Environmental, Social and Governance

Introduction

Introduction by our CEO

Dear Shareholders, Stakeholders, and Members of the APIC Group Community,

I am pleased to present APIC’s Sustainability Report for 2025, as we continue to advance our journey toward a more responsible, resilient, and sustainable future.

The year 2025 continued to unfold under exceptionally difficult circumstances for our people, amid ongoing humanitarian challenges and the devastating impact of the war on the Gaza Strip. Despite these conditions, APIC remained steadfast in its commitment to supporting our employees, our operations, and the communities we serve. We maintained our approach of prioritizing people first, ensuring employment stability across the Group, especially for our teams affected by the crisis.

During this challenging period, our social responsibility efforts focused on sustaining support to our long-term partners and directing resources toward urgent humanitarian needs in Gaza. Our Corporate Social Responsibility contributions represented a significant share of our profits with a value equivalent to 15%, reflecting our continued commitment to stand by our community when support is needed most.

This year also marked an important milestone in our sustainability journey, the International Finance Corporation (IFC) invested in APIC’s bond issuance. This investment reflects international confidence in our governance, transparency, and long-term commitment to sustainable growth and responsible business practices.

In 2025, our sustainability scope further expanded to include four additional subsidiaries – Sky Advertising and Promotion Company, Unipal Jordan, Medical Supplies & Services (MSS) Jordan, and Reema Hygienic Paper Company — strengthening the integration of sustainability across our growing operations. The report highlights key achievements across the Group, including resource efficiency initiatives, operational improvements, and social impact efforts, and most notably our progress in waste management, where we achieved a 44% recycling rate of non-hazardous waste across our operations. This milestone reflects the impact of improved waste segregation, recycling partnerships, and increased employee awareness, reinforcing our commitment to circular economy principles and reducing our environmental footprint.

I extend my sincere appreciation to every member of the APIC family—our employees, partners, and stakeholders—for their dedication and resilience during this challenging time. Your commitment has been essential in advancing our sustainability journey, and I am confident that together we will continue to strengthen our impact and build a more sustainable and inclusive future.

Sincerely,
Tarek O. Aggad
Chairman and Chief Executive Officer

About

APIC Group publishes sustainability reporting on an annual basis as part of its Annual Report, gradually including all its subsidiaries and working towards achieving the highest standards in line with the Global Reporting Initiative.

APIC Group’s third Sustainability Report covers the Arab Palestinian Investment Company – APIC (holding company) and the following subsidiaries: Siniora Food Industries Company (Palestine and Jordan), Polonez (Turkey), Medical Supplies and Services Company – MSS and TMS (Palestine and Jordan), National Aluminium and Profile Company – NAPCO, Unipal General Trading Company (Palestine and Jordan), Palestine Automobile Company – PAC, Reema Hygienic Paper Company, and Sky Advertising and Promotion Company.

All data presented in this report is limited to APIC as a holding company and the above subsidiaries only.

For further information, contact the Sustainable Development and Social Responsibility Manager at APIC: Ms. Mona AlQutob m.alqutob@apic.com.jo 

Sustainability Approach

APIC has demonstrated a robust and expansive sustainability approach since its inception in 1994. Founded by a group of Arab businessmen, APIC’s primary goal is to channel funds and investments into Palestine, fostering the nation’s development and generating employment opportunities. APIC’s sustainability approach comes from its sense of responsibility, a commitment to leading by example, and extends beyond the mere adherence to international ESG standards. Recognizing the interconnectedness of economic success, environmental preservation, and social well-being, APIC has ingrained sustainability into its core values. The company views itself as a steward of the regions it operates in and endeavours to set a precedent for responsible business practices.

The company has been actively involved in eco-friendly initiatives, focusing on resource efficiency, waste reduction, and incorporating renewable energy sources in its operations. Additionally, APIC places a strong emphasis on social responsibility, not only within its organization but also in the communities it serves. The company invests significantly in its employees, going above and beyond labour law requirements to provide benefits that exceed standard practices in its sectors. Prioritizing fair labour practices, diversity, and community engagement, APIC aims to make a positive impact beyond its financial performance. Governance and ethics are essential, ensuring transparency, accountability, and ethical decision-making at all levels of the organization.

IFC Invests USD 15 Million in APIC Bonds

In 2025, the International Finance Corporation (IFC), a member of the World Bank Group, invested USD 15 million in APIC’s corporate bond issuance, as part of a multi-currency bond program with a total nominal value of USD 120 million.

IFC’s participation followed a comprehensive due diligence process covering financial, operational, and environmental, social, and governance (ESG) practices, reflecting strong international confidence in APIC’s governance, transparency, and resilience. As part of the investment, IFC published an agreed *Environmental and Social Action Plan (ESAP). The plan outlines APIC’s commitments to further strengthen its ESG management systems and practices across the Group in alignment with the IFC Performance Standards (PS).

This partnership represents IFC’s largest private sector transaction in the West Bank and Gaza and is expected to support job creation, operational growth, and sustainable economic development.

The investment reinforces APIC’s commitment to continuous improvement, international best practice, and integrating sustainability into its core business strategy while creating long-term value for stakeholders and the communities it serves.