Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Uses natural gas, the cleanest of all fossil fuels, as its primary fuel, keeping carbon emissions at a minimum.
• Employs best-in-class, high-efficiency engines that ensure complete combustion of fuel, further reducing carbon emissions.
• Several engines have exhaust gas boilers fitted to produce steam commercially sold to industries, saving fossil fuels and reducing carbon emissions.

Social Achievements

• Supported the SWAPNO project (Strengthening Women’s Ability for Productive New Opportunities) in partnership with UNDP’s Bangladesh office, providing food relief to over 7300 women.
• UPGDCL Board Members donated meeting attendance fees to the SWAPNO project.
• Group contributed BDT 50 million to the Prime Minister’s Relief and Welfare Fund.

Governance Achievements

• Adopted the Corporate Governance Code (CGC) for full compliance.
• Corporate governance practices reviewed by Poddar & Associates.
• Compliance with CGC disclosed in the report.

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic, including closure of DEPZ and CEPZ, leading to lower electricity demand and revenue.
• Closure of 53MW plant under United Energy Ltd (UEL), a subsidiary.
• Rise in gas tariff (42 percent) and imposition of Demand Charge on approved gas load, increasing cost of sales.

Mitigation Strategies

• Lower O&M costs due to absence of major engine overhauling neutralized some cost and revenue impacts.
• Sufficient cash and cash equivalents to meet operational expenses and financial obligations.
• Short-term lines of credit with commercial banks to ensure payment of obligations.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Floods, cyclones, tsunamis, earthquakes

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: A. Qasem & Co., Chartered Accountants, a Member Firm of Ernst & Young Global Limited

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Maintained 99% plant availability factor during the COVID-19 crisis despite operational challenges.
• Reduced overall system loss to 8.73% in 2021.

Social Achievements

• Zero confirmed COVID-19 cases among plant employees.
• No Lost Time Injuries (LTIs) for 1000 consecutive days.
• Implemented Training Needs Assessment (TNA) and conducted 75 trainings (including 34 online trainings).

Governance Achievements

• Full compliance with BSEC Corporate Governance Code 2018.
• Re-appointment of A. Quasem & Co. as auditors for 2021-22.
• Appointment of MABS & J Partners as Corporate Governance Compliance Auditor for 2021-22.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and associated lockdowns impacting socio-economic activities and creating operational challenges in power generation.
• Maintaining plant availability while ensuring employee health and safety during the pandemic.

Mitigation Strategies

• Implemented a bio-bubble strategy at all plants, providing accommodation, contact tracing, health services, access control, disinfection practices, mental wellbeing support, HSE practices and PPE.
• Adherence to COVID-19 protocols issued by WHO and DGHS.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Implemented Training Needs Assessment (TNA) resulting in 55 training sessions at DEPZ and CEPZ plants and 161 sessions across all UPGDCL-owned power companies.
• Enriched Employee Service Rules with proper job descriptions and responsibilities.

Governance Achievements

• Compliance with BSEC Corporate Governance Code-2018.
• Re-appointment of Podder Associates Cost & Management Account as Corporate Governance Compliance Auditor.

Climate Goals & Targets

Environmental Challenges

• Global supply chain and logistics disruption, container capacity constraints, and geopolitical tensions resulting in increased freight costs, delivery times, and higher fuel prices.
• Increase in HFO price in the international market.
• Rapid devaluation of the Bangladesh Taka leading to foreign exchange losses.

Mitigation Strategies

• Government's decision to use more indigenous natural gas.
• Government's plan for fuel diversification.
• Expansion of transmission networks.

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

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decrease in power generation due to government gas allocation policy.
• Increased fuel and energy costs (92% higher than last year).
• Significant exchange loss in foreign currency transactions due to the devaluation of the taka against the dollar.
• Increased interest rates from banks due to high inflation.

Mitigation Strategies

• Not disclosed

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