QALA For Financial Investments : QH 2024 ESG Report

About this update from Qala For Financial Investments

Thank you.. The annual report on the Environmental, Social And Governance Disclosures has been successfully registered and your registration code number is 41996. You are kindly requested to print the report and attach it to the annual report of the Board of Directors attached to the annual financial statements for the .year 2024/2025 Annual report for FY 2024/2025 on Environmental, Social and Governance Disclosures Related to Sustainability (ESG) In implementation of the authority's Decrees no. ( 107 ) and ( 108 ) for the year 2021 First: Introduction This report on the disclosure of Environmental, Social and Governance (ESG) reflects the strength of the company's management to implement the principles of sustainable development and integrate sustainability practices into the company's activities and operations, which generates confidence among investors that enables them to make informed investment decision, By identifying risks and opportunities that may not be monitored by traditional financial reports, especially in light of the increasing demand by investors for ESG Data and how companies integrate sustainability practices into the daily operations and activates in order manage the risks and opportunities associated with the various dimensions of sustainability, and thus enhance its financial position. Based on the FRA responsibility towards NBFI including listed Companies on the Egyptian Stock Exchange, and within the framework of assisting these companies to submit annual reports to disclose ESG sustainability standards in accordance with the FRA decisions No. 107 and 108 of 2021 , and to facilitate them, the FRA has prepared this electronic form to companies to fulfill the KPIs for the disclosure of sustainability .standards ESG Therefore, please be careful, accurate and transparent when filling out this form, and please attach the report form within the annual report prepared by the Board of Directors attached to the annual financial statements for the year 2024/2025 In case of any inquiries related to this matter, you can contact sustainable development department via email [email protected] Secand: Basic Data on The Status of Company Select the company's name:Qalaa Holdings .1 Select the company's sector:Finance and Banking .2 Third: Basic Data of The Person Responsible for Completing The Report Name :Ahmed Salman .1 Job Title:Sustainability Specialist .2 Email: [email protected] .3 Fourth: Environmental KPIs Environmental Operations & Oversight (E1).1 Has the company developed any official Environmental and Social (E&S) or .1 ?Sustainability policies Yes From the outset, Qalaa Holdings embraces a multifaceted investment strategy guided by a balanced economic, environmental, social, and governance (EESG) framework. The company has established a structured approach to integrating sustainability into a business model, ensuring long-term value creation for stakeholders, and prioritizing responsible investment practices. This triple bottom line approach has allowed us to build a diverse portfolio of impactful companies spanning various strategic sectors, fostering sustainable inclusive economic .growth and job creation across Egypt and Africa As part of our commitment to "Lead by Example", we continue to deploy a structured approach towards deeper integration of sustainability that goes beyond compliance as a core business driver, embedding EESG into decision making, aligning our targets with long term value creation throughout our operations. Additionally, we also focus on setting goals and targets that incorporate sustainable and responsible practices into strategic business .activities across the Group, its subsidiaries, and its various stakeholders Governance structures play a critical role in ensuring accountability. To that end, Qalaa Holdings has developed a comprehensive Sustainability Strategy and Policy Framework that integrates and guides all sustainability-related practices across operations, practices, and business functions, making sustainability a shared priority. The Sustainability Strategy serves as a roadmap for advancing economic, environmental, social, and governance (EESG) objectives, while the accompanying policy frameworks-including Environmental, Climate, Water, and Diversity, Equity, and Inclusion (DEI) Policies-set clear principles and commitments to drive sustainable impact. Qalaa Holdings aims to cascade this strategy and policy framework across its subsidiaries, embedding sustainability at all levels of its operations. These policies reinforce the company's dedication to operational excellence, resilience, and ethical leadership and human capital -skilling, reskilling and upskilling- as enablers of responsible practices and .fostering a more sustainable and inclusive future We also go beyond internal action to shaping industry-wide progress, from advocating for energy subsidy removal and right pricing of resources and energy in particular, to bringing greener solutions & services to market through advocacy efforts and engaging in collaborative initiatives with peers, private sector, .government and with international developmental organizations This approach is carried out through our subsidiaries, operations, policies and :solutions, including but not limited to :The Egyptian Refining Company (ERC) - Energy Efficiency Solution -o ERC has issued its operational Health & Safety, Community Development, Environment, and Quality policy that includes sustainability and governance standards according to ISO 9001,14001, 45001, and GRI Sustainability Standards. The company provides a leading model in the energy sector as the first company in the oil & gas sector to issue the first sustainability and governance report that includes gender equality and women's empowerment standards, concepts of social responsibility and environmental sustainability, as well as preparing a GHG .inventory report