1 Sustainability Report 2024 Fostering Action on Climate Change Fostering Responsible Supply Chain Fostering An Inclusive Workplace GRI Content Index
2 Fostering Sustainable Ecosystems About the Report Message from CEO Corporate Overview Corporate Governance and Business Ethics
3 Sustainability Report 2024 Fostering Action on Climate Change Fostering Responsible Supply Chain Fostering An Inclusive Workplace GRI Content Index TABLE OF CONTENTS 1. About the Report 5 2. Message from CEO 6 3. Corporate Overview 7 Geographical Presence 7 Stakeholder Engagement, Materiality Assessment 9 Sustainability Goals and Performance Highlights 16 Awards and Recognitions 18 4. Corporate Governance and Business Ethics 22 5. Fostering Action on Climate Change 38 Energy and Emissions Management 41 Water Stewardship 49 Waste and Circularity 52 Biodiversity Conservation 56 6. Fostering Responsible Supply Chain 62 7. Fostering An Inclusive Workplace 74 Employment Practices 76 Health and Safety 91 Community Engagement 101 8. GRI Content Index 110 9. Glossary of Abbreviations 116
4 Fostering Sustainable Ecosystems About the Report Message from CEO Corporate Overview Corporate Governance and Business Ethics
5 Sustainability Report 2024 Fostering Action on Climate Change Fostering Responsible Supply Chain Fostering An Inclusive Workplace GRI Content Index Reporting Period We are pleased to present the second edition of our sustainability report for the Calendar Year (CY) 2024, continuing the journey we began in 2023 under the theme ‘Fostering Sustainable Ecosystems’. This report covers our sustainability performance from 1st January to 31st December 2024. Building on last year’s theme, this edition highlights how we have deepened and broadened our sustainability efforts across our operations. We remain committed to generating positive impact across our business, with our stakeholders, and within the ecosystems in which we operate. Scope and Boundary This report covers our business operations across our Special Economic Zones (SEZs), including Glo-Digbe Industrial Zones (GDIZ) Benin, Plateforme Industrielle D’adétikope (PIA) Togo, Gabon Special Economic Zone (GSEZ) Gabon, Bugesera Special Economic Zone (BSEZ), Rwanda, and our corporate offices in Dubai, United Arab Emirates and office in India. The boundary covers operations which are fully owned by Arise IIP, along with the businesses which we run in partnerships or joint ventures where we have operational controls. The report also carries information from our textile business introduced at GDIZ, made operational during the reporting period. Our previous report covered our operations in Chad; however, due to operational restructuring, we have not considered Chad’s performance in our reporting boundary for this year. Lastly, while BSEZ is considered in most of the performance indicators, data on emissions and energy will be reported from next year. Reporting Framework and Responsibility Statement This report has been prepared with reference to the Global Reporting Initiative (GRI) Standards. Our Board recognizes the shared responsibility to protect the integrity of the information presented in this report. Therefore, we have ensured that all information is disclosed fairly and transparently to maintain stakeholder trust. We value our stakeholders and thank them for contributing to our company’s growth. Our stakeholders include our valuable shareholders, investors, customers, government and regulatory bodies, employees, suppliers, NGO partners, and communities, among others. Suggestions and Feedback Your feedback is a valuable component of upholding our stakeholders’ trust in us, as it will enable us to uphold our commitment to consistency, fairness, responsiveness, and transparency—core values that are essential to our interactions with all partners. To give us feedback or address your queries, contact us at: esgreporting@arise.net.com. If you are interested in learning more about our sustainability initiatives, kindly visit our website: www.ariseiip.com. About the Report
6 Fostering Sustainable Ecosystems Message from CEO Corporate Overview Corporate Governance and Business Ethics About the Report At Arise IIP, sustainability is the foundation of how we operate. Our journey began with a bold idea: that Africa’s economic transformation could be driven by value creation at source while creating meaningful, lasting jobs. With over 42,000 jobs created in Africa – where employment is both a major challenge and opportunity, we focus on inclusive workplaces that empower women and youth, building resilient communities and economies. By processing raw materials locally, we are bringing manufacturing closer to raw materials and consumers, keeping value local and reducing environmental impact. Benin Cashew SA exemplifies this: processing 100,000 metric tons of raw nuts annually, it has created 3,800 direct and 10,000 indirect jobs, with 90% female employees in leadership roles. Supported by traceability tools and certifications like Rainforest Alliance and LEED, Benin Cashew shows how industrialisation can generate jobs, promote equity, and foster sustainable local value chains. 