This is Union National Bank’s (UNB) 2011 sustainability report, the Bank’s first annual report that covers its integrated economic, social and environment performance and impact. The report highlights UNB’s strategic direction and approach to the implementation of sustainability management, the Bank’s 2009-2011 sustainability performance as well as commitment for moving towards consistently achieving award winning and long term performance.
This report has been developed using the Global
Reporting Initiative (GRI) G3 Guidelines, the most internationally recognized and used sustainability reporting framework. We declare this report to have achieved a GRI level A+ for transparency and disclosure; this has been checked by the GRI and confirmed (please see annex B for our GRI statement).
UNB is committed to producing an annual sustainability report to better engage and work with all stakeholders on key sustainability development topics. Therefore
UNB is interested in receiving stakeholders› feedback on this report and encourages them to send their notes and recommendations to the following email: sustainability@unb.ae.
This baseline report covers all UNB Group operations in the UAE which includes UNB, Injaz, Union Brokerage
Company(UBC) and Al Wifaq Finance Company. However, the financial figures reflect the entire UNB Group including the International subsidiaries & operations.
Chairman’s Message
CEO Message
About UNB
Why We Care About Sustainability
Our “We Care” Approach
Our Sustainability Framework
Our Sustainability Strategy
Our Perspective and Commitments
We Care About Our Customers
We Care About Our Employees
We Care About Our Society and Our Business Partners
We Care About Our Environment
We Care About Our Shareholders
Our Sustainability Key Performance Indicators - Summary
Annexes
Annex A – Who We Care About
Annex B - Report Parameters
Annex C - GRI Application Level Statement
Annex D - GRI Index
Annex E - Glossary
Annex F - Acronyms
8
16
18
4
6
18
20
21
22
48
56
64
30
42
71
72
68
70
77
78

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On behalf of the Board of Directors, it is a great pleasure to present to all our stakeholders UNB’s first sustainability report.
Considering the challenging market conditions that arose after the world’s recent financial turmoil, UNB has continued to deliver solid results by maintaining strong liquidity and proactively managing its asset quality. UNB is aware that the road ahead is paved with both risks and opportunities, and is taking the lead in responding to these issues by considering sustainability as a vital part of its business strategy. UNB’s sustainability activities are fully aligned with Abu Dhabi’s Economic Vision 2030 guidelines and priorities to support the Emirate’s socioeconomic progress. UNB’s vision, mission and strategy have been developed in consultation with all stakeholders, guaranteeing an aligned and clear road-map to achieve its long-term goals.
Since its inception, UNB has accomplished a lot in terms of delivering customer service excellence while promoting local development. UNB was among the first banks in the
UAE to offer full service centers catering to the needs of
Small and Medium Enterprises (SMEs), and the partnership with Khalifa Fund is helping UNB to broaden its outreach to support and encourage national entrepreneurs.
UNB is also proud to have an engaged and challenged workforce. UNB supports UAE’s Emiratization Policy, and has a division exclusively dedicated to achieve the set Emiratization objectives. To make sure the Bank is directly impacting Emiratization on a national level,
UNB’s hiring policy focuses on empowering fresh Emirati graduates through training and skills enhancement within the financial services sector. Furthermore, UNB’s procurement is local-focused and plays a key role in the local development by creating new jobs and opportunities.
UNB actively encourages its employees to participate in activities supporting the community and the environment.
All these advances underscore UNB’s commitment to continue investing on the sustainability agenda. We invite all our stakeholders to continue partnering with UNB, seeking innovative opportunities for collaboration and sustainable business growth. It is our duty to create value for our shareholders, our customers and our business partners.
We would also like to take this opportunity to thank all UNB employees for their continued support and engagement, without which our accomplishments would not have been possible.
Chairman

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It is my pleasure to introduce UNB’s first sustainability report, a key milestone in our long record in investing on sustainable management practices.
We believe that by launching this baseline sustainability report, we are responding to our stakeholders’ needs and expectations on higher levels of transparency and accountability, while committing publicly to a set of initiatives that will guide us towards achieving our mission to deliver superior customer service, grow market share and shareholder value and establish the Bank as the employer of choice in the UAE. Furthermore, this report also demonstrates our commitment and alignment to Abu
Dhabi’s overall sustainability agenda.
Sustainable Management represents a new landscape for conducting business more responsibly. Changes in consumer behavior and customer awareness are raising the flag for more transparency in the way companies are conducting their business and it is important that we, as a bank and a catalyst for development, understand the risks related to these changes and turn them into opportunities.
By accepting the challenges of embedding sustainability management in our organizational performance and culture as “The Bank That Cares”, we are aiming to position UNB as the best in class for the banking industry in the UAE.
In the past years, we have received several awards and accolades as an affirmation and testament to UNB’s quest for business excellence. We are the first commercial bank in the world to be certified by M/s Lloyd’s Register Quality
Assurance (LRQA) Ltd. to the Integrated Management
System (IMS) comprising three standards in Quality,
Environment and Health and Safety Management (ISO
9001, ISO 14001 and OHSAS 18001). UNB is one of the most stable banks in the UAE. This is reflected in its consistent ratings and robust performance throughout the years. Despite the global downturn UNB has achieved consistent revenues and sustained business growth while adhering to the highest quality standards for customer service and operations.
To continue being among the best performing banks, we have created a customer-focused and pro-community motto that is the true essence of the way we conduct our business: “The bank that cares”. We are a bank that cares about our customers, employees, society, environment and our shareholders.
We care about our customers by ensuring that our business operations are customer focused and equipped with a number of tailored products and services to meet client needs. In 2011, we were awarded the «Best Domestic Retail
Bank» award by the Banker Middle East Industry Awards. In addition, as part of our strategy of growth, we are expanding our operations to Kuwait, marking the third GCC country where the Bank will be present, besides Qatar. UNB is also present in China with a Representative Office in Shanghai and in Egypt through UNB-Egypt with a total of 28 branches across the country. When caring about our customers, we also care about our society and business partners by ensuring strategic and regular dialogues are conducted.
To be successful in business, we need ambassadors who promote our brand and help create a pillar for delivering the best customer service. We care about our employees, who are our ambassadors and endeavor to contribute to their personal well-being. Our employees benefit from a clear strategy based on performance, and our “open door” policy has created a working environment where everyone feels free to address their issues regardless of titles. In 2011, we received the “Dream Company to work for” award from the
Asian Leadership Awards, which not only recognizes our good practices but also publicly emphasizes our image as a Bank that is committed to empowering and developing its employees.
We also care about our environment and we are committed to enhancing environmental awareness amongst our employees and customers. The implementation of the
Integrated Management System (IMS) will help us manage our environmental performance, and some initiatives such as recycling waste and purchasing recycled paper are already raising awareness among employees on the importance of conserving the environment. Last but not least, we care about our shareholders through continually ensuring strong financial performance, good governance practices and high levels of transparency and accountability.
In 2012 we will be focused on further enhancing our responsibility towards the community, employees and the environment. This means that we will continue aiming for customer loyalty by strengthening and delivering superior customer service, listening to our customer’s expectations and directly catering to them. At the same time, for our staff we are looking at implementing new employee - focused programs which will help in motivating them and performing even better.
Furthermore to support our community we will explore more opportunities for community care programs that empower the
UAE youth and contribute to our nation’s overall workforce.
Moving forward, we will also strive to adopt innovative ideas that mitigate the environmental impact of our business operations while helping our stakeholders to reduce their own environmental impact, and meeting our responsibility to protect and develop the environment in which we operate.
To believe and commit to Sustainable Management is fundamental to ensure quality to you, our stakeholder, in all aspects of our business. We do not invest in sustainability for publicity, we do it for conviction.
This report materializes our commitment to continue partnering with our stakeholders by ensuring high levels of transparency and accountability. Your feedback is of utmost importance and we encourage you to join us in our sustainability journey.
Chief Executive Officer

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2010-2018: “To be the best in class for the banking industry in the UAE”
2010-2012: “To deliver superior customer service, grow market share and shareholder value, and establish the Bank as an employer of choice in the UAE”
Union National Bank (UNB) headquartered in Abu Dhabi is one of the leading domestic banks in the United Arab Emirates (UAE). UNB is unique within the UAE banking sector, with 60% of its shareholding held by the government of Abu Dhabi and Dubai and 40% held by public investors.
UNB delivers its services through a network of 80 branches and business offices across all seven
Emirates in UAE. UNB offers a variety of products and services, addressing needs ranging from basic requirements of individuals to the more complex requirements of corporate entities. UNB caters to the retail, corporate and high networth clients offering conventional and Sharia compliant products and services to meet a range of banking requirements from basic individual needs to complex commercial transactions. The bank also offers investments, brokerage and IPO related services.
Overview - Key Indicators 2011
Revenues (AED million)
Net Profit (AED million)
Total assets (AED million)
Number of branches/business offices
Number of employees
2,838
1,500
82,469
80
1,445
UNB has grown into a Group entity spread across geographical boundaries. Union Brokerage Company
(UBC), one of the leading and oldest brokerage firms in UAE, is a subsidiary of UNB and operates through a network of three branches across UAE. Al Wifaq Finance Company is another subsidiary offering Sharia›a compliant products and services and has 4 branches across the UAE.
A B O U T U N B
UNB acquired the erstwhile Alexandria Commercial and Maritime Bank in Egypt to set up operations as
UNB Egypt and has expanded its network to over 28 branches across the country. In addition, UNB is one of the first banks in the UAE to open a representative office at Shanghai in China. UNB also has a branch in Qatar at the Qatar Financial Center, Doha, and is all set to operationalise its branches in Kuwait.
UNB’s partners include over 250 correspondent banks in nearly 50 countries, marketing and advertising agencies, IT software and hardware companies communication infrastructure companies, core banking solution providers, training and accreditation/certification institutions, facility management establishments, as well as entities such as Visa International and MasterCard. Beside, UNB partners with several government departments and regulatory authorities for a smooth conduct of its business operations.
UNB is a member of the Emirates Banking Association and also contributes to the Emirates Institute for Banking and Financial Studies.