and emissions reduction roadmap For ERC's HSE policy, check this link: https://citadelcapitaleg-my.sharepoint.com/:b:/r/personal/asalman_qalaaholdings_com/Documents/Qalaa/ FRA/2025/2024reports/Subsidiaries/Recieved/ERC/ERC-OccupationalHealth,Safety,Social,EnvironmentalQualityPolicy.pdf? csf=1&web=1&e=lcFKXP :NRPMC - Green Transport Solution -o The company is doing EIA's for all locations and new projects to ensure all .environmental requirements mentioned in Egyptian law apply For NRPMC's 14001 ISO, check this link: https://citadelcapitaleg-my.sharepoint.com/:b:/r/personal/asalman_qalaaholdings_com/Documents/Qalaa/ FRA/2025/2024reports/Subsidiaries/Recieved/NRPMC/NRPMC-ISO14001.pdf? csf=1&web=1&e=bTOaFZ :Tawazon (ECARU) & (ENTAG) - Circular Economy Solutions -o The Egyptian Company for Solid Waste Recycling (ECARU) has developed and implemented Environmental and Social (E&S) sustainability policies. These policies guide the company's operations in waste management, treatment, and recycling while ensuring environmental sustainability and contributing to social .sustainability goals o Similarly, Engineering Tasks Group (ENTAG) specializes in the design, construction, and installation of waste management systems, including sanitary landfills. ENTAG has established its environmental policies within its Project Management processes, adhering to international environmental standards to .ensure compliance and sustainability :ARESCO - .o The company has the social Responsibility policy ISO 26000 For ARESCO's Social Responsibility Policy, check this link: https://citadelcapitaleg-my.sharepoint.com/:b:/r/personal/asalman_qalaaholdings_com/Documents/Qalaa/ FRA/2025/2024reports/Subsidiaries/Recieved/Aresco/QALAA/ARESCOSocialResp onsibilityPolicy.pdf?csf=1&web=1&e=e5jmOs For ARESCO's Quality & HSE Policy, check this link: https://citadelcapitaleg-my.sharepoint.com/:b:/r/personal/asalman_qalaaholdings_com/Documents/Qalaa/ FRA/2025/2024reports/Subsidiaries/Recieved/Aresco/QALAA/ARESCOQualityHSE Policy.pdf?csf=1&web=1&e=TKLkWp ASCOM (including ACCM & GlassRock) - Responsible Infrastructure, and an - .Energy Efficiency Solution o The company has its environmental policy as well as an integrated management .system (IMS) manual i.e., quality, environment, sustainability, health and safety For ACCM's Quality & HSE Policy, check this link: https://citadelcapitaleg-my.sharepoint.com/:b:/r/personal/asalman_qalaaholdings_com/Documents/Qalaa/ FRA/2025/2024reports/Subsidiaries/Recieved/ACCM/ACCM-QualityHSEPolicy.pdf? csf=1&web=1&e=5WbLbz For GlassRock's integrated management system (IMS) manual, check this link: https://citadelcapitaleg-my.sharepoint.com/:b:/r/personal/asalman_qalaaholdings_com/Documents/Qalaa/ FRA/2025/2024reports/Subsidiaries/Recieved/GlassRock/GlassRockIMSManual.pd f?csf=1&web=1&e=lJ3e9v Is this policy originating from within the company or derived from global or .2 ?national policies Yes Qalaa Holdings is committed to leading-by-example as a responsible investor while voluntarily aligning our operations with international best practices, guided by the United Nations Sustainable Development Goals (SDGs) and Egypt's National Vision 2030. Our sustainability efforts focus on key areas such as education, human rights, labor, gender equality, governance, and environmental .sustainability These policies are developed internally, drawing on both in-house expertise and external frameworks, including national policies, global best practices, and international standards. They reflect Qalaa and its subsidiaries' adherence to :below principles that ensure alignment with global and local priorities Commitment to the Triple Bottom Line and "Lead by Example" Strategies: As a • responsible investor, Qalaa prioritizes economic, environmental, and social .aspects, embedding these principles into the company's DNA Alignment with Global and National Frameworks: Qalaa integrates global and • nationally recognized best practices into its operations by aligning all practices with the United Nations Sustainable Development Goals (SDGs) and Egypt's .Vision 2030 United Nations Global Compact (UNGC) Membership: Since becoming a • founding member of the UNGC in 2014, Qalaa has upheld its 10 principles and contributed to collective global action. The company implements robust codes of conduct, regulations, and procedures in compliance with these principles across all levels. In the same year, Qalaa published its first sustainability report under the GRI standard, earning an "A Rating" across Africa. Additionally, it proudly joined the "Business Ambition for 1.5°C" initiative, becoming the first Egyptian company and one of the initial 177 global firms addressing climate change challenges. Qalaa also recently joined the energy committee at Chapter Zero Egypt, further reinforcing its corporate responsibility and leadership in mitigating carbon .emissions for a sustainable future Adherence to IFC KPIs: Qalaa aligns with the International Finance Corporation's • (IFC) key performance indicators for managing environmental, social, and .governance risks Governance and Corporate Responsibility: Upholding the highest standards of • governance, Qalaa emphasizes transparency and integrity in its reporting mechanisms and frameworks. The company remains fully compliant with Financial Regulatory Authority mandates and demonstrates unwavering dedication to environmental and social sustainability, as well as governance .principles :Examples at subsidiary level, including but not limited to :The Egyptian Refining Company (ERC) -o ERC is steadfast in adhering to its sustainability policies, rooted in its self-imposed commitment to local environmental standards, encompassing Egyptian environmental law, waste management regulation law, and other pertinent legislations and ministerial directives. Furthermore, ERC aligns its practices with international benchmarks, including those established by the International Finance Corporation (IFC), the United Nations Sustainable Development Goals .