COMPANY NAME

ESG
Qatar’s
sustainable
Report
economic
transition

EMPOWERED BY August
July 2022
Content Guide

E S G
ENVIRONMENT SOCIAL GOVERNANCE
08 Climate change 16 Social development 23 Corporate
strategy governance
17 Food security
09 Sustainable food 24 Transparency
systems 18 National well-being and corruption

10 Circular economy 19 World Cup social 25 Data protection

legacy
11 Carbon-neutral 26 Data privacy
World Cup 20 Corporate social
responsibility 27 Risk management
12 Waste management
21 Pandemic response
13 Energy efficiency

2 OBG ESG Intelligence Qatar

INTRODUCTION

Environment, social and governance (ESG) issues in the

spotlight in the post-pandemic recovery phase

ESG refers to efforts Importance of ESG in the

T post-pandemic context
by businesses to Environmental criteria focus EN S Social criteria relate to how a

M
measure their on how a company safeguards company manages relationships The link between ESG standards, corporate

OC
ENVIRON

IAL
environmental the environment, including with employees, customers, strategy and risk has never been clearer than
and social impact, corporate policies addressing suppliers and the communities during the Covid-19 pandemic, when companies
climate change. in which it operates. had to quickly respond to unprecedented and
and maintain
unpredictable challenges. The risks associated
robust corporate GO
VERNANCE with the pandemic served to boost the
governance implementation of ESG strategies in markets
standards – often around the world, as companies, investors and
following a set of Governance criteria deal with a company’s leadership structure, internal controls, consumers increasingly factored sustainability
defined standards. risk management practices, transparency and shareholder rights. issues into their decision-making processes.

The ESG boom

Global Middle East
Based on the responses of 500 CEOs globally in a 2021 KPMG survey, the pandemic In OBG’s Global ESG CEO Survey 2021, over 60 C-suite executives from the
significantly influenced the approach of business executives to ESG issues. Middle East answered questions about their company’s approach to ESG.

To what extent did the Covid-19 pandemic impact the

of CEOs want to “lock in” say their response to the understanding of and/or appetite for ESG in your market?
89% their sustainability and
climate change gains
96% pandemic shifted their focus to
the social component of ESG
Significant Moderate Limited No
impact impact impact impact

state that they re-evaluated of CEOs say they have a

83% their purpose as a result

of the pandemic to better 99% stronger emotional connection
to company purpose since the
address stakeholder needs crisis began
0 20 40 60 80 100

In the wake of the pandemic, companies that set an agenda for climate-resilient and socially responsible growth will likely be seen as more attractive prospects
by investors. Institutional investors are adapting their portfolios towards better ESG performance. Both regulators and businesses are increasingly aware of
this shift, and are taking steps to align policies and strategies accordingly.

Sources: OBG; KPMG Qatar OBG ESG Intelligence 3

INTRODUCTION

Sustainable Development Goals (SDGs) provide a blueprint

for economic reforms and corporate transformation

The SDGs were adopted by the UN in 2015 as a global call to action, providing QATAR’S PROGRESS TOWARDS THE UN SDGS
guidance to address the environmental, social and governance challenges facing
the international community. The SDGs form an integrated roadmap comprising Guided by the National Vision 2030, Qatar is
leveraging research, development and innovation
17 goals and 169 targets to transform the world by 2030 through human capital
(RDI) in efforts to achieve the SDGs. RDI constitutes
development, inclusive economic growth and environmental protection. As well as a major long-term driver of economic growth,
driving government policy, the SDGs provide a blueprint for corporations to adopt more sustainable prosperity and partnership in the country.
business practices in an effort to generate long-term value creation, without causing irreparable
harm to the environment or communities. This shift in the corporate world has resulted in the Qatar has made progress in preventive physical and
development of ESG frameworks for companies to adopt comprehensive strategies for responsible psychological care. The Index of Essential Health
growth and to report their sustainability progress in key indicators. Service Coverage has reached a level of full inclusion
(100%) for the entire population covered by primary
health care.

Food security is another major sustainable

development priority. Qatar is working to reach
70% food self-sufficiency by 2023, and 100% food
security by 2030.

Qatar has developed an effective social protection

system for all Qataris, which has resulted in advanced
rankings in the Human Development Index, both
regionally and globally.

The country is adopting environmentally friendly

solutions across the economy, from investment in
solar energy to the development of an electric public
transport system and the introduction of strict green
building standards.

The first carbon-neutral FIFA World Cup, to be hosted

by Qatar in 2022, is one of the most important
international partnerships the country has engaged
in, and is serving as a key catalyst for progress in the
2030 Sustainable Development Agenda.

4 OBG ESG Intelligence Qatar Source: UN August 2022

INTRODUCTION

How ESGpolicies
How ESG policies are
are being
being embedded
embedded into
into the the
Qatari
business environment
Qatari business and capitaland
environment markets
capital markets
ESG has emerged in recent years as one most important topics on the Qatari business agenda. Key business
stakeholders, such as investors, financiers, regulators and customers are now expecting that ESG policy Setting standards
adoption and reporting will be part of a company’s long-term strategy for sustainable value creation, and will be
Qatar National
Qatar’s NationalVision
Vision2030
2030
an increasingly important component of its relationship with the financial markets.
emphasises that economic
TIMELINE: ESG DEVELOPMENT IN QATAR Worldwide ESG trend and social
societal
development
development
In an uncertain global environment, investors value needs to be accomplished
The Qatar Stock Exchange (QSE) joined the Sustainable Stock transparency about the ESG initiatives companies are
2016 through responsible policies
Exchanges (SSE) initiative of the UN, which is a platform to implementing, the risks they are mitigating and the
likely returns such policies could generate. One of the that demonstrate respect
explore how stock exchanges can enhance ESG performance and
encourage sustainable investment. key findings of PWC’s 2021 global investor survey of for communities and the
325 investment professionals across 43 territories is environment. The Qatar
that they are increasingly paying attention to the ESG Stock Exchange (QSE) has
2017 The QSE introduced ESG Guidance featuring 34 key
risks and opportunities facing the companies in which
performance indicators (KPIs) to assist all listed companies that committed
The QSE hastocommitted
promote to
they invest, and are poised to take action accordingly.
wish to incorporate ESG into their reporting processes. promote
sustainablesustainable
practicespractices
in
Attitudes toward ESG risks and in
thethe markets
markets in the
in the belief
belief
The QSE launched the Sustainability & ESG Dashboard – the opportunities, % of respondents who agree that corporations
corporates will will
onlyonly
bebe
2018 first such platform in the GCC region – to encourage listed
successful in the long term if
companies to publicly disclose reliable information on their ESG
performance. 79% 75% their models respect the triple
bottom line of “profit, planet
ESG risks are an important Companies should address
The QSE launched its first ESG-Tradable Index and announced and people”. Although the
2021 factor in investment ESG issues, even if doing
plans to mandate ESG disclosures for publicly listed firms, QSE encourages companies
decision-making so reduces short-term
reflecting a broader global shift towards long-term value to consider international
profitability
creation among corporates.
reporting standards, it has

