part of the program, students receive training in business management for one year. In 2015, 150 Nama volunteers mentored 650 students to support them in starting their own business through the Sharikati programme. One of the student companies supported through this initiative recently signed a contract to provide services worth OMR85,000.
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“WIYAKUM” INITIATIVEThe “Wiyakum” initiative, developed by Nama Group in association with Tawoon, included competitions organized to promote and strengthen volunteerism among institutions and individuals. One of the participating teams was rewarded with a fund of OMR35,000 for their project to create a special library for the blind. The initiative had three different focus areas:
• External: The initiative promotes voluntary work in Oman by supporting local community development programs, and makes volunteering role models. The initiative found favour among the youth, and 95 teams, with around 3,800 members, participated from across the Sultanate.
• Internal: Internally, the program was intended to improve the employee volunteering skills of the Group. In the first phase, it involved employees in a day-long voluntary work for non-profitable organizations in Muscat. More employees from other governorates are expected to participate in subsequent phases of the initiative.
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The Environment Society of Oman (ESO), in collaboration with Nama Group, opened the first branch of ESO outside Muscat. The office is located in Dhofar and will support ESOs in the Dhofar Governorate. The new office will work on generating direct and indirect employment opportunities for the local community, in addition to capacity building activities for better employability. As part of the project, Dhofar Power Company staff volunteered in a campaign to plant around 1,000 trees in the Dhofar governorate.
ENVIRONMENT SOCIETY OF OMAN SALALAH BRANCH
2015 SUSTAINABILITY REPORT
IBTISAMA WA NAMA
MY HOUSE IS SAFE INITIATIVE
Another social initiative is a charitable event called “Ibtisama wa Nama” (“Nama Smile”), through which the joy of Eid is spread among underprivileged families. In association with micro businesses in the area, an exhibition was organized at Bowsher Club, to distribute Eid gifts to around 200 orphans and children with special needs. In organizing the event, the Wali Bawsher Office and the “Bashair Alkhair” volunteering team supported. In total, 1,250 people benefited from Nama Smile in 2015. To further create ICV and support women’s development, all gifts for the event were purchased from 18 women-run SMEs.
The Sustainability Committee has recently approved GPDC’s community-based project named “My House is Safe.” The project aims to provide an opportunity for orienting families and spreading awareness about how to act during emergencies. The course trains the community on how to respond during a fire in the house or car, including correct handling of fire extinguishers. The program also provide practical training on first aid, including treating minor injuries. The first step in rolling out the project has been to provide “train-the trainer” course to five employee volunteers. The volunteers were qualified to deliver the “My House is Safe” course to around 200 families from Bawshar through 12 training sessions. Key target groups will be sports teams, volunteers, teachers and university students, among others.
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ENVIRONMENT
99
• Energy consumption (G4-EN3)
• Demand-side management
• Scope 1 emissions (G4-EN15)
• Scope 2 emissions (G4-EN16)
2015 SUSTAINABILITY REPORT
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ENVIRONMENTDue to rapid economic development, Oman is among the countries with the highest per capita consumption of water and electricity. Nama Group has an important role to play in encouraging responsible energy and water use among its customers in order to protect Oman’s natural resources for future generations. Nama Group and the utilities sector operations recognize the importance of protecting the environment by reducing emissions from fossil-fuel fired facilities and promoting wise consumption of water for industrial use. The Group is starting to map out its performance in terms of energy and emissions across its own assets and from the independent plants that it procures energy and water from.
Nama Group has identified two long term objectives in its sustainability policy to help reduce its environmental impact:
• Encouraging residential customers to reduce energy consumption
• Reducing the carbon intensity of electricity and water produced.
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ENERGY MANAGEMENTAs demand for electricity has increased alongside the rapid growth of the Omani economy and its population, more electricity had to be produced, thereby generating more GHG emissions.
The table below illustrates the energy consumption by Nama generation subsidiaries and all the independent power and water companies that Nama Group procures from during 2014 and 2015. In order to report more transparently on the Group’s own carbon footprint, The Group are identifying processes and methodologies to track consumption throughout the year. It is important to track and disclose the consumption in each of the subsidiaries to make effective interventions to reduce consumption for the coming years.