(SDGs), and Egypt's National Vision for Sustainability 2030 :NRPMC - .o The company is following national policy (law 964 for 2015) :Tawazon (ECARU) & (ENTAG) - o ECARU's Environmental and Social (E&S) policies are derived from and aligned with national and global standards, with a particular focus on the following :entities o ECARU operates in accordance with the national strategy for solid waste .management in Egypt o The company actively contributes to achieving the United Nations Sustainable :Development Goals (SDGs), with particular focus on the below SDG goals ◻ Goal 5: Gender Equality ◻ Goal 7: Affordable and Clean Energy ◻ Goal 11: Sustainable Cities and Communities ◻ Goal 12: Responsible Consumption and Production ◻ Goal 13: Climate Action ◻ Goal 17: Partnerships for the Goals o Through its waste management and recycling operations, ECARU ensures compliance with national environmental regulations and contributes to global .sustainability initiatives :ARESCO - o ARESCO adheres to evolving local and international standards, including .emerging regulations related to climate change and sustainability o ARESCO adheres to national regulations and international guidelines ensuring .lawful and socially responsible practices :ASCOM - o The policy is originated internally and among the Qalaa Holdings objectives and targets :o GlassRock ◻ The integrated management system (IMS) is compliant with ISO 9001:2015, 14001:2015 & OSHAS 18001:2007 standards, current good manufacturing Practice and other applicable product standards. Additionally, it's complaint with country .legislation and rules :o ACCM ◻ The policy is originated internally and among the Qalaa Holdings objectives and targets Does the company identify and assess the environmental and social risks .3 ?arising from its economic activity Yes At Qalaa Holdings and its subsidiaries, the investment committee and dedicated risk management officer evolve our risk management frameworks to integrate EESG and climate-related financial and operational risks, embedding them in stress testing, portfolio management, and scenario planning. These assessments .cover our diverse portfolio of companies and investments across various sectors At the group level, the risk management officer performs comprehensive periodic evaluations to identify and assess the environmental and social risks stemming from our operations. The company adheres to environmental and governance regulations, ensuring the evaluation of potential risks related to labor standards, recruitment practices, occupational health, and safety. This approach supports the adoption of the highest industry standards, minimizing potential risks across .our sectors of operation :Examples at subsidiary level, including but not limited to :The Egyptian Refining Company (ERC) -o ERC conducted a full-fledged study to assess environmental and societal risks, in addition to implementing a set of advanced reporting tools to evaluate projects, :which included, but not limited to the following ◻ The company is dedicated to rigorously managing greenhouse gas (GHG) risks by studying and identifying strategies to minimize GHG emissions. This includes calculating GHG emissions and maintaining an inventory for the base year, with ongoing monitoring through GHG inventory reports and decarbonization plans. Recognizing the significance of proactive environmental measures, the company actively engages in issuing pertinent reports and voluntarily participates in various initiatives aimed at reducing GHG emissions. It also prioritizes energy and fuel consumption rationalization, as well as reporting and disclosing the environmental impacts of projects. Additionally, the company joins mandatory .reporting programs and actively participates in carbon markets ◻ ERC was the first refinery to publish a GHG inventory report in the Oil & Gas .sector, in addition to issuing its first Sustainability Report in 2021 ◻ The company began to issue an annual report to monitor the volume & inventory of (GHG) and electricity consumption. It's worth noting that the system for preparing this report is in strict accordance with the standards and guidelines of the Greenhouse Gas Protocol (GHG), corporate accounting and reporting standards, the International Finance Corporation, the Intergovernmental Panel on Climate Change (IPCC) standards, and the American Petroleum Institute (API) memorandum. The report also complies with ISO 16064, which was recently .crowned by issuing 2021 and 2022 GHG inventory reports ◻ The company has started the process of verification of its GHG emissions inventory reports by an accredited third party, which was already done for the 2021 and 2022 reports. As part of its keenness to issue this report with the highest levels of integrity and transparency, one of the major consulting offices conducts a comprehensive review of all the data contained in the report before publishing it; to ensure the correctness and quality of the data and the integrity of the .procedures followed to ensure and control quality ◻ The company has implemented a comprehensive set of procedures and an environmental management system to regularly identify and monitor environmental aspects and components of project operations. This includes assessing environmental impacts during normal operations and planned maintenance activities, both major and minor. Through these measures, the company conducts a thorough review of all data included in the report before its issuance, ensuring the accuracy and quality of the data and the integrity of the .procedures followed to ensure and monitor quality :NRPMC - o The company regularly conducts an Environmental register to monitor the current situation to ensure that hazards and pollution that come from our .economic activity are within limits according to the law :Tawazon (ECARU) & (ENTAG) - o Egyptian Company for Solid Waste Recycling (ECARU) actively identifies and assesses environmental and social risks associated with its economic