2022
The Qatar Financial Centre (QFC) developed a Sustainable 68% 50% also developed a set of 34
key performance
KPIs that local companies
indicators can
Sukuk and Bonds Framework, based on the latest International
Capital Markets Association, Green Bond Principles, Social Bond ESG performance and I am willing to divest from (KPIs) that
follow as they
local
progress
companies on
Principles and Sustainable Bond Guidelines. targets should be factored companies that are not can follow
their ESG journey.
as they progress on
into executive pay taking sufficient action on their ESG journey.
ESG issues

August 2022
Sources: KMPG; PwC; QSE; SSE Qatar OBG ESG Intelligence 5
 INTRODUCTION
Research partner: LuLu’s approach to environmental
sustainability and social impact
Reducing and recycling
packaging
Pursuing a circular Championing plant-based
economy
Steps taken
by LuLu to reduce
its carbon
footprint
Deploying waste
management solutions
Factoring energy efficiency
into building design
“Sustainability is one of our key priorities at LuLu, not just as part of our corporate social responsibility (CSR), but also as part
6 OBG ESG Intelligence Qatar
Examples of LuLu’s commitment to social and
environmental responsibility Holistic efforts
LuLu Hypermarket is
Partnered with the Gulf Organisation for Research and
Development (GORD) as the ‘Green Retail Partner’ for the a retail chain that has
Qatar Sustainability Summit and was recognised with the operated in Qatar since
food options ‘Sustainability Award’ in appreciation of its long-standing
efforts towards sustainability
2000. It forms part of
LuLu Group International,
which operates 210 stores
Joined the Ellen MacArthur Foundation as a network member
to facilitate collaboration for accelerating the transition to across 22 countries.
a circular economy and to tackle global challenges such a LuLu is implementing
climate change, waste and pollution, and biodiversity loss environmentally and socially
sustainable practices across
Partnered with the Education Above All Foundation and its 18 stores in Qatar. As
donated $4m as the ‘Silver Sponsor’ of their project titled part of its commitment to
‘Educate A Child’, in addition to raising QR 2m for the Assalam
Schools Project Qatar National Vision 2030,
the company is working
Supported the Qatar Cancer Society by raising QR 125,000 to cut carbon emissions,
under its ‘Shop and Donate’ campaign, for which Lulu was reduce food and packaging
honoured for its endeavours waste, shorten supply chains,
Encouraging customers
to use reusable promote healthy eating
shopping bags Conducted a series of workshops on retail platforms to support and support local food
young local entrepreneurs as part of a joint initiative with the
Qatar Development Bank and Silatech in collaboration with
producers. LuLu plans to
Bedaya Centre for Entrepreneurship and Career Development. open a further three outlets
in Qatar in 2022, as well as
four pop-up Metro stores for
of our commitment to the community.” the 2022 FIFA World Cup.
– Mohamed Athaf, Director, LuLu Group International
Source: LuLu August 2022
ENVIRONMENT
 ENVIRONMENT SOCIAL GOVERNANCE

Commitment to sustainability goals under the Qatar National

Environment and Climate Change Strategy (QNE) 2021

QNE 2021: Key priorities and targets

Reducing greenhouse Improving waste
Enabling sustainable Enhancing land-use
gas (GHG) and air Restoring biodiversity management and building
water management productivity
pollutant emissions a circular economy
25% reduction target in 25% of land to be Regular and effective Account for 100% Over 50% improvement
GHG emissions by 2030 conserved and effectively monitoring of all water sources of all waste in farm land productivity
managed by 2023, as well (groundwater, seawater and from 2019 levels
Enhance ambient air as meeting sea targets in potable water) Achieve a 15%
quality standards and line with post-2020 Global material recycling rate 40% improvement in water
update limit value aims by Biodiversity Framework Over 55% desalination to be of municipal waste consumption per tonne of
2024 achieved from reverse osmosis crops from 2019 levels
Protect and recover or more sustainable technology 100% closure of unsanitary
Improve indoor air threatened species landfills to drive sustainable Monitor and track national
quality standards by with plans put in place for 60% reduction in groundwater waste management agro-chem usage, with plans
2024 with reference effective protection and extraction to ensure sustainable in place to reduce per
to World Health recovery strategies and integrated management of Use 35% recycled tonne usage volume
Organisation guidelines all water resources materials in construction
and the latest scientific 100% sustainability projects Manage and supervise
developments in the way fish are caught Reduce and maintain soil quality to improve soil
total water loss to <8% Achieve 30% circular carbon levels and emissions
and consumed
and real loss to <4% public procurement in
Establish national
public infrastructure 16% public transport
network of Enhance awareness,
100% of recycled water to modal share
measurement stations, participation and
be efficiently reused in other 50% reduction in per
with 30+ stations in capabilities of biodiversity
activities capita food waste at retail and Develop a comprehensive
operation by 2023 to conservation
consumer levels, and encourage open space and recreation
improve air quality
Conduct household water a reduction of food losses along strategy by 2022 to enhance
monitoring Ensure biodiversity survey to develop roadmap production and supply chains green space access
conservation is to reduce per capita
Develop comprehensive incorporated into household water consumption Apply circular industry Establish and mandate
National Air Emissions national and corporate by 33% from 2019 levels to 310 principles across Qatar’s green building requirements
Inventory by 2023 planning litres per capita per day industrial cities for new developments

8 OBG ESG Intelligence Qatar Source: GCO August 2022

 ENVIRONMENT SOCIAL GOVERNANCE

Work is under way to create more sustainable food

systems and reduce carbon emissions from production

Global GHG emissions from food production

Vertical farming Crop diversification
Livestock & fisheries 18%
31% Qatar is adopting vertical farming solutions and The Ministry of Municipality and Environment
Crop production
agricultural technologies to improve the quality (MME) encourages farmers to engage in
Land use 24% of crop output in one of the world’s harshest sustainable practices including crop rotation and
Supply chain environments, while using drones to monitor diversification, and provides them with water-
27% crop health and manage yields. Green indoor efficient smart farming technologies. It also
vertical farming can potentially emit 70% less supports local farms with setting up greenhouse
CO2 emissions per capita, 2020 (tonnes) CO₂ compared to open-field agriculture, with farms to reduce their carbon footprint, and
Qatar additional benefits of 95% less land protect crops from adverse weather
Mongolia used and 80-90% less water use. conditions and pests.
Sustainable
Kuwait
Bahrain agriculture in Qatar
Hydroponics Recycling
KSA
Australia Qatar’s efforts to reach 70% self-sufficiency Farms in Qatar are encouraged to recycle organic
UAE in vegetables by 2023 will be supported by waste to create compost that is suitable for growing
US hydroponic farming, which uses nutrient-rich plants, fruit and vegetables, and can also be turned
0 5 10 15 20 25 30 35 40 water from drip irrigation rather than taking into animal feed. The waste management centre at
nourishment from soil, as well as controlled Mesaieed produces around 100 tonnes of fertiliser
Estimates of GHG emissions from food under various climate greenhouses and smart cooling through the recycling and treatment of waste food
scenarios, 2020-2100 (bn gigatonnes) technology. Hydroponic systems help control products, animal carcasses and green waste from
environmental conditions like temperature and plants. It also produces approximately 50 MW of
Business as usual 1356
pH balance, and maximise nutrients and water. electricity as a byproduct of waste recycling.
14% reduction
High yields 1162
27% reduction A UN report found food production contributes around 37% of GHG emissions – illustrating the
Half food waste 992
30% reduction
significant impact that food systems have on climate change. According to a study by the UN Food
Healthy calories 946 and Agriculture Organisation, 16.5bn tonnes of GHG emissions came from global agri-food systems
40% reduction in 2019. While 7.2bn tonnes came from within the farm gate, 3.5bn tonnes emanated from land use
Best farm practices 817
change and 5.8bn tonnes from supply-chain processes. Qatar’s government has been working under the
48% reduction
Plant-rich diet 708 National Food Security Programme to mitigate climatic challenges, and develop sustainable and efficient
CO2 warming equivalents (CO2 we) production methods that are suited to the local environment.