ELECTRICITY SECTOR ENERGY CONSUMPTION IN GJ (INCLUDES NAMA GROUP OWNED GENERATION COMPANIES)
2014 2015
Gas consumption Main Interconnected System Grid 242,364,760 335,167,737
Gas consumption – Salalah System Grid 29,083,806 31,450,344
Diesel consumption - RAECO 8,029 9,087
Electricity consumption - Main Interconnected System Grid
81,264,158.37 100,312,857.68
Electricity consumption – Salalah System Grid 9,545,984.24 10,581,254.73
Electricity consumption – RAECO 2,724,162.23 2,922,802.69
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ENERGY CONSERVATION CAMPAIGNSEducating customers on effectively utilizing the electricity consumed supports the Group in delivering its environmental and social responsibilities. A national campaign on energy conservation was launched in 2014 with the aim of raising awareness among society. The campaign was initially launched via social media and was then rolled out on a broader scale through public events, continued social media messaging during the holy month of Ramadan and a competition using the hashtag (#Nama_Conservation). Nama Group’s subsidiaries organized lectures and workshops to spread the concept locally among community members, from organizations as diverse as Omani women’s associations to youth groups.
All customer-facing subsidiaries were mandated to conduct awareness raising initiatives on energy usage. Implementation varied among subsidiaries, with MEDC collaborated with Al Rahma charity to educate underprivileged families on how to reduce their energy bills. One very effective way was to donate energy efficient light-bulbs to these households. In 2015, MEDC engaged with more than 300 households on how to maintain their air conditioning units. To date, 15 customers have registered a reduction in their electricity consumption. MEDC has also signed a memorandum of understanding with the Ministry of Education to provide energy awareness sessions in 15 schools.
MJEC developed leaflets that outlined best practice for customers, describing multiple aspects of electricity usage. One of the leaflets contained simple measures that can have immediate benefits in reducing electricity usage, thereby enhancing the life-span of household appliances. The leaflets help customers save on their electricity bills, and reduces environmental impacts and overall costs to Omani society. MJEC went a step further by handing out 50,000 LED lights to customers in exchange for conventional lightbulbs in 2013 under the Change to Save campaign. In future, the Group aims to identify manageable indicators to measure the impact of energy conservation campaigns, such as calculating the amount of energy saved and the total community members engaged with.
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WATER CONSERVATIONOman and the MENA region will face the prospects of serious water shortages in the coming decades. Despite being classified as a water-stressed nation, Oman is among the highest per capita consumers of water in the world. This is a serious threat to the prosperity of Omani society in the future.
Several companies in the Group have made a start to calculate their water consumption. Water consumption values have been estimated from utilities bills when direct water meter readings were unavailable. Water usage at the group’s headquarters was calculated and it reached 92,400 m3 in 2015.
NAMA GROUP TOTAL WATER CONSUMPTION 2014 2015
Water consumed (m3) 64,294,471 58,688,886
Companies reported: NH (only 2015) | GPDC | MJEC | MEDC | OETC | RAECO | WJPC
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GHG EMISSIONS MANAGEMENTFor this report, Nama Group discloses scope 1 emissions (direct emissions from fuel use) from the generation companies at Nama Group, in addition to the independent power and water companies that supply the Group’s distribution companies. The Group plans to establish mechanisms in the future to allow better monitoring of direct and indirect emissions from the Group’s assets and across the entire value chain.
Nama Group is ready to support the Government of Oman in in developing its renewable energy generation capacity and enforcing energy efficiency
The OPWP coordinates long-term strategy for power and water supply with the Government of Oman. OPWP’s National Energy Strategy Study suggests the need for a national policy with regard to renewable energy and alternative fuel supply for power generation. OPWP has also conducted feasibility studies to develop solar plants in Adam and Manah. The Independent Power Project (IPP) is a combination of Photovoltaic and concentrated solar power technologies. OPWP anticipates an aggregate supply of 200MW when the plant commences its operations by 2017.