activities :by conducting the below ◻ Conducting Environmental Impact Assessments (EIA) to evaluate potential environmental and societal risks. These assessments help ECARU implement .mitigation strategies to reduce negative effects on the environment and society Following national and international standards in waste management, recycling, and resource conservation, ensuring that risks are minimized while promoting .sustainable practices o By continuously monitoring and addressing environmental and social impacts, ECARU ensures responsible operations that align with sustainability goals and .regulatory compliance :ARESCO - o The company issued an environmental monitoring report, in collaboration with a third-party consultant, to ensure compliance with the Egyptian Environmental .Affairs Agency (EEAA) and assess air quality in the existing environment For ARESCO's environmental monitoring report, check this link: https://citadelcapitaleg-my.sharepoint.com/:b:/r/personal/asalman_qalaaholdings_com/Documents/Qalaa/ FRA/2025/2024reports/Subsidiaries/Recieved/Aresco/QALAA/ARESCO-EnvironmentalMonitoringReport.pdf?csf=1&web=1&e=msFFEn :ASCOM (Including GlassRock and ACCM) -o The company has its risk and opportunity register (Environmental, social, and business risk among all activities) Does the company follow specific policies concerned with waste recycling, .4 ?water consumption, or energy consumption Yes Qalaa Holdings and most of its subsidiaries have implemented specific policies focused on waste recycling, water consumption, and energy efficiency. These policies are part of ongoing initiatives to establish a standardized approach for all entities, alongside unified reporting protocols. Qalaa Holdings is in the process of working towards adopting a consistent strategy across subsidiaries to ensure responsible waste management and efficient resource use, with standardized .reporting procedures to be applied throughout the group :Examples at subsidiary level, including but not limited to :The Egyptian Refining Company (ERC) -ERC adheres to a waste management plan, based on the Egyptian environmental law, waste management regulations, and World Bank standards, conducting an environmental and social impact assessment study for the company. In this context, approximately 365.7 tons of municipal solid waste and over 3801.421 tons of hazardous waste resulting from ERC's operations have been collected and .redirected to licensed waste management facilities As part of its sustainable consumption and production policy, the company operates a cooling system using an environmentally friendly closed-loop water cycle, with water reuse facilitated by cooling towers, thereby enhancing water efficiency. Additionally, the company collects gases generated from refining processes, processes them, and subsequently reuses them as fuel to reduce natural gas consumption. Furthermore, the Egyptian Refining Company regularly updates its systems, including the installation of environmental measurement systems by Cairo Petroleum Refining Company in accordance with the contract .terms between them o ERC has issued its water efficiency assessment study project as a part of its .commitment to sustainable development goals and resource efficiency :Dina Farms -o The company follows the policies regarding waste recycling, water and energy :consumption below :◻ Energy Consumption Policies ◻ Dina Farms utilizes cutting-edge high-efficiency irrigation systems to reduce .water consumption :◻ Energy Consumption Policies The company promotes energy conservation by establishing a 6-megawatt solar power station, implemented by TAQA Arabia, funded by the European Bank for Reconstruction and Development. This solar power station meets approximately .20% of Dina Farms' total energy consumption :◻ Waste Recycling Policies .◻ Animal manure is utilized as an organic fertilizer for agricultural fertilization :NRPMC - o The company is keen to separate waste and make deals with contractors .registered with the government to collect all waste regularly :Tawazon: (ECARU) & (ENTAG) - o ECARU has specific policies focused on waste recycling, water consumption, and energy consumption, ensuring sustainable resource management. These :policies entail the following :◻ Waste Recycling Policies ◻ ECARU implements advanced solid waste recycling strategies to increase .recycling rates and minimize landfill disposal ◻ In Dakahlia Governorate, ECARU has achieved a low sanitary burial rate of only .29%, with some facilities reaching 22% :◻ The company specializes in production ◻ Alternative fuels from waste (Refuse-Derived Fuel - RDF, Biomass) ◻ Compost for agricultural use ◻ Recovered materials for industrial applications (e.g., paper, MDF) ◻ ECARU follows a similar policy, adopting global waste management .technologies to increase recycling efficiency and reduce landfill dependency :◻ Water Consumption Policies .◻ ECARU tracks and measures annual water consumption at all operational sites .◻ Contract with sanitation companies for responsible wastewater disposal ◻ Water conservation initiatives are integrated into operational processes to .reduce excess water usage :◻ Energy Consumption Policies ◻ Tawazon (ECARU's parent company) focuses on providing waste-derived .energy solutions, offering alternatives to coal and natural gas ◻ ECARU aims to reduce fossil fuel reliance by 40% by 2025, contributing to a .20,000-metric-ton reduction in CO ₂ emissions annually ◻ ENTAG also follows an energy reduction strategy, targeting a 30% decrease in .fossil fuel use by 2025, cutting 5,000 metric tons of CO ₂ annually ◻ Research and energy optimization studies have helped reduce electricity .consumption across operations o These policies demonstrate ECARU and ENTAG's commitment to environmental .sustainability and their alignment with global climate action goals :ARESCO - o There is a sewage treatment unit for water treatment, which is then used in agricultural purposes :ASCOM - o The company has its policy