Sources:
August 2022
Our World in Data; Statista Qatar OBG ESG Intelligence 9
 ENVIRONMENT SOCIAL GOVERNANCE

Waste management is central to Qatar’s

transition towards a circular economy

Circular economy principles also underpin Qatar’s hosting of the 2022 FIFA World
Qatar’s efforts to transition to a circular economy include plans for a
Cup, which is designed to be a carbon-neutral event, with circular practices
carbon capture and storage plant, which aims to sequester 5m tonnes of
incorporated into the development of sporting facilities to avoid biodiversity losses
carbon from liquefied natural gas facilities by 2025.
and ensure responsible waste management.

Technologies that minimise energy and water usage are an To support the adoption of circular economy practices by the
essential component of Qatar’s sustainable development plans, Efforts private sector, several public institutions are encouraging
with most of the country’s new green buildings utilising some by Qatar to circular economy approaches and business practices, such
form of renewable energy, and relying on electronic sensors to develop a circular as the Qatar Development Bank and Qatar Science and
reduce water and power consumption. Technology Park.
economy

Earthna Centre for a Sustainable Future was launched by Qatar QF has invested heavily in the country’s efforts to become a knowledge
Foundation (QF) to foster an education, research and innovation economy with circular economy, and sustainability principles have been
ecosystem for generating solutions that accelerate Qatar’s sustainability defining features of the research and teaching approaches developed by
progress and enhance circular economy practices. Education City’s various educational and scientific institutions.

Waste management in Qatar: progress and plans Annual household waste

in Qatar, 2013-19 (m tonnes)
Opening of a domestic Plans to establish four waste Around 2500 discarded tyres
solid waste management transport stations to deliver received at Rawadat Rashid 2022 targets
2013
centre at Mesaieed in 2011, waste to treatment and recycling landfill daily to be shredded and Domestic waste
which was the first integrated centres, as well as further plans to re-exported, with four more tyre 2014
generation ratio of
solid waste facility in the build 48 waste recycling plants in recycling factories at Al Afjah and 2015 below 1.6 kg per
Middle East the Al Afjah area three companies at Umm Al Afaei capita per day
2016
Qatar has signed and ratified the Basel The MME signed a cooperation agreement 2017 Recycle 15% of all
Convention that aims to protect the environment with the Qatar Primary Materials Company in solid waste
against the adverse effects of hazardous waste, and December 2019 to recycle construction waste at the 2018
is developing and issuing national instructions on the Rawdat Rashed landfill, which contained about 40m 2019
management of medical and radioactive waste tonnes of construction waste
0.0 0.3 0.6 0.9 1.2 1.5

10 OBG ESG Intelligence Qatar Sources: PSA; MME August 2022

 ENVIRONMENT SOCIAL GOVERNANCE

How Qatar plans to deliver a

carbon-neutral 2022 FIFA World Cup

Sustainability incorporated into stadia infrastructure

Global example
30% more energy efficient
than international 15% of building supplies Qatar is aiming to deliver
benchmarks (ASHRAE 90.1) sustainably sourced from
the first carbon-neutral FIFA
recycled materials
World Cup in the tournament’s
40% less water used than history. Sustainability practices
international benchmarks 70% more efficient LED
and clean technologies have
(International Plumbing Code) lights as best alternative to
traditional lights been integrated into the
design and construction of
850,000m²+ of new green stadia to enhance air quality
space, equivalent to 121 full- 50% decrease in energy
consumption due to district and ensure effective and
sized football pitches
cooling systems in stadia efficient energy, waste and
16,000+ trees and water- 90% of waste generated water management practices,
efficient plants to create green at Al Janoub and Al Rayyan leading to a reduction in
landscaping for cooling effect stadia reused or recycled resource requirements.

Clean energy Green mobility All tournament venues have

Solar energy will make an important contribution to powering the
tournament with the new Al Kharsa’ah 800-MW solar power plant
set to deliver renewable energy before and after the tournament
– providing approximately 10% of Qatar’s electricity demand while
reducing its CO₂ emissions by an estimated 26m tonnes.
Stadium 974
Constructed from 1000 modular shipping containers and featuring
removable seats, Stadium 974 will be the first fully dismountable
FIFA World Cup stadium in the tournament’s history. The 40,000-
capacity venue will be completely dismantled and repurposed after
the event, with its parts reused to create other facilities.
To reduce vehicle emissions and air pollution, steps have been taken to been certified with at least
introduce an electric bus system that will serve attendees at the 2022 four stars by the Global
FIFA World Cup. All stadia will be situated in relatively close proximity and Sustainability Assessment
connected to the electric Doha Metro system, meaning that spectators
System (GSAS), with the
and officials will not need to take any domestic flights.
Education City Stadium and Al
Sustainable accommodation Bayt Stadium both achieving
To support sustainable building practices in the accommodation sector,
five-star ratings. The event will
the Qatar National Tourism Council’s hotel classification system specifies
minimum environmental criteria for all hotels, such as waste segregation, also be the most compact FIFA
water and energy saving practices, and rewards green building World Cup in modern history.
certification and sustainable procurement.

Sources2022
August : FIFA; Qatar 2022 Qatar OBG ESG Intelligence 11
 ENVIRONMENT SOCIAL GOVERNANCE