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A B O U T U N B

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A B O U T U N B
• Our net profit increased by 11.1% in 2011.
• UNB has been recognized in the World Finance 100 list for 2011.
• UNB recognized as a ‘Superbrand’ in 2011 and 2012.
• First commercial bank in the world to be certified by M/s Lloyd’s Register Quality
Assurance (LRQA) Ltd. to the Integrated Management System (IMS) comprising of three standards, ISO 9001, ISO 14001 and OHSAS 18001 for the entire bank and its operations including branches and alternate delivery channels throughout UAE.
• UNB has been consistently ranked in the Top 2 with regard to Customer Service, based on Customer Satisfaction Benchmarking surveys carried out by reputed external market research agencies. UNB’s Complaint Management system is certified to ISO 10002 Standards.
• UNB was ranked amongst the Top 50 Safest Banks in Emerging Markets in
2011 – Global Finance.
• 2011 Brand Leadership Award at the Global Awards for Brand Excellence.
• 2011 Stevie Distinguished Honoree - Executive of the Year Financial Services for
UNB CEO at the International Business Awards.
• 2011 Stevie Distinguished Honoree - Company of the Year Financial Services at the International Business Awards.
• 2011 People’s Choice Stevie Awards for Favorite Companies at the International
Business Awards.
• “Dream Company to work for” Award (2011) at the “Asian Leadership Awards”
• 2011 Golden Award for Quality from the Arab Administrative Development
Organization member of the Arab League and Tatweej Academy for Excellence and Quality.
• “CEO of the Year” at the CEO Middle East Award (2010).
• UNB won the Dubai Quality Award for the 2nd consecutive cycle (2009).
• UNB won the Sheikh Khalifa Excellence Award (SKEA) Gold category for the 2nd consecutive cycle (2009).

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For UNB, sustainability management can be seen as an evolution of our position as “The Bank That Cares”.
Based on the principle of creating value for all of our stakeholders the “We Care” approach is focused on the systematic understanding and addressing of the issues that our stakeholders care most about.
Following on from our approach, our sustainability framework has been built on the five stakeholder groups that we feel are most impacted by the bank, or have a major influence over the bank’s operations. These include our customers, employees, society and business partners, the environment and shareholders. We have determined what the top issues are for each stakeholder and tailored our strategy accordingly to address these issues.
Although often not seen as a stakeholder, we see the inclusion of the environment as an important strategic move given that environmental risks and opportunities continue to have a substantial impact on our economy, society and nation, and thus our business. For more information on the analysis of our stakeholders needs and our response, please see Annex A.
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Priority Sustainability Area Key Issues
• High-quality customer service and delivery
We Care About Our Customers • Innovative products and services
• Financial inclusion
We Care about Our Employees
• Diversity and Emiratization
• Employee engagement and satisfaction
• Employee training and development
• Employee well-being and benefits
• Strategic community investment
We Care About Our Society and
• Social inclusion and financial literacy
Our Business Partners
• Strategic business partners and strong relationships
We Care About
Our Environment
We Care About
Our Shareholders
• Efficient operations
• Protecting the environment through responsible banking
• Risk-registers in all locations
• Strong financial performance and shareholders return
• Strong governance practices – including risk management
and compliance
• Transparency and accountability

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We see the implementation of sustainability management and reporting as an opportunity to build a unique advantage in the marketplace. Our sustainability strategy is built on three key components, drawn from an analysis of our stakeholders and current context:
1. world leading management systems
UNB is the first commercial bank in the world to be certified to the Integrated Management System
(IMS) comprising of ISO 9001, ISO 14001 and OHSAS 18001 standards. Through sustainability we aim to leverage and broaden our management systems to generate greater levels of performance that outpaces the market, and satisfies the needs and expectations of stakeholders.
2. Award winning Leadership
Sustainability management, and especially public sustainability reporting will help us to further develop the measurement and transparency of the performance that has helped us to win numerous awards. This will allow our stakeholders to be the judges of our success, not just award panels.
3. Innovation
We shall actively seek to work together with all our stakeholders to demonstrate “Care” by developing products and services that provide financial benefits alongwith enhanced environmental and social benefits. In addition, we will foster sustainability in our value chain and workplace, encouraging everyone to innovate and propose more sustainable solutions to existing operations.
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Priority Sustainability Area UNB Perspective
We Care About
Our Customers
Our 2012 commitment
UNB strives to provide high-quality services and customer care to all its customers and potential customers. UNB aims to provide innovative and sustainability-oriented products and services while increasing its customer base in current segments as well as under-served segments
• Conduct an assessment of all retail products to identify opportunities for integrating sustainability principles
• Engage with two corporate customers on adopting sustainability management and reporting
We Care about Our
Employees
We Care About
Our Society and
Our Business Partners
We Care About
Our Environment
Human capital is core to UNB’s success. UNB spares no efforts in investing and developing its employees, and engaging them in achieving its targets while providing a healthy working environment and competitive remuneration packages and benefits.
• Conduct two sustainability training sessions for all employees
• Integrate sustainability into employees job description
• To increase annualized intake of new
UAE National recruits by 4% every year
As a community member, UNB takes responsibility for contributing to community development through responsible lending and strategic community investment that contributes to financial inclusion and enhances financial literacy. UNB aims to systematically engage with its business partners to achieve this through strategic partnerships.
• Enhance UNB community investment
• projects and their impact through the development of Community Investment strategy that incorporates UNB’s core competencies into its community investments
Develop UNB current procurement policy and guidelines to incorporate further sustainability criteria
UNB respects the environment and aims to achieving environment friendly operations through the adoption of energy efficient practices while minimizing materials consumption in all its operations. UNB also recognizes that financial institutions are strongly linked to other strategic sectors at the national level, and accordingly UNB works to mitigate its environmental impact in its investments and lending processes.
• Reduce UNB’s greenhouse gas emissions through reduced resource consumption arising from internal awareness and new technology adoption
We Care About
Our Shareholders
UNB realizes that adopting sustainability management provides wide range of opportunities of products and services innovation that could lead to increased business and revenue leading to improved shareholder value. UNB would support this approach by adopting best governance,
• Issue a GRI level A+ sustainability report
• Create a sustainability stakeholder council to inspire co-innovation and collaboration accountability and transparency practices.

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UNB Perspective Our 2012 commitments
UNB strives to provide high-quality services and customer care to all its customers and potential customers. UNB aims to provide innovative and sustainability-oriented products and services while increasing its customer base in current segments as well as under-served segments
• Conduct an assessment of all retail products to identify opportunities for integrating sustainability principles
• Engage with two corporate customers on adopting sustainability management and reporting
• Engage with corporate clients to determine their capabilities for IMS implementation and set a mechanism to incorporate the weightage of the same for credit evaluation in the future
Abu dhabi Economic Vision 2030 Objectives
1. Enlarge the enterprise base
2. Stimulate faster economic growth in the regions
UNB contribution
Participating in the Khalifa Fund – a program to support and develop small and medium enterprises (SMEs)
UNB provides Microfinance to SME non-banking customers in order to enhance their financial skills and provide them with the required banking services and finance that supports their growth and business elevation from one sector to another.
UNB launched the Medic Loan; The Best Innovative SME product in the Middle East as per “Banker Middle East 2011 Product Awards”.
UNB’s “Medic loan is an SME product that provides healthcare providers easy access to finance.
UNB also launched the innovative prepaid Hadiya Gift Card for the first time in the UAE.
In cooperation with the Abu Dhabi Cooperation UNB launched Extra credit card offering exclusive discounts for the Coop’s shoppers as well as cash back
Customers are the central component of our “We Care” approach, one of the main reasons for us winning “Best Domestic Retail Bank” award at the 2011 Banker Middle East Industry Awards. Customers are our most important stakeholders we strive to not only care for them by satisfying their banking needs, This is why we will continually aim to better engage customers in the development and implementation of new and innovative products and services that combine financial sense with enhanced environmental and social benefits.
UNB’s excellence in performance in terms of customer service and products and services innovation, highlighted in this section, was recognized and awarded in several areas:
• Superbrands Award for 2011 and 2012
• EveryDay Interest Savings Account wins Best Savings Account Award at the 2011 Banker Middle East Product Awards
• “Best Domestic Retail Bank» award at the 2011 Banker Middle East Industry Awards
• “Extra” credit card received Best Credit Card Award at the 2010 Banker Middle East Product Awards
UNB has around 200,000 retail customers who are served through an extensive network of branches and through a range of convenient and flexible delivery channels. More than 37% of UNB’s retail customers have a relationship with the Bank for longer than 5 years.
Our ‘consumer sector’ customers have been growing and represent 20% of our total loans and advances in 2011, followed by ‘real estate sector’ customers and ‘government sector’ customers which account for 16% and 14% of our loans and advances in 2011, respectively.

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Our Products and Services
UNB offers a variety of products and services, addressing needs ranging from the fundamental requirements of the individuals to the more specific requirements of corporate entities or investments. Our main business lines include retail banking, corporate banking, SME banking, real estate banking,
Islamic banking and private banking for high net-worth customers offering conventional and Sharia›a compliant products and services.
Our International and Investment Banking Division offers various services comprising of structured finance, treasury and investments, private banking and wealth management in addition to brokerage services through UNB›s subsidiary “Union Brokerage Company” (UBC). developing Innovative Products and Services
Creativity and innovation are integral to our product development methodology. Input is taken from both internal and external partners to design, develop and deliver competitive products and services that really do respond to what our customers expect from a bank that cares.
To ensure that our customer’s inputs and needs are captured and integrated into our products and services a variety of surveys are administrated by a dedicated Research and Business Development department that works in close coordination with the Product Development team.
Other innovative products and services:
• SMART Account: A Unique account that addresses the issue of involuntary job loss in the market place. Customer can choose an insurance benefit up to a maximum of AED 50,000 per month for a period up to 12 months. In addition, the customer is also eligible for a cover of AED 200,000 in case of death due to any reason.
• Every Day Savings Interets: An account that credits interest on a daily basis to the account. In order to encourage customers to save more, the product pays higher interest for higher amounts saved in the account
• SME Medic Loan: A unique product that is designed and targeted to SMEs involved in the medical sector such pharmacies, diagnostic centres, laboratories etc. The customer can receive a loan for business expansion, cash flow management etc.
• UNB Hadiya Pre-paid Gift Cards: UNB was the first Bank in the UAE to launch the concept of pre-paid Gift cards with Hadiya
• Extra Card: UNB partnered with Abu Dhabi
Co-operative Society to introduce an exclusive shopping card offering significant rewards and incentives to UNB Extra credit card holders at
ADCOOP outlets in terms of cashback as well as exclusive discounts on everyday shopping items as well as high end electronic items
As a bank that is committed to actively contributing to the Abu Dhabi
Economic Vision 2030, we see our commitment to sustainability and product and service innovation as an ongoing mission. We continue to work on developing innovative products and services that meet and align customers’ requirements to national, social, environmental and economic requirements and vision.
Supporting Micro enterprises and SMEs
UNB is one of the few banks in the UAE to offer dedicated service centers specifically catered to supporting micro-enterprises and
SMEs. In 2011, we partnered with Khalifa Fund 1 through providing various services to UAE national entrepreneurs to encourage them to become successful business owners and thus increase the number of projects and business enterprises created and managed by UAE nationals. In 2011, the total number of SMEs customers was around 5,000 accounting for a significant portfolio within the Retail Business.
1 UNB signed a Memorandum of Understanding (MOU) with Khalifa Fund. The Khalifa Fund supports the Small and Medium Enterprises (SMEs) sector and is committed to driving the adoption of an entrepreneurial culture among Emirati youth. The Fund supports successful businesses founded and nurtured by UAE nationals.
In a bid to further support the growth of the small business sector in the UAE, UNB introduced new and innovative financial solutions for SMEs among which was UNB’s “Medic loan”; The Best Innovative product in the Middle East as per “Banker Middle East 2012 Product Awards”. UNB’s “Medic loan” is an SME product that provides healthcare providers easy access to finance with simple documentation. The purpose of the loan facility could be for equipment purchase, expansion or cash flow requirements. customers can choose from a combination of loan or overdraft or both depending on their needs. UNB introduced this product as the Medical segment has largely been overlooked by financial institutions and financing options have either been structured on the basis of corporate customers or at very high rates. “Medic loan” addresses the funding needs of all private sector healthcare providers such as hospitals, medical centers, clinics, labs and pharmacies authorized by health authorities. The facility is offered to those who have service agreements with one or more insurance company against assignment of proceeds to UNB.
In addition to the “Medic loan” UNB offers a wide range of SME products including commercial loan, rental loan. UNB also provides finance to specialized business requirements such as buying equipments, importing goods, issuing letters of guarantee as well as its special UNB SME credit card.
UNB also provides Microfinance to SME non-banking customers in order to enhance their financial skills and provide them with the required banking services and finance that supports their growth and business elevation from one sector to another.
Through UNB›s variety of SME products UNB expands its financial facilities among diversified segments offering finance to various industries including education, health commercial and industry as all play a vital role in the UAE›s economic development.
We are committed to being the bank that cares. That is why our focus has always been on staying close to the customers, listening to them, engaging with them, meeting their requirements, exceeding their expectations and focusing on earning their trust and loyalty. UNB has a dedicated customer care unit as well as a Research and Business Development Division that conducts regular customer satisfaction surveys and monitors customers’ feedback through different tools such as mystery shopping surveys.
Our Network
UNB utilizes a variety of mediums in determining the customers’ day to day requirements including customer service officers, relationship managers and the customer call center, depending on the customer group.
In addition to our branches and ATMs, we have also worked hard to launch a variety of new more flexible and convenient technologies that allow our customers to conduct banking services anytime, anywhere. Our delivery channels include:
UNB Network
Branches/Business offices 80
ATMs 167