for resource efficiency. The power saving and usage of the unique renewable projects of solar panels projects are ongoing and tracked .through KPI's :o GlassRock and ACCM ◻ The company has a policy for industrial wastewater recycling, achieving 100% recycling with zero discharge to the municipality. Additionally, up to 60% of solid waste from production lines, including glass cullet and edge trims, is recycled. Power saving as well as natural gas consumption projects are ongoing and .tracked through KPI's Does the company set any goals related to reducing greenhouse gas (GHG) .5 ?emissions Yes Qalaa has been actively working to accelerate the transition to a low-carbon economy, taking concrete actions towards achieving climate neutrality and net-zero emissions, alongside its rigorous implementation of carbon emission prevention plans. Within this strategic framework, the company is committed to implementing an environmental monitoring program to assess air quality in its surrounding areas, aiming to preserve air cleanliness in adjacent communities. Additionally, the company is working on enhancing its resources, energy efficiency, and completing benchmarking to set carbon reduction goals towards net-zero emissions by 2050. To achieve this goal, Qalaa and its subsidiaries have established the necessary infrastructure to measure and manage its progress, such as climate, water, and waste-related policies that play a crucial role in regulating how Qalaa utilizes its resources. Notably, Qalaa was among the early Egyptian companies to commit and join the "Business Ambition for 1.5°C" campaign, Chapter Zero initiative and Africa Business Leaders Coalition (ABLC) to address the challenge of climate change. By joining such campaign, the company reaffirms its responsibility and leadership in efforts to reduce its carbon footprint, .achieve decarbonization, and build a more sustainable future At the subsidiary level, most of the companies measure and monitor emissions, seeking to reduce them, and ensure prudent resource consumption and optimal .use of energy sources, gradually transitioning to clean and renewable energy :Examples at subsidiary level, including but not limited to :The Egyptian Refining Company (ERC) -o ERC's environmental teams have initiated the implementation of the "Sustainability Reporting and GHG Monitoring & Accounting System" program, aligning with the attainment of Goal 13 within the UN Sustainable Development :Goals. This implementation encompasses the following stages ◻ Appointing key personnel from each department to be the focal point regarding .GHG & Sustainability data Development of all relevant administrative procedures establishing a framework for measuring and monitoring greenhouse gas emissions and disclosing sustainability practices to ensure their consistent implementation and adherence .by senior management Finally, completing the data gathering process and final disclosure of project :results, including Issuing official greenhouse gases inventory reports for 2020/2021, 2022 and 2023 . .through a third-party .Completing the final version of the sustainability report for 2020-2022 . Verifying both 2021 and 2022 inventory reports through an accredited third-party. .consultant :NRPMC - The company follows the Egyptian law in Coal storage and trading regulation, and this helps in avoiding contamination of groundwater and controlling the .dispersion of dust Tawazon: (ECARU) & (ENTAG) - ECARU and ENTAG have set clear GHG (Greenhouse Gas) reduction goals as part of their commitment to environmental sustainability and clean energy .transition :o ECARU's GHG Reduction Goals included ◻ Under its contract with Dakahlia Governorate, ECARU provides solid waste .treatment and recycling services for 3,500 tons/day .◻ The company aims to reduce 200,000 metric tons of CO ₂ equivalent annually ECARU has set a strategic goal to reduce fossil fuel reliance by 40% by 2025, .cutting an additional 20,000 metric tons of CO ₂ equivalent per year :o ENTAG's GHG Reduction Goals included ENTAG is transitioning towards clean energy in its operations by reducing fossil .fuel dependency by 30% by 2025 .◻ This initiative is expected to cut 5,000 metric tons of CO ₂ equivalent annually :o Additional GHG Reduction Measures included Production of alternative fuels (RDF, biomass) to replace traditional fossil fuels .in cement kilns Efficient waste recycling practices that prevent methane emissions from landfill .disposal Implementation of sustainable energy solutions to optimize electricity and fuel .consumption o These efforts align with global climate goals and support Egypt's national decarbonization strategy For ENTAG's GHG Report, check this link: https://citadelcapitaleg-my.sharepoint.com/:b:/r/personal/asalman_qalaaholdings_com/Documents/Qalaa/ FRA/2025/2024reports/Subsidiaries/Recieved/Tawazon/ENTAG-GHGmeasuring.pdf?csf=1&web=1&e=aQEZHP :ARESCO - o The company conducts environmental measures on a yearly basis to reduce .emissions :ASCOM (Including GlassRock and ACCM) -o The company regularly updates its carbon footprint and Environmental Product Declarations (EPDs), in addition to setting KPIs to reduce greenhouse gas (GHG) .emissions For GlassRock's EPD, check this link: https://citadelcapitaleg-my.sharepoint.com/:b:/r/personal/asalman_qalaaholdings_com/Documents/Qalaa/ FRA/2025/2024reports/Subsidiaries/Recieved/GlassRock/GlassRock-EPD.pdf? csf=1&web=1&e=4aeWZF For GlassRock's Green Compliance document, check this link: https://citadelcapitaleg-my.sharepoint.com/:b:/r/personal/asalman_qalaaholdings_com/Documents/Qalaa/ FRA/2025/2024reports/Subsidiaries/Recieved/GlassRock/GlassRock- GreenCompliance.pdf?csf=1&web=1&e=ZrVU95 Does the management have any system/certification regarding the company's .6 ?environmental practices (ISO 14001 certification) Yes Most of Qalaa's companies in various sectors have obtained certificates related to their environmental practices with the implementation of the quality system in .accordance with