2024 was a year of scale and substance. We raised $443 million in capital with the backing of FEDA and the Africa Finance Corporation and launched a $100 million pool to support entrepreneurs within our SEZs. We now operate across five platforms in Benin, Togo, Gabon, Chad, and Rwanda with seven more under development. Among the year’s standout achievements was the launch of the $5 billion Africa Textile Renaissance Plan, in partnership with Afreximbank and Rieter. This initiative reimagines Africa’s textile future through integrated, traceable value chains powered by tools like AFIS and Tracer, alongside new manufacturing plants in Nigeria, Cameroon, and Rwanda. With the potential to replace a significant portion of Africa’s $32 billion in annual textile imports and create over 2 million direct jobs, this marks a critical leap forward. On the ESG front, we received a 2024 ESG Risk Rating of 21.8 from Sustainalytics, performing strongly across 9 of 10 indicators with particularly high marks in governance, anti-corruption, and environmental systems. Our commitment to green infrastructure also gained momentum: the PIA facility in Togo became the country’s first LEEDcertified building, and Benin’s GDIZ Single Window earned LEED Silver. In a time when many are stepping back from their sustainability ambitions, Arise IIP remains resolute. ESG is not a layer but is embedded in our DNA. Looking ahead, we will continue to deepen our ESG leadership, scale inclusive industrial ecosystems, and support the next generation of African entrepreneurs. Together with our governments, investors, partners, and teams, we are not just imagining a better future for Africa. With this report, I invite you to explore the progress we have made, the impact we are delivering, and the road ahead. Warm regards, Gagan Gupta CEO, Arise IIP Chief Executive Officer Message from
7 Sustainability Report 2024 Fostering Action on Climate Change Fostering Responsible Supply Chain Fostering An Inclusive Workplace GRI Content Index Arise IIP, is a pan-African developer and operator of industrial ecosystems, headquartered in Dubai, United Arab Emirates. We design, finance and operate integrated industrial zones across Africa, identifying gaps in local industrial capacity and offering tailored solutions to enable in-country transformation of raw materials, enhance exports, and promote sustainable trade. Our mission is to drive inclusive industrialization through strategic investments in high-impact infrastructure tailored to each country’s development needs. We identify gaps in industrial capacity and infrastructure, and develop customized, scalable solutions that unlock Arise IIP is backed by three strategic shareholders with the following shareholding pattern: Our industrial zones are strategically located in regions with strong industrial potential and abundant natural resources. Each zone integrates world-class logistics infrastructure to support local industries and enable in-country processing of raw materials. Through these operations, we contribute to more competitive economies, national and regional socio-economic potential. To support dynamic industrial ecosystems, we also develop integrated logistics hubs aligned with national development strategy. Arise IIP currently operates in key African markets. Our ambition is to unlock Africa’s industrial potential while reducing carbon emissions and minimizing climate impact. As part of this vision, we are proud to publish our second Sustainability Report, reflecting our efforts to embed ESG principles across all business activities. Our recently launched ESG Strategy 2030 provides a long-term framework to guide this transformation. Corporate Overview Business Overview Geographical Presence 57.12% 25.54% 17.34% resilient supply chains and inclusive growth across 14 African countries. Strong partnerships with governments and investors enable us to design and implement large-scale, transformative projects that align with national development priorities and generate shared value.
8 Fostering Sustainable Ecosystems Corporate Overview Message from CEO Corporate Governance and Business Ethics About the Report Our Presence AFRICAN COUNTRIES Gabon Rwanda Chad Benin Togo OPERATIONAL INTEGRATED ECOSYSTEMS 5 Ivory Coast Nigeria Malawi Democratic Republic of Congo Cameroon Republic of Congo Sierra Leone INTEGRATED ECOSYSTEMS UNDER DEVELOPMENT 7 14 Kenya Tanzania INTEGRATED ECOSYSTEMS UNDER DISCUSSION 2
9 Sustainability Report 2024 Fostering Action on Climate Change Fostering Responsible Supply Chain Fostering An Inclusive Workplace GRI Content Index Industries in our Zones Wood processing and furniture manufacture Agro-processing industry (pineapple, cocoa, cashew, mango, soy, shea nuts) Textile industry (spinning, weaving, cotton knitting, clothing manufacture) Plastics recycling and processing Logistics Metal industries Livestock rearing (cattle, poultry) Pharmaceutical industries Consumer goods industry (household appliances, assembling telephones and computers) Marble manufacturing & mining Renewable energies Electric vehicle assembly Stakeholder engagement enables us to deliver our strategic objectives. Our key stakeholders include employees, customers, investors, shareholders, governments, regulators, suppliers, and communities. We are committed to structured and transparent engagement that aligns stakeholder expectations with our sustainability agenda. We engage with a wide range of stakeholders to foster and maintain enduring relationships with them, which also helps in shaping our understanding of our evolving operating environment. We build stakeholder relationships Stakeholder Engagement based on trust and mutual respect. The success of our stakeholder engagement initiatives lies in our continued emphasis on providing information that is accurate and relevant to each group. We do this in a transparent and structured manner, and in addressing their concerns through effective processes and mechanisms. Our collaborative approach builds meaningful connections and drives growth in business. We actively seek input and feedback from our stakeholders through various channels, allowing us to understand their perspectives and incorporate their valuable suggestions.
