To our stakeholders,

We at First Bahrain are pleased to reaffirm our support for the UN Global Compact’s Ten Principles, encompassing Human Rights, Labour, Environment and Anti corruption.

In our annual Communication on progress, we explain the steps we are taking to continually improve integrating these principles into our day-to-day operations as well as our long term business strategy.

Furthermore, we gladly share this information to our investors and all stakeholders using primary means of communication (mainly via our website).

Sincerely yours,

Amin Al Arrayed
Chief Executive Officer

-Our commitment to human rights and zero tolerance towards the mistreatment of migrant workers in the Gulf has prompted us to look at how we can strengthen the ethical integrity of our suppliers.

- We have referenced the Global compact's 1st Principle in all the lease documents for all our tenants.

-We have also formulated new policies for assessing Human rights risks of suppliers based on an updated zero tolerance policy to human rights abuses.

-Additionally we are currently working towards incorporating the Human Rights Principles in a new and updated code of conduct to be displayed on our primary means of communication.

-Began conducting surprise on-site visits to contractors and established a system enabling us to pay sub-contractors directly in the incidence that our suppliers have unjustly withheld their salaries.

-Incorporated a supplier human rights assessment and screening system through the form of a checklist and instituting a zero tolerance policy towards human rights violations.

-In 2014, we integrated an explicit Human rights clause (based on principle 1 of the Global Compact) in all tenant leases.

- Zero incidents of forced or compulsory labour at First Bahrain

-Zero complaints or reports of employee discrimination at the First Bahrain workplace

-Our updated HR policy Manual (Feb 2015) covers all employee rights, responsibilities and compensation. This manual has been compiled by a third party consultancy firm after numerous interviews with our employees. We will continue to improve our labour policies and update our manuals regularly to reflect any changes.

-Despite a difficult economic climate, First Bahrain has strived to remain a caring employer that supports the holistic development of our individuals and our team. Acutely aware of the regional context of soaring obesity and diabetes rates in the GCC, we encourage staff to leverage the health and fitness benefits offered by the company. We also encourage staff to pursue further learning and development paths and have sponsored staff MBAs and other skills and personal development courses in the past.

- In 2013 and 2015, we were delighted to able to reward our employees financially since the economic crisis.

-Our care for our people extends beyond our offices and encompasses all those working on First Bahrain projects and developments. First Bahrain prides itself on being an equal opportunity employer and this is reflected in the diversity of its operational team.

-Furthermore, we require our contractors to conduct weekly safety training sessions for construction workers. And we also evaluate prospective tenants at Majaal Warehouse facility to ensure there are no safety hazards.

-Although Majaal is located in a clean zone of the Bahrain Investment Wharf, we take additional measures to provide the optimal working environment for both workers and tenants. This includes installing dust controls on the warehouse unit roller shutters—eliminating 70% of dust, and extract fans to renew air quality and diffuse smoke.

- All employees and their sponsored family members are covered by private medical insurance

- All employees have life insurance

- All employees are entitled to receive annual health club membership allowance (80% of employees utilized the health allowance in 2014).

- We have assigned dedicated HR personnel who track labour health and safety and manage employee’s benefits and compensations.

- Zero incidences of occupational injuries or fatalities on site at Majaal

-First Bahrain has reduced its energy costs by constructing smart buildings that are-well insulated and ventilated through currents that are designed to cool without air-conditioning. These adaptation measures mean that the inside temperature of the Majaal warehouse (subsidiary of First Bahrain) units is 4-5 degrees centigrade cooler than the outside temperature—which can reach over 50 degrees centigrade during the hot summers.

-Double-glazed glass and skylights reduce both heat and energy costs by making use of natural lighting during the day.

-Although the Majaal Warehouse itself does not produce waste or use materials, First Bahrain encourages the Majaal tenants to re-use excess output materials as input materials. For example, a car upholstery shop uses another tenant’s cotton for polishing. Several tenants re-use a bakery’s pallets and unwanted boxes for packing.

While our office environmental footprint is minimal, all our employees are committed to cutting waste through recycling.

- Paper is re-used internally by printing on both sides or used as notepaper before being shredded and collected for recycling.

- Plastics and metals are recycled.

- Excess food is distributed

- Coffee grounds are used by employees for composting

-Yearly visit conducted by Electricity and water Authority, checking for leaks and ways to reduce electricity and water consumption.

- This organic exchange of input and output materials happens almost daily and re-usage of materials between tenants is currently estimated at approximately 10% which we will work to increase over the course of the next year

- Based on the periodic reports and recommendations by the Electricity and Water Authority Bahrain, we have been able to identify water leaks and cut down total water consumption by 22% over the last year.

First Bahrain has a strict anti-corruption and anti-bribery policy, reflected in the HR Updated Policies & policies procedures manual.

-Zero tolerance policy towards bribery and corruption as per the company policy (stated in the HR policy handbook)

-Evidence of bribery or kick back from vendors is considered a grave offense as per our policy and could result in employee termination.

-External financial audits are preformed every end of year (Q4) by third party auditors.

-Transparent annual reports are published and made public every year (available on website www.firstbahrain.com)

-Internal grievance mechanism is in place for First Bahrain employees for whistle-blowing and to report suspicious behaviour.

-Internal financial checks on all amounts to be paid to third parties. This includes signatures on all payments from the executive management level and if the amount is greater than a preset amount then approval is needed from the Chairman.

- Zero incidences of corruption at First Bahrain

- Zero incidences of bribery/ no reports on corruption from employees

- Financial reports cleared by external auditors for 2014