ALEC Holdings released its 2025 Sustainability & Environmental, Social and Governance (ESG) Report, outlining noteworthy progress across employee safety and welfare, while setting new benchmarks for value-driven operations conduct and reinforcing the company’s governance framework following its public listing.

“ALEC’s approach to ESG is grounded in the understanding that responsible business practices and long-term commercial success are fundamentally linked,” said Barry Lewis, Chief Executive Officer at ALEC Holdings.

“As we scale and deliver increasingly complex projects across the region, maintaining the highest standards across our expansive operations is essential to sustaining excellence and building lasting confidence among our clients, partners and shareholders.”

In 2025, ALEC Holdings achieved the Dubai Chamber ESG Label (Advanced) and the EcoVadis ‘Committed’ badge, accreditations that recognise the Group’s structured approach to sustainability and its alignment with internationally recognised ESG standards. Further reinforcing this commitment, the Group achieved LEED Platinum certification at the ALEC Holdings HQ and LEED Gold certification at the ALEMCO Corporate Office and ALEC Dubai Industrial City Yard.

Employee Health, Safety and Wellbeing

Employee safety and wellbeing remain ALEC Holdings’ top material objective. In 2025, the Group recorded a 52% improvement in its Lost Time Injury Frequency Rate (LTIFR) and a 27% reduction in Lost Time Injuries year-on-year. The company maintains ISO 45001:2018 certification across all business units.

Notably, through 2025 the company engaged 22,094 workers in health awareness and preventive care programmes, expanded medical coverage to include psychiatric care, congenital conditions, developmental delays and IVF support, and appointed 30+ Engagement and Wellbeing Champions. ALEC also launched the Wellx wellbeing platform, offering health programmes, rewards-based initiatives and unlimited mental health consultations.

Human Rights and Worker Welfare

Worker welfare continues to be a core operational priority for ALEC Holdings, supported by a dedicated Worker Welfare Department and on-site welfare inspectors monitoring conditions across projects and worker accommodation.

The Group reported a 99% close-out rate on worker welfare concerns across its sites in the UAE & KSA in 2025. In parallel, workforce development initiatives saw over 8,000 workers trained and 250 promoted into staff roles, reflecting ALEC’s continued investment in skills development and internal career progression.

Business Ethics and Governance

ALEC Holdings continued to strengthen its governance framework in 2025 through expanded ethics controls, reporting mechanisms and supplier oversight. In early 2025, the company launched ALEC Alert, a confidential whistleblowing platform that replaced the previous email-based reporting channel and saw 100% resolution of cases reported. The platform has already contributed to increased awareness and trust in the reporting process while enabling employees, subcontractors and vendors to confidentially report misconduct or policy violations.

The company also completed the rollout of a Unified Supplier Code of Conduct and enhanced internal governance through mandatory ethics training, conflict-of-interest declarations and risk-based Code of Conduct procedures. These measures reinforce ALEC Holdings’ zero-tolerance approach to bribery and corruption while strengthening oversight across its supply chain.

The Group also strengthened ESG governance with an expanded Sustainability Committee, chaired by the CFO, having representation from all entities and core functional departments, ensuring ESG is embedded in strategy, risk, and capital allocation.

ALEC 2025 ESG HIGHLIGHTS AT A GLANCE

Environmental:

• Achieved LEED Platinum certification at the ALEC Holdings HQ and LEED Gold certification at the ALEMCO Corporate Office and ALEC DIC Yard
• ISO 14001:2015 covering 100% of operations
• 69% of operational waste diverted from landfill
• 421 MWp cumulative installed solar capacity across assets and projects

Social:

• 097 Lost Time Injury Frequency Rate per million man-hours in 2025
• 99% close-out rate on worker welfare issues recorded in 2025
• ISO 45001:2018 certification across 100% of businesses
• Over 8,000 workers trained, with 250 promoted to staff roles
• Over 11,000 beneficiaries of community impact initiatives

Governance:

• ISO 9001:2015 certification across 100% of the business
• 3,132 vendors formally certified against the Supplier Code of Conduct
• EcoVadis assessment: ‘Committed’ badge
• Signatory of United Nations Global Compact since 2023

Environmental Achievements

ALEC Holdings continued to advance environmental performance and operational standards across the business. In 2025, the Group further expanded its off-site construction capabilities through ALEMCO Modular, TARGET Steel Industries, and LINQ Modular.

These efforts contributed to reduced waste and emissions, lower labour intensity, shorter construction timelines, and enhanced safety and quality outcomes. At the same time, ALEC grew its renewable energy footprint, reaching a cumulative installed solar capacity of 6.421 MWp across assets and projects. Battery Energy Storage Systems (BESS) and hybrid generators were also integrated across sites in the UAE and KSA, supporting more efficient and sustainable operations.

The Group maintained its ISO 14001:2015 certification across 100% of its operations in the UAE & KSA, while diverting 69% of operational waste from landfills across its sites and assets.

In parallel, the deployment of Pulse, ALEC Technologies’ real-time energy and water monitoring platform, reduced electricity consumption by 122,294 kWh across three offices. The platform is now being piloted on select project sites and offered to clients as part of ALEC’s broader sustainability solutions.

“Operating in complex, high-risk sectors means sustainability and governance are fundamental to how we compete,” said John Deeb, Chief Operating Officer & Chief Financial Officer at ALEC Holdings. “Stakeholders increasingly see strong ESG performance as a prerequisite for major projects. Over the past year, we have strengthened that foundation by further embedding climate, supply chain, and human capital risks into our enterprise risk management framework. As a result, ESG is becoming a clear differentiator in tenders and a key driver of long-term resilience.”