Climate Change Data

Environmental Metrics

ESG Focus Areas

• Education
• Health and medical care
• Environmental protection
• Human Resource Development
• Industrial relations

Environmental Achievements

• Planted 18,000 trees, saving approximately 390 tons of CO2 per year
• Operating Effluent treatment plant for processing plant, recycling water and reducing effluent load
• Installed wet scrubbers at Coal Steam Boiler for removing particles and gases from industrial exhaust streams
• Operating caustic recovery plant at dyeing unit, recovering chemicals and reducing hazardous materials in drained water
• Replacing conventional tube lights with LED lights for energy conservation

Social Achievements

• Partnering with The Citizen Foundation (TCF) for education in rural areas, funding three primary school units (Rs. 7.8 million)
• Donated Rs. 2 million to institutions providing health and medical facilities
• Multiple leadership trainings for senior management in Pakistan and abroad
• Employee of the Month Award to encourage constructive behavior
• Encouraging participation of female workforce
• Maintaining cordial industrial relations, providing incentive bonus, profit bonus, Hajj expenses, cycles, fans, and sewing machines on easy installments
• Maintaining Workers Welfare Fund

Governance Achievements

• Board performance evaluation mechanism implemented, assessed as 'Satisfactory'
• Formal Director's Remuneration policy in place
• All related party transactions reviewed by the Board Audit Committee and Board, in compliance with the Companies Act, 2017

Climate Goals & Targets

Environmental Challenges

• Uncertain economic conditions due to slow world economic growth, Brexit, and US-China trade disputes
• Slow growth in Pakistan's textile exports due to increased raw material costs and slump in demand
• Rapid fluctuation in local cotton prices
• Decline in local cotton production
• Significant competition in product categories
• Adverse movement in foreign exchange rates and commodity prices
• Availability of cheaper energy mix
• Retention of key employees

Mitigation Strategies

• Closely monitored and managed exposure to foreign currency risk by minimizing foreign currency loans and using natural hedging
• Government's subsidized gas and electricity helped boost exports
• Investing in new equipment to take advantage of changing market conditions
• Utilizing Government's LTTF scheme to expand capacity in value-added segment
• Internal and external stakeholder collaboration to mitigate risks

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Planted 18,000 trees, saving approximately 390 tons of CO2 per year.
• Made a power purchase agreement to receive 3.5 MW solar energy. Solar plants will be installed at its production facilities located at Hattar and Faisalabad. Plant installations will be completed by December 2021. Solar installations will produce around 4.9 million units of clean and renewable electricity every year, resulting in a significant drop in the carbon footprint.

Social Achievements

• Partnering with The Citizen Foundation (TCF) for promotion of education in rural areas, funding three primary sections of TCF and paying annual running expenses amounting to Rs. 7.8 million.
• Collaborated with Punjab Health Department for COVID-19 vaccination of all employees.
• Donated Rs. 1.5 million to institutions providing health and medical facilities for the poor.
• Established an ‘Employees’ Provident Fund Trust’ to manage employees' retirement benefits.

Governance Achievements

• Developed a mechanism for the evaluation of performance of the Board of Directors. The Board’s overall performance and effectiveness has been assessed as Satisfactory.

Climate Goals & Targets

Environmental Challenges

• Significant competition in product categories.
• Adverse movement in foreign exchange rates and commodity prices.
• Availability of cheaper energy mix.
• Retention of key employees.

Mitigation Strategies

• Focusing on profitable avenues, maximizing efficiency in production activities and cost rationalization.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Installed 0.5 MW solar energy plant at Hattar, KPK. Another 3 MW plant is under construction.
• Planted 18,000 trees, saving approximately 390 tons of CO2 per year.

Social Achievements

• Donated Rs. 9.2 million to institutions providing health and medical facilities.
• FIEDMC stitching unit is LEED gold certified, prioritizing worker well-being.

Governance Achievements

• Board performance evaluation assessed as 'Satisfactory'.

Climate Goals & Targets

Environmental Challenges

• Significant competition in product categories.
• Adverse movement in foreign exchange rates and commodity prices.
• Availability of cheaper energy mix.
• Retention of key employees.
• Continuously rising prices of cotton.

Mitigation Strategies

• Focus on profitable avenues, maximizing production efficiency and cost rationalization.
• Close monitoring of foreign currency exposure.
• Timely procurement of cotton stocks.
• Upgrading plant and machinery to improve product quality and reduce inefficiencies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Green Button, LEEDs, ISO 50001, DETOX, BRC GSV, SCAN, FDA USA, SLCP

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Planted 27,000 trees, saving approximately 540 tons of CO2 per year
• Utilizing a 3.5 MW solar energy plant, producing around 4.9 million units of clean and renewable electricity every year

Social Achievements

• Company established an 'Employees' Provident Fund Trust'
• Donated Rs. 21.6 million to reputable institutions engaged in providing health and medical facilities
• Partnering with The Citizen Foundation (TCF) for promoting education in rural areas, paying annual running expenses of Rs. 7.8 million

Governance Achievements

• Board performance evaluation assessed as 'Satisfactory'
• Formal Director's Remuneration policy approved by the Board
• Company encourages representation of independent and non-executive directors, as well as gender diversity on its Board

Climate Goals & Targets

Environmental Challenges

• Significant competition in product categories
• Adverse movement in foreign exchange rates and commodity prices
• Availability of cheaper energy mix
• Retention of key employees
• Supply chain issues delaying new weaving unit installation

Mitigation Strategies

• Focus on profitable avenues, maximizing efficiency in production activities and cost rationalization
• Close monitoring of foreign currency exposure
• Effective procurement strategy
• Maximum capacity utilization

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Education
• Health and Medical Care
• Environment protection
• Climate change
• Water Stewardship

Environmental Achievements

• Installed 3.5 MW solar power plant, producing around 4.9 million units of clean and renewable electricity every year.
• Planted 29,000 trees, saving approximately 580 tons of CO2 per year.

Social Achievements

• Partnering with The Citizen Foundation (TCF) for promoting education in rural areas, funding three primary school units and paying annual running expenses of Rs. 7.8 million.
• Donated Rs. 15.6 million to institutions providing health and medical facilities.
• Employee training on occupational safety rules and procedures.

Governance Achievements

• Compliance with Listed Companies (Code of Corporate Governance) Regulations, 2019.
• Established an ‘Employees’ Provident Fund Trust’.

Environmental Challenges

• Highly challenging and competitive business environment due to enormous inflationary pressure.
• Continued rising input costs and high interest rates.
• Highest energy cost due to withdrawal of incentivized energy rate for Zero Rated Textile Industry under IMF SBA 2023.
• PKR depreciation against USD affecting import prices.
• Significant competition in product categories.
• Adverse movement in foreign exchange rates and commodity prices.
• Availability of cheaper energy mix.
• Retention of key employees.

Mitigation Strategies

• Switching to captive power facilities on RLNG/Gas.
• Resorting to cheaper financing options like ERF and FE-25 FCY Loans.
• Proactive measures, prudent decision-making, and focus on customer satisfaction.

Climate-Related Risks & Opportunities