CASE STUDY: LuLu’s progress in

reducing and recycling waste

Amount of waste recycled LuLu's operational CO2 emissions savings, 2021 (tonnes)
instead of landfilled by LuLu, Green operations
2021-22 (tonnes) Waste paper & carton recycled
LuLu is taking active
Reusable & kraft bags recycled
6000 5768 measures to reduce the
Oil waste collected & recycled environmental impact of
5000
Food waste properly disposed its operations. As part of
4000 Animal feed generated from food waste its commitment to the
0 40 80 120 8000 10,000 12,000 Qatar National Vision 2030,
3000
LuLu has been working to
2000 reduce its carbon emissions,
948 To sensitise the public about waste management and share ideas with other experts, Simon and food and packaging
1000 Alexander, regional operations manager of LuLu Group International, participated in the second Qatar
waste by implementing
Waste Management Conference and Exhibition in June 2022, organised by the MME. During the event
0 he delivered presentations on reducing food waste, and participated in question-and-answer session. various initiatives in its daily
2021 Q1 2022 operations ranging from
the promotion of reusable
Actions taken by LuLu to reduce waste and encourage recycling bags to the introduction
Purchase of materials made with recycled components Collaboration with local and international suppliers to of recycling solutions. In
and sale of products with recyclable content reduce packaging and encourage recycling addition to raising awareness
among staff and customers
Introduction of biodegradable shopping bags (made Launch of a refill option in selected grocery categories to about responsible water
from potato starch and other reusable materials) and enable customers to bring back and refill containers when
other reusable shopping bags they run out of the product
usage, recycling and waste
management, LuLu plans to
Launch of Borrow a Bag programme to encourage Plans to set up waste recycling kiosks and a place where set science-based targets for
customers to opt for reusable bags customers can safely dispose of used batteries reducing its carbon emissions
to the level required to keep
Rollout of ORCA, an innovative food waste solution that
Establishment of a policy around the correct collection global warming well below
recycles food waste by breaking it down into water and
and disposal of used cooking oil
carbohydrates, fats and proteins that are then repurposed the 2°C threshold.

12 OBG ESG Intelligence Qatar Source: LuLu August 2022

 ENVIRONMENT SOCIAL GOVERNANCE

CASE STUDY: LuLu’s efforts to improve energy

efficiency systems yield positive results

How LuLu is ensuring energy efficiency at its facilities IN FOCUS: Al Messila branch awarded gold sustainability rating

Certification awarded
All buildings and Green building
stores use energy-efficient standards adhered to in all The building’s
sustainability
lighting new constructions features help to avoid
an estimated 2160 tonnes
of CO2 emissions annually,
equivalent to the annual
electricity usage of
406 households
for sustainability
in operations under
the GSAS The building is
connected to an
on-site, air-cooled
cooling plant operating on
constant primary and
variable secondary
configuration

Energy-efficient Evidence-based water and

refrigeration units and bakery energy management solutions Waste accumulated
ovens in stores adopted across operations from various facilities Efficient heating,
within the building is ventilation and air
segregated at the source for conditioning system
responsible disposal and
recycling
LuLu has identified energy efficiency as one of its top corporate priorities to reduce risk to LED lighting used
the environment and the organisation. To this end, the company aims to reduce its carbon in the display and
sales areas, as well as
footprint by half by 2030 and to achieve carbon neutrality by 2050. LuLu Hypermarket in basement
Qatar has become one of the first retailers in MENA to achieve the sustainable operations
certification under the GSAS developed by GORD. The GSAS is the first green building
certification system in the region that assesses and guides projects on reducing their
environmental footprint during the design, construction and operational stages. Upon In recognition of its efforts towards energy conservation and
completion of the required audits by sustainability experts from GSAS Trust and GORD Labs, achieving zero emissions, LuLu received the Tarsheed Award for
LuLu’s store in Al Messila achieved an overall score of 1.51, which corresponds to a gold Sustainability and Energy Efficiency in the Commercial Sector under
rating under the GSAS Operations certification. Following the energy audits, LuLu and GORD the Tarsheed Conserving Building Competition category. LuLu
are now initiating dialogue on upgrading facilities through the GORD-managed ESCO model was acknowledged as the only private sector business in Qatar to achieve its
approach to optimising energy efficiency. targeted reduction of resource consumption in 2020/21.

Sources:
August 2022
LuLu, GORD Qatar OBG ESG Intelligence 13
Hassan Al Thawadi, Secretary-General,
Supreme Committee for Delivery and Legacy
How can the 2022 FIFA World Cup be carbon neutral?
AL THAWADI: Striving for a sustainable, carbon-neutral
tournament is at the heart of our planning. Each stadium
meets sustainability benchmarks for design, build,
construction and operations under the Global Sustainability
Assessment System. Such an ambitious goal poses many
challenges, including the supply of local sustainable materials,
equipment and skills. To tackle this, our sustainability
programme includes comprehensive training and capacity-
building. Since 2017 we have organised carbon-reduction
awareness workshops and conferences with various
stakeholders. Local businesses can also contribute by
Hassan Al Thawadi developing and implementing sustainability programmes.
In which areas of environmental sustainability can Qatar
aspire to set an example during the World Cup?
AL THAWADI: It is not just about delivering a sustainable
event, but a blueprint for the sustainable future of the
country. The 800-MW, 10-sq-km Al Kharsaah solar power
project will supply renewable energy for the World Cup and
Qatar. It will generate about eight times the amount of solar
energy Qatar has pledged to develop. The 2020 FIFA Club
World Cup saw the first-ever comprehensive waste and
recycling programme at a major football event in Qatar. We
delivered an awareness campaign where cardboard, plastics
“ It is not just about delivering a sustainable event, but a blueprint for the sustainable future of the country
14 OBG ESG Intelligence Qatar
and food waste were recycled, for a landfill diversion rate
of nearly 50%, versus 20% in Russia in 2018. Moreover, the
first fully demountable World Cup venue, Stadium 974, is
built entirely out of shipping containers. This structure is a
first in sustainable sport infrastructure and could encourage
countries without infrastructure to host matches. We are also
ensuring we do not leave behind any unused structures or
facilities by donating over 170,000 seats across seven stadia.
To what extent can circular economy and sustainability
solutions minimise food and packaging waste?
AL THAWADI: The FIFA Arab Cup in late 2021 provided a
testing ground for our projects, particularly efforts to recycle
and compost organic waste. During the 19-day tournament
more than 75 tonnes of organic waste were collected and
turned into compost through a cohesive waste-management
system. At stadium sites, we worked with 2022 FIFA World
Cup Qatar to maximise the use of compostable food
containers and cutlery, as well as to build awareness of the
appropriate use of waste-segregation systems, which include
compostable green bins. It is also worth noting that 70% of
waste from Al Bayt Stadium was recycled, with the remainder
sent to a waste-to-energy plant. Our recycling process seeks
to create compost that is suitable for growing plants, fruits
and vegetables, and can also be turned into animal feed.
“
SOCIAL
 ENVIRONMENT SOCIAL GOVERNANCE

Policies and initiatives put in place to

enhance social development in Qatar

Key social and human development objectives and priorities under Qatar National Vision 2030 No. of social security beneficiaries, 2015-19 (000)

Healthy population Males Females

Develop a comprehensive health care system that offers effective preventive and curative services 15
through public and private institutions that are accessible to the whole population 12
9
Social care and protection 6
3
Maintain an inclusive social protection system for all Qataris that safeguards their civil rights, values their
0
societal contribution and ensures an adequate income to maintain a dignified life, while building strong 2015 2016 2017 2018 2019
and cohesive families
Qatar operates social protection systems intended to cater
for all vulnerable segments of Qatari society, especially widows,
Capable and motivated workforce
Develop the skills and competencies of all segments of Qatari workforce. Increase and diversify their divorcees, the elderly, people with disabilities, those incapable
participation in the economy through the provision of high-quality training programmes and by of working, needy families and orphans
creating an enabling environment for them to access professional and management opportunities
Labour share of GDP on a positive trajectory
Sound social structure
5