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• ATM Banking: Ensuring the customers’ reach and ease of banking, our
ATM network extends to 167 ATMs across the UAE. ATM banking offers a wide range of services with convenient locations within each emirate. In addition to traditional cash related services, our ATMs offer remittances, bills payments, and inquiries services.
• Internet Banking - Uninet: Uninet is the main electronic channel that offers the utmost services to our customers around the clock. Among the services offered are inquiry, remittances, cards services, donations, utilities payments, 3rd party payments, and account maintenance related services.
• Phone Banking – Unicall: Unicall is our phone banking channel offering a wide range of banking services to our customers on a 24/7 basis.
Services offered covers both enquiries and financial transaction services, including remittances, bills payments, cards services etc.
• call center: We have a dedicated team of customer service representatives who are available 24/7 to serve all customer needs. Our call center offers a range of services to customers in addition to catering to any enquiries or interest shown by non-customers. Our team of call center representatives are highly trained and monitored to ensure the highest level of quality, meeting international call center standards.
• Mobile Banking: Mobile banking is another electronic channel that is available to our customers. This channel offers Push Services that alerts the customers on all their banking transactions and account/ credit card related movements. Pull Service is another offering that allows customers to obtain financial information related to their accounts/ credit cards, in addition to transaction related services, such as cards activation.
customer care and Satisfaction
To build, maintain and enhance our relationship and knowledge of our customers, independent customer satisfaction surveys are conducted for each business group within UNB on a regular basis. The table across shows the frequency of customer satisfaction surveys per business group. In 2011,
UNB achieved a total customer satisfaction percentage of 87% among its retail customers and 82% customer satisfaction among its corporate banking customers.
We encourage our customers to provide their feedback, suggestions and complaints, so that we can continue to improve our processes, products and services.
Internet Banking
Number of customers (Index)
2009 2010 2011
N/A 100 145
Banking in Remote Areas
UNB has been consciously increasing its presence in the UAE through a wide network of branches offering more convenience to its customers.
Through its expansion strategy UNB has focussed on improving its presence and reach in remote areas, with around 29.1% of our retail branches in remote areas as of 2011. UNB is also one of the only Banks to offer financial services through its retail branch at Habshan, in the Western Region of Abu Dhabi.
Business Groups
Retail Banking
Corporate Banking
Commercial and SME banking
Real Estate
Al Wifaq Finance Company
Union Brokerage Company
Private Banking & Wealth
Management
Frequency of Survey
Annual
Annual
Annual
Annual
Annual
Annual
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Retail Banking customer satisfaction
Corporate banking customer satisfaction
2009 2010 2011
85% 88% 87%
81% 79% 82%
The UNB Customer Care Unit (CCU) provides a variety of channels for customers to express their views or submit queries through dedicated telephones and email address. We also encourage customers to voice their opinion through “Viewpoint” feedback forms which are available at all branches.
All complaints received are analyzed to identify root cause for corrective and preventive actions. Necessary reports are submitted periodically to the relevant managers and action plans are sought from them to address the areas for improvement in a time-bound manner. UNB’s complaint resolution process is unique as an independent validation is conducted for all resolved complaints. In case the client is not completely satisfied with the resolution, the case is re-opened for investigation. UNB’s Complaint Management system is certified to ISO 10002 standards.
We are proud that there have been no breaches of confidential customer data during the reporting period. We have also a fully equipped Business
Continuity Plan (BCP) and a Disaster Recovery site. BCP testing is being conducted annually from BCP site to ensure that identified critical activities can be carried out and customers can be served irrespective of any crisis or contingency from the alternative location even if the main server or the premises is not available.
Our Marketing and communication
We firmly believe and have inculcated the habit of fairness and transparency across the organization. It is the policy of the Bank to clearly outline to the customers the terms and conditions of each product and service including the fees and charges and all our communication channels consistently maintain the corporate ethic and help in strengthening the core position of UNB as a bank that cares. These charges are clearly displayed in the branches as well as on the banks web-site. In a recently launched product, the Bank has also introduced a 30 day free trial period whereby customers can avail the product and choose to opt out of the product, if so desired, without any charges. customer privacy breaches
2009 2010 2011
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UNB Perspective Our 2012 commitments
Human capital is core to UNB’s success.
UNB spares no efforts in investing and developing its employees, and engaging them in achieving its targets while providing a healthy working environment and competitive remuneration packages and benefits.
• Conduct two sustainability training sessions for all employees
• Integrate sustainability into employees job description
• To increase annualized intake of new UAE
National recruits by 4% every year
Abu dhabi Economic Vision 2030 Objectives UNB contribution
14% of our employees are Emiratis
1.
2.
3.
4.
5.
Increased participation of nationals in the workforce, especially in the private sector
Expanded skilled workforce and reduced dependence on unskilled Labor
Increased national workforce participation and employability
Working with the UAE Academy, Higher Colleges of Technology and UAE University to develop curricula that ensures employability upon completion, helping to improve the overall number of Emirati workforce. Union National
Bank signed an agreement with the Higher
Colleges of Technology (HCT) to establish the
‘Union National Bank Chair of Financial Services’.
Through the agreement, HCT has set up the
‘Union National Bank Chair of Financial Services’ fully sponsored by UNB. This reflects UNB’s commitment to harness local talent.
Optimized use of the workforce
Enhanced workforce productivity
Encouraging all staff to continue acquiring relevant higher professional qualifications (for example, Certified Islamic Banking Professional,
Chartered Financial Analyst, etc.) and support with fees reimbursement and learning resources.
Union National Bank implemented an In-House accreditation program for its Retail Banking staff. The accreditation process involved selfstudy, group study, training coupled with e-learning programs, followed by assessments to be completed by all the branch staff.
w E c A R E A B O U T O U R E M P L OY E E S
Over the past few years, the impact of the economic crisis has pushed many companies to reduce their hiring activities or even the number of people they employ. At UNB we have managed to continue increasing the number of employees year after year and maintain healthy hiring rates. We have also achieved consistent increases in our Emiratization rate and female employment year on year for the past three years.
Employment by level
Senior Management
Middle Management
Staff
Total
2009
51
308
995
1,354
2010
58
324
978
1,360
2011
57
334
995
1,386
We strive to attain a reasonable mix of cultures to make the bank reflect the demographic indicators of the region as closely as possible. This has been achieved through targeted selection and natural attrition. By the end of 2011, the number of UNB employees in the UAE was 1,445 – including subsidiaries – from 30 different nationalities, of which 14% were Emirati and 86% non-Emirati.
Employment by contract
Full-time employees
Part time employees
Total work force
Number of new joiners
2009
1,354
51
1,405
114
2010
1,360
77
1,437
235
2011
1,386
59
1,445
254
UNB’s Emiratization strategy focuses on recruiting and training fresh graduates offering them an opportunity to gain valuable banking experience, which helps them build successful careers in the financial industry. As a consequence, the Bank helps in increasing the calibre and quality of UAE nationals joining the work force in the financial sector as a whole. As a responsible corporate institution
UNB through its Emiratization strategy supports the development of the UAE community and invests in building careers of young Emiratis unlike other institutions that usually insist on recruiting employees with prior experience. UNB is also committed to developing their skills through on the job practical training, sponsorship programs, summer trainings and open employment days.
While increasing employment opportunities overall, we have continued to increase the percentage of UAE nationals demonstrating our commitment to supporting the hiring and training of the local population, in line with Abu Dhabi Vision 2030 which emphasises the support of the Emiratization initiative. This has been achieved by identifying and developing a pool of well educated and highly qualified nationals.

