What are the material issues the company has identified?

In its 2016 Sustainability Report ADNEC identified a range of material issues, such as occupational health & safety, human rights, business continuity, product/service quality. Among these, promoting legal compliance stands out as a key material issue for ADNEC.

Stakeholder engagement in accordance with the GRI Standards

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The organization should identify its stakeholders, and explain how it has responded to their reasonable expectations.”

Stakeholders must be consulted in the process s of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups ADNEC engages with:

Stakeholder Group

Operational partners

Strategic partners

Employees

Society

Suppliers

Customers

How stakeholder engagement was made to identify material issues

ADNEC identified and prioritized material issues based on stakeholder workshops and organiser survey feedback.

What actions were taken by ADNEC to promote legal compliance?

In its 2016 Sustainability Report ADNEC reports that it took the following actions for promoting legal compliance:

• Promoting accountability through an Internal Audit function
• To promote transparency and accountability across its business through independent and objective assurance and advisory services, ADNEC has an Internal Audit function. The Internal Audit function:
  • reports directly to the Audit Committee’s Chairman
  • is subject to regular review by the Abu Dhabi Accountability Authority (ADAA), an independent body that has financial oversight on funds disbursed by public entities and ensures their accuracy and legitimacy
  • reviews internal controls, including financial, operational, compliance controls and risk management to ensure they are consistent with best practice, laws, rules and regulations

• Enabling stakeholders and employees to raise concerns through a whistle-blowing mechanism
• ADNEC’s independent whistle-blowing mechanism, launched in 2014, enables all stakeholders and employees to raise concerns anonymously and confidentially. The mechanism includes communication through email and telephone, directed to an external independent third party. The independent third party forwards concerns to the Head of Internal Audit and the HR Director.

• Strengthening fraud risk management
• ADNEC has launched a Fraud Scenario Assessment (FSA) project to strengthen its fraud risk management framework. The FSA’s aim is to identify, evaluate and manage fraud, corruption and misconduct. Additionally, it aims to raise awareness across the organization of fraud prevention, detection and response. ADNEC employees also sign an annual declaration of compliance to ADNEC’s fraud control policy.

• Promoting ethical behavior through a Code of Conduct and Business Ethics
• ADNEC’s Code of Conduct and Business Ethics promotes business and professional ethics and is part of its Standard Operating Procedures. The code applies to all employees, including temporary or outsourced employees and employees seconded to other entities. The Code of Conduct and Business Ethics covers compliance with laws, rules and regulations, environmental protection, employment, harassment and the disciplinary policy.

Which GRI indicators/Standards have been addressed?

The GRI indicators/Standards addressed in this case are:

1) G4-56: Describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics – the updated GRI Standard is: Disclosure 102-16 Values, principles, standards, and norms of behavior

2) G4-58: Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines – the updated GRI Standard is: Disclosure 102-17 Mechanisms for advice and concerns about ethics

3) G4-SO4: Communication and training on anti-corruption policies and procedures – the updated GRI Standard is: Disclosure 205-2 Communication and training about anti-corruption policies and procedures

4) G4-SO5: Confirmed incidents of corruption and actions taken – the updated GRI Standard is: Disclosure 205-3 Confirmed incidents of corruption and actions taken

5) G4-SO8: Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations – the updatedGRI Standard is: Disclosure 419-1 Non-compliance with laws and regulations in the social and economic area

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

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References:

1) This case study is based on published information by ADNEC, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page

3) https://g4.globalreporting.org/Pages/default.aspx

4) https://www.globalreporting.org/standards/gri-standards-download-center/

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