Labour share
Craft strong, active public institutions and civil society organisations that provide high-quality

of GDP* (%)
services that meet the needs of individuals and businesses, while maintaining a strong and stable
society operating on the principles of justice, equality, rule of law and cultural preservation 4

Educated population 3
2016 2017 2018 2019 2020
Build an advanced educational system underpinned by innovation, creativity and Qatari values that equips
*Labour share of GDP is the total compensation of employees
Qatari children and youth with the skills to meet the current and future needs of the labour market (wages and social protection transfers) given as a per ent of GDP
through a high-quality educational curriculum and extra-curricular activities according to individual
needs, while also providing citizens with training programmes and opportunities for life-long learning The government is ensuring that employment and salary levels
for public and mixed sector employees remain stable by aligning
International cooperation expenditures with revenue levels. In addition, a minimum wage
Contribute to regional and international peace and security through political, economic and cultural for all migrant workers and household employees was introduced
initiatives particularly within the framework of the GCC, the Arab League and the Organisation of in 2020, obliging employers to pay a basic wage of no less than
Islamic Cooperation, while also providing development and humanitarian assistance, and supporting
QR1000 per month, while providing their workers with adequate
dialogues that promote tolerance and coexistence between different religions and cultures
housing and food, or equivalent allowances.

16 OBG ESG Intelligence Qatar Sources: UN; PSA August 2022

 ENVIRONMENT SOCIAL GOVERNANCE

Progress in Qatar’s food security strategy is

important for social stability and development

Funding for small and medium food security projects Significant increase in Qatar's value of agricultural
Taking into account the 1500 production since 2018
importance of food security 500

Gross production value,

Direct loans (QR m)
in social stability, Qatar has 1200
400

2010-20 ($ m)
set a target of reaching 70%
900 300
food self-sufficiency by 2023
and achieving 100% food 600 200
security by 2030.
300 100
Amid the economic blockade 0
Qatar faced from some 0

10
11
12
13
14
15
16
17
18
19
20
2017 2018 2019 2020

20
20
20
20
20
20
20
20
20
20
20
regional neighbours from
2017 until 2021, Qatar
developed the National Food Qatar leads the GCC in food security Production of local vegetable
GCC rankings in the 2021 GFSI increased from 66,000 tonnes in 2019
Security Strategy 2018-23
to over 103,000 tonnes, achieving a
within the framework self-sufficiency rate of 41%
of the second National
Development Strategy 2018- Qatar 25th Oman 40th
22. The framework targeted Local production
Production volume
technological solutions to of table eggs
of milk increased
strengthen its food systems increased to 11,000
to over 230,000
tonnes from 6000 Achievements
against external shocks by Kuwait 30th Bahrain 43rd tonnes in 2018, in Qatar’s
tonnes, reaching a
promoting local production, achieving a self-
self-sufficiency rate
improving food quality and sufficiency rate of
food production of 106%
maintaining strategic stocks. 35% in 2021
This resulted in an
improvement in self-
UAE 35th KSA 44th
Red meat production Fresh poultry
sufficiency levels, which production reached
increased to 12,500 tonnes
earned Qatar first place *The GFSI takes into consideration the affordability, cost, availability from 8000 tonnes in 2018, 28,000 tonnes, boosting
among Arab countries in the and quality of food in 113 countries. GCC countries ranked relatively achieving a self-sufficiency self-sufficiency in
2021 Global Food Security high, considering they neither have the conducive climate nor the poultry consumption to
fertile soil and natural water resources usually required. rate of 24%
Index (GFSI). 124%

Sources:
August 2022
EIU, QDB; PSA; FAO Qatar OBG ESG Intelligence 17
 ENVIRONMENT SOCIAL GOVERNANCE

The well-being and health of citizens is central to

long-term social development

Qatar’s National Health
Strategy (NHS) 2018-22
The human development pillar
of Qatar National Vision 2030
articulates the country’s ambition
to develop a population that is
physically and mentally healthy.
Led by the Ministry of Public
Health, the NHS 2018-22 is an
all-encompassing blueprint for
Qatar’s health sector. As part of
Q​atar’s National Development
Strategy 2018-22, the NHS 2018-
2022 aims to shape the health
care sector’s future trajectory
through new health care facilities,
services and technologies.
Qatar's health care spending is among the highest in the GCC
UAE
Qatar
Health emergency preparedness and Qatar’s National Nutrition and Physical Activity Action Plan
average International Health Regulation
As part of efforts under the NHS 2018-22 to achieve better health, better care
capacity*, 2016-19 (%)
and better value for Qataris, the National Nutrition and Physical Activity Action
100 Plan (NNPAAP) was implemented to reduce morbidity and mortality attributable to
chronic non-communicable diseases (NCDs) through healthy nutrition and increased
80 physical activity. The plan aims to improve maternal, infant and young child health;
promote and protect the nutritional well-being of all age groups; and strengthen
legal frameworks that support healthy food and prevent NCDs.
60
Targets to be achieved under the NNPAAP
40
20
50% 50% 10%
reduction in increase in the rate of relative reduction in
anaemia in women exclusive breastfeeding prevalence of insufficient
0 of reproductive age in the first six months physical activity
2016 2017 2018 2019
* Calculated as a percentage out of 100, with 100 being the highest score.
It is an average across 13 different indicators and relies on self-assessment
30% Halting
relative reduction in mean the rise
population intake of salt/sodium of diabetes and obesity
Significant decline in mortality rate from NCDs in Qatar since 2000
30

of those aged 30-70 (%)

Kuwait 25
Mortality rate from
specified NCDs
KSA 20
15
Bahrain
10
Oman 5
0 500 1000 1500 2000 0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Health expenditure per capita, 2019 (%) *Includes cardiovascular disease, chronic respiratory disease, cancer and diabetes

18 OBG ESG Intelligence Qatar Sources: WHO; PSA; UN; World Bank August 2022
 ENVIRONMENT SOCIAL GOVERNANCE

How the 2022 FIFA World Cup is having

a positive social impact

Repurposing resources Sports participation

Following the tournament, the new stadia will be
reconfigured and surrounding areas will be enhanced
to suit the local community. A number of stadiums will
become home to domestic football clubs, or provide
facilities for local, regional and international sporting
events to encourage sports development and healthier
lifestyles in Qatar.
Global Support
The construction of the new 2022 FIFA World Cup
stadia using modular seating will enable certain
facilities to be removed after the tournament and
donated to other countries around the world that
require sporting infrastructure.
In 2011, a year after winning the rights to host the FIFA
World Cup 2022, Qatar introduced National Sport Day – a
national holiday encouraging the community
to get active and engage in sporting activities
across the country. Participation in sports such as
football, badminton, tennis, paddle, judo,
gymnastics increased in the years since.
Social legacy of the
2022 FIFA World Cup Community development
Facilities built for the 2022 FIFA World Cup will provide many
new community amenities, new economic opportunities in
areas such as hospitality and retail, and modern
facilities for sports, leisure and socialising.