S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 3 6
Employment by Nationality
Percentage of Nationals
Percentage of Expatriates
Number of Nationalities employed
2009
10%
90%
33
2010
13%
87%
31
2011
14%
86%
30
Initiatives that support Emiratization include:
• Working with the UAE Academy, Higher Colleges of Technology and UAE University to develop curricula that ensure employability upon completion helping to improve the overall number of
Emirati workforce.
• Creating a dedicated post of Emiratization Manager and a dedicated Emiratization Department
• UNB is keen on recruiting fresh graduates into the workforce and is committed to attracting
UAE nationals and developing their skills through implementing special strategies which include practical training for UAE graduates as well as sponsorship programs and summer trainings.
workforce by Gender
Female
Male
Total
2009
391
1,014
1,405
2010
417
1,020
1,437
2011
430
1,015
1,445
We are dedicated to ensuring equal opportunities are provided for both male and female employees from all nationalities across all divisions and at all levels of our organization. This includes ensuring equality in compensation and benefits for all employees.
At end of 2011, 30% of our employees were female, an increase of 10% from the year 2009. Female participation in UNB’s workforce is not limited to one employment level but spans across all employment levels as demonstrated in the table below.
Female Participation in the workplace and Management (%)
% of Total Workforce - Female
% of General Staff- Female
% of Middle Management - Female
% of Senior Management - Female
2009 2010 2011
28%
37%
7%
2%
29%
40%
8%
3%
30%
40%
10%
4% w E c A R E A B O U T O U R E M P L OY E E S
As an organization that cares for its employees, we aim to create a dynamic environment that motivates and enthuses the team to participate in improvement activities. This is practically achieved through different engagement channels such as; the open door policy, meetings schedule, performance management process, explicit policies and procedures and recognition , employee suggestion schemes and reward programs and staff fraternization activities.
An Engaged Team
Our ‘open door policy’ practiced across the organization allows employees at all levels to communicate with any senior manager.
An important tool for employee engagement is the staff suggestion scheme titled “The Challenge”.
The scheme encourages employees to make suggestions for continual improvement at the bank, and has met with significant success by enhancing involvement of staff as the primary stakeholders of the bank. This scheme provides a systematic framework to the staff to suggest ideas for reducing cost and/ or improving quality, service or productivity. The ultimate goal is to encourage initiatives for bringing in a culture of continuous improvement through staff involvement. This scheme has been functional in the bank since Sept 2001 and has been continuously reviewed and refined for improvement.
The challenge Suggestion Scheme
Number of suggestions received
Number of suggestions approved/ implemented
2009
179
20
2010
256
35
2011
211
48
Fraternization programs to encourage bonding beyond the workplace such as children’s programs, bowling events and desert safaris are regularly conducted at various locations.

S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 3 8
300
270
240
210
180
150
120
30
0
90
60
Performance Management
The leaders of our organization provide support to staff to achieve their objectives and targets through continuous on-the-job guidance, performance development reviews, in addition to developing clear policies and procedures that delineate well defined roles, responsibilities and accountabilities. High quality and efficient performance are considered as the basis of reward and recognition, and hence the performance of all employees is reviewed regularly. Organizational leaders oversee the annual performance development reviews of staff. The Management ensures consistency and objectivity in the process and directly links the performance with the rewards.
Performance Review
Percentage of employees undergone performance review
2009
94%
2010
93%
2011
94%
Reward and Recognition
Based on the prevailing market practices, and in compliance with the UAE Labor law, UNB offers staff benefits such as low-interest loans, leave air passage and education subsidy. We also have free medical insurance for all the staff and their family members (100% premium subsidy for spouse and up to three children), savings scheme, and free credit cards.
The key differentiating factors that form the backbone of our reward policy include:
• Similar benefits across levels - loan entitlements are linked to the salary multiple and do not differentiate employees based on levels.
• Staff loans at less than the inter bank offer rate.
• We also bear the passports renewal costs for staff as well as their families
• Support staff members to obtain visit visas for their family members.
• We have a unique Voluntary Employee Savings Scheme (VESS), wherein the employee pays a percentage of his basic salary as savings into this scheme. On a reciprocal basis, the Bank also w E c A R E A B O U T O U R E M P L OY E E S makes a contribution to the scheme equal to the contribution made by the employee. The employee is entitled to get the full amount at the time of leaving the organisation.
We are aware of the need and positive impact of recognizing both team and individual efforts and this has been embedded as a shared core value. At a team level, since 2005 the “Best Service Branch
Award”, and since 2007 the “Best Corporate Service Division Award” have been awarded annually to recognize superior performance of the branches in the Retail Banking and Corporate Banking Divisions respectively. These awards are primarily based on customer service attributes tracked and monitored through mystery shopping surveys, service quality facilitation, customer satisfaction surveys etc.
Health and Safety
Demonstrating our dedication to employee wellbeing, our health and safety performance has been excellent having recorded zero injuries and lost days for the last five years. Certification to the Integrated
Management System, consisting of ISO 9001, ISO 14001 & OHSAS 18001 has earned UNB the distinction of becoming the first commercial bank in the world to be certified by LRQA on the three standards.
Occupational Health and Safety
Rate of Injury
Rate of Occupational Disease
Lost Days
Absenteeism
Number of Work-related fatalities
2009
0
0
2010
0
0
0 0 0
0 0 0
0 0 0
2011
0
0
UNB buildings are equipped with appropriate fire fighting equipments; Regular fire drills are conducted, and training provided to the select group of staff to assume the role of safety wardens. First aid boxes are available in each branch and each floor of the head office. Staff are also trained and briefed on fire fighting and other safety and security procedures on a periodic basis.
In 2011, we also conducted several health awareness sessions for our staff which focused on healthy living and the preventive measures to avoid serious diseases and critical illnesses including:
• Benefits of Quitting Smoking and How to Kick the Habit, 2011
• Free Spinal Health Evaluation Day, 2011
• Healthy Living - Heart Care, 2011
• Cervical Cancer Awareness
• Breast Cancer Awareness
• Sheikh Khalifa Medical Centre – Health Check-up Mar 2012

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Human Rights
UNB complies with national laws and regulations concerning human rights. We do not allow any form of forced labor and we do not hire any employee below the minimum legal age. Discriminatory practices are unacceptable and we are proud to have recorded zero cases of discrimination for the last three years.
We try to watch our human rights performance in all our supply chain and plan to embed human rights clauses into our contracts throughout our supply chain.
Regular training and development initiatives ensure that staff members have the requisite skills and capabilities to handle both the present and the future needs of the bank.
Think Bank
Think Bank, ‘Continuous Learning’ initiative was launched in February 2005 to promote organizational and individual learning. The objective is to promote a ‘learning culture’ by enthusing staff to:
1) Be aware of and appreciate good practices
2) Introspect on how these could be applied in thework situation
3) Implement progressive changes
Training is provided to the staff based on:
1) The identification of training needs as identified by the division / group head / bank.
2) The individual needs identified by staff through their individual development plans.
The Learning & Development function offers adequate facilities for learning and highly competent faculty. In addition the Learning Resource Centre has many books, magazines,
CDs and DVDs across a range of relevant subjects for all employees to explore and gain from.
The bank also offers e-learning as one of the most contemporary, convenient and effective ways of learning. Staff can enroll online and access a wide variety of courses based on their needs.
With the objective of developing people through work experience, on-the-job training is regularly provided to the staff. This has proved beneficial especially for the Emiratis recruits, many of whom join the bank without any prior banking experience. Specific emphasis is placed by UNB on training of
UAE nationals, who attend various programs to hone their competencies.
w E c A R E A B O U T O U R E M P L OY E E S
UNB Fellowship Program – Ms. Sabha Al Dhafri
In 2010, Ms. Sabha Al Dhafri, a UAE National Branch Manager, was selected for the prestigious
Hubert H Humphrey Fellowship Program after a rigorous selection process.
This initiative has been driven by UNB’s policy of developing UAE Nationals and providing them with opportunities to grow and develop.
Ms. Sabha was on the fellowship for 14 months. She had the distinction of being the only lady from UAE to have received the Fellowship. Sabha successfully completed the program and has rejoined UNB equipped with the leadership skills she learnt through her fellowship
Training company-wide
Total number of Training hours provided *
Average hours of training per year per employee
Cost of Annual Training (AED’000)
* Training hours have been estimated where actuals have not been computed
2009 2010 2011
34,421 40,449 39,396
24.58
3,195
28.89
3,083
28.14
2,651
We encourage all staff to continue acquiring relevant higher professional qualifications (for example, Certified Islamic Banking, Chartered Financial analyst, etc.) and will often support with fees reimbursement and learning resources by the bank. UNB invests around AED 1.3 million annually in the EIBFS training.
We have conducted annual staff satisfaction surveys regularly since 2000. The staff satisfaction survey generally measures 13 key dimensions that impact staff satisfaction and can be clustered into three main categories:
1) Job content and immediate superior,
2 Work environment within the group or division, and
3) Compensation package and related organizational issues.
Turnover
Total Turnover (%)
Total Turnover (%) excluding INJAZ
Senior Management
Middle Management
Staff
2009 2010 2011
11 % 14 % 18 %
11 %
0.4 %
2.1 %
8.5 %
13.5 %
0.4 %
2.3 %
11.3 %
15.5 %
0.5 %
2.4 %
14.1 %

S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 4 2
In 2011, we achieved 69% staff satisfaction in comparison to 70% in 2010, with an average response rate of 92% in 2011. This has been achieved by engaging with staff, communication of the results and by setting SMART action plans for improvements based on the findings.
Turnover by Gender
Turnover number of female employees
Turnover number of males employees
2009
48
2010
66
2011
81
116 137 165
The feedback arising from the staff satisfaction survey is continually used by the leadership to draw up and implement timely action plans to address any persisting or one off issues that arise from the results. This serves as another tool for the bank to remain closely connected, actively listening and responding to the voice of our staff.
Turnover by Age (number of employees)
18-30
31-40
41-50
51-60+
Total
2009 2010 2011
72 85 115
56 84 90
16 15 18
20 19 23
164 203 246
In addition to creating an engaging, motivating and friendly working environment, we measure our staff turnover and always strive to minimize it. Our high satisfaction rate was reflected on an employee turnover rate of 18% for UNB in 2011. This turnover includes employees for Injaz Sales &
Marketing, the Direct Sales & Marketing arm for UNB which typically has a higher rate of employee turnover. Further the turnover tends to be higher amongst the younger age category and within the junior level staff.
w E c A R E A B O U T O U R E M P L OY E E S
Employment by Region
Staff from Dubai
Staff from Abu Dhabi
Staff from Sharjah & Northern Emirates
Total workforce by Age
18–30
31–40
41–50
51–60+
Total
2009
245
986
2010
246
1,013
2011
264
996
174 178 185
1,405 1,437 1,445
2009 2010 2011
522 494 460
539 593 616
183 194 221
161 156 148
1,405 1,437 1,445

