SUSTAINABILITY - Tristar Group

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co 22019B IOSUSTAINABILITYREPORTTRISTAR RUBYco 2ANCHORINGSUSTAINABILITY INTOBUSINESS PRACTICE

Tristar offsets25% of groupemissionsthrough UNFCCCcertifiedprogram.2

Sustainability Report 2019TABLE OF CONTENTS1 GROUP CEO STATEMENT42 KEY ACCOMPLISHMENTS63 BUSINESS FOR PURPOSE84 GLOBAL PRESENCE125 AWARDS AND RECOGNITIONS146 REPORTING FRAMEWORK167 SUSTAINABILITY ROADMAP228 GOVERNANCE, RISK AND COMPLIANCE249 TECHNOLOGY ADOPTION3010 BUSINESS HIGHLIGHTS3211 ECONOMIC PERFORMANCE4012 ENVIRONMENTAL STEWARDSHIP4413 EMPOWERING OUR PEOPLE6614 STRENGTHENING COMMUNITY PARTNERSHIPS7615 LEADING A CULTURE OF SAFETY9016 GRI CONTENT INDEX1103

I call upon all businesses to adopt and worktowards the advancement of the 17 SDGs."4

Sustainability Report 2019GROUP CEO STATEMENTI am pleased to present our eighthconsecutive Sustainability Report whichhighlights our group’s 2019 achievementsreflecting on the theme ‘AnchoringSustainability into Business Practice’. Thereport which focuses on Tristar’s actiontowards environmental protection, socialsustainability and corporate governanceenhancement, adopts the internationallyrecognized GRI Standards.As a responsible business operating in thelogistics industry, we have anchored oursustainability strategy with the adoption ofthe Environmental, Social and Governance(ESG) framework in line with the UN GlobalCompact (UNGC) Ten Principles and UNSustainable Development Goals (SDGs). Thecommitment to integrating governance andsafety within our operations are emphasizedthrough Tristar’s robust safety culture andhigh quality service to our customers andstakeholders.In 2019, we achieved a 13% increase indirect economic value compared to theprevious year mainly due to organic growthacross all segments of our business. Withthe strategic ESG framework implementedby the CSR Committee, we have initiatedrenewable energy projects in the region andachieved 22% reduction in water use intensitycompared to the baseline, aligned with SDGNo. 12 on Responsible Consumption andProduction. Our warehouse in JAFZA Southreceived the prestigious US Green BuildingCouncil LEED Gold certification for itsintegration of green building standards.In November 2019, we launched theinaugural Tristar ‘Safety at Sea’ conferencehighlighting the importance of managingthe emotional well-being of crew at sea. Wealso organized the first Tristar road safetyseminar in Saudi Arabia in April 2019 whichwas well attended by customers and otherstakeholders.Our commitment towards SDG No. 5 onGender Equality was reinforced with thesigning of UN’s Women’s EmpowermentPrinciples. In the same vein, as a Boardmember of the UNGC UAE Local Network, Icall upon other businesses to adopt and worktowards the advancement of the 17 SDGs.I would like to conclude in saying thatthe disclosure of progress on social,environmental and governance metricsshould continue unabated even as we arefaced with mounting economic and globalhealth challenges due to COVID-19.We will aim to optimize social and businessvalue for society and our stakeholders usingour core business to deliver financial returnsand in parallel help our community andsociety to meet their own challenges.We will continue with our journey totransform our business model targetingimproved performance and environmentaland societal sustainability. For this we willcontinue to combine sustainability with acompetitive and resilient business modelthat will determine our success in the yearsto come.EUGENE MAYNE5

KEY ACCOMPLISHMENTSENVIRONMENTALCo2SOCIALTristar offsets 25% of groupemissions through UNFCCCprogramTristar becomes a signatoryof Women’s EmpowermentPrinciples22% reduction in water useintensity compared to baselineTristar conducted road andmarine safety campaigns forcommunity in UAE and KSAAdoption of RenewableEnergy AlternativesAchievement of LEED GoldGreen Building certificationfor UAE, JAFZA WarehouseOver 600 trees planted acrossthe groupFair Labor and AntiCorruption trainings andawareness9th consecutive year forblood donation in Tristar HQ7th consecutive year ofTristar Toastmasters ClubPartnerships with EEG, UNGCUAE, RTA, RoSPANEXT STEPS6

Sustainability Report 2019GOVERNANCEGCEO elected as UNGCUAE Local Network BoardMemberIntegration of the CSRFramework to an ESG(Environmental, Social andGovernance) FrameworkAchieved a 13% increase insales compared to 2018Received the GoldenPeacock Award across 3categories: OccupationalHealth and Safety;Sustainability and CSRIntegrationof entof a Group ESGManual7

