Lucky Cement Limited
Climate Impact & Sustainability Data (2018-07 to 2019-06, 2022-07 to 2022-09)
Reporting Period: 2018-07 to 2019-06
Environmental Metrics
ESG Focus Areas
- Sustainability
- Corporate Social Responsibility
- Environmental Protection
- Community Development
Environmental Achievements
- Reduced CO2 emissions by 29,000 metric tons per annum through Dual-Fuel Conversion Project
- Installed five Waste Heat Recovery Plants with a cumulative generation capacity of 45.7 MW
- Planted over 34,000 tree saplings
Social Achievements
- Granted several merit-based scholarships to students
- Supported two leading Government girls’ schools in Karachi through collaboration with Zindagi Trust
- Provided financial support to various healthcare institutions
- Installed five solar energy-based tube wells in underprivileged areas
Governance Achievements
- Became the first SECP certified Shariah Compliant Company of Pakistan
Climate Goals & Targets
Long-term Goals:
- Growth in cement industry due to government initiatives (dams, housing)
Medium-term Goals:
- Sustain current market share
- Stable export sales
Short-term Goals:
- Brownfield expansion at Pezu plant (2.6 MTPA)
Environmental Challenges
- Rising cost of coal, fuel, and gas due to currency devaluation
- Reduced domestic sales volume due to macroeconomic conditions
- Increased competition in export markets
- Risk of inconsistent government policies
Mitigation Strategies
- Increased exports of clinker
- Implemented cost reduction initiatives
- Developed new export markets
- Advocacy through industry forums
- Utilized Waste Heat Recovery and alternative fuels (TDF, RDF)
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI
Certifications: OHSAS 18001, ISO 14001, ISO 9001
Third-party Assurance: A.F. Ferguson & Co., Chartered Accountants
Awards & Recognition
- 34th MAP Corporate Excellence Award
- Environment Excellence Award
- 8th Corporate Social Responsibility Award
- 8th Fire & Safety Award
- 3rd position in PSX Top 25 Companies Award
Reporting Period: 2022-07 to 2022-09
Environmental Metrics
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Pakistan’s largest on-site 34MW captive solar power project with a 5.59MWh Reflex energy storage solution started (operational by Q2 FY-2023)
- Feasibility study started for another 50MW hybrid wind-solar renewable on-site project
Social Achievements
- Continued scholarships to students from leading universities in Pakistan and abroad
- Launched dedicated scholarships and vocational training programs
- Collaborated with The Citizen Foundation to build a primary and secondary school near Pezu plant
- Empowering women through education with Zindagi Trust, supporting two government girls’ schools in Karachi
- Collaborated with Million Smiles Foundation for a school in Neelum Valley, Azad Kashmir
- Financial support of Aziz Tabba Foundation for Tabba Heart and Tabba Kidney institutes
- Pro-environment initiatives including tree-planting drives
- Contributed to flood relief operations across Pakistan
Governance Achievements
- Share buyback of up to 10 million shares announced and approved by shareholders
Climate Goals & Targets
Medium-term Goals:
- Operationalization of 34 MW solar power project at Pezu Plant by Q2 FY23
- Commissioning of 25.3 MW solar power project at Karachi Plant (pending SBP approval)
Short-term Goals:
- Completion of 3.15 million tons per annum brownfield expansion project at Pezu Plant by December 2022
Environmental Challenges
- Global economic challenges due to commodity and energy price trends, Russia-Ukraine conflict, and high inflation
- Pakistan's economic challenges including high inflation, rising import costs, foreign debt servicing, and recent floods
- Slowdown in construction activities due to floods and monsoon rains
- High-interest rates and rising inflation impacting cement demand
- Suppressed demand in foreign markets due to global inflation and fiscal challenges
- Significant downturn in automobile volumes due to PKR devaluation, import restrictions, and high-interest rates
- 30% decline in mobile phone market volumes due to limited foreign exchange availability
- Plant teething issues at Lucky Electric Power Company Limited (LEPCL)
Mitigation Strategies
- Enhanced operational efficiencies in local cement operations
- Remedial measures taken to improve LEPCL availability and performance
- Cost rationalization and improved localization in the automobile and mobile phone segments
- Shifting Najmat–Al –Samawah plant in Iraq from Furnace Oil to Natural Gas
- Leveraging diverse product portfolio to minimize adverse impacts of inflationary pressures