the requirements of international standards :Examples at subsidiary level, including but not limited to :The Egyptian Refining Company (ERC) -o ERC is in the process of acquiring ISO 9001, ISO 14001, and ISO 45001 quality .certifications Tawazon: (ECARU) & (ENTAG) - o Both ECARU and ENTAG have implemented internationally recognized environmental management systems and hold ISO 14001 certification, .demonstrating their commitment to environmental sustainability and compliance :o Certified Environmental Management Systems ◻ ECARU applies a comprehensive quality and environmental management :system, certified under ◻ ISO 9001 - Quality Management System ◻ ISO 14001 - Environmental Management System ◻ ISO 45001 - Occupational Health & Safety Management System ENTAG follows similar standards, ensuring environmental responsibility in :project design, construction, and operation, with certifications in ◻ ISO 9001 - Quality Management System ◻ ISO 14001 - Environmental Management System ISO 18001 (previously for OHS, now replaced by ISO 45001) - Occupational Safety :◻ Key Benefits of ISO 14001 Certification .◻ Ensures systematic environmental impact assessments ◻ Supports regulatory compliance with national and international environmental .laws .◻ Promotes efficient resource use and waste reduction .◻ Strengthens corporate sustainability efforts and climate action goals This certification reinforces ECARU and ENTAG's commitment to sustainable environmental practices, reducing their carbon footprint and enhancing waste .recycling efficiencies For ECARU's certificates, check this link: https://citadelcapitaleg-my.sharepoint.com/:b:/r/personal/asalman_qalaaholdings_com/Documents/Qalaa/ FRA/2025/2024reports/Subsidiaries/Recieved/Tawazon/22-A-1553,22-C-0789,22-O- 0949Rev0(ECARU).pdf?csf=1&web=1&e=l6Nfrd :ARESCO - o The company has certification of ISO 14001:2015 For ARESCO's ISO 14001 certification, check this link: https://citadelcapitaleg-my.sharepoint.com/:b:/r/personal/asalman_qalaaholdings_com/Documents/Qalaa/ FRA/2025/2024reports/Subsidiaries/Recieved/Aresco/QALAA/ARESCO-ISO140012015Certificate.pdf?csf=1&web=1&e=j3F6sL For ARESCO's ISO 45001 certification, check this link: https://citadelcapitaleg-my.sharepoint.com/:b:/r/personal/asalman_qalaaholdings_com/Documents/Qalaa/ FRA/2025/2024reports/Subsidiaries/Recieved/Aresco/QALAA/ARESCO-ISO450012018Certificate.pdf?csf=1&web=1&e=5qggre :ASCOM - o The company is registered and certified ISO 9001:2015 & HSE registers are available :o GlassRock and ACCM ◻ The companies are registered and certified with ISO 14001:2015 & ISO 45001:2018 For GlassRock's ISO 9001 certification, check this link: https://citadelcapitaleg-my.sharepoint.com/:b:/r/personal/asalman_qalaaholdings_com/Documents/Qalaa/ FRA/2025/2024reports/Subsidiaries/Recieved/GlassRock/GlassRock-ISO9001.pdf? csf=1&web=1&e=7RDCS5 For GlassRock's ISO 14001 certification, check this link: https://citadelcapitaleg-my.sharepoint.com/:b:/r/personal/asalman_qalaaholdings_com/Documents/Qalaa/ FRA/2025/2024reports/Subsidiaries/Recieved/GlassRock/GlassRock- ISO14001.pdf?csf=1&web=1&e=AeLcSh For ARESCO's ISO 45001 certification, check this link: https://citadelcapitaleg-my.sharepoint.com/:b:/r/personal/asalman_qalaaholdings_com/Documents/Qalaa/ FRA/2025/2024reports/Subsidiaries/Recieved/GlassRock/GlassRock- ISO45001.pdf?csf=1&web=1&e=VR3UTn Carbon Emissions / Greenhouse gases (GHG) (E2).2 Does the company calculate the total amount of carbon emissions (Carbon .1 ?Footprint) in metric tons Yes Qalaa's climate policy aims to minimize the carbon footprint of its business to achieve net zero. Qalaa has adopted a multi-pronged investment strategy that places environmental sustainability, innovation, and value creation at the core of its operations. The company's climate strategy is based on ensuring that all its businesses and subsidiaries comply with all the climate laws and regulations of the various countries in which it operates. Ensuring compliance of all its operations and those of its subsidiaries with climate laws and regulations in various countries of operation, prioritizing investment in green projects that ensure energy security. In this context, several key companies within the Qalaa Holdings group calculate their total carbon emissions annually, with plans underway to extend this practice to the rest of the group's companies. Gradually transitioning its operations to clean energy and reducing the carbon footprint of .its projects :Examples at subsidiary level, including but not limited to :The Egyptian Refining Company (ERC) -o ERC has issued its first annual GHG inventory report, which amounted to 1.3, 1.577, and 1.38 metric tons of carbon dioxide equivalent for 2021, 2022, and 2023 :respectively. The project's results include the following ◻ 29% reduction in total sulfur dioxide emissions through the production of solar conforming to European specifications ◻ Preventing 186 thousand sulfur dioxide emissions and preventing 93,000 tons of sulfur emissions in the atmosphere of Cairo annually ◻ All refineries of ERC are equipped with low-NOx stoves, which keep the concentration of nitrogen oxides at low levels, as well as the use of natural gas as a clean fuel. The Egyptian Refining Company has developed an around-the-clock environmental monitoring program to monitor the air quality in areas affected by refining emissions and chimneys, in order to maintain air purity in the .surrounding communities ERC recently established a 34-kW solar power plant to provide the amount of electricity needed for the company's administrative offices, which contributed to .reducing greenhouse gas emissions generated by target 2 :GlassRock -o The company monitors and calculates the total amount of carbon emissions. In 2024, the total amount of carbon emissions was 8,168 tons of carbon dioxide :Tawazon (ECARU) & (ENTAG) - o ECARU has been calculating its carbon emissions (carbon footprint) annually since 2008. It is the only Egyptian company registered under