Climate Change Data

Elpitiya Plantations PLC

Climate Impact & Sustainability Data (2019-04 to 2020-03, 2020-04 to 2021-03)

Reporting Period: 2019-04 to 2020-03

Environmental Metrics

Total Carbon Emissions:3,538.27 tCO2e/year
Scope 1 Emissions:640 tCO2e/year
Scope 2 Emissions:2,898 tCO2e/year
Renewable Energy Share:103% of total energy use
Total Energy Consumption:14,100 GJ/year
Water Consumption:98,417.18 m3/year
Waste Generated:3,987 tons/year

ESG Focus Areas

  • Water productivity
  • Sustainable agricultural practices
  • Renewable energy generation
  • Mechanization
  • Skill development
  • Community upliftment and youth empowerment

Environmental Achievements

  • Achieved carbon negativity by generating 103% of energy consumption through renewable sources.
  • Increased rainwater harvesting capacity to 237.8 Mn liters.
  • Reduced carbon footprint from 9,709.41 tCO2e to 3,538.27 tCO2e.

Social Achievements

  • Invested Rs. 118.6 Mn in estate community development, benefiting 21,054 individuals.
  • Provided rations and cash loans during COVID-19.
  • Maintained 88% employee retention rate.
  • 54% of employees are female.

Governance Achievements

  • Improved Board processes through adoption of BoardPAC (paperless meeting solution).
  • Implemented a whistle-blowing policy.
  • Adopted Aitken Spence Group Code of Ethics.

Climate Goals & Targets

Long-term Goals:
  • Become a carbon-neutral plantation by 2025.
Medium-term Goals:
  • Achieve self-sufficiency in energy through sustainable energy sources by 2025.
  • Achieve 75% field mechanization.
Short-term Goals:
  • Increase land productivity by 10% by 2025.
  • Reduce chemical fertilizer application by 50%.

Environmental Challenges

  • Decline in tea and rubber production volumes and prices.
  • Rising cost of production (including wages).
  • Adverse weather conditions.
  • Labour shortages.
  • Inconsistent government policies (especially regarding oil palm cultivation).
  • COVID-19 pandemic impact.
Mitigation Strategies
  • Diversification of revenue streams (berries, cinnamon, renewable energy, leisure).
  • Digitization and automation of operations.
  • Investments in replanting and land rejuvenation.
  • Sustainable agricultural practices.
  • Increased focus on mechanization.
  • Proactive measures to ensure employee and community safety and food security during COVID-19.

Supply Chain Management

Responsible Procurement
  • Sourcing approximately 99% of requirements through local suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Adverse weather conditions affecting crop productivity.
Transition Risks
  • Rising cost of production, low yields.
Opportunities
  • Increased renewable energy generation.

Reporting Standards

Frameworks Used: GRI Standards - In Accordance ‘Core’, Integrated Reporting Framework of the International Integrated Reporting Council (IIRC)

Certifications: ISO 22000, Rainforest Alliance

Third-party Assurance: Messrs. Ernst & Young

Sustainable Products & Innovation

  • Value-added tea products (Harrow Ceylon Choice)
  • Value-added cinnamon products
  • Refined palm oil
  • Berries

Awards & Recognition

  • Runner-up award at the ACCA Sustainability Reporting awards 2019.

Reporting Period: 2020-04 to 2021-03

Environmental Metrics

Total Carbon Emissions:3,455.10 tCO2e/year
Scope 1 Emissions:636 tCO2e/year
Scope 2 Emissions:2,820 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:88%
Total Energy Consumption:182,480 GJ/year
Water Consumption:254 Mn liters/year
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Pandemic related disruptions
  • Financial performance
  • Sustainable business growth
  • Government policy
  • Availability of labour
  • Labour productivity
  • Labour management relations
  • Occupational health and safety
  • Competitive pricing
  • Product quality and reliability
  • Corporate governance and risk management
  • Responsible consumption of resources
  • Environmental impacts
  • Relationships with surrounding communities
  • Relationships with suppliers

Environmental Achievements

  • 2% reduction in carbon footprint
  • 3% increase in soil carbon levels
  • 80% reduction in chemical weedicides and pesticides
  • Carbon negativity in electricity consumption through renewable energy (132% of electricity consumption)

Social Achievements

  • Rs. 131 Mn community investment
  • 295 new housing units constructed
  • 5,611 training hours (2019/20: 7,300 hours)
  • 88% employee retention rate
  • 32 promotions
  • 335 new recruits
  • 96% employee satisfaction score
  • 54% female representation in the workforce, including 7% at management level

Governance Achievements

  • Achieved the financial aspirations of DESIGN 2020 earlier than planned
  • Strong corporate governance practices provided a solid foundation in navigating the numerous external complexities of the year

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve self-sufficiency in energy through sustainable energy sources by 2025
  • Reduce chemical fertilizer application by 50%
  • Reduce chemical pest control by 80%
  • Reduce chemical weed control by 80%
  • Increase green cover by 10%
Short-term Goals:
  • Increase land productivity by at least 10% by 2025

Environmental Challenges

  • Adverse weather conditions impacted Sri Lanka’s tea volumes
  • Unfavorable policy developments including the ban of chemical fertilizer, ban on oil palm cultivation and wage-hike
  • Plantation sector was largely resilient against the pandemic during the 1st wave, although infections escalated in the 2nd and 3rd waves
  • Delays in several planned projects due to travel restrictions and lockdowns
  • Labour shortages
  • Commodity price fluctuations
  • Government ban on palm oil imports and mandate to uproot oil palm plantations
Mitigation Strategies
  • Proactive and stringent health and safety measures implemented at all estates to protect employees and communities
  • Ongoing focus on our three-pronged strategy with developments in diversification, automation and digitalization, and succession planning and leadership development
  • Exploring alternatives to chemical fertilizers
  • Revenue diversification
  • Leveraging the Aitken Spence PLC Group’s expertise in effectively managing foreign currency risk
  • Long-term HR strategy to strengthen employee value proposition
  • Increased focus on driving digitalization and automation of operations

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Sourcing approximately 99% of requirements locally
  • Supplier assessments for conformity to quality and regulatory requirements

Climate-Related Risks & Opportunities

Physical Risks
  • Adverse weather conditions affecting production volumes, yields and quality of crops
Transition Risks
  • Ban on chemical fertilizers leading to declines in productivity and competitiveness
Opportunities
  • Explore ecologically sound cultivation practices
  • Increase renewable energy generation

Reporting Standards

Frameworks Used: Integrated Reporting Framework of the International Integrated Reporting Council (IIRC), GRI Standards - In Accordance ‘Core’, UN Sustainability Development Goals (SDGs)

Certifications: ISO 22000

Third-party Assurance: Aitken Spence Holdings PLC Group Sustainability Unit

UN Sustainable Development Goals

  • Not disclosed

Aligned to 6 selected Sustainable Development Goals

Sustainable Products & Innovation

  • Wellness tea
  • Colored crepe rubber
  • Tropical fruits
  • Organic cinnamon

Awards & Recognition

  • cMa integrated Reporting Awards 2020 winner in the plantations sector
  • ACCA Sustainability Reporting Awards 2020 winner