Oman has remarkable opportunities in developing renewable energy resources, particularly from solar and wind energy. There are already many small-scale projects displacing diesel, as the energy sources are either operational or under way in rural areas. Nama Group has launched solar and wind energy projects estimated to contribute 250MW annually. The projects are expected to be operational by 2017.
RAECO has already partnered with Masdar of Abu Dhabi to develop a 50MW wind farm project near Harweel in the Dhofar Governorate. For more details on existing renewable energy projects, please refer to the chapter, Contribution to Oman’s Development.
EMISSIONS FROM THE ELECTRICITY SECTOR IN OMAN (TCO2E)
2014 2015
Scope 1 emissions from the Main Interconnected System Grid 16,239,137 17,678,089
Scope 1 emissions from the Salalah System Grid 1,703,862 1,836,623
Scope 1 emissions from RAECO assets 567,231 603,054
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GLOSSARYDPC
GPDC
GJ
GRI
GW
GWh
ICV
JV
KW
kWh
M3
MEDC
MJEC
MW
Dhofar Power Company S.A.O.C
Al Ghubra Power & Desalination Company S.A.O.C
Gigajoules
Global Reporting Initiative
Gigawatt
Gigawatt Hour
In-Country Value
Joint Venture
Kilowatt
Kilowatt Hour
Cubic meter
Muscat Electricity Distribution Company S.A.O.C
Majan Electricity Company S.A.O.C
Megawatt
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MWh
MZEC
NH
NICD
OETC
OPWP
PMS
RAECO
SCADA
SME
WJPC
Megawatt Hour
Mazoon Electricity Company S.A.O.C
Nama Holding S.A.O.C
Nama Institute for Competency Development
Oman Electricity Transmission S.A.O.C
Oman Power & Water Procurement S.A.O.C
Performance Management System
Rural Areas Electricity Company S.A.O.C
Supervisory Control and Data Acquisition System
Small and Medium-Sized Enterprise
Wadi Jizzi Power Company S.A.O.C
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GRI G4 CONTENT INDEX
110
DISCLOSURE DEFINITION PAGE OMISSION EXTERNAL
ASSURANCESTRATEGY AND ANALYSIS
G4-1 A STATEMENT FROM THE MOST SENIOR DECISION-MAKER OF
THE ORGANIZATION
6,7,8,9 NO
ORGANIZATIONAL PROFILEG4-3 NAME OF THE ORGANIZATION. 12 NOG4-4 BRANDS, PRODUCTS, AND SERVICES. 12 NOG4-5 LOCATION OF THE ORGANIZATION’S HEADQUARTERS. 13 NOG4-6 NUMBER OF COUNTRIES WHERE THE ORGANIZATION
OPERATES
13 NO
G4-7 NATURE OF OWNERSHIP AND LEGAL FORM. 12 NOG4-8 MARKETS SERVED 12 NOG4-9 SCALE OF THE ORGANIZATION 2,3 NO
G4-10 NUMBER OF EMPLOYEES 80 NOG4-11 EMPLOYEES COVERED BY COLLECTIVE BARGAINING
AGREEMENTS.
