Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Wellbeing
• Economic Prosperity
• Governance

Environmental Achievements

• Achieved a 35% year-on-year reduction in the use of weedicides and pesticides.
• Exceeded targets for reducing the volume of agrochemicals, fertilizer, and dolomite applied to soil and crops.
• Commissioned 22 solar-powered water heating systems, resulting in monthly cost savings.

Social Achievements

• Won the ‘WINNER’ award for ‘Award for leading HR Practices in quality work-life’ at the Global HR Excellence Awards 2016.
• Launched the ‘A Home for Every Plantation Worker’ program to upgrade living standards and quality of life for plantation workers.
• Implemented a revenue-sharing model pilot project to improve worker well-being and long-term business sustainability.

Governance Achievements

• Secured several awards at local and international reporting competitions for transparency and quality of financial reporting.
• Complied with the Code of Best Practice on Corporate Governance 2013.
• Established a comprehensive Enterprise Risk Management (ERM) system.

Climate Goals & Targets

Environmental Challenges

• Erratic weather led to lower production volumes of tea and rubber.
• Low crude oil prices and global economic uncertainties suppressed buying power in key international markets.
• Increasing labor wages presented a challenge amidst volatile tea and rubber prices.

Mitigation Strategies

• Implemented aggressive quality drives to improve leaf quality and secure premium prices.
• Developed a more sustainable wage model and a revenue-sharing model pilot project.
• Accelerated direct marketing efforts and established strategic partnerships to penetrate high-growth markets.

Supply Chain Management

Supplier Audits: As and when required

Responsible Procurement

• Supplier audits for environmental and labor practices.
• Emphasis on procuring locally.

Climate-Related Risks & Opportunities

Physical Risks

• Erratic weather patterns
• Natural disasters (landslides)

Transition Risks

• Fluctuations in global supply and demand
• Changes in consumer preferences

Opportunities

• Development of energy-efficient products and processes
• Crop diversification

Reporting Standards

Frameworks Used: International Integrated Reporting Council (IIRC), Global Reporting Initiatives (GRI) G4: “In accordance – Core”

Certifications: Rain Forest Alliance (RA), Ethical Tea Partnership (ETP), Forest Stewardship Council (FSC), ISO 22000:2005, HACCP, GMP

Third-party Assurance: Ernest & Young

Sustainable Products & Innovation

• Air Dried Sheet Rubber (ADS)
• Single origin leafy tea
• Cinnamon packs
• Mabroc Bubble Tea

Awards & Recognition

• Global HR Excellence Awards 2017 (Winner)
• Asia Sustainability Reporting Awards 2016 (Merit)
• Asia-Pacific HR Awards 2016 (Winner)
• National Business Excellence Awards (Gold and Silver)
• Annual Report Awards 2015 (Silver and First Runner Up)

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Natural Capital
• Human Capital
• Social Capital
• Corporate Governance

Environmental Achievements

• Reduced carbon footprint (details not quantified)
• Hydropower generation of 10,076,266 Kwh
• Fuelwood planting of 3,100
• Native and shade tree planting of 1,418
• Zero insecticide use
• Water treatment of 100,750,540 L
• Protected areas and areas of high biodiversity value of 1,502.63 Ha
• Reduction of energy consumption through VFD installation and rooftop solar system

Social Achievements

• Launched "A Home For Every Plantation Worker" program
• Built 1,722 new housing units
• Implemented Child Policy (first plantation company globally)
• Rolled out PACE program for women empowerment
• Secured assistance from Save the Children Fund and World Bank for community development projects
• Won numerous awards for HR excellence and CSR

Governance Achievements

• Won Gold award for Excellence in Corporate Governance at National Business Excellence Awards
• Complied with all applicable laws and regulations
• Implemented a robust risk management framework
• Established a whistle-blower policy

Climate Goals & Targets

Environmental Challenges

• Adverse weather conditions impacting Tea and Rubber production
• Glyphosate ban affecting weed control
• Labour migration from plantations
• High prices for Centrifuge Latex impacting Rubber margins
• Inconsistent policy decisions by Ceylon Electricity Board affecting hydropower revenue

Mitigation Strategies

• Implemented revenue-sharing model to increase productivity and retain workforce
• Introduced manual weeding and focused on quality drive
• Continued replanting program for Rubber
• Shifted towards Crepe Rubber production to utilize latex stocks
• Invested in renewable energy sources (solar)