10 Fostering Sustainable Ecosystems Corporate Overview Message from CEO Corporate Governance and Business Ethics About the Report In 2023, we conducted a comprehensive materiality assessment to identify the sustainability issues most relevant to our operations and stakeholders. Through extensive internal and external consultations, we captured insights into ESG opportunities, emerging risks, and global trends that influence our operating environment. Material Topics Environment Social Governance Energy Management Climate Change Biodiversity and Ecology Waste Management Water Management Human Rights Health and Safety Diversity, Equity, and Inclusion Employment Practices Product Safety and Quality Communities Relations Business Ethics Corporate Governance Sustainable Supply chain Ethical Marketing The resulting set of material issues now form the foundation of our ESG pillars and guides decision-making across the business. We continue to expand our efforts to protect ecosystems, reduce emissions, and empower communities through focused, data-driven initiatives. Materiality Assessment Human Rights Low Low High High Importance to Stakeholders Importance to Business Sustainable Supply Chain Business Ethics Corporate Governance Ethical Marketing Biodiversity and Ecology Waste Management Water Management Energy Management Climate Change Employment Practices Health & Safety Diversity, Equity and Inclusion (DEI) Product Safety & Quality Community Relations 1 2 4 7 8 9 10 11 13 14 12 15 5 6 3
11 Sustainability Report 2024 Fostering Action on Climate Change Fostering Responsible Supply Chain Fostering An Inclusive Workplace GRI Content Index Our ESG pillars Our materiality assessment has helped us align our key focus on sustainability towards our ESG Strategy 2030. Our topics are amalgamated into six core pillars under which we conduct our sustainability initiatives. • Energy Management • Climate Change Resilience Effective utilization of energy, reduce dependence on carbon intensive energy sources, and reduce carbon emissions Adopt circular economy principles to reduce, reuse and recycle wasteand manage natural resources sustainably Reduce inequalities across the continent, by undertaking industry best practices in adopting diversity related initiatives Develop sustainable supply chains and factor in risks and opportunities across the supply chain with transparency and traceability at its core Protect and restore biodiversity ecosystems while ensuring water stewardship for access to the shared resource Ensure transparency and accountability with highest standards of corporate governance and business ethics • Waste Management • Health & Safety • Diversity, Equity and Inclusion • Human Rights • Employment Practices • Community Relations • Supply Chain Sustainability • Ethical Marketing • Biodiversity and Ecology • Water Management • Good Governance • Transparency • Board Diversity • Business Ethics • Product Health and Safety Pillar SDG Alignment Material Topic Alignment Objectives Carbon Neutrality Circular Economy Diversity & Inclusion Responsible Supply Chain Management Biodiversity & Water Governance & Ethics
12 Fostering Sustainable Ecosystems Corporate Overview Message from CEO Corporate Governance and Business Ethics About the Report Our business decisions are guided by key pillars focused on advancing sustainability. We’re committed to protecting ecosystems, achieving carbon neutrality, and supporting thriving communities and individuals. We’re investing in sustainable growth to meet future demands, aiming for impactful climate action with positive outcomes for our customers, employees, and shareholders. These pillars underpin our vision for fostering sustainable ecosystems. Pillar 1: Carbon Neutrality In an era of accelerating climate transformation, the effective management of carbon emissions has become a business imperative. Greenhouse Gas (GHG) emissions contribute to global warming, and organizations are under increasing pressure to optimize energy use, reduce reliance on fossil fuels, and adopt more robust climate risk mitigation strategies. At Arise IIP, we are committed to allocating resources toward decarbonization and implementing strategies that address both climate change mitigation and adaptation. Key strategic initiatives include: Pioneering manufacturing models that significantly reduce carbon emissions Investing in solar farms near industrial zones and integrating renewable energy infrastructure Promoting energy-efficient technologies within SEZs Providing incentives to industries that embrace renewable energy Implementing comprehensive carbon measurement and reduction strategies Key highlights: Our ESG priorities 1. Carbon Footprint Innovation We launched Carbon Collect; a platform designed to standardize carbon footprint assessments. The initiative improves data accuracy and accessibility, enabling more transparent climate reporting and informed decision-making. Pioneering carbon footprint assessment platform Standardizes carbon reporting methodologies Enhances precision and accessibility of carbon data 2. Arise’s Low Carbon Buildings We continue to embed sustainability into our infrastructure through green building practices: In GDIZ (Benin) and PIA (Togo), our single-window service buildings have achieved LEED Silver Certifications, reflecting our commitment to energy-efficient and sustainable construction. The PIA LEED-certified building is the first of its kind in Togo, earning recognition under the LEED Earth Campaign by the U.S. Green Building Council (USGBC). The Benin Cashew Project stands out for its sustainability performance, achieving 44.27% energy savings and earning EDGE Advanced certification for exceptional energy and resource efficiency.