81 NO
G4-12 ORGANIZATION’S SUPPLY CHAIN. 13 NOG4-13 SIGNIFICANT CHANGES TO THE ORGANIZATION STRUCTURE NOT APPLICABLE NOT APPLICABLE NOG4-14 PRECAUTIONARY APPROACH 50 NOG4-15 EXTERNALLY DEVELOPED ECONOMIC, ENVIRONMENTAL AND
SOCIAL CHARTERS OR PRINCIPLES
14 NO
G4-16 MEMBERSHIPS OF ASSOCIATIONS NONE NOEU1 INSTALLED CAPACITY, BROKEN DOWN BY PRIMARY ENERGY
SOURCE AND BY REGULATORY REGIME
46,47
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111
DISCLOSURE DEFINITION PAGE OMISSION EXTERNAL
ASSURANCESTRATEGY AND ANALYSIS
G4-1 A STATEMENT FROM THE MOST SENIOR DECISION-MAKER OF
THE ORGANIZATION
6,7,8,9 NO
ORGANIZATIONAL PROFILEG4-3 NAME OF THE ORGANIZATION. 12 NOG4-4 BRANDS, PRODUCTS, AND SERVICES. 12 NOG4-5 LOCATION OF THE ORGANIZATION’S HEADQUARTERS. 13 NOG4-6 NUMBER OF COUNTRIES WHERE THE ORGANIZATION
OPERATES
13 NO
G4-7 NATURE OF OWNERSHIP AND LEGAL FORM. 12 NOG4-8 MARKETS SERVED 12 NOG4-9 SCALE OF THE ORGANIZATION 2,3 NO
G4-10 NUMBER OF EMPLOYEES 80 NOG4-11 EMPLOYEES COVERED BY COLLECTIVE BARGAINING
AGREEMENTS.
81 NO
G4-12 ORGANIZATION’S SUPPLY CHAIN. 13 NOG4-13 SIGNIFICANT CHANGES TO THE ORGANIZATION STRUCTURE NOT APPLICABLE NOT APPLICABLE NOG4-14 PRECAUTIONARY APPROACH 50 NOG4-15 EXTERNALLY DEVELOPED ECONOMIC, ENVIRONMENTAL AND
SOCIAL CHARTERS OR PRINCIPLES
14 NO
G4-16 MEMBERSHIPS OF ASSOCIATIONS NONE NOEU1 INSTALLED CAPACITY, BROKEN DOWN BY PRIMARY ENERGY
SOURCE AND BY REGULATORY REGIME
46,47
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GRI G4 CONTENT INDEX
112
DISCLOSURE DEFINITION PAGE OMISSION EXTERNAL
ASSURANCEEU2 NET ENERGY OUTPUT BROKEN DOWN BY PRIMARY ENERGY
SOURCE AND BY REGULATORY REGIME
46,47
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIESG4-17 ENTITIES INCLUDED IN THE ORGANIZATION’S
CONSOLIDATED FINANCIAL STATEMENTS
13 NO
G4-18 PROCESS FOR DEFINING THE REPORT CONTENT AND THE
ASPECT BOUNDARIES.
34,35 NO
G4-19 MATERIAL ASPECTS 38 NOG4-20 REPORTING CONTENT AND ASPECT BOUNDARIES 38 NOG4-21 MATERIAL ASPECT BOUNDARIES WITHIN AND OUTSIDE THE
ORGANIZATION
38,39 NO
G4-22 EFFECT OF ANY RESTATEMENTS OF INFORMATION NONE, THIS IS THE FIRST REPORT NOG4-23 SIGNIFICANT CHANGES FROM PREVIOUS REPORTING
PERIODS
NONE, THIS IS THE FIRST REPORT NO
STAKEHOLDER ENGAGEMENTG4-24 STAKEHOLDER GROUPS ENGAGED BY THE ORGANIZATION. 33 NOG4-25 BASIS FOR IDENTIFICATION AND SELECTION OF
STAKEHOLDERS
30 NO
G4-26 ORGANIZATION’S APPROACH TO STAKEHOLDER
ENGAGEMENT
33 NO
G4-27 KEY TOPICS AND CONCERNS RAISED THROUGH
STAKEHOLDER ENGAGEMENT
33 NO
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DISCLOSURE DEFINITION PAGE OMISSION EXTERNAL
ASSURANCEEU2 NET ENERGY OUTPUT BROKEN DOWN BY PRIMARY ENERGY
SOURCE AND BY REGULATORY REGIME
46,47
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIESG4-17 ENTITIES INCLUDED IN THE ORGANIZATION’S
CONSOLIDATED FINANCIAL STATEMENTS
13 NO
G4-18 PROCESS FOR DEFINING THE REPORT CONTENT AND THE
ASPECT BOUNDARIES.