the Clean Development Mechanism (CDM) since 2011 for its Municipal Solid Waste Recycling Project in South Cairo. As part of its sustainability initiatives, ECARU tracks and reports its carbon emissions to measure the environmental impact of .its waste recycling and treatment operations o ENTAG began carbon footprint calculations in 2023. This is part of the company's strategy to reduce reliance on fossil fuels and transition toward clean .energy alternatives o Both companies are actively monitoring, managing, and reducing their carbon emissions, supporting Egypt's climate action strategy and global decarbonization .goals For ENTAG's GHG measurements, check this link: https://citadelcapitaleg-my.sharepoint.com/:b:/r/personal/asalman_qalaaholdings_com/Documents/Qalaa/ FRA/2025/2024reports/Subsidiaries/Recieved/Tawazon/ENTAG-GHGmeasuring.pdf?csf=1&web=1&e=0yc7dr Energy sources usage and diversification (E3).3 ?Does the company calculate the total amount of energy directly consumed .1 Yes Most of Qalaa's major companies calculate the total volume of energy consumed .annually :Examples at subsidiary level, including but not limited to :The Egyptian Refining Company (ERC) -o ERC calculates the total amount of energy consumed periodically through its :Operations Technology Department according to the following .◻ Scope One: Direct emissions .◻ GHG .◻ Fuel burning - Owned vehicles .◻ Fuel burning - Diesel ◻ Fuel burning - Natural Gas .◻ Refrigerant leakage .◻ Scope Two: Direct emissions .◻ Purchased and generated electricity .◻ Scope Three: Indirect emissions .◻ Fuel burning - Owned vehicles .◻ Fuel burning - Diesel .◻ Fuel burning - Natural Gas .◻ Water usage & wastewater treatment .◻ Solid waste disposal .◻ Purchased goods .◻ Downstream transportation .◻ Fuel Burning - Business travel .◻ Travel .◻ Exports .◻ Paper consumption :NRPMC - o The company is keen to make Environmental Measurements regularly through one of the documented labs from EEAA :Tawazon (ECARU) & (ENTAG) - o ECARU and TAWAZON monitor and calculate total energy consumption to enhance energy efficiency, support the strategic transition to clean energy sources, and reduce reliance on fossil fuels-ultimately contributing to a lower .carbon footprint o ECARU calculates the total amount of energy directly consumed annually, :including .◻ Electricity consumption across all facilities and operational sites .◻ Fuel usage in various forms (e.g., diesel, biomass, alternative fuels) :o ENTAG also tracks and measures annual energy consumption from .◻ Direct electricity usage in waste treatment and recycling plants .◻ Fuel consumption in machinery and equipment o Both companies are committed to sustainable energy management, optimizing .consumption patterns, and adopting renewable energy solutions where possible :ASCOM - o Natural gas and power energy are tracked through counters on a daily basis. .The power factor is existing, and reduction projects are ongoing :o GlassRock Natural gas and power energy are tracked through counters on a daily basis. .The power factor is in place with ongoing projects aimed at improving efficiency :o ACCM ◻ The power energy is tracked through counters on a daily basis. The power .factor is existing, and reduction projects are ongoing :ARESCO - o ARESCO monitors energy consumption and production on a regular basis, and there are records Does the company calculate the percentage of energy consumption according .2 ?to the type of generation source Yes Most of Qalaa's major companies annually calculate the percentage of energy .consumption according to the type of generation source :Examples at subsidiary level, including but not limited to :The Egyptian Refining Company (ERC) -o ERC calculates energy consumption according to the source of generation on .an annual basis through its Energy Department :Tawazon (ECARU) & (ENTAG) - o Calculating energy consumption based on the type of generation source is essential for monitoring energy efficiency and sustainability efforts. By tracking consumption patterns, ECARU and ENTAG can strategically reduce their reliance on fossil fuels, targeting a 40% reduction for ECARU and 30% for ENTAG by 2025. This approach also supports the adoption of alternative fuels, contributing to lower carbon emissions and reinforcing the companies' commitment to a more .sustainable energy future o ECARU calculates the percentage of total energy consumption based on the :type of energy source, including .◻ Electricity usage from the national grid .◻ Fossil fuel consumption (diesel, coal alternatives, etc.) ◻ Alternative fuel usage (Refuse-Derived Fuel (RDF), biomass, agro-waste-based fuels) o Both companies are committed to energy diversification and optimizing their .energy mix to align with global sustainability standards :NRPMC - The company is keen to make Environmental Measurements regularly through one of the documented labs from EEAA :ASCOM - o Yes, the energy, either power, natural gas, or diesel, is tracked :o GlassRock ◻ The company tracks energy consumption by generation source, including power, natural gas, and diesel. This monitoring helps assess energy efficiency .and supports sustainability initiatives :ACCM - o Yes, the energy, either power, natural gas, or diesel, is tracked ?Does the company calculate the percentage of annual saved energy .3 Yes Most of Qalaa's subsidiaries calculate the percentage of energy saved annually in .order to periodically evaluate performance to ensure continuous improvement :Examples at subsidiary level, including but not limited to :The Egyptian Refining Company (ERC) -o ERC calculates energy savings on an annual basis through its Energy .Department :Tawazon (ECARU) & (ENTAG) - o ECARU and ENTAG remain committed to sustainable energy management, ensuring continuous monitoring, reporting, and improvement in energy .consumption efficiency o ECARU & ENTAG actively calculate the percentage of energy saved annually :through .◻ Research & studies on energy efficiency, leading to optimized energy usage .