13 Sustainability Report 2024 Fostering Action on Climate Change Fostering Responsible Supply Chain Fostering An Inclusive Workplace GRI Content Index Key highlights: Pillar 2: Responsible Supply Chain Sourcing and processing natural commodities are central to our operations at Arise IIP. We place a strong emphasis on understanding the sustainability of each commodity supply chain and managing related risks and opportunities using data and technology. This allows us to track raw material origins and ensure traceability. We have achieved HACCP certification to maintain quality throughout the food chain, from production to packaging. In collaboration with the Rainforest Alliance, we have developed sustainability frameworks for responsible supply chains. Additionally, we earned organic certification for soybean value chains in Togo and Benin, ensuring traceability and ethical practices. In addition to these, we have also obtained EUDR-Preferred by Nature certification for our Gabon SEZ, as a commitment to deforestation. Traceability is at the core of our supply chain sustainability initiatives. We leverage our supplier relationships to promote ethical and sustainable practices while evaluating and mitigating ESG risks in our value chains. Our Supplier Code of Conduct sets expectations for business ethics, environmental stewardship, labor rights, and human rights, which all suppliers must follow. During vendor onboarding, we also ensure compliance with regulations, among many other non-legal compliances to be met by our suppliers to uphold sustainable procurement. Key commitments include: Partnerships for traceability such as Tracer, Forest Foresight -Worldwide Fund (WWF), etc. Ensuring the quality and compliance of sourced products through third-party verification Engaging with over 90,000 farmers for sustainable agriculture practices. Obtaining various certifications, including: • Forest Stewardship Council (FSC) certification for timber • European Union Deforestation Regulation (EUDR) • ProTerra for the soya value chain • Organic Certification for soya Key highlights: 1. Timber Value Chain The Timber Value Chain increased its managed forest area by 900,000 hectares since 2021, prioritizing community, social, and environmental initiatives through investments in infrastructure, clean water, education, and healthcare in various villages. Sustainable forest management plans are implemented before acquiring new lands or starting operations. Empowerment programs support beekeeping training for women and agricultural initiatives to improve food security. Partnerships with organizations like WWF and the Ministry of Forests tackle poaching and promote sustainable livelihoods. 2. Cashew Value Chain The cashew value chain has achieved compliance across multiple standards to ensure comprehensive quality and responsibility. This includes food safety certifications such as BRCGS, HALAL, KOSHER, and FDA Registration,
14 Fostering Sustainable Ecosystems Corporate Overview Message from CEO Corporate Governance and Business Ethics About the Report ensuring products meet global safety and dietary standards. Additionally, social compliance audits like SMETA verify ethical labor practices and workplace conditions. Furthermore, the value chain adheres to ESG standards with certifications from the Rainforest Alliance and EDGE, promoting sustainable farming practices, forest conservation, and gender equality in the workplace. Together, these certifications ensure the cashew value chain meets global benchmarks for safety, ethics, and sustainability. 17,445 MT of cashew has been processed in Benin in the reporting year with over 4,000 MT certified under Rainforest Alliance. 3. Soya Value Chain The soya value chain in Benin and Togo is largely built on organic farming practices that promote environmental sustainability and offer consumers chemical-free products. Arise IIP has secured ECOCERT organic certification in both countries, affirming compliance with rigorous organic standards. This commitment enhances the quality of soybeans while supporting ecosystem health. During the reporting period, 147,767 MT of soybeans were processed across Benin and Togo, of which over 60,000 MT were organically certified. These efforts positively impacted more than 47,000 farmers through the promotion of sustainable agricultural methods. 4. Textile Value Chain and Others GDIZ Textile Park is a vertically integrated industrial zone, encompassing the entire value chain from spinning to garmenting. Equipped with state-of-the-art infrastructure, advanced technology, high-efficiency machinery, a wastewater treatment plant, the park is catalyzing the rapid growth of Benin’s textile industry. Operations began during the reporting period, and performance data will be available from next year. In addition to textiles, our SEZs also host emerging value chains in meat processing, electric vehicles (EVs), and metals. These sectors will be covered in detail in future reports as they mature and scale. Pillar 3: Circularity We recognize that the circular economy offers significant opportunities for innovation and are committed to reducing waste and managing resources sustainably. Key initiatives include: Designing SEZs with closed-loop production systems Promoting waste reduction, recycling materials, and resource optimization Encouraging tenant industries to adopt circular economy principles Key highlights: Key highlights: We have adopted several circularity measures across our operations. In GSEZ, we have implemented the initiative to optimize the amount of material our timber business reuses
15 Sustainability Report 2024 Fostering Action on Climate Change Fostering Responsible Supply Chain Fostering An Inclusive Workplace GRI Content Index and recycles to meet our circular economy waste management philosophy. Currently, about 40% of the wood waste is produced by the timber industry. However, it is feasible to use the particle board manufacturing process to consume all the generated wood waste. This presents an opportunity to fully utilize residual wood by converting it into particleboards – advancing our circular economy goals. At Benin Cashew, the cashew nut shells waste accounts for majority of waste generated at our operations. This waste will be utilized as a bioresource in our Cashew Nutshell Liquid production for use in the paints, varnishes, surface coatings, agrochemicals, and ethnomedicine industries. In textile factory GDIZ, we have installed ZLD plant with advanced technologies to treat the waste produced from effluents, ensuring zero liquid discharge. Pillar 4: Diversity and Inclusion We are committed to building a sustainable ecosystem that drives job creation and supports local development. Our focus is on fostering a diverse workforce, empowering marginalized groups, and ensuring safe, inclusive working environments. We believe diversity enhances decision-making, innovation, and performance. By ensuring gender equality in our SEZs, we create opportunities for all employees to thrive. Our commitment extends beyond numbers; we prioritize respect, equality, and empowerment, offering career advancement, training, and development programs. We actively eliminate biases and foster a culture of continuous learning, leadership, and strong employee engagement to improve individual and collective performance. Key initiatives include: Creating inclusive economic zones that focus on local workforce development Implementing fair hiring practices and skill enhancement training programs Supporting women’s economic empowerment and promoting youth entrepreneurship.