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S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 4 6
UNB Perspective Our 2012 commitments
As a community member UNB takes responsibility for contributing to community development through
• Enhance UNB community investment projects and their impact through the development of
Community Investment strategy that incorporates
UNB’s core competencies. responsible lending and strategic community investment that contributes to financial inclusion and reduces financial literacy. UNB aims to
• Develop UNB procurement policy and guidelines to incorporate further sustainability criteria systematically engage with its business partners to achieve this through strategic partnerships.
Abu dhabi Economic Vision 2030 Objectives
1.
Enhance competitiveness
UNB contribution
Regular dialogue with partners and suppliers to enhance service efficiency
2.
Environmental Sustainability
Strategic partnerships to improve performance and customer value
3.
Streamlined Government Processes
4.
Optimal Government Spending
Enhanced government operations that add customer value
Strategically planned community initiatives
UNB follows a policy of partnering with leading organizations in order to develop mutually beneficial relationships that bring value to the partner as well as the customer and all other key stakeholders.
Building Impactful Business Partnerships
Identification of partners is based on well-defined criteria including their quality of service, ability to provide solutions and financial strength.
We have a dedicated Vendor Management team in our IT department which ensures robust and effective partnering relationship with the vendors while ensuring continued, uninterrupted maintenance and enhancement support to the bank. UNB also has correspondent banking
UNB has won several accolades and recognition from its partners including:
• STP Excellence Award from Commerzbank in 2011.
• Deutsche bank USD STP Excellence award 2010.
• Excellent Quality in EUR Denominated
Payments from Commerzbank in 2007
• USD Straight Through Processing (STP)
Excellence Award from Deutsche Bank in 2006;
• Funds Transfer Award from the Bank of New
York in 2005; w E c A R E A B O U T O U R S O c I E T Y A N d O U R B U S I N E S S P A R T N E R S relationships with over 250 global banks to ensure efficient services to its customers worldwide. Our policy for selecting and managing partner relationships is clearly linked to our vision, mission, and strategic objectives, and thus serves as a framework to ensure that partnerships help deliver on our strategic goals.
The Financial Institutions & Structured Finance (FI&SF) Division develops and maintains all international correspondent-banking partnerships. This allows corporate and retail customers have access to the world through banks in more than 50 countries.
• Streaming utility bill payments - The tie up with Dubai e-government, Etisalat, Du, Abu
Dhabi Distribution Company (ADDC), Dubai Electricity and Water Authority (ADWEA), Sharjah
Electricity and Water Authority (SEWA) and Al Ain Utility through a direct link-up from the
Bank’s Online (Uninet) as well as the partner’s website for instant utility bill payments.
• UNB has also partnered with Gemalto International – the world leader in digital security for the introduction of advanced payment chip-based cards to all its card customers,
• Partnering with Visa for improved products and customer service - Visa International has consistently supported the Bank to launch various new products such as Hadiya Gift card, Cashback card and International Travel card, as well as improve efficiencies in various operational domains e.g. through benchmarking and improvement of authorization rates which has resulted in better customer service and usage of the cards.
• Innovating in Insurance - UNB’s partnership with Arab Orient Insurance resulted in providing travel insurance and credit shield insurance. UNB was amongst the first banks in the region to bundle a loss of employment offer with the standard personal accident insurance cover.
• UNB has also partnered with Oman Insurance Company in jointly developing the innovative
UNB Smart Account product.
We actively evaluate suppliers on a continuous basis to identify and leverage economics of scale by sourcing multi service and product suppliers from vendors. New initiatives, trends and methods to improve processes and operations and cost efficiency are discussed with the suppliers and actions are undertaken to facilitate better execution.

S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 4 8
Fostering Sustainability in our Supply chain
As part of our sustainability strategy and alignment to the Abu Dhabi Economic Vision 2030 to
‘Enhance Competitiveness’ and ‘Environmental Sustainability’, UNB is seeking to embed sustainability into partnerships and procurement practices. By engaging more with its partners and suppliers on the sustainability topics, we hope to embed principles of sustainable innovation into partnerships through collaboration and also ensure that social and environmental criteria are used in the selection and evaluation of key suppliers.
Our policy is to promote local suppliers as part of our socio-economic responsibility to the nation as well as local communities, while ensuring that these local suppliers meet the highest possible international standards. For the past three years, we have ensured that 100% of our procurement budget was spent on local suppliers.
2009 2010 2011 Spending on locally-based suppliers
Total amount spent on procurement
(contractors & suppliers) (AED)
Amount spent on local suppliers (AED)
% of total procurement spending gone to local suppliers
Number of local and foreign suppliers
154,465,012
154,100,812
100%
814
171,158,080
171,152,379
100%
814
170,865,999
170,569,899
100%
814
community Investment
Total community investment (AED ‘000)
2009
927.5
2010
1,089.5
2011
1,500.8
We are committed to taking a leading role in supporting local communities by actively contributing to their needs and priorities in areas such as education, the environment, health, special needs, cultural development, Emiratization and philanthropic activities. UNB has a dedicated budget allocated for community investment and development each year, which was AED1.5 Million in 2011, representing
0.1% of pre-tax profits.
MoU with Ministry of Environment and water
UNB was the first organization in the UAE to sign a Memorandum of Understanding (MOU) with the Ministry of
Environment & Water (MOEW) as a Strategic Partner during 2010. As per the MOU, all key initiatives undertaken by the Ministry are reviewed and approved by UNB representatives who evaluate the same and based on the approvals the initiatives are confirmed and implemented. The initiatives that were undertaken included the UAE
Free of Plastic campaign, “My Environment My Responsibility” Video, as well as educational sessions at schools and stands at Malls where MOEW created awareness in the public and distributed recycled jute bags sponsored by UNB. Jute bags were also distributed by UNB to all its employees to encourage them to avoid using Plastic bags. The MOU with the Ministry was renewed during 2011-12 to continue the Strategic Partnership w E c A R E A B O U T O U R S O c I E T Y A N d O U R B U S I N E S S P A R T N E R S
CSR is a key area of focus for the Bank and is intrinsically embedded in the Bank’s Vision, Mission and strategies. CSR objectives form an integral part of the UNB senior management ‘Management By
Objectives’ (MBOs) and this is diligently tracked on a periodical basis to ensure that the CSR strategy and initiatives are on track.
All CSR initiatives are evaluated on the basis of stringent criteria and submitted to Senior
Management for approvals. The Bank has over the years consistently supported community initiatives and ensures that it plays an important and active role as a responsible corporate citizen.
• Al Noor Fun Fair participation
• Future Centre sponsorship
• Khorfakkan Club for Handicapped -
Braille Quran
• Earth Hour initiative participation
• Small World Charity sponsorship -
Silver sponsor
• Platinum sponsor -
Education without Borders
• SME Evolution Program -
Platinum sponsor
• Abu Dhabi Industry Awards 2011 -
Support sponsor
• World Environment Day participation
We continue to develop programs and community investment and development initiatives that are more aligned strategically with our vision, mission and core business practices. This includes supporting community members’ to learn more about finance and banking and increase their financial literacy allowing them to use our banking services to enhance their economic situations.
In 2011, we conducted a number of workshops and participated in a range of exhibitions that promoted
SME development as well as other banking specific sponsorships. The courses ranged from best practices for improving business efficiency, to expanding businesses and competing internationally and were conducted both as webinars as well as in person. UNB conducted one such exclusive session for more than 40 of its SME customers at the UNB Head Office premises recently. In addition, UNB sponsored the SME exhibition which was organized to meet the needs of SME customers from a Retail and Government perspective and was a sponsor of the UAE Internal Audit Association as well as the
Indian Chartered Accountants Association.
UNB was the Platinum sponsor of the SME Evolution Program organised by M/s Potential an SME Consultant.
The SME Evolution program aims to reach thousands of SMEs by providing valuable free online interactive training sessions, online content and live workshops. The best businesses that go through the program were selected for a more advanced phase of development.

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S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 5 2
UNB Perspective Our 2012 commitments
UNB respects the environment and aims to achieving environment friendly operations through the adoption of energy efficient practices while minimizing materials
• Reduce UNB’s greenhouse gas emissions through reduced resource consumption arising from internal awareness and new technology adoption consumption in all its operations. UNB also recognizes financial institutions are strongly linked to other strategic sectors at the national level, and accordingly we work to mitigate our environmental impact in our investments and lending processes.
1.
Abu dhabi Economic Vision 2030 Pillars
Environmental Sustainability
UNB contribution
Our organizational Environmental Management
System – as part of our Integrated Management
System – achieved ISO 14001 certification.
In the last three years since 2009, UNB sent an estimated of 78.6 tons of paper waste for recycling.
UNB has begun purchasing sustainable paper that is manufactured from 100% recycled materials since 2010. 56% of our paper consumption in
2011 was from this recycled paper w E c A R E A B O U T O U R E N V I R O N M E N T
The United Arab Emirates has one of the highest per capita energy consumption in the world, and is amongst the top 20 most water scarce countries according to ‘water stress index 2011’.
Given these important facts and other key environmental trends and impacts such as climate change, we recognize that we have a responsibility to care for our environment, and also see an opportunity to tackle these issues through innovative products and services and stakeholder collaboration.
Across the bank we are currently identifying areas for rapid environmental gains that would not only help us fulfill our responsibility to the environment, but also reduce costs and increase efficiency. Our organizational environmental management system – as part of our Integrated Management System
– achieved ISO 14001 certification during 2011. Through this system, we aim to better measure and manage our use of precious resources and minimize waste.
We are also committed to caring for the environment together with our customers. For this reason we are also implementing initiatives that will help us to achieve higher level of efficiency in our operations, while offering customers more sustainable and paper free channels to conduct their banking. On the corporate banking side we are also exploring opportunities for investing in more socio-environmental projects, working together with clients to implement sustainability, while also adopting more responsible lending practices to reducing the environmental impact in projects that we lend to.
Materials Management
In 2011, we achieved a 2% reduction in printer toner cartridges consumption as a result of automating a range of processes and changing the default settings for the printers and the copying machines to double side printing at our head office and all branches, as well as reducing the font size used.
Materials used by weight or volume
Paper consumption (Kg)
Paper Consumption (Kg/ full-time employee)
2009
133,862
98.9
% of recycled paper purchased
Printer Toner cartridges (Kg)
Plastic water bottles (Kg)
Plastic bank cards (Kg)
N/A
4,226
Savings achieved from material reductions (AED)
The environmental numbers in this table include UNB operations
454
2010
137,241
100.9
40%
4,366
New indicator
436
New indicator
2011
139,600
100.7
56%
4,281
590