◻ Implementation of alternative fuel sources, reducing reliance on fossil fuels ◻ Energy-efficient operational improvements in waste recycling and processing .plants :NRPMC - The company is keen to make Environmental Measurements regularly through one of the accredited labs from EEAA ASCOM (Including GlassRock and ACCM) - o The KPI is tracked for each ton molten and each ton finished product Water Usage (E4).4 ?Does the company calculate the total amount of water annual consumed .1 Yes Most of Qalaa's subsidiaries calculate water usage and monitor bills for consumed water for the purpose of periodic evaluation of performance :Examples at subsidiary level, including but not limited to :The Egyptian Refining Company (ERC) -o ERC calculates the total water consumption of all activities on an annual basis, .and the company consumed 6,419,468.79 cubic meters of water :Dina Farms -o Dina Farms calculates the total amount of water consumed by employing highly efficient irrigation systems and implementing globally sustainable agricultural .practices to preserve water resources :Tawazon (ECARU) & (ENTAG) - ECARU and ENTAG track their total annual water consumption, utilizing water .tracking systems to enhance efficiency and minimize waste o Water usage is monitored through consumption bills from service providers across different governorates while drinking water suppliers at multiple .operational sites provide detailed consumption data :ARESCO - o Aresco monitors the water consumption rate on a monthly and annual basis :NRPMC - o The company calculates the total amount of annual water consumption through the bills :ASCOM (Including GlassRock and ACCM) -o Water consumption is tracked for each production line on a daily basis Does the company calculate the total amount of annual water recycled and .2 ?treated Yes Most of Qalaa's subsidiaries calculate the total amount of annual water recycled .and treated :Examples at subsidiary level, including but not limited to :The Egyptian Refining Company (ERC) -o ERC calculates the quantities of recycled water annually and has also developed an industrial wastewater management system where industrial wastewater is collected through separate sewers and directed to the wastewater treatment plant at the Egyptian Refining Company, where it undergoes triple treatment and is confirmed to comply with national standards for drainage and then eventually discharged into the National drainage system. These actions are carried out to contribute to the achievement of SDG 12, which emphasizes responsible .consumption and production :Tawazon (ECARU) & (ENTAG) - o The company tracks its total annual water consumption through service provider data. Water recycling and treatment are managed through sanitation contracts, supporting conservation efforts, ESG compliance, and operational efficiency. The company remains committed to optimizing water use and .minimizing waste :ASCOM - 100% of industrial wastewater is recycled, while only municipal wastewater goes to drainage :o GlassRock ◻ 100% of industrial wastewater is recycled, while only municipal wastewater goes to drainage :o ACCM ◻ No recycling has been done. Water consumption is very limited to water, while .only municipal wastewater goes to the drainage Waste Management (E5).5 Does the company calculate the total amount of waste generated or recycled .1 ?and that, which has been treated according to type and weight Yes Most of Qalaa's subsidiaries calculate the total amount of waste generated or .recycled :Examples at subsidiary level, including but not limited to :The Egyptian Refining Company (ERC) - .o The quantities of generated and recycled waste are calculated monthly Tawazon: (ECARU) & (ENTAG) - o The company is committed to maximizing waste recovery for environmental sustainability and calculates waste based on type and weight, ensuring efficient resource recovery. The company's waste management facilities annually treat 1 million tons of municipal solid waste (MSW) treated to produce organic fertilizer and alternative fuels (RDF, biomass), in addition to recycling 500,000 tons of .agricultural waste for compost, fuel, and industrial supply (paper, MDF) :NRPMC - We are contracting with contractors responsible for disposing of waste from our .sites, and we can calculate the total amount of waste through their bills :ASCOM (including GlassRock and ACCM) -o Waste inventory is kept, solid and liquid wastes are identified and the legal .contracts are signed with the authorized companies for safe hazardous disposal Fifth: Social KPIs Gender Diversity & Pay Ratio (S1).1 Does the company disclose the number of male and female employees .1 ?according to the type of employment (temporary or permanent) Yes Qalaa and its subsidiaries disclose the number of male and female employees by employment type (temporary, permanent, or outsourced) in various mandatory and voluntary reports. These include the mandatory ESG and TCFD FRA Report, the UN Global Compact Communication on Progress report (published on the .UNGC website), and the WEPs initiative portal As part of its accountability and transparent assessment of performance, as well as fostering data-driven decision-making practices, Qalaa collects sex .disaggregated data and analyze it to refine gender equality practices and targets The number of male and female employees according to the type of employment :(temporary or permanent) for Qalaa and its subsidiaries for 2024 is Permanent employment: 13,201 -Temporary employment: 229 -Outsourced Employment: 4,147 - At the subsidiary level, the following subsidiaries undertake various initiatives, :including but not limited to :NRPMC - All the company's employees whether women or men are permanent employees, and their numbers and type of employment are announced internally and .externally :Tawazon (ECARU) & (ENTAG) - o ECARU & ENTAG remain committed to transparency and equal opportunities,

View stock analysis, news, and events for Qala For Financial Investments