34,35 NO
G4-19 MATERIAL ASPECTS 38 NOG4-20 REPORTING CONTENT AND ASPECT BOUNDARIES 38 NOG4-21 MATERIAL ASPECT BOUNDARIES WITHIN AND OUTSIDE THE
ORGANIZATION
38,39 NO
G4-22 EFFECT OF ANY RESTATEMENTS OF INFORMATION NONE, THIS IS THE FIRST REPORT NOG4-23 SIGNIFICANT CHANGES FROM PREVIOUS REPORTING
PERIODS
NONE, THIS IS THE FIRST REPORT NO
STAKEHOLDER ENGAGEMENTG4-24 STAKEHOLDER GROUPS ENGAGED BY THE ORGANIZATION. 33 NOG4-25 BASIS FOR IDENTIFICATION AND SELECTION OF
STAKEHOLDERS
30 NO
G4-26 ORGANIZATION’S APPROACH TO STAKEHOLDER
ENGAGEMENT
33 NO
G4-27 KEY TOPICS AND CONCERNS RAISED THROUGH
STAKEHOLDER ENGAGEMENT
33 NO
2015 SUSTAINABILITY REPORT
GRI G4 CONTENT INDEX
114
DISCLOSURE DEFINITION PAGE OMISSION EXTERNAL
ASSURANCEREPORT PROFILE
G4-28 REPORTING PERIOD 29 NOG4-29 DATE OF MOST RECENT PREVIOUS REPORT NONE- THIS IS OUR BASELINE REPORT NOG4-30 REPORTING CYCLE ANNUAL NOG4-31 CONTACT POINT FOR QUESTIONS ABDULLAH.ALSHUKAILI@EHCOMAN.
COM
NO
G4-32 IN ACCORDANCE OPTION CHOSEN 29 NOG4-33 POLICY ON EXTERNAL ASSURANCE 29 NO
GOVERNANCEG4-34 GOVERNANCE STRUCTURE OF THE ORGANIZATION 15 NO
ETHICS AND INTEGRITYG4-56 ORGANIZATION’S VALUES, PRINCIPLES, STANDARDS AND
NORMS OF BEHAVIOR
16,17, 18 NO
2015 SUSTAINABILITY REPORT
115
DISCLOSURE DEFINITION PAGE OMISSION EXTERNAL
ASSURANCEREPORT PROFILE
G4-28 REPORTING PERIOD 29 NOG4-29 DATE OF MOST RECENT PREVIOUS REPORT NONE- THIS IS OUR BASELINE REPORT NOG4-30 REPORTING CYCLE ANNUAL NOG4-31 CONTACT POINT FOR QUESTIONS ABDULLAH.ALSHUKAILI@EHCOMAN.
COM
NO
G4-32 IN ACCORDANCE OPTION CHOSEN 29 NOG4-33 POLICY ON EXTERNAL ASSURANCE 29 NO
GOVERNANCEG4-34 GOVERNANCE STRUCTURE OF THE ORGANIZATION 15 NO
ETHICS AND INTEGRITYG4-56 ORGANIZATION’S VALUES, PRINCIPLES, STANDARDS AND
NORMS OF BEHAVIOR
16,17, 18 NO
2015 SUSTAINABILITY REPORT
GRI G4 CONTENT INDEX
116
SPECIFIC STANDARD DISCLOSURESSTANDARD
DISCLOSURE
DMA AND INDICATOR DEFINITION PAGE EXTERNAL
ASSURANCECATEGORY: ECONOMICASPECT: ECONOMIC PERFORMANCE
G4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 43, 60 NOG4-EC1 DIRECT ECONOMIC VALUE GENERATED AND
DISTRIBUTED
61 NO
ASPECT: MARKET PRESENCEG4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 62,64 NOG4-EC6 PROPORTION OF SENIOR MANAGEMENT HIRED FROM
THE LOCAL COMMUNITY AT SIGNIFICANT LOCATIONS
OF OPERATION
NO
ASPECT: PROCUREMENT PRACTICESG4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 66 NOG4-EC9 PROPORTION OF SPENDING ON LOCAL SUPPLIERS AT
SIGNIFICANT LOCATIONS OF OPERATION
67 NO
AVAILABILITY AND RELIABILITYG4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 102104 NO
CATEGORY: ENVIRONMENTALASPECT: ENERGY
G4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 102, 104 NOG4-EN3 ENERGY CONSUMPTION WITHIN THE ORGANIZATION 102 NO