S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 5 4
We realize that paper is the most consumed material in our day to day operations; therefore, we work hard to reduce our paper consumption through different measures. By the end of 2011, 56% of our total paper purchased was from recycled paper, a 40% increase compared to 2010. However, our total paper consumption increased by 1.7%. We are committed to expand our process automation to include more processes in a wider range of our network to achieve better results in our paper consumption in 2012.
We continue to work to measure the monetary savings as a result of these reductions and the amount of plastic water bottles we consume.
Energy Management
In 2011 we consumed 85,719.8 Gigajoules (GJ) of energy from our operations representing a 12.5% increase on 2010. This increase was primarily due to the increase in branches and office locations over the past two years.
Energy consumption
Electricity (kWh)*
Vehicle Fuel, gasoline (liters)
Vehicle Fuel, diesel (liters)
Electricity (GJ)
Vehicle Fuel (GJ)
Total (GJ)
Energy consumption (GJ) per full time employee
Revenues generated (AED) per GJ of energy consumed
2009
52,124
0
72,037.4
1721.2
73,758.6
54.5
2010
20,010,376 20,668,758 23,161,532
53,936
1,097
74,407.5
1821.0
76,228.5
56.1
2011
70,591
200
83,381.5
2338.3
85,719.8
61.8
28,718.9 33,515.4 33,105.6
* Electricity consumption numbers in this table does not include office locations where no electricity is charged, such offices has a very low electricity consumption as they comprise few desks within a big space. However, the electricity consumption numbers reflect 80 office locations in 2011, 84 office locations in 2010 and 77 office locations in 2009.
** The environmental numbers in this table include UNB operations
To help reduce our electricity consumption we have installed timers which automatically switch off lights on all non critical floors, while manual switching off is done within critical floors by in house technicians. We also now monitor all offices on a daily basis to ensure that personal computers and office equipment are switched off after operating hours.
In the efforts towards optimizing transportation usage, UNB’s fleet of 21 vehicles is maintained at authorized service centers leading to better quality of service through specialized and expert technicians. Scheduling of the Bank’s vehicles is done on the basis of online requests. The car pool is w E c A R E A B O U T O U R E N V I R O N M E N T managed by a dedicated transport manager and assisted by transport officer and trained drivers. All
UNB cars run on special green unleaded petrol.
In 2011, our direct and indirect energy consumption resulted in the emitting of 17,832 tons of
Greenhouse Gases (GHG), which represents a 12.2% increase on 2010. Demonstrating our commitment to the environment we aim to reduce GHG emissions in 2012 by increasing internal efficiency and the installation of new technologies.
• Support Desk calls related to core system performance problems reduced by approximately 85%
• End Of Day processing timings for systems reduced by approximately 50%
• Backup timing for systems reduced by approximately 70%
• Overall reduction in data centre space requirements
• Reduce power consumption through consolidation of 25 servers into 3 Superdomes
Greenhouse Gas emissions (tons)
Electricity consumption, GHG
Vehicle Fuel, GHG
Air transport – Business trips, GHG
2009
15,222
126
38.9
2010
15,723
133
39.9
Total GHG Emission 15,387 15,896
The environmental numbers in this table include all UNB operations in the UAE
2011
17,619
172
40.7
17,832 water Management
With the increased number of branches and office locations over the past two years, our water consumption was 215,037,000 liters at the end of 2011. This is considered as the baseline year for water consumption because water consumption for the previous years could not be calculated due to the lack of reliable data records from the relevant authorities.
water consumption
Water consumption (liter)
Water consumption liter) per full time employee
2009
N/A
N/A
2010
N/A
N/A
Revenues generated per liter of water consumed (AED) N/A N/A
The environmental numbers in this table include all UNB operations in the UAE
2011
215,037,000
158,816
9.9

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Reducing and Recycling waste
At present we have a clearly defined system and process for the handling and recycling of paper waste.
We aim to put similar systems in place for the appropriate disposal or recycling of other types of waste over time.
In 2011, UNB sent an estimated 33.8 tons of paper waste for recycling. Green bins for paper recycling are available at every branch and on each floor at head office while recycling instructions have been communicated to staff.
For IT waste, obsolete office hardware is collected and stored centrally at warehouses in Abu Dhabi and Sharjah. PC hard drives are formatted or destroyed as per IT Information Security Policy and
Standards (IISPS). waste 2009 2010
Total paper waste Weight (Kg) 19,700 25,100
The environmental numbers in this table include UNB operations in the UAE
2011
33,800 w E c A R E A B O U T O U R E N V I R O N M E N T
We believe that the biggest reductions in environmental impact can only be realized by working collaboratively with our stakeholders; therefore, we strive to increase their understanding of the challenges and the opportunities behind key environmental issues.
With our customers and also staff we have worked hard to highlight key environmental concerns, including global warming, Ozone layer depletion and encouraged all staff and customers to adopt the three Rs – Reduce, Reuse and Recycle in a bid to encourage the conservation of environmental resources and reduce waste.
We actively support the ‘Earth Hour’ project that encourages households and business to turn off their non-essential lights and electrical appliances for one hour every year to raise awareness on climate change. All staff are actively encouraged to take part in this initiative while at work and at home. In addition UNB staff also took part in various clean up initiatives. UNB was also keen on increasing staff environmental awareness through highlighting significant environment related dates on the calendar and creating different activities in the occasion for example on the environment day UNB conducted an internal environment quiz and recognized the winners. UNB also distributed free light efficient bulbs to familiarize the staff with environmental friendly tools.
We have also supported Dubai’s Government e-payment initiative which has helped our customers and us to reduce paper consumption.

S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 5 8

S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 6 0
UNB Perspective Our 2012 commitments
UNB realizes that adopting sustainability management provides wide range of opportunities of products and services innovation that could lead to increased business and revenue leading to improved shareholder value. UNB would support this approach by adopting best governance, accountability and transparency practices.
• Issue a level A+ sustainability report
• Create a sustainability stakeholder council to inspire co-innovation and collaboration
Abu dhabi Economic Vision 2030 Pillars UNB contribution
1.
Increased Financing of Economic
Sectors and Projects
2.
Enhanced Financial Markets Performance
Strong financial performance
Strong governance practices
IMS ISO 9001, ISO 14001, OHSAS 18001
Risk management
Annual and sustainability reporting
Our robust financial performance has been achieved through a prudent governance structure and management systems that focus on performance while showing high level of accountability and transparency. This robust performance has also reflected how we care for our shareholders and has been recognized on several occasions with success stories and awards we have received.
We also trust that focusing on our sustainability performance would accelerate our leadership position with enhanced performance results while enhancing innovation and collaboration on sustainability aspects together with our stakeholders.
w E c A R E A B O U T O U R S H A R E H O L d E R S direct Economic Value Generated and distribute (AEd ‘000) 2009
Direct economic value generated
Revenues
2010 2011
2,118,268 2,554,826 2,837,805
Economic value distributed
Operating Costs
Employee Wages and Benefits
Payments to providers of capital 1
Gross taxes
Community investment: Voluntary contributions and investment of funds in the broader community (includes donations)
Depletion, Depreciation & Amortization
Net Profit
464,718
413,745
247,500
23,571
927.5
58,670
1,157,564
687,951
439,442
120,000
7,439
1,089.5
69,948
1,350,046
784,077
470,564
346,875
15,108
1,500.8
67,691
1,500,365
1 Cash dividend and interest on Tier 1 capital notes paid during the year
* financial data includes all UNB Group operations including the international operations
Over the last five straight years the Bank’s net profit has been consistently over AED 1 Billion, a clear record of sustainable value creation working in a highly competitive environment, UAE market which has a total of 52 local and foreign banks including 8 Islamic banks.
In 2011, our revenues increased by 11.1% to AED 2.8 Billion, with net profit increasing by 11.1% to
AED 1.5 Billion.
Cost to income ratio is an important measure of our operational efficiency. We continue to judiciously invest in infrastructure and our team so as to maintain our competitive edge and successfully improve efficiency and innovation in services.
2009 cost to income ratio
2010
30.6% 28.0%
2011
25.7%
UNB fully complies with the guidelines of UAE Central Bank, Abu Dhabi Securities Exchange, Dubai
Financial Market as well as Securities and Commodities Authority. UNB financial results are published every quarter in the press and submitted to financial markets. The consolidated financial statement of
UNB is prepared in accordance with UAECB guidelines and International Financial Reporting Standards
(IFRS), and external audited by a third party auditing company.

S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 6 2
Our strong financial performance has resulted in consistent dividends for our shareholders.
The proposed cash dividend is 15% for the year ended December 2011. We also achieved
Percentage of non-performing loans
2009
1.5%
2010
4.3%
2011
3.7%
12.3% decrease in the amount of non-performing loans to AED 2,186.7 Million in 2011, compared to
AED 2,492.4 Million in 2010.
Board of directors
UNB is overseen by a Board of Directors (BoD) which is responsible towards regulatory authorities, shareholders as well as other stakeholders. The BoD consists of eight members – all are male and Emiratis.
H.H. Sheikh Nahayan Mabarak Al Nahayan
(Chairman)
H.E. Mohamed Ahmed
Al Bowardi
H.E. Ahmed Saeed Al Badi Mr. Rashid Darwish Al Ketbi Mr. Khalifa Sultan Al Suwaidi
Mr. Yousef Abdulaziz
Al Harmoudi
H.E. Mattar Mohammed
Al Tayer
H.E Abdulwahid Al Fahim w E c A R E A B O U T O U R S H A R E H O L d E R S
50% of BoD members are independent. An Independent Director at UNB is classified as per the
Securities and Commodities Authority (SCA) Regulation and UAE Corporate Governance guidelines: a member who neither himself/herself, his/her spouse nor first-degree relative is a member of the executive management of a Company during the last two years or has a relationship that creates financial deals with a company, parent company, sister company or allied company during the last two years if the total amount of these transactions exceeds 5% of the paid up capital of the company, an amount of five million AED or an equivalent amount in a foreign currency, whichever is less.
Independent board directors
% of independent board directors
Total number of board members
Number of Emirati board members
Number of Female board members
2009
62.50%
8
8
0
2010
62.50%
8
8
0
2011
50%
8
8
0
The Board usually meets during every quarter to review the quarterly financial statements and more frequently if required. In 2011, the Board met for four times. The BoD forms two committees; the Audit
Committee and the Remedial Asset Committee, for exercising overall control oversight and problem loan recovery strategy with details delineated in their respective charters.
The Board members are selected based on qualifications and criteria set out in the corporate standards manual through the shareholders in the Annual General Meeting.
BoD communicates with shareholders through Annual General Body Meeting and through direct queries with the Bank Investor relations section at Capital Market Services Department.
Conflict of interest at the Board level is avoided through explicit procedures of disclosure and through documented governance standards and code of ethics.
The Board members performance evaluation process and procedures are detailed in the Bank›s
Corporate Standards Manual.
The Board members are compensated for their performance in compliance with provisions delineated in the Articles of Association. The Board members remuneration is approved by the shareholders in the
Annual General Meeting.