Supply Chain Management

Supplier Audits: As and when required

Responsible Procurement

• Supplier surveys
• Joint value creation initiatives
• Transparent evaluation of supplier quotations

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions
• Natural disasters

Transition Risks

• Glyphosate ban
• Changes in national fiscal and monetary policies

Opportunities

• Development of energy-efficient products
• Expansion of renewable energy programs

Reporting Standards

Frameworks Used: GRI Reporting Standards, UN Sustainability Development Goals (SDGs), United Nations Global Compact Principles, International Integrated Reporting Council’s (IIRC) “Six Capitals” Integrated Reporting Framework

Certifications: ISO 22000:2005, HACCP, GMP, RA, ETP, UTZ, FSC, Carbon Conscious

Third-party Assurance: Ernst & Young Colombo (Financial Statements), Climate SI (Total Carbon Footprint)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 14 (Life below water)
• Goal 15 (Life on land)
• Goal 8 (Decent work and economic growth)

KVPL's initiatives contribute to these goals through renewable energy investments, carbon footprint reduction, biodiversity conservation, community development, and employee empowerment

Sustainable Products & Innovation

• Steamed green tea
• Air dried Rubber sheets
• Mabroc Bubble Tea

Awards & Recognition

• National Business Excellence Awards (Bronze for Overall Excellence, Gold in Agriculture & Plantation Sector, Corporate Governance, CSR, Performance Management, Local Market Reach; Silver in Extra Large Category, Capacity Building, Environmental Sustainability)
• Global HR Excellence Awards
• South Asian Business Excellence Awards
• Asia Pacific HRM Congress Awards
• SLITAD People Development Awards
• Ceylon Specialty Estate Tea of the Year Competition awards

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Launched the Kelani Valley Protectors Initiative (KVPI) to clean the Kelani River.
• Achieved Rainforest Alliance and FSC certifications.
• Implemented rain guards for rubber trees to increase tappable days and crop yield.
• Introduced a "Buy Back of Weeds" program to promote manual weeding and organic fertilizer production.

Social Achievements

• Achieved 100% vaccination rate for employees against COVID-19.
• Launched the "A Home for Every Plantation Worker" initiative.
• Awarded the "Great Place to Work" certification.
• Implemented a digital weighing system for tea pluckers, improving transparency and efficiency.
• Became the first plantation company to award the "Skills Passport" to field staff.

Governance Achievements

• Established a comprehensive ESG framework ("KVPL’s Corporate DNA").
• Improved financial reporting, winning awards for annual reports.
• Maintained a strong corporate governance structure aligned with international best practices.

Climate Goals & Targets

Environmental Challenges

• Government ban on import of chemical fertilizers and weedicides.
• COVID-19 pandemic and lockdowns.
• High inflation and rising costs of production.
• Depreciation of the Sri Lankan Rupee.
• Labor shortages and migration.
• Unrest in the community due to the economic crisis.

Mitigation Strategies

• Developed organic fertilizer production.
• Implemented the "Buy Back of Weeds" program.
• Implemented cost management measures and resource optimization.
• Developed contingency plans for business disruption.
• Expanded use of technology (drones, digital weighing systems).
• Expanded crop diversification.

Supply Chain Management

Responsible Procurement

• Sustainable biomass sourcing
• Compliance with environmental and social regulations

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions

Transition Risks

• Government policies on fertilizers and chemicals

Opportunities

• Renewable energy development

Reporting Standards

Frameworks Used: GRI Standards: Core option, IIRC

Certifications: ISO 22000:2005, Rainforest Alliance, FSC, Organic Rubber (USDA/NOP & EU), GOLS, Fair Rubber

Third-party Assurance: Messrs. Ernest & Young, Colombo

UN Sustainable Development Goals

• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 5 (Gender Equality)
• Goal 6 (Clean Water and Sanitation)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 17 (Partnerships for the Goals)

KVPL's initiatives contribute to these goals through various programs and commitments.

Sustainable Products & Innovation

• Single origin teas
• Organic and Fair Rubber products

Awards & Recognition

• Great Place to Work
• UN Volunteers 50 Country Awards
• Best Corporate Citizen Sustainability Award
• Best Management Practices Company Awards
• South Asia Business Excellence Awards
• Business World Excellence Awards