16 Fostering Sustainable Ecosystems Corporate Overview Message from CEO Corporate Governance and Business Ethics About the Report Carbon Neutrality Circularity Responsible Supply Chain ESG Strategy 2030 Legend Key highlights & impact in CY 2024 Streamlining GHG Inventory for Scope 1, 2 and 3 20% reduction in Scope 1 and Scope 2 intensity emission by 2030 Net zero value chain emissions by 2050 Reduce energy consumption by 20% by 2030 25% of the shed roof area with solar panels Aim to achieve 80% of SEZ portfolio EDGE certified by 2030 Achieve 50% waste recycling rate by 2030 Zero waste to landfill by 2040 100% Compliant with Quality Management Certificates for Value Chains Achieve 35,000 MT Rain Forest Alliance (RA) compliant Cashew Achieve 12,200 MT Organic Compliant Cashew Achieve 300,000 MT of EUDR and Organic Compliant soya Received EDGE Advanced Certification for 5 cashew factories in GDIZ, Benin Achieved LEED certifications for facilities in Benin and Togo Converted 1,000 MT of wood waste per month into particleboard in Gabon SEZ 112,000 hectares of forest certified under EUDR-Preferred by Nature Manage over one million hectares of certified forests, with 40% certified for sustainable management 147,776 MT of soya produced 17,445 MT of cashew nut produced ~97,000 farmers engaged Sustainability Goals and Performance Highlights
17 Sustainability Report 2024 Fostering Action on Climate Change Fostering Responsible Supply Chain Fostering An Inclusive Workplace GRI Content Index Biodiversity and Water Diversity, Inclusion & Human Rights Governance and Ethics Biodiversity Net Gain by 2040 Disclose on TNFD and SBTN Water Consumption reduction by 20% by 2030 40% female in senior management by 2030 30% female within operational SEZ by 2030 Creating 10 million jobs by 2040 in Africa Hire at a minimum 70% of the workforce from the country 100% of industries have compliance scores more than 70% Improve wastewater treatment efficiency by 40% 100% wastewater treatment by 2030 100% Employee covered under compliance training program More than 70% of audit points within one year of audit Zero Discrimination Cases Zero Human Rights Issues in SEZ 100% Compliance with the VDD points Conserved 10 million square meters of mangroves in Gabon through Blue Carbon Project Installed Zero Liquid Discharge plant in textile factory within GDIZ, Benin. 16% of our workforce is female 38,000 + training man-hours provided 2 board members trained on ESG topics 20% female representation on the board Zero cases of corruption and bribery 0.49 i.e., <1 LTIFR achieved Zero discrimination cases observed Achieved a rating of 21.8 in the medium category. Our 2024 ESG Risk Rating highlights include strong performance across nine of ten indicators.
18 Fostering Sustainable Ecosystems Corporate Overview Message from CEO Corporate Governance and Business Ethics About the Report Green financing and grants This year, Arise IIP secured several pivotal grants that have empowered us to implement transformative sustainability projects across Africa. These grants enable us to address key environmental challenges, foster renewable energy adoption, and support vulnerable communities. 1. Central African Forest Initiative (CAFI) We received a grant of USD 500,000 from CAFI to conduct feasibility studies for projects that will positively benefit the Congo Basin Forest region. We have now completed and submitted 11 feasibility reports to the United Nations Office for Project Services (UNOPS) and await their review for further funding. 2. Strengthening the partnership between GAW and the Fondation Lékédi Biodiversité GAW, a subsidiary of GSEZ and holder of the sustainably managed Ogooué forest concession, is strengthening its collaboration with the Ministry of Water and Forests, the NGO Conservation Justice, and the Fondation Lékédi Biodiversité to combat wildlife crime and promote biodiversity conservation around Lékédi Park and surrounding forest areas. Through a technical assistance grant awarded to Conservation Justice, a dedicated Wildlife Brigade has been deployed across the provinces of HautOgooué and Ogooué-Lolo. The brigade primarily focuses on anti-poaching efforts but also works closely with local authorities to address other illegal activities, including unauthorized logging and mining. Our Community Liaison Officer is actively involved in the awareness campaigns alongside Conservation Justice, helping to extend outreach to local schools and communities. More than 3,000 children are reached annually through programs organized in collaboration with the HautOgooué Provincial Education Authority. 3. UNDP’s Platform for Investment Support and Technical Assistance A further USD 170,000 grant from the UNDP’s Platform for Investment Support and technical assistance (PISTA) supported FSC certification initiatives, enhancing sustainable forestry practices within our supply chains. At the All Africa Business Leaders Awards held by CNBC Africa and Forbes Africa This award, a first for a Beninese company, acknowledges Benin Cashew SA’s commitment to stimulating local industrialisation and creating added value in the cashew sector. More broadly, this recognition highlights the relevance of the model developed by Arise IIP. Awards and Recognitions African Agro-Company of the Year award
19 Sustainability Report 2024 Fostering Action on Climate Change Fostering Responsible Supply Chain Fostering An Inclusive Workplace GRI Content Index At the API Awards held by the International Finance Corporation This recognition underscores our ongoing efforts to deliver 1 million square feet of greencertified projects, reinforcing our commitment to sustainable building practices. EDGE Champion 2024 Award at the Pan African Business and Development Awards held by Afreximbank Recognition for transformative businesses and financial institutions across the African continent. Arise IIP has been recognized as the business of the year by the awards in 2024 Pan-African Business of the Year At the Global Sustainability Awards 2024 held by Reuters Events Received for Arise IIP’s role in pioneering Sustainable Industrial Ecosystems in Africa, bringing together governments, investors, local communities, and nonprofit organizations into a journey for social, digital, and sustainable transformation. Finalist for the Business Transformation Award 2024 Awarded by the Beninese Environment Agency, 2024 Certificate of recognition provided by the Benin Environment Agency in 2024, for the most compliant company with E&S regulations Best Beninese company in compliance with E&S regulations