We see value in being a Business For Purpose. Itis central to our vision, benefitting not just ourcompany, but also those we work with and thecommunities within which we operate.”Eugene MayneGroup Chief Executive8

Sustainability Report 2019A BUSINESS FOR PURPOSETristar is a global integrated logistics business,head-quartered in Dubai, which offers endto end fuel logistics solutions to blue-chipclients including international and national oilcompanies and international NGOs.Tristar’s integrated energy logistics platformspans road and maritime transportation,specialized warehousing, fuel farms,commercial aviation refueling and remotefuel supply operations.Tristar operates in more than 20 countriesacross 3 continents and has a 21-yearproven legacy of operational quality makingit a partner of choice to its customers,with a track record of profitable growth.The company operates to the highestinternational health, safety, environmentaland compliance standards and hasreceived awards for its exemplary record ofoperational and safety excellence.KEY BUSINESS SERVICESRoad Transport and WarehousingMaritime LogisticsFuel FarmFuels9

VISION & MISSIONOURVISIONTo be a globally recognized ShipOwning and integrated LiquidLogistics company offering best inclass services without compromisingour core values and commitment tomanage our business to the highesthealth, safety, environmental andcompliance standards.OURMISSIONTo develop and retain a qualifiedworkforce to offer pre-eminentcustomer service, grow shareholdervalue and respect communities inwhich we conduct our business.10

Sustainability Report 2019CORE VALUES & BUSINESS PRINCIPLESWe believe inhonesty, integrityand fairness inall aspects of ourbusiness.We shall not encourageany untoward paymentswhile conducting ourbusiness.We shall respectthe rights of ouremployees, whilstalso providinggood and safeconditions of workfor them.We shall protectthe investments ofour shareholdersand work towardsproviding themacceptable returns.We shall developgood businessrelationships withour suppliers as wellas maintaining longterm relationshipswith them.We shall conduct ourbusiness in a sociallyresponsible mannerconsistent with localregulations as is deemedfit for a good corporatecitizen.We shall win anddevelop the loyaltyof our customers byoffering prompt, reliableand pre-eminent service.Never say NO to ourcustomers.11

We’re looking to leverage our presence in Africa toexpand fuel supply to various international NGOs.”Eugene MayneGroup Chief Executive12

Sustainability Report 2019GLOBAL PRESENCETristar prides itself on striving for the greatestvalue for its customers and shareholders,while also being at its core, a Business forPurpose. This ranges from protecting theplanet to ensuring the well-being of Tristar’sSOUTH SUDANemployees and the communities withwhich it engages. At Tristar, ‘Giving Back isGetting Back’, and Tristar sees value acrossits customer, employee and communityengagement RITIUSTANZANIA13

AWARDS AND RECOGNITIONS14CSR LabelRoSPA Gold AwardHappiness @ Work Place AwardsHighly CommendedOman Oil Marketing Co.Transporter of the YearLogistics Middle East AwardsTechnology Solutions Providerof the YearGolden Peacock Award forOccupational Health and Safety

Sustainability Report 2019Golden Peacock GlobalAward for CSRLlyod’s Middle East Awards ShipOperator of the YearGolden Peacock Global Awardfor Sustainability – SpecialCommendationMEED Transport/LogisticsCompany of the Year AwardTahawultech CIO100 AwardsInternational BusinessExcellence Award forSustainability - 2nd place15

Tristar’s 2019 Sustainability Report has been developedin accordance with the GRI Standards.16

Sustainability Report 2019REPORTING FRAMEWORKTristar’s 2019 Sustainability report with thetheme Anchoring Sustainability into BusinessPractice has been developed in line with theGRI Standards. GRI Standards are the mostcommonly used sustainability reportingstandard and were the first standards to bepublished worldwide.2015 SuStainabilityRepoRtnavigating globally,empoweRing locallyThe structure provides a framework to followbest practices for companies to transparentlyreport on a range of social, environmentaland economic aspects. This report hasbeen prepared in accordance with the GRIStandards: Core option.The scope of this report covers 16 countriesand territories: UAE, Oman, Kuwait, Qatar,Kingdom of Saudi Arabia, Pakistan, Haiti,Guam, Kenya, Central African Republic,Uganda, South Sudan, Democratic Republicof Congo, Tanzania, Somalia and Mali on thebasis of operational size and impact.Tristar’s commitment to the United NationsSustainable Development Goals and GlobalCompact Ten Principles are highlightedthrough the course of this report. TheGRI Content Index included in the reportoutlines references to the UN SustainableDevelopment Goals based on the mappingtool published by the SDG Compass.102-45102-4617