S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 6 4
Integrated Management System (IMS) ISO 9001, ISO 14001, OHSAS 18001
UNB is the first commercial bank in the world to be certified by M/s Lloyd’s Register Quality Assurance
(LRQA) Ltd. to the Integrated Management System (IMS) comprising of three standards, ISO 9001,
ISO 14001 and OHSAS 18001 for the entire bank and its operations including branches. Through this integrated management system we are able to manage our products and services including customer satisfaction and feedback, as well as improving our processes internally and externally.
We also assess the environmental impact of our activities as part of risk analysis prior to the development of any control measures to bring down the residual risks to acceptable levels.
Besides, environment conservation measures are disseminated through group-wide IMS objectives and plans.
Also through the IMS, we have identified our health and safety hazards and their consequences as well as controls; we have also identified emergencies and mock drills to ensure awareness and preparedness to mitigate health and safety risks across all locations through group-wide objectives and plans.
Risk Management and compliance
To ensure loyalty and trust in our banking capabilities we take a comprehensive and detailed approach to the identification and management of risks. We are fully compliant with the UAE Central Bank timeframe for Basel II implementation in the UAE and also follow the clear guidelines for compliance, credit operational and market risks. UNB has been strictly complying with regulatory guidelines of
UAE Central Bank and other external regulators on anti money laundering in its true spirit and has implemented appropriate internal control framework to combat crime.
Risk management and core governance processes are reviewed and implemented by top management with the guidance of Corporate Standards Manual which has been approved by the Board of Directors.
The Bank has adopted the Committee of Sponsoring Organizations (COSO) enterprise wide risk management model.
In addition to external audit reviews, the bank has a dedicated Internal Audit Division, which conducts regular audits. The process used is currently being benchmarked against the Global Auditing
Information Network (GAIN) study for internal auditing and is within the standards and ethics set by the Institute of Internal Auditors (IIA). The heads of Risk Management Division and Audit Division have direct reporting lines to the CEO and are involved in strategic decision making management committees as observers.
All the new joiners are imparted with orientation training that includes anti money laundering awareness module as its core elements. The Bank has imparted training on anti money laundering and compliance through internal and external programs to identified employees. 65% of UNB staff have been trained on polices and procedures pertaining to anti money laundering and compliance that contains fraud control and code of ethics as part of the course contents. The Bank undertakes training w E c A R E A B O U T O U R S H A R E H O L d E R S need analysis of all the staff and ensures that all identified employees undergo anti money laundering related refresher training programs at least once a year.
As crime and corruption breed money laundering activities, awareness is created amongst all employees about the importance of submitting suspicious transaction reports.
We have also analyzed all divisions of the bank for the risks related to corruption and our anticorruption policies have been embedded in the procedures and controls as a part of audit assessment.
Every Division /Group head also to confirm this annually as part of statutory audit process. In October
2011, we have also formed a Fraud Scenario Assessment Core Team to assess the potential fraud scenarios across the bank and to establish relevant controls to mitigate the risk. UNB has never been fined for any incompliance or illegal actions in the past.
The bank has received consistently strong ratings by reputed international credit rating agencies such as Capital Intelligence, Fitch and Moody’s Investor Service Ratings.
2009 2010 2011
% of employees trained on UNB’s anti-corruption policies and procedures. 24 38 65
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is a voluntary private-sector organization, established in the United States

S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 6 6

S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 6 8
Key Sustainability Performance Measures Priority
Sustainability Area
We Care About
Our Customers
We Care about
Our Employees
We Care About
Our Society and
Our Business
Partners
We Care About
Our Environment
2009 2010 2011
Retail customer satisfaction (%)
Corporate banking customer satisfaction (%)
*Total number of SMEs customers (INDEX)
Value of SMEs financing (AED Million)
Number of sustainability oriented services launched
*Internet Banking – Number of customers (INDEX)
Number of customer privacy breaches
Number of branches and business offices
Number of Retail branches
Number of Retail branches in remote areas
Number of ATMs (onsite + offsite)
Number of ATMs in remote areas
Total number of employees
Number of new joiners
Employees turnover (%)
Emiratization (%)
Female employees in the workforce (%)
Employees satisfaction (%)
**Average training hours per employee
Number of lost time injuries
Community investment as percentage of pre-tax profit
Number of people benefiting from financial literacy programs
***Local procurement (%)
****Total electricity consumption (kWh)
Vehicle Fuel consumption, gasoline (L)
Vehicle Fuel consumption, diesel (L)
****Water consumption (liter)
Greenhouse Gas emissions (tons)
Paper consumption(tons)
% of recycled paper purchased
Total waste paper collected for recycling (tons)
Waste recycled (%)
85%
81%
100
526
N/A
0
77
56
17
165
30
1,405
114
11%
10%
28%
72%
24.58
0
0.08%
140
88%
79%
108
722
New indicator
100
0
1,437
235
14%
13%
29%
70%
28.89
0
84
59
17
158
27
0.08%
175
87%
82%
119
916
1,445
254
18%
14%
30%
69%
28.14
0
145
0
80
55
16
167
30
0.1%
194
100% 100% 100%
20,010,376 20,668,758 23,161,532
52,124
0
53,936
1,097
70,591
200
N/A
15,393.7
133.9
N/A
19.7
N/A 215,037,000
15,901.6
137.2
40%
25.1
New indicator
17,832
139.6
56%
33.8
O U R S U S T A I N A B I L I T Y K E Y P E R F O R M A N c E I N d I c A T O R S
Priority
Sustainability Area
We Care About
Our Shareholders
Key Sustainability Performance Measures
Revenues (AED ‘000)
Net profit (AED ‘000)
Payments to providers of capital (AED›000)
Operating costs (AED›000)
Percentage of non-performing loans
Percentage of independent directors
GRI level of the sustainability report
2009
2,118,268
1,157,564
247,500
464,718
1.5%
62.5%
New indicator
2010
2,554,826
1,350,046
120,000
687,951
4.3%
62.5%
2011
2,837,805
1,500,365
346,875
784,077
3.7%
50%
A+
*The base line year has been indexed at 100 due to confidentiality reasons and the following years reflect a growth over the baseline year ** Training hours have been estimated where actuals have not been computed *** International companies with local offices have been considered as local suppliers **** Water consumption details have been estimated based on average consumption over 2007/08/09 for Head Office due to lack of reliable data from relevant authorities . Electricity consumption has also been estimated where records have not been available or not reliable . This baseline report covers all UNB Group operations in the UAE which includes UNB, Injaz, Union Brokerage Company(UBC) and Al Wifaq Finance Company.
However, the financial data is for the entire UNB Group including the International subsidiaries & operations

S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 7 0
STAKEHOLdER
Our Customers
Our Employees
Our Community
Our Business Partners
STAKEHOLdER NEEdS
• Innovative products and services
• Alternative and flexible banking channels
• High quality and personal service
• Facilitated access to project, corporate and individual loans
• Challenging and engaging
•
• work
• Attractive financial packages and benefits
Good, and safe working conditions
Learning and Development
• Open communication channels
METHOd OF ENGAGEMENT
• Customer satisfaction surveys and research
• Mystery Shopper visits
• Expanding network of branches and ATMs
• 24x7 Call centre, website, emails, fax and in-person at the branch.
• UNB management and customers meetings
• ‘Open Door Policy’ and regular engagement
• Performance Development
Reviews
• Staff satisfaction survey regularly since 2000
• The CHALLENGE staff suggestion scheme program
• Quarterly newsletter -
Communiqué
• Think-bank
•
•
•
•
Transparency and accountability
Strengthened and open dialogue
Job Creation
Local economic development
• Volunteering activities
• Sponsorships
• Emiratization
• Easy access to branches and ATMs
• Long-term relationship
• Accountability and integrity in dealings
• Participation in career fairs and events
• Partnership with Khalifa
Fund, Abu Dhabi Chamber of Commerce, Dubai
Chamber of Commerce to support SMEs.
• Partnership with UAE academy, Higher Colleges of Technology and UAE university to develop young
Emirati workforce
• Reports and website
• Strong relationships and communication
• Equality in applying to tenders
• On-time payments
HOw wE cARE
• Excellent customer care
• Customer feedback and satisfaction survey reports are used for strategic and business level planning
• Regular UNB management and customers meetings
• Mystery shopper visits
• Shariah compliant products and services
• Performance-based promotion and recognition
• 400 e-learning courses are offered to all staff
• Learning Resource Center
• Internal and external training programs
• Excellent benefits to employees and their families
• Enhancement of the loans eligibility
• 100% of total procurement spending going to local suppliers
• 254 new joiners in 2011
• Volunteering activities
• Distinct Emiratization
Division
• Procurement is localfocused
• Certain number of vendors with more than 10 years of association with UNB
• Engagement on sustainability
A N N E x U R E
STAKEHOLdER
Our Environment
Our Shareholders
STAKEHOLdER NEEdS
• Resources management
• Waste management
• GHG emissions reduction
• Integrity and Transparency
• Contribution to national priorities and plans
• Compliance to Policies and Standards
• Achieving sustainable profits
• Protecting the corporate reputation
• Maintaining efficient operations and cost reduction
METHOd OF ENGAGEMENT
• Environmental management system
• Partnerships with Ministry of Environment and Water
• Participate in environment related events
• Ongoing partnerships with
Environment Agency of Abu
Dhabi, WWF
•
•
•
•
•
Regular meetings with UAE
Central Bank
Regular Board Meetings
Annual report
Quarterly statements of accounts
Strong relationship with
ADX , Emirates Securities and Commodities Authority and other regulatory bodies
HOw wE cARE
• Implement several environmental initiatives to reduce resources consumption
• Reduction of paper consumption
• Purchase environment friendly materials
• Switch to 100% recycled paper across all UNB operations in the UAE
• Waste collection and processing
• New Vision, Mission and Strategy finalized in consultation with all stakeholders
• Supporting UAE’s
Emiratization Policy
• Fully complies with guidelines of main regulators
• Financing government infrastructure projects
• Awards and recognitions

S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 7 2
Profile: This is UNB’s first sustainability report (baseline report) that covers its sustainability performance (economic, social and environmental), for the year 2011 providing comparable data for 2010 and 2009 were available. UNB is committed to sustainability reporting on a annual basis.
Scope and boundary of the report: UNB adopts an integrated and multi-dimensional approach to determine its priority sustainability areas and the report content. UNB has analyzed the sustainability issues within the countries where it operates and within the banking sector, and has linked the sustainability issues to its stakeholders needs and to national priority areas (Abu Dhabi Economic
Vision 2030), in order to identify its sustainability focus areas.
This baseline report covers all UNB Group operations in the UAE which includes UNB, Injaz, Union Brokerage Company (UBC) and
Al Wifaq Finance Company. However, the financial figures reflect the entire UNB Group including the International subsidiaries & operations.. Thus report was developed based on the Global Reporting Initiative (GRI) framework and indicators, aiming to achieve
Level A application level. The report also covers the GRI Financial Services Sector Supplement (FSSS).
Stakeholder inclusiveness: UNB identifies, understand and anticipates the needs and expectations of current and future stakeholders by identifying, measuring and analysing key performance indicators for each stakeholder – as noticed in page 64 of the report.
We believe this report covers and communicates with all our key stakeholders. We think all the identified stakeholders would be interested to read our sustainability report, including the employee, customers, shareholders, business partners and different community and environment organizations and representatives. We also encourage them to provide feedback on our sustainability email as mentioned inside cover page.
comparability and balance: This report provides 3 years of comparable data within the report (2009-2011) where available. This report also communicates UNB’s successes as well as main challenges in the economic, environmental and social aspects of the
Bank. This report uses the GRI G3 guidelines which provide clear comparisons.
Accuracy and reliability: UNB has been careful to make sure that all information provided in this report is of the highest level of accuracy and reliability. We have used our integrated management system to gather the information in this report, and where any estimation is made, a full explanation is provided.
clarity of information: UNB has put its sustainability information within this report in a clear and easy to communicate framework, besides using the GRI framework which helps ease the report reading and understanding.
Assurance: Ernst and Young has provided “limited” assurance over the data and information relating to our sustainability key performance indicators for the period 1 January 2011 and 31 December 2011.
A N N E x U R E