20 Fostering Sustainable Ecosystems Corporate Overview Message from CEO Corporate Governance and Business Ethics About the Report Global Dialogues on Sustainability This honour highlights our efforts to address critical challenges in the African textile industry, including the underutilization of local raw materials and the exclusion of vulnerable populations from employment. In 2024, the PIA LEED-certified building in Togo made history as the first of its kind in the country, earning recognition from the US Green Building Council under the LEED Earth campaign. This remarkable accomplishment was complemented by another LEED Silver certification for the single window building in the GDIZ zone in Benin. Gender Equality and Inclusion Award by the World Bank for GDIZ Benin and PIA Togo PIA-LEED Certified building earned recognition from the US Green Building Council under the LEED Earth Campaign At COP29 in Baku, we showcased our commitment to climate action by engaging global stakeholders and sharing insights into our strategies for sustainable development. This platform reinforced our position as a leader in addressing climaterelated issues. The FARM Conference in Paris provided an opportunity to present our transformative agro-industrial model. We emphasized a comprehensive ecosystem approach to sustainable development in Africa, including building farmer capacities, developing Special Industrial Zones (ZIS) to attract foreign investment, and creating end-toend integrated agri-food chains. Arise IIP at COP29 FARM Conference
21 Sustainability Report 2024 Fostering Action on Climate Change Fostering Responsible Supply Chain Fostering An Inclusive Workplace GRI Content Index At the Oslo Forest Forum during the Congo Basin Partnership side event, we showcased our efforts to combat deforestation. Through the creation of the Nature Panel, we demonstrated how sustainability can be seamlessly integrated into a business model, providing a scalable example for tackling global environmental challenges. Oslo Forest Forum During COP16 in Riyadh, we reaffirmed our dedication to land restoration and drought resilience, emphasizing investments that ensure long-term environmental sustainability in vulnerable regions. Arise IIP at COP16 Our CEO Mr. Gagan Gupta, participated in the Africa CEO Forum at Kigali in May 2024 “Encouraging the next generation of Africans: Mentors to prepare future leaders.” It was an opportunity to present to the continent’s key players the products produced locally in our various industrial zones in Benin, Gabon and Togo. Africa CEO Forum Arise IIP took part in a pivotal panel discussion at the Africa Business Day 2024 Basel. The event, hosted by Novartis under the patronage of the State Secretariat for Economic Affairs SECO and organized by the SwissAfrican Business Circle, brought together key figures from various sectors to discuss the crucial role of PanAfrican banks and multilateral financial institutions in Africa’s development. Arise IIP at Africa Business Day 2024
22 Fostering Sustainable Ecosystems Corporate Governance and Business Ethics Message from CEO Corporate Overview About the Report CORPORATE GOVERNANCE & BUSINESS ETHICS Material Topics Alignment 04 Corporate Governance Business Ethics & Transparency
23 Sustainability Report 2024 Fostering Action on Climate Change Fostering Responsible Supply Chain Fostering An Inclusive Workplace GRI Content Index
24 Fostering Sustainable Ecosystems Corporate Governance and Business Ethics Message from CEO Corporate Overview About the Report At Arise IIP, we believe that strong governance and ethical business practices are essential to delivering sustainable, long-term value. As we expand across Africa, we remain committed to transparency, accountability, and responsible leadership. In 2024, 20% of our Board members were women, and we achieved 88% attendance across Board meetings—demonstrating active engagement at the highest level. To stay aligned with the evolving sustainability landscape, we also enhanced the collective expertise of our Board through dedicated ESG training sessions. In addition, we completed over 110 man-hours of executive training with ESSEC Business School, focusing on the challenges and opportunities of industrialisation and value addition in Africa. This chapter outlines our governance structures and ethical commitments— including our Board framework, oversight roles, diversity, conflict of interest policies, tax transparency, and our approach to responsible marketing and labeling. I invite you to read and understand how these foundations guide our decisions and strengthen our mission to build inclusive, resilient, and future-ready industrial ecosystems. Sincerely, Amit Agrawal Chief Operating Officer, Arise IIP Chief Operating Officer Message from
25 Sustainability Report 2024 Fostering Action on Climate Change Fostering Responsible Supply Chain Fostering An Inclusive Workplace GRI Content Index Over the past year, we have made meaningful progress in enhancing our governance framework. Guided by our core principles of transparency, accountability, and sustainability, we deepened our collaboration with key stakeholders, including Africa Finance Corporation (AFC), Fund for Export Development in Africa (FEDA), and Equitane. These partnerships have been instrumental in advancing large-scale, transformative projects across our SEZs in Gabon, Benin, Togo, and Rwanda. Our SEZs continue to play a pivotal role in promoting local value addition, boosting exports, and supporting regional trade. This year, we further aligned our logistical hubs with national development strategies, reinforcing our commitment to job creation, education, and healthcare in our host countries. These efforts reflect our ongoing dedication to supporting industrialization in a manner that is both inclusive and environmentally responsible. Corporate Governance Board Attendance of all Members in Board Meetings in CY 2024 Governance Framework 88%