ASPECT: WATERG4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 105 NOG4-EN8 TOTAL WATER WITHDRAWAL BY SOURCE 105 NO
2015 SUSTAINABILITY REPORT
117
SPECIFIC STANDARD DISCLOSURESSTANDARD
DISCLOSURE
DMA AND INDICATOR DEFINITION PAGE EXTERNAL
ASSURANCECATEGORY: ECONOMICASPECT: ECONOMIC PERFORMANCE
G4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 43, 60 NOG4-EC1 DIRECT ECONOMIC VALUE GENERATED AND
DISTRIBUTED
61 NO
ASPECT: MARKET PRESENCEG4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 62,64 NOG4-EC6 PROPORTION OF SENIOR MANAGEMENT HIRED FROM
THE LOCAL COMMUNITY AT SIGNIFICANT LOCATIONS
OF OPERATION
NO
ASPECT: PROCUREMENT PRACTICESG4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 66 NOG4-EC9 PROPORTION OF SPENDING ON LOCAL SUPPLIERS AT
SIGNIFICANT LOCATIONS OF OPERATION
67 NO
AVAILABILITY AND RELIABILITYG4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 102104 NO
CATEGORY: ENVIRONMENTALASPECT: ENERGY
G4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 102, 104 NOG4-EN3 ENERGY CONSUMPTION WITHIN THE ORGANIZATION 102 NO
ASPECT: WATERG4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 105 NOG4-EN8 TOTAL WATER WITHDRAWAL BY SOURCE 105 NO
2015 SUSTAINABILITY REPORT
GRI G4 CONTENT INDEX
118
STANDARD
DISCLOSURE
DMA AND INDICATOR DEFINITION PAGE EXTERNAL
ASSURANCEASPECT: EMISSIONS
G4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 106 NOG4-EN15 DIRECT GREENHOUSE GAS (GHG) EMISSIONS (SCOPE 1) 106 NO
CATEGORY: SOCIALSUB-CATEGORY: LABOR PRACTICES AND DECENT WORKASPECT: EMPLOYMENT
G4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 86,87 NOG4-LA1 TOTAL NUMBER AND RATES OF NEW EMPLOYEE HIRES
AND EMPLOYEE TURNOVER BY AGE GROUP, GENDER
AND REGION
87 NO
EU17 DAYS WORKED BY CONTRACTOR AND
SUBCONTRACTOR EMPLOYEES INVOLVED IN
CONSTRUCTION, OPERATION & MAINTENANCE
ACTIVITIES
71 NO
ASPECT: OCCUPATIONAL HEALTH AND SAFETYG4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 82,84 NOG4-LA6 TYPE OF INJURY AND RATES OF INJURY,
OCCUPATIONAL DISEASES, LOST DAYS, AND
ABSENTEEISM, AND TOTAL NUMBER OF WORK-RELATED
FATALITIES, BY REGION AND BY GENDER
84,85 NO
ASPECT: TRAINING AND EDUCATIONG4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 88,89 NO
2015 SUSTAINABILITY REPORT
119
STANDARD
DISCLOSURE
DMA AND INDICATOR DEFINITION PAGE EXTERNAL
ASSURANCEASPECT: EMISSIONS
G4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 106 NOG4-EN15 DIRECT GREENHOUSE GAS (GHG) EMISSIONS (SCOPE 1) 106 NO
CATEGORY: SOCIALSUB-CATEGORY: LABOR PRACTICES AND DECENT WORKASPECT: EMPLOYMENT
G4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 86,87 NOG4-LA1 TOTAL NUMBER AND RATES OF NEW EMPLOYEE HIRES
AND EMPLOYEE TURNOVER BY AGE GROUP, GENDER
AND REGION
87 NO
EU17 DAYS WORKED BY CONTRACTOR AND