Generation Amazing Migrant labour reforms

The Generation Amazing programme was established in
2010 as part of Qatar’s bid to host the 2022 FIFA World
Cup. It is intended to use sport to address social needs
and challenges in disadvantaged communities through
engagement with young people, the construction of
community football pitches and the delivery of comprehensive
“football for development” training.
“Generation Amazing aims to harness the transformative power of football to teach
important life skills to children in Qatar and across the world. From organising workshops
and engaging with schools, to building football pitches in impoverished countries –
supporting the creation of safe spaces for youth to play and exercise – Generation Amazing
is on track to impact the lives of over 1m people in 10 countries by the end of 2022.”
- Hassan Al Thawadi,
Secretary General, Supreme Committee for Delivery and Legacy
The influx of migrant workers to build infrastructure for the
tournament helped to usher in positive labour reforms
in Qatar, such as the introduction of a minimum wage
and housing benefits, and the abolition of the kafala
(sponsorship) system.
Public health legacy
Qatar signed an agreement with the World Health Organisation
(WHO) to establish a multi-year collaboration with global partners
that will promote physical and mental health, and serve as a model
for ensuring future large-scale sporting events are
healthy and safe. The WHO and Qatar will work
closely with FIFA to undertake joint activities to
promote healthy lives, health security, and physical
and mental well-being during the event.

Sources:
August
July 2022
2022
Qatar Living; OBG Source: source Qatar OBGOBG
ESG Intelligence
ESG Report 19
 ENVIRONMENT SOCIAL GOVERNANCE

CASE STUDY: How Lulu’s Corporate Social

Responsibility (CSR) efforts impact society

CSR highlights
LuLu’s was the key sponsor
of the Special Olympics
World Games 2019

Price Freeze Policy Annual Walkathon Donations Refuse, Reuse, Reduce

Policy to ensure essential Supports the fight against Donating during natural “RRR” initiatives to reduce the
goods and items always remain diabetes and breast cancer disasters around the world, use of plastic bags, in addition
affordable for consumers including tsunamis, typhoons to usage of oxo-biodegradable
and floods plastic bags in its stores

Spotlight on two areas where Lulu is making a difference in Qatar

Lulu, in partnership with the Qatar Individuals with special needs are trained Lulu has a three-pronged strategy to enable Qatari production: Working in partnership
Business Chamber, is creating new job and supported to interact with colleagues a wide variety of affordable nutritious with the government on its food security strategy
opportunities for individuals with special and customers in order to fulfil customer foods to be available for all customers and to increase local production and meet national
needs and disabilities. facing roles at Lulu stores. budgets: food needs. This has enabled Lulu to
Improve inclusivity Efforts to expand offer a wide range of locally
for people with access to affordable sourced products with minimal
disabilities through nutritious food transportation costs.
employment
options
Lulu-supported packages to opportunities Each opportunity provided the Import strategy: By developing Healthy diets: The growing
ensure that each individual’s employee and the team with import distribution centres, Lulu popularity of emerging health
needs are carefully catered for, an enriching experience to is able to source directly from and diet options allowed Lulu to
such as physical changes to the work together with people with suppliers, minimising distributor capitalise on its global partnership
work environment, timely rest different needs. Feedback from costs and inflationary pressures with suppliers and bring an
periods, and quiet time when needed. employees, customers and the individuals through a consolidated supply chain. expanding range of organic, vegan, plant-based,
themselves has been positive. ‘free-from’ and low-calorie varieties to the market.

Lulu’s product varieties key figures:

More than 500 Growth in organic, vegan, gluten-free and “free-from” items has outperformed
Over 1000 More than 1000 Over 500 labelled most other categories. Notably, the vegan range has recorded double-digit
labelled vegan &
organic lines gluten-free lines “free-from” lines volume growth and the range increased by 6% in 2021.
plant-based lines

20 OBG ESG Intelligence Qatar Source: LuLu August 2022

 ENVIRONMENT SOCIAL GOVERNANCE

CASE STUDY: LuLu supports efforts to overcome the effects

of the Covid-19 pandemic and strengthen food security

Measures taken by LuLu to support the community during the pandemic Making an impact
Intensified the storage As the global Covid-19
Implemented Covid-19 Distributed food of essential food
protocols in its stores, baskets to pandemic- pandemic upended the daily
Distributed Collaborated with items and enhanced
including social- affected expatriate KMCC Qatar to its e-commerce life in Qatar in 2020-21, LuLu
Ramadan kits
distancing guidelines families, in cooperation provide relief to capabilities to ensure supported national efforts to
to people in
and the use of signage with the Indian people who were availability and address the social challenges.
need during the
at vantage points inside Community Benevolent affected by the accessibility of food
pandemic under
Forum Qatar
In addition to implementing
the stores pandemic for all
the auspices of health and safety protocols in
the Embassy of
stores, LuLu pursued strategies
India in Doha
to enhance food security and
guarantee the availability of
essential items.

LuLu supported the public

by distributing food baskets
to affected communities and
expanded storage capacity for
Organised a Provided food food items, while at the same
Launched temporary
campaign named Display of baskets to the time enhancing its e-commerce
supermarkets at four Proactive measures were
“Your Health is in essential items Norka Roots capabilities to meet growing
different locations in taken by LuLu to ensure
Your Hands” to at multiple distress relief
promote awareness
the Industrial Area to food security during the online demand. Lulu’s efforts
locations provide people who scheme to help the
on hand hygiene crisis, such as chartering in responding to the pandemic
inside stores to were quarantined poor affected by
among customers, cargo flights to transport in Qatar were recognised with
avoid crowding after testing positive the pandemic
employees and the food items and engaging
for Covid-19 with the 2021 CSR Award for Best
general public closely with domestic
essential items producers Company in the Private Sector.

Source:
August
July 2022
2022
LuLu Source: source Qatar OBGOBG
ESG Intelligence
ESG Report 21
GOVERNANCE
 ENVIRONMENT SOCIAL GOVERNANCE

Qatar makes progress in establishing corporate

governance foundations in response to regional challenges

Common corporate governance weaknesses seen
in the GCC
• Companies tend to feature a relatively concentrated shareholder
profile, which – in the absence of adequate balancing procedures
– results in boards of directors being less independent from
ownership than in other geographies. Consequently, controlling
shareholders exert excessive influence over management,
organisational and strategic decisions.
• The participation of a single individual in several boards, often
with executive powers, gives rise to potential conflicts of interest,
as well as less thorough oversight due to time constraints.
• With the exception of financial companies and those active
in capital markets, there is a relative lack of disclosure and
reporting.
Qatar’s corporate governance framework,
which addresses governance weaknesses
prevalent in the GCC by leveraging
well-established standards, relies on two
documents:
• The 2016 Qatar Financial Market
Authority’s Governance Code for
Companies & Legal Entities Listed on the
Main Market; and
• The 2021 Amending Law on Qatar’s
Commercial Companies Law.
Additionally, the 2016 Qatar Stock
Exchange’s Guidance on ESG Reporting
facilitates voluntary reporting on
sustainability matters. Governance in GCC Financial Markets
Global and regional standards in corporate
governance
• The 2015 G20/OECD Principles of Corporate
Governance, which include the relevant principles
of the International Organisation of Securities
Commissions
• The 2015 Bank for International Settlement’s
Corporate Governance Principles for Banks
• The 2004 International Association of Insurance
Supervisors' Insurance Core Principles on Corporate
Governance
• The 2014 International Corporate Governance
Network’s Global Governance Principles
• The 2013 GCC’s Standard Principles for Corporate

