ADNOC Distribution Report: Strong Progress in ESG Commitments

In a year marked by growing climate urgency and increased global expectations for corporate responsibility, ADNOC Distribution has released its 2024 Environmental, Social, and Governance (ESG) report, which provides a comprehensive overview of how the UAE's leading fuel distributor is translating bold sustainability ambitions into measurable impact.

The report, which provides a concise yet data-rich overview of the company's ESG performance, demonstrates that a considerable transition is taking place. Whether it's integrating renewable energy throughout operations, promoting local biodiversity, increasing worker safety, or strengthening economic resilience, ADNOC Distribution is committed to a future in which prosperity and sustainability coexist.

A CARBON-CONSCIOUS FUEL NETWORK

ADNOC Distribution's environmental activities revolve around a firm commitment to decarbonisation. In 2024, the company claimed that 100% of its UAE fleet now uses biofuels, resulting in an annual emissions reduction of 1,468 tonnes of CO₂ equivalent (tCO₂e). This transformation, part of a larger low-carbon strategy, demonstrates that even traditionally carbon-intensive businesses may develop purposefully.

Additionally, all energy delivered through its electric vehicle (EV) chargers is derived from clean and renewable sources, further underlining the company’s move toward green mobility solutions. With 220 fast and super-fast EV charging points installed across the UAE and continued investment in solar energy, ADNOC Distribution is not only enabling the shift to electric but powering it sustainably. Rooftop solar panels across 31 service stations generated 5,083 MWh of solar energy in Dubai and Abu Dhabi alone, earning recognition with the Best Solar Project of the Year at Solar Week.

HYDROGEN AND BIODIVERSITY: THE NEXT FRONTIERS

In a groundbreaking step, ADNOC Distribution expanded its H2GO pilot project by introducing a second phase of its green hydrogen refuelling station to assist Abu Dhabi's hydrogen-powered bus fleet. This venture into hydrogen infrastructure is consistent with global energy trends, positioning the business as a regional leader in clean fuel innovation.

Environmental sustainability goes beyond energy. The firm engaged its consumers in an innovative conservation effort, allowing them to adopt and plant over 25,000 mangrove seedlings using the ADNOC app. Meanwhile, more than 5.8 million plastic bottles were collected using Reverse Vending Machines (RVMs), with 28,200 users helping to create a more circular economy.

OPTIMIZING OPERATIONS TO REDUCE IMPACT

The company's Fleet Management System used real-time monitoring and route optimisation to reduce emissions by 561 tCO₂e, demonstrating how digital tools can improve environmental performance. Furthermore, 80% of the water used in ADNOC's car wash operations is now recycled, and frequent Health, Safety, and Environmental Impact Assessments (HSEIA) have yielded no negative impacts or fines for biodiversity.

ECONOMIC STRENGTH ANCHORED IN ESG

While ADNOC Distribution's green initiatives make headlines, the company's financial performance remains strong. The company recorded its highest-ever EBITDA of AED 3.86 billion, a 5% increase over 2023, and revenues of AED 35.45 billion, a 2.4% rise year on year. A strong 71.4% of total contracts contributed to In-Country Value (ICV), demonstrating the company's importance in supporting the UAE's domestic economy.

ADNOC Distribution is committed to long-term inclusive growth, in addition to financial performance. In 2024, approximately 3,800 new employees joined, representing more than 15 different nationalities. With 62% Emiratization and increasing female presence in STEM and leadership roles, the corporation is expanding workforce diversity while also promoting national growth.

ZERO FATALITIES, ZERO DISCRIMINATION: SAFETY AND GOVERNANCE FIRST

In 2024, ADNOC Distribution had a Total Recordable Injury Rate (TRIR) of only 0.04, with no fatalities or high-consequence injuries. This excellent track record includes rigorous AI-powered fatigue management systems, intensive safety audits, and more than 1,200 internal HSE recognitions. Governance, too, has received strategic upgrades. A specialised ESG Subcommittee was formed within the board's Executive Committee to further integrate sustainability into corporate decision-making. All staff received ethical behaviour and anti-corruption training, and there were no incidences of discrimination or data privacy violations reported in 2024.

The company also obtained ISO 50001:2018 certification for energy management and ISO 22241 certification for ADNOC Blue, a clean diesel exhaust fluid that reduces vehicle emissions.

SUSTAINABILITY-LINKED FINANCE AND GLOBAL ESG RECOGNITION

ADNOC Distribution's commitment to sustainability has an impact on its financial plans. In 2024, the company met both key performance targets under its Sustainability-Linked Loan (SLL), which links funding to environmental milestones – a strategy increasingly favoured by ESG-conscious investors. Global rating agencies then recognised the achievement. Bloomberg labelled the company an ESG leader, placing it in the top quartile of Bloomberg S&P Global, FTSE Russell, and LSEG ratings, as well as inclusion in famous ESG indices such as the MSCI ACWI Climate Change Index, FTSE4Good, and FTSE Emerging ESG Low Carbon Select.

A CULTURE OF CONTINUOUS IMPROVEMENT

Internally, ADNOC Distribution fosters an engagement and development culture. With over 142,000 training hours completed, including 958 unique courses, the organisation is investing in both people and infrastructure. More than 70% of business employees completed ESG awareness seminars, and leadership participation was bolstered by People Connect sessions, town halls, and the launch of Global Ergonomics Month and Health Day campaigns.

FUELLING TOMORROW, RESPONSIBLY

As ADNOC Distribution commemorates a year of sustainable successes, its 2024 ESG overview includes more than just business data. It demonstrates how a traditional energy corporation may reinvent its position in a low-carbon economy while being commercially viable.

With climate change influencing consumer behaviour, policy, and investor sentiment, ADNOC Distribution's balanced approach to environmental responsibility, social inclusion, and governance excellence might serve as a model for the broader energy sector, both in the UAE and elsewhere.