Interview - Building a Sustainable Legacy

(Q.1) Can you highlight key milestones in Tristar's sustainability journey over the past 15 years?

At Tristar, we aspire to be pioneers in Environmental, Social, and Governance (ESG) practices, setting industry standards for responsible business conduct. Recognizing our role as stewards of the planet and society, we have integrated sustainability considerations into our decision making processes, guided by strong leadership and governance structures. Our enduring commitment to sustainability has driven operational efficiency, spurred innovation, and fortified our resilience in an increasingly complex and interconnected world.

We are an active participant at the United Nations Global Compact (UNGC), specifically the Global Compact Network UAE, where I serve as a Board Director. We are also signatories to the United Nations' Women Empowerment Principles (WEPS). For more than a decade, Tristar has been empowering impoverished local communities in various African nations through education and training programs and development initiatives like computer literacy, better hygiene, and access to drinking water. In 2016, Tristar adopted Green Building Standards for two of our warehouses in the UAE, to promote sustainable warehousing.

Focusing on the safety aspects of the maritime sector, Tristar launched the 'Safety at Sea' conference almost six years ago, in November 2019, to address issues and concerns of seafaring communities across the globe. Today, we are widely known for our safety culture, which is embedded in the core of our business operations and is continuously commended by many customers and partners. We have been recognised by The Royal Society for the Prevention of Accidents (RoSPA) which recently presented Tristar with the Gold Medal for Safety for the seventh consecutive year, plus the RoSPA Fleet Safety Trophy-Middle East. We manage the 'Kids Traffic Arena', a joint project with the Traffic Awareness Section of the Roads and Transport Authority (RTA) across schools in Dubai and Sharjah, to educate children about road safety through practical lessons and this programme was declared 'RoSPA Winner of Health & Safety Beyond the Workplace 2024'.

In 2021, Tristar adopted Green House Gas Protocols and established a baseline for its carbon footprint. In 2022, these were aligned with the company's Environmental, Social and Governance (ESG) framework. In 2024, this was complemented by a science-based roadmap that will guide it to near-term (2030) and long-term (2050) goals.

(Q.2) What is your ESG structure and framework for Tristar?

The environmental and social approach of Tristar is backed by a strong governance model, making it a successful company for the last 25 years. Tristar Group consists of a board that has five representatives. I sit as the Group Chief Executive Officer (GCEO). I am also the sponsor of the Environmental, Social and Governance (ESG) Committee led by the Group Chief Administrative Office (GCAO) and comprising members, called ESG Champions, from each business vertical. These champions are responsible for taking the initiative within and across their communities and areas of operation. The ESG framework is supported by 14 pillars of which six are Environmental, and four each are from the Social and Governance aspects. While the Environmental aspect addresses the company's interaction with nature and natural resources, the Social aspect addresses its interaction within communities and even beyond its boundaries.

(Q.3) How are ESG principles embedded in Tristar's operations and decisionmaking?

Our governance is the apex body (BOD) responsible for steering the company's strategic direction and upholding governance standards. Materiality assessment is used to identify the ESG hotspots, which are later addressed through appropriate initiatives to mitigate business-related risks. The BOD members understand ESG issues and ensure that the principles and practices are embedded in the process of each project and program at Tristar. The ESG Committee is tasked with the disclosure of our ESG performance through the annual Sustainability Report, reviewing and approving the ESG strategy, setting ESG goals and targets. It actively engages in the disclosure of our ESG performance through the annual Sustainability Report. A robust assessment is conducted based on PESTLE Analysis during the annual strategic review (Leadership Submit) to check the potential risks and opportunities across businesses and geographies. The learning is used as a corrective measure for the upcoming year's planning and implementation strategy. Departmental policies are developed and reviewed by the legal department to meet compliance and regulatory requirements. Tristar follows various global standards for reporting on its sustainability parameters.

• Emissions are reported as per greenhouse gas (GHG) protocols.

• The UNGC framework and Carbon Disclosure Project (CDP) are followed to meet environmental and related compliance requirements.