S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 7 4
1. Strategy and Analysis
1.1 Statement from the most senior decision-maker of the organization.
1.2 Description of key impacts, risks, and opportunities.
Pg. 4-7
Pg. 10
2. Organizational Profile
2.1 Name of the organization. Pg. 10
2.2 Primary brands, products, and/or services.
2.4 Location of organization›s headquarters.
2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.
Pg. 10-11
2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, Pg. 10-12 and joint ventures.
Pg. 10
Pg. 10-11
2.6 Nature of ownership and legal form. Pg. 10
2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). Pg. 10
2.8 Scale of the reporting organization.
2.9 Significant changes during the reporting period regarding size, structure, or ownership.
Pg. 10-12
Pg. 10-11
Pg. 11 2.10 Awards received in the reporting period.
3. Report Parameters
3.1 Reporting period (e.g., fiscal/calendar year) for information provided.
3.2 Date of most recent previous report (if any).
3.3 Reporting cycle (annual, biennial, etc.)
Pg. 1
Pg. 66-67
Pg. 1
Pg. 1
Pg. 1
Pg. 1
3.4 Contact point for questions regarding the report or its contents.
3.5 Process for defining report content.
3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers).
See GRI Boundary Protocol for further guidance.
3.7 State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.
3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report.
Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols.
Pg. 1
Pg. 1
Pg. 66-67
3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of business, measurement methods).
3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.
3.12 Table identifying the location of the Standard Disclosures in the report.
3.13 Policy and current practice with regard to seeking external assurance for the report.
Pg. 70
Pg. 70
Pg. 66-67
Pg. 40
A N N E x U R E
4. Governance, commitments, and Engagement
4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.
4.2 Indicate whether the Chair of the highest governance body is also an executive officer.
4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.
4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.
4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization›s performance
(including social and environmental performance).
4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.
4.7 Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization›s strategy on economic, environmental, and social topics.
4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.
4.9 Procedures of the highest governance body for overseeing the organization›s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.
4.10 Processes for evaluating the highest governance body›s own performance, particularly with respect to economic, environmental, and social performance.
4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization.
4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.
4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies;
* Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic.
4.14 List of stakeholder groups engaged by the organization.
4.15 Basis for identification and selection of stakeholders with whom to engage.
4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.
4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.
Economic
EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.
EC2 Financial implications and other risks and opportunities for the organization›s activities due to climate change.
Pg. 59
Pg. 60
Pg. 61
Pg. 61
Pg. 61
Pg. 60-61
Pg. 10
Pg. 60-61
Pg. 60-61
Pg. 60-61
Pg. 63
Pg. 44-45
Pg. 44-45
Pg. 68-69
Pg. 68-69
Pg. 68-69
Pg. 68-69
Pg. 66
Pg. 52-53

S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 7 6
EC3 Coverage of the organization›s defined benefit plan obligations. Pg. 68-69
EC4 Significant financial assistance received from government.
EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation.
EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.
EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.
Pg. 59
Pg. 38
Pg. 46
Pg. 34
EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.
Pg. 44
EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts. Pg. 45
Environmental
EN1 Materials used by weight or volume.
EN2 Percentage of materials used that are recycled input materials.
EN3 Direct energy consumption by primary energy source.
EN4 Indirect energy consumption by primary source.
EN5 Energy saved due to conservation and efficiency improvements.
EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.
EN7 Initiatives to reduce indirect energy consumption and reductions achieved.
EN8 Total water withdrawal by source.
EN9 Water sources significantly affected by withdrawal of water.
EN10 Percentage and total volume of water recycled and reused.
EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.
EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.
EN13 Habitats protected or restored.
EN14 Strategies, current actions, and future plans for managing impacts on biodiversity.
EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.
EN16 Total direct and indirect greenhouse gas emissions by weight.
EN17 Other relevant indirect greenhouse gas emissions by weight.
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.
EN19 Emissions of ozone-depleting substances by weight.
EN20 NOx, SOx, and other significant air emissions by type and weight.
EN21 Total water discharge by quality and destination.
EN22 Total weight of waste by type and disposal method.
EN23 Total number and volume of significant spills.
Pg. 51
Pg. 54
Pg. 52-53
Pg. 52-53
Pg. 53-64
Pg. 53
Pg. 53
Pg. 53
Pg. 53
Pg. 52-53
NA
Pg. 69
NA
Pg. 53
Pg. 53
Pg. 53
Pg. 53
Pg. 53
Pg. 52-53
Pg. 52-53
NA
A N N E x U R E
EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the
Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.
EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly NA affected by the reporting organization›s discharges of water and runoff.
EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. Pg. 69
EN27 Percentage of products sold and their packaging materials that are reclaimed by category. Pg. 53-54
EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.
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EN29 Significant environmental impacts of transporting products and other goods and materials used for the Pg. 53 organization›s operations, and transporting members of the workforce.
EN30 Total environmental protection expenditures and investments by type. Pg. 52
Social: Labor Practices and decent work
LA1 Total workforce by employment type, employment contract, and region.
LA2 Total number and rate of employee turnover by age group, gender, and region.
LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.
LA4 Percentage of employees covered by collective bargaining agreements.
LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.
LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region.
LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.
LA9 Health and safety topics covered in formal agreements with trade unions.
LA10 Average hours of training per year per employee by employee category.
LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.
LA12 Percentage of employees receiving regular performance and career development reviews.
LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity.
LA14 Ratio of basic salary of men to women by employee category.
Social: Human Rights
HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening.
HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken.
HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.
HR4 Total number of incidents of discrimination and actions taken.
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HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights.
HR6 Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor.
HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor.
HR8 Percentage of security personnel trained in the organization›s policies or procedures concerning aspects of human rights that are relevant to operations.
HR9 Total number of incidents of violations involving rights of indigenous people and actions taken.
Social: Society
SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting.
SO2 Percentage and total number of business units analyzed for risks related to corruption.
SO3 Percentage of employees trained in organization›s anti-corruption policies and procedures.
SO4 Actions taken in response to incidents of corruption.
SO5 Public policy positions and participation in public policy development and lobbying.
SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.
SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.
SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.
Social: Product Responsibility
PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.
PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.
PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.
PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.
PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.
PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.
PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.
PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.
PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.
Financial Sector Supplement
FS1 Policies with specific environmental and social components applied to business lines.
FS2 Procedures for assessing and screening environmental and social risks in business lines.
FS3 Processes for monitoring clients› implementation of and compliance with environmental and social requirements included in agreements or transactions.
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FS4 Process(es) for improving staff competency to implement the environmental and social policies and procedures as applied to business lines.
FS5 Interactions with clients/investees/business partners regarding environmental and social risks and opportunities.
FS6 Percentage of the portfolio for business lines by specific region, size (e.g. micro/SME/large) and by sector.
FS7 Monetary value of products and services designed to deliver a specific social benefit for each business line broken down by purpose.
FS8 Monetary value of products and services designed to deliver a specific environmental benefit for each business line broken down by purpose.
FS9 Coverage and frequency of audits to assess implementation of environmental and social policies and risk assessment procedures.
FS10 Percentage and number of companies held in the institution›s portfolio with which the reporting organization has interacted on environmental or social issues.
FS11 Percentage of assets subject to positive and negative environmental or social screening.
FS12 Voting polic(ies) applied to environmental or social issues for shares over which the reporting organization holds the right to vote shares or advises on voting.
FS13 Access points in low-populated or economically disadvantaged areas by type.
FS14 Initiatives to improve access to financial services for disadvantaged people.
FS15 Policies for the fair design and sale of financial products and services.
FS16 Initiatives to enhance financial literacy by type of beneficiary.
• Abu Dhabi Economic Vision 2030: based on the principles laid out in the Government’s Policy Agenda published in August
2007, the Abu Dhabi Economic Vision 2030 is a roadmap for the emirate’s socio-economic progress.
• Emiratization: An initiative by the government of the UAE to employ its citizens in a meaningful and efficient manner in the public and private sector.
• Global Reporting Initiative (GRI): is a non-profit organization that works towards a sustainable global economy by providing sustainability reporting guidance.
• G3 Reporting Guidelines: is a framework for reporting on an Organizations’ economic, environmental, social and governance performance.
• Financial Services Sector Supplement (FSSS): sector specific guidelines for sustainability reporting from the GRI, covering the aspects of sustainable development that characterizes the financial services sector.
• Greenhouse Gas (GHG) Emissions: Gases in the atmosphere that absorb and emit thermal and infrared radiation. Greenhouse gases include water vapor, carbon dioxide, methane, nitrous oxide, and ozone.
• Money laundering: The act of concealing the identity, origin, or destination of often illegally-obtained money.
• Stakeholders: Stakeholders are those groups who affect and/or could be affected by an organization’s activities, products or services and associated performance. Organizations will have many stakeholders, each with distinct types and levels of involvement, and often with diverse and sometimes conflicting interests and concerns (source:http://www.accountability.org)
• Sustainability: is an attempt to provide the best outcomes for the human and natural environments both now and into the indefinite future.
• Sustainability report: an organizational report that gives information about economic, environmental, social and governance performance.
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S U S T A I N A B I L I T Y R E P O R T 2 0 1 1 8 0
IMS
UNB
ISO
AED
M³
SMEs
UAE
LRQA
ATM
BoD
CEO
CSR
GHG
GRI
IFRS
Automated Teller Machines
Board of Directors
Chief Executive Officer
Corporate Social Responsibility
Greenhouse Gas
Global Reporting Initiative
International Financial Reporting Standards
Cubic Meters
Small and Medium Enterprises
United Arab Emirates
Lloyd’s Register Quality Assurance
Integrated Management System
Union National Bank
International Organization for Standardization
United Arab Emirates Dirham
GJ
ISPS
BoD
SCA
COSO
GAIN
IIA
UBC
CCU
BCP
EIBFS
VESS
Union Brokerage Company
Customer Care Unit
Business Continuity Plan
Emirates Institution for Banking and Financial Studies
Voluntary Employee Savings Scheme
FI&SF
MBO
Financial Institutions & Structured Finance
Management By Objectives kg Kilograms kWh Kilo Watt per Hour
Giga Joule
IT Information Security Policy and Standards
Board of Directors
Securities and Commodities Authority
Committee of Sponsoring Organizations
Global Auditing Information Network
Institute of Internal Auditors