26 Fostering Sustainable Ecosystems Corporate Governance and Business Ethics Message from CEO Corporate Overview About the Report Since our last report, we have refined the nomination and selection processes for our highest governance body to better align with evolving stakeholder expectations and sustainability goals. We continue to apply rigorous criteria to ensure that our Board of Directors consists of individuals with the right mix of expertise, independence, and commitment to responsible leadership. Samaila Dalhat Zubairu President and CEO Africa Finance Corporation and Chairman of the Board Marlène Ngoyi Mvidia Chief Executive Officer FEDA Reuel Darlington Andrews Director of Transport and Logistics Africa Finance Corporation Sameh Nasser Shawky Shenouda Venkataramani Srivathsan Chairman NTU/SBF Centre for African Studies Gagan Gupta Founder and CEO Arise IIP, Arise IS and Arise P&L Chairman Director Director Director Independent Director Director & CEO Board of Directors and the Governing Body Executive Director and Chief Investment Officer Africa Finance Corporation Mame Ramatoulaye Yade Director of the Africa Center Atlantic Council Carlos Alberto Pinto Lopes Professor, University of Cape Town and Sciences Po Paris Amadou Tejan Wadda Senior Director Portfolio Management & Optimization in Africa Finance Corporation Independent Director Independent Director Director
27 Sustainability Report 2024 Fostering Action on Climate Change Fostering Responsible Supply Chain Fostering An Inclusive Workplace GRI Content Index We acknowledge the vital role of a diverse and effective Board in driving organisational success. An inclusive Board harnesses a wide range of perspectives, experiences, and expertise—spanning industries, regions, cultures, and demographics. By embracing diversity in thought, age, ethnicity, gender, and specialized Our Board Committees Gender Diversity on the Board knowledge across areas such as finance, governance, global business, leadership, ESG, and risk management, we strengthen both decision-making and innovation. This commitment to diversity helps us to maintain our competitive edge while fostering dynamic and forward-thinking leadership. As of 2024, 20% of our Board is comprised of women. Committee Chairperson Members Roles and Responsibilities Audit and Risk Compliance Committee Venkataramani Srivathsan Gagan Gupta, Reuel Andrews, Marlène Ngoyi To assess, analyze, and provide strategic recommendations on the company’s financial standing to its stakeholders business and investmentrelated risks in relation to our company’s decision-making process. To oversee and manage company audits, compliance and due diligence Talent Committee Ramatoulaye Yade Venkatramani Srivathsan, Sameh Shenouda, Gagan Gupta Overseeing talent acquisition, employment policies, gender inclusivity, and all employmentrelated matters while ensuring compliance with relevant regulations. Male 7 Female 2 Gender Representation on the Board Age Profile of Board Members >50 Years >50 Years 6 3
28 Fostering Sustainable Ecosystems Corporate Governance and Business Ethics Message from CEO Corporate Overview About the Report Finance and Investment Committee Sameh Shenouda Venkataramani Srivathsan, Reuel Andrews, Marlène Ngoyi, Support the Board of Directors in overseeing financial and investment matters, including subsidiary funding and the effectiveness of investment activities across the Company and its subsidiaries. ESG Committee Sameh Shenouda Venkataramani Srivathsan, Carlos Alberto Pinto Lopes, Amit Agrawal, Bhavin Vyas Providing Strategic Oversight on ESG strategies for business Monitoring regulatory requirements, and emerging risks related to environmental impact, social responsibility, and governance practices Stakeholder Engagement and Reporting. Committee Chairperson Members Roles and Responsibilities Managing Impacts Role of the Highest Governance Body At Arise IIP, sustainable development is not just an ambition, but a core principle embedded in our corporate governance framework. Our highest governing body along with senior executives plays a crucial role in defining, endorsing, and refining our purpose, values, mission, strategies, policies, and sustainability objectives. Through their collective efforts, we ensure the seamless integration of sustainability into our operations, fostering long-term value creation while upholding our social and environmental responsibilities. Our Board of Directors reflects diversity, independence, and extensive expertise across multiple business domains. Comprised of individuals with varied backgrounds and specialized knowledge, the Board fosters informed discussion and sound decision-making with sustainable development at the heart of our corporate agenda. This diverse composition empowers the Board to navigate complex sustainability challenges and seize emerging opportunities. Additionally, the Board plays a vital role in overseeing due diligence processes, ensuring responsible management of our economic, environmental, and social impacts. Transparency and stakeholder engagement remain fundamental to our governance approach, ensuring alignment with sustainability objectives and responsiveness to stakeholder expectations. This is reflected in the following ways: Delegation of Responsibility for Managing Impacts The Board of Directors has established a strong framework for delegating responsibilities related to managing the
29 Sustainability Report 2024 Fostering Action on Climate Change Fostering Responsible Supply Chain Fostering An Inclusive Workplace GRI Content Index Includes CFO, CEO, COO and CBO. Senior Executives are responsible for managing impacts across multiple domains. Evaluating and executing strategies while prioritizing our company’s ESG goals and values. Responsibility of impact management is distributed to all employees across different levels. Allows employees to implement impact management initiatives in their areas of expertise. Facilitates open and clear communication within our company. Planning Sessions Education and Skill Building Stakeholder Engagement Periodic Reviews CrossFunctional Teams Transparency Board of Directors Appointment of Senior Executives Delegation to Other Employees organization's impacts on the economy, environment, and society. This structured approach is crucial for integrating sustainability objectives into daily operations and ensuring alignment with our core values. The Board follows a decentralized structure to delegating sustainability responsibilities, empowering individuals across various departments and levels to actively contribute to sustainability initiatives. It hold the authority to appoint key executives, including the CFO, CEO, COO, and CBO. Through this approach, responsibility for impact management extends beyond senior leadership, fostering broader ownership across the organization.