• Tristar complies with all national labour and employment laws and regulations, including but not limited to labour contracts, minimum wages, working hours, workplace safety, and equal opportunities.

Tristar's approach to sustainability is driven by its ESG Framework, CSR policies and projects, and initiatives that fulfill the purpose of its business and operations, wherever it operates.

(Q.4) With operations in 30 countries, how does Tristar ensure consistent sustainability initiatives globally?

Tristar's approach to sustainability is driven by its ESG Framework, CSR policies and projects, and initiatives that fulfill the purpose of its business and operations, wherever it operates. The company's governance framework is headed by a Board of Directors with five members that include non-executive members representing the shareholders. In addition, as the Group CEO, I am the sponsor and mentor of an independent ESG Committee that oversees all events and activities and reports to the Board on a regular basis.

(Q.5) What specific actions has Tristar taken to promote decarbonisation in its maritime and land transport businesses?

In a pioneering step towards decarbonisation, we have started developing a hybrid bunker barge with a capacity of 750 cubic meters that is scheduled to operate in the Port of Fujairah in early 2025. The hybrid bunker barge, which is a first for the GCC, will reduce carbon emissions by more than 50%. In operations at the ports of Fujairah and Sohar, Tristar is utilizing shore power, also known as cold ironing, to reduce its emissions. This initiative allows ships to connect to an electrical power supply while docked, enabling them to power down their main auxiliary engines. By reducing reliance on onboard engines, this practice conserves energy and minimizes emissions, contributing to a cleaner and more sustainable environment in the region. Tristar is embarking on bio-fuel production that would help in decarbonizing in-house road and maritime businesses, along with fulfilling local green energy requirements. Adopting Solar Energy (1000 KwP) Tristar in Dubai warehouse operations is offsetting more than 75% of its energy requirements.

We have gradually transitioned from old engines to more refined engines, such as Euro 5 engines, for our land transport business, resulting in a 15-20% emission reduction from conventional models. Around 15% of the total fleet in the UAE is running on B5 blends of biofuel, resulting in a substantial decline in carbon emissions compared to conventional fuel. We are now exploring feasible options to switch from B5 to B20 that will result in a greater reduction in carbon emissions.

(Q.6) How does adopting the Science-Based Targets initiative shape Tristar's long-term sustainability strategy?

The Tristar Group became one of the first companies in the region to set internal climate targets aligned with science by applying a mix of frameworks based on the Science-Based Targets Initiative (SBTi) and the Transition Pathway Initiative (TPI). Earlier in the year, it finished identifying its emission hotspots, with the baseline year set as 2021. Tristar is looking to embrace a mixed approach of new and existing technologies based on energy efficiencies and green fuels for its land and maritime transportation units and fuel and fuel farm operations. We have set a target of reducing absolute GHG emissions to 22.1% for Scopes 1, 2, and 3 by 2030 and to 79.6% by 2050. This includes reducing emission intensity from sold fuels to 58.8 gCO2e/MJ by 2030 and 20.7 gCO2e/MJ by 2050.

The environmental and social approach of Tristar is backed by a strong governance model, making it a successful company for the last 25 years.

(Q.7) Can you share success stories from Tristar's participation in the Faster Forward Initiative with the UN Global Compact?

Faster Forward is a new initiative that aims to increase accountability and transparency by calling on companies to publicly declare their commitment. At the launch in December 2023, I said that in corporate terms, climate action essentially pertains to what a company is doing, or should be doing, to effectively meet anticipated threats, both at the strategic and tactical levels.” He also urged his peers and contemporaries. “Action needs to be accelerated now if we want to deliver any progress towards the 17 SDGs at the pace and scale it calls for. This is the essence of Forward Faster.

Tristar has been actively contributing to 12 UN SDGs through its ESG Framework. The company has signed the Climate Pledge for Net Zero through an initiative led by the UAE's Ministry of Climate Change and Environment, which engages the private sector in the country's decarbonisation goals.