SUBCONTRACTOR EMPLOYEES INVOLVED IN
CONSTRUCTION, OPERATION & MAINTENANCE
ACTIVITIES
71 NO
ASPECT: OCCUPATIONAL HEALTH AND SAFETYG4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 82,84 NOG4-LA6 TYPE OF INJURY AND RATES OF INJURY,
OCCUPATIONAL DISEASES, LOST DAYS, AND
ABSENTEEISM, AND TOTAL NUMBER OF WORK-RELATED
FATALITIES, BY REGION AND BY GENDER
84,85 NO
ASPECT: TRAINING AND EDUCATIONG4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 88,89 NO
2015 SUSTAINABILITY REPORT
GRI G4 CONTENT INDEX
120
STANDARD
DISCLOSURE
DMA AND INDICATOR DEFINITION PAGE EXTERNAL
ASSURANCEG4-LA9 AVERAGE HOURS OF TRAINING PER YEAR PER
EMPLOYEE BY GENDER, AND BY EMPLOYEE CATEGORY
91 NO
G4-LA11 PERCENTAGE OF EMPLOYEES RECEIVING REGULAR
PERFORMANCE AND CAREER DEVELOPMENT REVIEWS,
BY GENDER AND BY EMPLOYEE CATEGORY
90 NO
ASPECT: SUPPLIER ASSESSMENT FOR LABOR PRACTICESG4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 68 NOG4-LA14 PERCENTAGE OF NEW SUPPLIERS THAT WERE
SCREENED USING LABOR PRACTICES CRITERIA
70 NO
SUB-CATEGORY: SOCIETYASPECT: COMPLIANCE
G4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 60 NOG4-SO8 MONETARY VALUE OF SIGNIFICANT FINES AND TOTAL
NUMBER OF NON-MONETARY SANCTIONS FOR NON-
COMPLIANCE WITH LAWS AND REGULATIONS
60 NO
DISASTER/EMERGENCY PLANNING AND RESPONSEG4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 51, 55,57 NO
SUB-CATEGORY: PRODUCT RESPONSIBILITYASPECT: PRODUCT AND SERVICE LABELING
G4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 76,77 NOG4-PR5 RESULTS OF SURVEYS MEASURING CUSTOMER
SATISFACTION
76 NO
2015 SUSTAINABILITY REPORT
121
STANDARD
DISCLOSURE
DMA AND INDICATOR DEFINITION PAGE EXTERNAL
ASSURANCEG4-LA9 AVERAGE HOURS OF TRAINING PER YEAR PER
EMPLOYEE BY GENDER, AND BY EMPLOYEE CATEGORY
91 NO
G4-LA11 PERCENTAGE OF EMPLOYEES RECEIVING REGULAR
PERFORMANCE AND CAREER DEVELOPMENT REVIEWS,
BY GENDER AND BY EMPLOYEE CATEGORY
90 NO
ASPECT: SUPPLIER ASSESSMENT FOR LABOR PRACTICESG4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 68 NOG4-LA14 PERCENTAGE OF NEW SUPPLIERS THAT WERE
SCREENED USING LABOR PRACTICES CRITERIA
70 NO
SUB-CATEGORY: SOCIETYASPECT: COMPLIANCE
G4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 60 NOG4-SO8 MONETARY VALUE OF SIGNIFICANT FINES AND TOTAL
NUMBER OF NON-MONETARY SANCTIONS FOR NON-
COMPLIANCE WITH LAWS AND REGULATIONS
60 NO
DISASTER/EMERGENCY PLANNING AND RESPONSEG4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 51, 55,57 NO
SUB-CATEGORY: PRODUCT RESPONSIBILITYASPECT: PRODUCT AND SERVICE LABELING
G4-DMA REASONS FOR MATERIALITY AND ITS IMPACTS 76,77 NOG4-PR5 RESULTS OF SURVEYS MEASURING CUSTOMER
SATISFACTION
76 NO
Electricity H olding Company S .A.O.C.
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