Balanced board composition to safeguard independence and effectiveness
• At least one-third of board members must be independent; the majority must be
non-executive, and seats should be allocated to represent minority shareholders and
employees
• The chairman of the board and the CEO should be two different people, and the
chairman cannot head secondary committees
• No member of the board or of senior executive management can participate in
competing business activity
• Whenever an issue regarding a conflict of interest or any commercial transaction
between the company and any of its board members is discussed, the concerned
member must be absent and cannot vote on the matter
• The audit committee should be chaired by an independent board member and it must
be formed by a majority of independent members
Clear focus on reporting to ensure transparency and accountability
• Information on the committees’ work and the company’s structure and procedures
to uphold governance requirements
• Disclosure of analysis and procedures related to risk management, including risk
mitigation and response plans, as well as financial oversight
• Disclosure of any non-compliant behaviour, including violations and sanctions
imposed because of non-compliance with any applicable governance principles,
as well as the corresponding remedial measures
• Disclosure of internal control failures, conflicts and disputes (particularly under
arbitration or lawsuits), any contingencies currently or potentially affecting the
company’s financial performance, and operations with any related party
• Performance assessment of board members and senior executive managers
under the company’s goals and standing risk management policies

Sources: Qatar Financial Markets Authority; Standard & Poor’s; K&L Gates Qatar OBG ESG Intelligence 23
 ENVIRONMENT SOCIAL GOVERNANCE

Qatar’s low corruption profile provides a platform

for a more ambitious public governance agenda

Qatar's Corruption Perception Index (CPI)* score Next stage governance reforms: beyond corruption
Next stage
80
Although Qatar is ahead of most
78
other jurisdictions in MENA in
76 Rethinking
Rethinkingthe
theboundaries
boundariesbetween
betweenthe
the terms of anti-bribery safeguards
public
publicand
andprivate
privatesectors
sectors
74 – particularly with regards to
72 Customs and law enforcement
70 agencies – public procurement
has presented some challenges.
68
To address this, Procurement
66 Boostingthe
transparency
Rethinking boundariesand public the
between Law 2015 provides that the
64 accountability
public and private sectors award of a government contract
62 can be rescinded if proven that
60 the contractor committed fraud
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 or other improper activities in
* The CPI ranks 180 countries and territories around the world by their perceived levels of public sector
corruption. The results are given on a scale of 0 (highly corrupt) to 100 (very clean).
the execution or acquisition of a
Streamlining contract, including bribery.
In 2021 Rethinking theregulatory
boundariesprocesses
betweento
the
make them more predictable and open
public and private sectors

63 31
Moving forward, Qatar is well
positioned to further strengthen
anti-corruption safeguards.
100 180 The creation of a transparent
business environment where
score Global Ranking Strengthening the agencies responsible
Rethinking the boundaries
for investigating between the
and prosecuting accountability is taken seriously
public and private sectors
corruption and other wrongdoings is an important component
2nd place in MENA of fostering an attractive
investment climate.

24 OBG ESG Intelligence Qatar Sources: Transparency International; DLA Piper; Brookings August 2022
 ENVIRONMENT SOCIAL GOVERNANCE

Data protection regulations are of key importance

for retail companies and their stakeholders

FMCG companies and retailers: an evolving relationship

Data has become a central
component in the engagement
between retailers, fast-moving
consumer goods (FMCG)
brands and consumers,
with the GCC being no
exception
Over the past decade the GCC market has transitioned from hyper-growth and profitability to a more competitive environment marked by
pressures arising from raw material and transportation costs, value-added taxes and a shift to value shopping. In this context, FMCG players are
increasingly looking for value-generating relationships with retailers who can collect, process and share data to help them refine assortment and
route-to-market strategies.
E-commerce and online grocery shopping projected to boom The average GCC e-grocery order in
The Covid-19 pandemic has led to an acceleration in e-commerce adoption in the GCC, 2020 was $25-40; this is expected to
with an estimated compound annual growth rate in the segment of 16% between 2020 double by end-2022. Margins will also
and 2025. While e-grocery currently accounts for a relatively small proportion of the increase as orders are more frequent
total market, the region is following the trajectory of advanced markets, which suggests and delivery charges rise.
ample room for growth.

Although Qatar’s data protection law is less comprehensive than that of the EU, it was the first one
introduced in the GCC region when it was published in 2016, and constitutes a pillar of data governance
EU General Data Protection Law Qatar’s Personal Data Privacy Protection Law
Scope Personal data collected in the EU/EEA (“EU personal data”) Personal data processed in Qatar
Subject rights Right to access all EU personal data processed Comprehensive rights exist including the right to access, deletion and rectification
Right to portability Must provide useable copy of EU personal data to third party Must rectify any inaccurate disclosure of personal data to a third party
Right to terminate Right to withdraw consent or otherwise stop processing of Right to withdraw consent or otherwise stop processing of personal data
processing personal data
Rights response One month, with potential extension by two additional months 30 calendar days with potential extension by two additional months
Cross-border transfer Permitted under specific conditions and if adequate levels of Controllers may not take measures to limit cross-border data transfers unless high risk to
data protection are provided privacy or personal data. Controllers should document assessment of potential risk and
send notification to regulatory authority
Governance Appoint a data protection officer (DPO) and a lead supervisory No registration requirements and no requirement to appoint a DPO
authority under certain conditions.
Response to incidents Disclosure of incidents and data breaches without undue delay Controller must report breaches to the relevant authorities, and data subject, where likely
and within 72 hours of the breach to cause damage to data subject
Penalties Up to €20m or 4% of annual global revenue Fines of between QR1m and QR5m

Sources:
August
July 2022
2022
Kearney; PwC; Bain &Source:
Companysource Qatar OBGOBG
ESG Intelligence
ESG Report 25
 ENVIRONMENT SOCIAL GOVERNANCE