STAKEHOLDER ENGAGEMENTFor Tristar, the overall aim is to achievea positive impact on the society whilemaximizing the shared values for thebusiness and the stakeholders. Includingstakeholders in CSR initiatives has allowedTristar to demonstrate their values, engagetheir employees and communicate withthe public on how they operate and theresponsible choices they make, to ensurea sustainable future. It has helped Tristarpave the way for partnerships betweenbusinesses and society that are based oncommon goals and shared actions to deliverimpact-driven outcomes.EMPLOYEESCSR Sub-committees, regularawareness workshopsBOARDCSR Steering CommitteeGOVERNMENTMethod ofStakeholderEngagementParticipation in events,compliance auditsCUSTOMERStakeholder workshop, Customersurveys , Face to face meetingSUPPLIERStakeholder workshop,Procurement processesASSOCIATIONS AND NGOSEvents, Stakeholder workshops,society surveys, Collaborations18102-42

Sustainability Report 2019STAKEHOLDER WORKSHOPTristar conducted an external stakeholderworkshop and an internal stakeholdersurvey to develop a materiality assessment.The workshop was designed to facilitatediscussions around global sustainabilitycommitments, Tristar’s sustainabilitystrategy, and initiatives and obtainstakeholder feedback. Twenty-six externalstakeholders representing customers,suppliers, associations and NGOs attendedand provided their input during theworkshop. Feedback was also obtained fromthe CSR Steering Committee members,department heads and country managersacross Tristar Group.The survey results which collectedstakeholder’s input on key sustainabilityaspects for Tristar has been consolidated inthe Materiality Assessment graph.102-4319

STAKEHOLDER SURVEYCUSTOMER SURVEYThe below feedback was collected from key customers through a detailed onlinesurvey.95.7% of respondents agreed that Tristar delivers results and quality asper their expectations.100% of customers were satisfied with the accessibility and approachabilityof Tristar’s Senior Management.100% of respondents considered Tristar as one of their preferred suppliers.91% stated that communication from Tristar was transparent, factual andtimely.91.3% reported that all Tristar deliveries adhered to safety and qualityrequirements.SOCIETY SURVEYTristar’s society survey was conducted through tailored surveys for 6 specializedstakeholder categories.100% of governmental entity partners reported that Tristar responds totheir needs as a stakeholder.86% of governmental partners responded that Tristar’s operations werebeing conducted in line with International Best Practices.100% of NGO and other relevant organizations responded that theirpartnership with Tristar ranged from strong to extremely strong.100% of Groups and Trade Associations see Tristar as a responsiblebusiness.100% of stakeholders reported that they can trust Tristar in the long run.20

Sustainability Report 2019MATERIALITY ASSESSMENTEXTERNAL STAKEHOLDERSINTERNAL STAKEHOLDERSIEnvironmentalComplianceIIForced orCompulsory LaborIIIOccupationalHealth & SafetyIVEffluents &WasteVAnti-CorruptionOccupationalHealth & SafetyIEmissionsIITraining 21THE TOPFIVE RANKEDSUSTAINABILITYASPECTSInfluence on stakeholder assessments and decisionsTRISTAR MATERIALITY htsAnticorruptionOccupationalHealth &SafetyTraining &EducationWaterForced orcompulsorylaborDiversity& EqualopportunityEnergyEffluents& WasteChildlaborSignificance of Impact on Tristar102-44

SUSTAINABILITY Togetherfor A BetterTomorrowSupport to GabatSchool, South SudanSignatory toUN GlobalCompact2011Let Us Go HomeSafely Campaign,UAEWater bagdistribution, Haiti2nd Sustainability Report4th Sustainability ReportGRI G3.1 Reporting20122013GRI G4 Reporting20142015Giving Back isGetting BackThe Extra MileBeyond Logistics1st Sustainability ReportDonation of watertank, DRC and borewell, South SudanGRI G3.1 Reporting3rd SustainabilityReportGRI G4 Reporting22

Sustainability Report 2019AcceleratingGrowth for aSustainable FutureAnchoringSustainabilityinto BusinessPracticeSupport for UN GlobalLogistics Cluster andWorld Food ProgrammeConducting road andmarine safety campaignsfor the communityOrganized Medical checkup on InternationalSeafarers DayGCEO elected as UNGCUAE Local Network BoardMember6th Sustainability Report8th Sustainability ReportGRI StandardsGRI Standards20162017MakingSustainability aLifestyleSupport duringHurricane Mathew, HaitiAbiding by greenbuilding standards fortwo warehouses, UAE5th Sustainability ReportTransitional SustainabilityReport20182019Empowering theNext Generationfor SustainableDevelopmentBuilding the first schoolcomputer lab at GabatSchool, South SudanBuilding of new sanitaryfacilities at Kiserian School,Kenya7th Sustainability ReportGRI Standards23