30 Fostering Sustainable Ecosystems Corporate Governance and Business Ethics Message from CEO Corporate Overview About the Report Reporting Structure Periodic Reporting Cycles Impact Highlights and Challenges Continuous Improvement Board Meetings and Workshops Senior executives and designated employees collaborate to manage organizational impacts, contributing to a structured reporting framework that consolidates key insights for the highest governance body’s review and decisionmaking. During quarterly meetings, senior executives present key achievements and challenges in impact management, providing the Board with valuable insights for fostering transparency and addressing areas needing support. The reporting process fosters continuous improvement by incorporating Board feedback and best practices to refine strategies, policies, and processes. This ensures impact management remains adaptable to evolving challenges and opportunities. Reports are regularly submitted to the Board in alignment with the company’s reporting cycles, providing consistent updates and enabling progress tracking. This adherence to reporting schedules upholds transparency and accountability in impact management practices. Senior executives share reports during Board meetings or workshops to enable interactive discussions and clarifications. Reports may also be circulated via email, allowing Board members to review and provide informed feedback or guidance. Role of the Highest Governance Body in Sustainability Reporting Collective Knowledge of the Highest Governance Body To stay aligned with the evolving sustainability landscape, we enhanced the collective expertise of our Board through dedicated ESG training sessions conducted in 2024. These sessions deepened members’ understanding of ESG principles and emerging trends, equipping them to provide more informed, responsible, and forward-looking governance support of our sustainability goals. In continuation, we also had a total of 110 man-hours of training programs conducted by ESSEC Business School. This program aims to address the challenges and opportunities of industrialization and raw material transformation while striving to enhance Africa’s position in the global value chain. Communication of Critical Concerns In 2024, we continued to strengthen our structured approach for escalating critical concerns to the highest governance body. Key executives and department heads reported significant issues to the Board of Directors through scheduled meetings and dedicated sessions for urgent matters, ensuring timely oversight and informed decision-making.
31 Sustainability Report 2024 Fostering Action on Climate Change Fostering Responsible Supply Chain Fostering An Inclusive Workplace GRI Content Index Nomination and Remuneration The nomination and selection of members for the highest governance body follows a rigorous process to ensure effective leadership and responsible governance. These standards align candidates' qualifications with stakeholder interests. The nomination process is designed to build a diverse and capable governance body composed of experienced individuals who bring both expertise and a strong commitment to the organization's success. This ensures that the leadership is equipped to navigate challenges while driving sustainable growth and stakeholder alignment. We consider the following factors when nominating and selecting our Board of Directors: Remuneration Policies and Processes Performance-Linked Variable Pay Structure Executives receive variable pay equivalent to four months of their base salary, contingent on both organizational performance and individual contributions. This model strengthens the link between remuneration and performance, incentivizing meaningful contributions to the organization’s success. KPI-Aligned Remuneration Policies Remuneration policies are tied to key performance indicators (KPIs) reflecting financial performance, environmental sustainability goals, and social responsibility metrics. This approach reinforces the organization’s dedication to sustainable business practices and ensures compensation aligns with contributions to economic, environmental, and societal impacts. Recruitment and Retention Incentives Strategically deployed sign-on bonuses are offered to attract top talent and secure critical positions. These one-time incentives align with our organization’s goal of acquiring skilled professionals.
32 Fostering Sustainable Ecosystems Corporate Governance and Business Ethics Message from CEO Corporate Overview About the Report Transparent Remuneration Design Process The Board’s talent committee oversees remuneration design, while CEO compensation decisions are guided by independent consultants for unbiased evaluations. Stakeholder perspectives, especially from shareholders, are actively sought and incorporated, promoting inclusivity and shared ownership in decision-making. Factors in Nomination Competencies Diversity Independence Stakeholder Views Ensuring Independence in Remuneration Assessments An independent study conducted with external remuneration consultants ensures impartiality in evaluating compensation structures. Detached from the organization and its governance body, these consultants uphold transparency and integrity. This practice aligns remuneration policies with stakeholder expectations while contributing to robust corporate governance. Ensuring Effectiveness of our Board To ensure the evaluation of performance of our highest governance body, we follow a three-step procedure. Assessment This stage involves comprehensive selfassessment, external reviews, and strategic measures to improve Board effectiveness and organizational practices. Identification We identify areas of improvement highlighted by these assessments, reflecting our dedication to continuously enhancing governance processes. Decision-Making We acknowledge the value of diverse perspectives, therefore, we established an advisory board, offering diverse perspectives and market insights. This supports the Board in enriching governance with broad areas of expertise.
33 Sustainability Report 2024 Fostering Action on Climate Change Fostering Responsible Supply Chain Fostering An Inclusive Workplace GRI Content Index Aligned with our unwavering commitment to sustainability, we have strengthened our rigorous policy framework to meet and exceed global standards on human rights, environmental protection, transparency, ethics, and labor rights. Building on the progress achieved in our previous reporting year, our updated policies now reflect internationally recognized benchmarks such as the OECD Guidelines, the UN Guiding Principles on Business and Human Rights, and key anti-corruption conventions. This evolution underscores our dedication to ethical practices and our proactive approach to safeguarding human rights across all operational spheres. Our Fair Employment Policy has been further refined to emphasize our Grievance Redressal Mechanism commitment to fostering a respectful and equitable work environment. Guided by the conventions of the International Labor Organization (ILO) and the principles of the United Nations Global Compact (UNGC) on human rights and labor, the policy safeguards employee rights and promotes a culture where dignity, respect, and inclusivity thrive. These enhancements represent a meaningful step forward in our journey toward a more just and sustainable workplace. We communicate our policy commitments with our stakeholders through different platforms including emails, conference calls, and townhall meetings. . These engagements have also informed the development of our policies, ensuring they reflect stakeholder concerns and expectations. Understanding Policy Statements and Embedding Process Environmental, Social, & Governance Policy Fair Employment Policy Whistleblowing Policy Grievance Mechanism Policies addressing Stakeholder Concerns
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