CASE STUDY: How LuLu’s cybersecurity

framework protects customer data

Measures taken by LuLu to strengthen cybersecurity

Data privacy
Conducting awareness sessions on an annual In response to the risks
Investing in solutions to protect basis for all staff and for new staff upon hiring to associated with handling and
intellectual property (IP) ensure that they understand the importance of a
secure online work environment
storing consumer and corporate
data, LuLu is implementing
cybersecurity measures to build
Maintaining an in-house cybersecurity team Operating a 24/7 security operations centre to trust among stakeholders and
to conduct regular vulnerability assessments continuously track, monitor and conduct gap safeguard its IP and reputation.
(VA) and penetration testing (PT) assessments to mitigate cybersecurity risks
With card payments and digital
wallets increasingly used for
Appointing a third-party cybersecurity company quick transactions, LuLu has
with dedicated information security personnel to put in place robust monitoring
perform PT and security awareness sessions
and scanning activities to
avoid unwanted incidents
such as stolen customer data
LuLu awarded cybersecurity certification
and fraudulent payments. In
LuLu has been issued the Payment Card Industry Data Security Standard (PCI DSS) Certification of Compliance by Crossbow addition, the company has
Labs, an international cybersecurity compliance and certification body. By appointing a third party cybersecurity company, engaged with third-parties
LuLu has strengthened its PCI DSS compliance processes, which include on-site audit, and VA and PT activities to ensure that
customer payment card data is securely handled. This is done continuously and requires yearly validation and re-certification.
to bolster cybersecurity
Over a period of time LuLu has extended the lessons learned from its PCI certification experience to other areas of its online standards and ensure they meet
operations, thus ensuring  that all data and digital assets are protected. international best practices.
The maintenance of strict
cybersecurity protocols is a
“LuLu’s technical teams are tasked with securing IT infrastructure on a massive scale and the PCI DSS core component of LuLu’s risk
demonstrates their expertise and commitment towards security.” management and corporate
- Deepak Umapathy, CEO, Crossbow Labs governance procedures.

26 OBG ESG Intelligence Qatar Source: Lulu August 2022

 ENVIRONMENT SOCIAL GOVERNANCE

CASE STUDY: How LuLu manages risks

and hazards in operations

LuLu's risk controls

Title
Severity of To strengthen its risk management
Hazard Risk level What LuLu is doing to control the risk
impact
system on the product side, LuLu
Increasing Medium Medium • Pricing and promotional strategy undergoes quality audits and has
competition • Increase e-commerce options and home delivery put in place health and safety
• Utilise social media platforms management systems to identify
• More stores and lower cost of concept and entry and address potential risks to
Sabotage Low High • Use hazard analysis and critical control point (HACCP) system to identify and food quality. LuLu’s food safety
manage risk in the supply chain and overall operations management system has received
• Dedicated maintenance team to monitor the machinery the following certifications:
• Fixing surveillance cameras at facilities
• Effective training and human resources system
Food fraud Low High • Supplier quality evaluations and ethical sourcing policy
• Supplier audit
• Quality monitoring
• Product specification review by quality assurance department
Food defence/ Low High • Use of food safety management system to identify and manage risk at production
intentional sites
contamination • Ethical sourcing policy Bureau Veritas certification for
• Monitoring processes and conducting surveillance at production sites applying HACCP-based food safety
• Training staff and building their capacity systems in receiving, storing,
Poor Medium High • Efficient maintenance team repackaging and delivering FMCGs
maintenance • Annual maintenance contract for all equipment
• Preventive maintenance plan
• Emergency plan
Changes in Medium Medium • Dedicated quality assurance team to follow up on food safety-related guidelines
statutory and • Effective training and communication
regulatory • Committed top management
requirements Quality Austria certification
Community Low High • Following all pandemic-related protocols to ensure safe shopping recognised by IQNet in the
satisfaction • CCTV surveillance processing, storage, delivery and
• Wide range of product availability selling of ready-to-eat and ready-
• Compliance with food safety standards to-cook food products
• Utilise social media platforms

Source:
August 2022
LuLu Qatar OBG ESG Intelligence 27
Mohamed Althaf,
Director, LuLu Group International
What chief governance considerations do food retail
and distribution companies take into account when
implementing sustainability measures?
ALTHAF: It is important to make sure that environmental,
social and governance (ESG) goals are aligned with the
company’s wider business targets. As such, it is necessary
to implement an ESG framework that complements and
strengthens existing business units. Corporate strategists
must consider how ESG goals can be adapted to meet the
requirements of the local market and dovetail with the
national economic development plans of the countries in
which they operate, such as Qatar Vision 2030.
Mohamed Althaf
Another key consideration is the creation of a cross-
functional ESG policy committee for strategic guidance,
alongside a core implementation team involving operational
heads, engineering and project departments, public relations
and supply chain managers.
To what extent can technology support business
continuity and risk management in food distribution?
ALTHAF: Food retailers have been one of the first movers
in capitalising on the potential of smart technologies such
as automation and the internet of things. Technology can
play a key role in reducing food waste and monitoring stock
losses. New cloud-based shipment tracking solutions can
“ Food retailers have been one of the first movers in capitalising on the potential of smart technologies
28 OBG ESG Intelligence Qatar
help businesses ensure product freshness and effective cold
chain management of shipments, as well as help with the
traceability of products. Artificial intelligence is enabling
retailers to make accurate demand predictions which, in turn,
makes supply chain management more efficient.
Where do you see opportunities for further engagement
between public and private entities, and how can leaders
best position themselves to meet future challenges?
ALTHAF: Effective public-private collaboration can
strengthen food security and product safety in a number
of ways. For example, private companies and government
authorities can deepen their partnerships in the strategic
storage of essential food products to mitigate food security
challenges during periods of disruption in global supply
chains. There is also scope for further collaboration in
research to develop new production techniques and more
resilient food systems. In addition, the government can work
with the private sector to establish food technology parks,
which could help to attract more global food companies.
Empathy, kindness and trust are key leadership qualities in
the modern business environment. Leaders are required to
encourage collaboration across their organisation and make
quick decisions effectively, while communicating complex and
sometimes uncomfortable problems to key stakeholders.
“
 SUMMARY
Question?
NAME: Question?
NAME:

Interviewee name

“ pull quote
“
August 2022 Qatar OBG ESG Report 29
6 Key Takeaways
1 Climate Action
With the publication of its National
Environment and Climate Change
Strategy in 2021, Qatar has recognised
that a proactive and holistic approach
is needed to the challenge of
global warming and environmental
degradation, supported by corporations
across all sectors of the economy.
4 Healthy Lifestyles
With the Gulf region facing a growing
burden of chronic disease, securing and
expanding the availability of nutritious
food options is important for boosting
citizens’ health and social well-being,
supported by efforts to increase access
to sporting facilities and raise awareness
of the benefits of physical activity.
30 OBG ESG Intelligence Qatar
2
Circular Economy
The adoption of circular economy
principles is central to Qatar’s goal of
achieving a more sustainable economic
model, with waste materials from
production and distribution across a
broad range of activities being collected,
3
Food Security
As climate change threatens to
exacerbate challenges to food production
in the arid Gulf region, stakeholders
in Qatar are increasingly adopting
innovative technologies to boost yields of
local produce, alongside effective policies
treated and recycled back into the value to shorten and bolster supply chains to
chain as cleanly as possible. minimise the risk of disruption.
5
Tournament Legacy
As host of the FIFA World Cup 2022,
Qatar is well positioned to build a
positive environmental and social legacy
from this global event, with its efforts to
host a carbon-neutral tournament and
expand access to sporting opportunities
for people at home and abroad providing
6
Positive Example
Efforts to address environmental and
social risks at every level must be
underpinned by good governance. With
the international spotlight shining on
Qatar in 2022, the country has a golden
opportunity to show that it can rise to the
occasion and confront global and local
a model for other countries. challenges effectively and responsibly.
August 2022
August 2022 Qatar OBG ESG Report 31
www.oxfordbusinessgroup.com