Tristar always strives to achieve best-in-classcorporate governance by embracing an IntegratedGovernance, Risk Management and Compliance(GRC) approach.24

Sustainability Report 2019GOVERNANCE, RISK ANDCOMPLIANCEGOVERNANCE FRAMEWORKTristar’s Corporate Governance Rules areintended to ensure good, responsible, valuefocused management of the business bymaintaining a culture of ethical behaviorand compliance aligned with our values andmission.The Board of Directors is the highest levelof Authority within Tristar, which providesthe Strategic Direction to sustain andenhance the long-term value of Tristar toStakeholders, by building on our Core-themeof Business for Purpose.Tristar continues to cascade the StrategicDirection of the Board of Directors throughits Management Committees under theleadership of the Group Chief ExecutiveOfficer and a carefully selected fit-for-purposeGovernance Framework of ManagementCommittees.25

BOARD OF DIRECTORSAuditCommittee(AC)Nominations Remuneration Group mentCommittee(InvCom)Audit,ManagementRisk y andFuelTechnologyCommittee

Sustainability Report 2019ESG FRAMEWORKIn 2019, Tristar integrated its overall CorporateGovernance and CSR Framework to create anESG (Environmental, Social and Governance)Framework, integrating the planning,monitoring and execution of all activities,which support our Sustainability Goals. TheGovernance structure at Tristar also drivesinternal accountability, regulatory compliance,oversight on policy and ensuring EthicalConduct of Business across the ranks.GIVING BACK IS GETTING BACKESG ANCECarbon EmissionManagementEducation & PartnershipEnvironmentalBest PracticesCommunity EngagementHealth & SafetyBest PracticesBoard & Cross FunctionalCommitteeCommitment & AccountabilityWorking Together for aBetter TommorrowNavigating GloballyEmpowering LocallyPositive Returns forall Transparency27

RISK MANAGEMENTbusiness risks/ opportunities form thefundamental back bone of the functioningof the Management Committees to achieveStrategic Goals and Stakeholder value.Corporate Performance is driven by aneffective and responsible approach tothe risks and opportunities arising inconnection with business operations. Theearly identification and management ofitleTtrChaContract ManagementInformation ISKAREASHuman 8Regulatory7 Compliance6COMPLIANCECULTURECompliance is an integral component ofTristar’s corporate and leadership culture.We ensure that our business activities complywith the applicable laws and regulations, inspirit rather than just in letter. Our complianceactivities also focus on preventing andconsistently combating corruption and otherforms of corporate crime. Anti-corruptionand Code of Ethics policies serve as themandatory requirement for all of Tristar28Group’s employees and subcontractors.Increasing awareness among our employeesremains of great importance because only anemployee who is risk-aware can recognizerisks and manage them. We ensure earlydetection of these compliance risks as well asthe introduction of relevant countermeasures.This work includes constant communicationand process improvements.

Sustainability Report 2019COMMITMENTTristar is also committed to operating in afair and responsible manner and is committedto the UN Global Compact Ten Principlescovering Human Rights, Anti-corruption,Labor and Environment.to equal employment opportunity, Tristarregularly participates in programs, bothinternal and external, which promulgatesuch policies and practices.Tristar is committed to complying withall applicable laws and providing equalemployment opportunities. It is Tristar’spolicy to recruit, hire and promote staff atall job levels, employees and applicants foremployment without regard to race, color,religion, ancestry, national origin, age, gender,marital status, sexual orientation, disability orveteran status. In support of its commitmentIn 2019, a group of supervisors and staff weretrained on the Fair Labor ‘Train the Trainer’program conducted by Agility. Tristar thenrolled out an Anti-Corruption and Fair Labortraining program to the country heads andrepresentatives of other operations throughan online webinar. Through this training, 249employees were trained on Tristar’s policiesand compliance to Anti-corruption and Fairlabor practices.REPORTINGThe status of the Governance Activitiesacross the Group are reviewed and reportedthrough the Audit, Risk & ComplianceCommittee with inputs from the EnterpriseRisk, Compliance and Audit related activitiesacross the organization. This would includethe Risk Dashboards, Internal Audit Plans,Key Internal Audit Recommendations andtheir status, Compliance Monitoring Statusand other Governance Matters.Looking ahead, Tristar is developing a MaturityModel for an Integrated Governance, Risk& Compliance (GRC). This would continueto build our business resilience by focusingon enhancing our governance structure,understanding and building our risk andcompliance culture, implementing andimproving our GRC program, a

consecutive Sustainability Report which highlights our group’s 2019 achievements reflecting on the theme ‘Anchoring Sustainability into Business Practice’. The report which focuses on Tristar’s action towards environmental protection, social sustainability and corporate governance enhancement, adopts the internationally

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