Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon footprint by 12% to 83,261 tCO2e
• Increased training hours by 260%
• Reduced water consumption by 12%

Social Achievements

• Launched employee well-being program, resulting in 89% retention rate
• Invested Rs. 51 mn (12%) in CSR initiatives
• Increased employee productivity

Governance Achievements

• Improved shareholder communications
• Enhanced corporate governance practices
• Implemented a robust risk management framework

Climate Goals & Targets

Environmental Challenges

• Geopolitical risks
• Government policy changes
• Availability of raw materials
• Supply and affordability of energy
• Availability of water
• Customer satisfaction
• Timely delivery
• Product responsibility
• Local community relations
• Employee health & safety
• Employee relations
• Effluents & waste
• Emissions
• Innovation
• Marketing communications
• Transport

Mitigation Strategies

• Developed leaner operating models
• Improved shareholder communications
• Invested in expansion of four key business areas
• Improved operational efficiency
• Implemented alternative sourcing strategies
• Developed alternative sourcing strategies
• Improved energy efficiency
• Increased renewable energy use
• Improved water management practices
• Improved customer service
• Improved supply chain management
• Improved product quality
• Enhanced community engagement
• Improved employee safety programs
• Improved employee relations
• Improved waste management practices
• Reduced carbon intensity
• Increased investment in sustainable innovation
• Improved marketing communications
• Improved logistics and transportation efficiency

Supply Chain Management

Responsible Procurement

• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UNGC

Awards & Recognition

• Asia Responsible Entrepreneurship Awards

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 65% reduction of Group carbon footprint due to biomass energy applications
• 58,493 MWh renewable energy generated
• 56% of water recycled/internally treated
• 180,334 trees planted
• 63% reliance on renewable energy

Social Achievements

• Investment in CSR amounting to Rs. 273 mn
• 418,038 beneficiaries of CSR
• 85% employee retention rate
• 224,279 training hours
• 193 new products developed

Governance Achievements

• Compliance with the Code of Best Practice on Corporate Governance issued by CA Sri Lanka 2017
• Established 4 board committees (Audit, Nomination, Remuneration, Related Party Transaction Review)
• Implementation of a state-of-the-art HRIS system

Climate Goals & Targets

Environmental Challenges

• Easter Sunday terror attacks impacting tourism and the Kingsbury hotel
• COVID-19 pandemic causing business interruptions and economic slowdown
• Weak global trade and economic growth
• Exchange rate fluctuations
• Raw material shortages and price volatility
• Government policies and macroeconomic variables
• Implications of climate change
• Supply and affordability of energy
• Geopolitical risks
• Availability of water
• Plantation wage increase demands

Mitigation Strategies

• Cost rationalisation and margin improvement strategies
• Increased Group oversight and monitoring processes
• Diversification of export markets and products
• Investments in renewable energy sources
• Supplier screening and development programs
• Negotiating with suppliers and deferring non-essential expenditure
• Implementing safety measures to counter the spread of COVID-19
• Strengthening supplier relationships
• Reviewing energy mix and reducing dependency on non-renewable sources
• Water recycling and reuse initiatives
• Proactive working capital management

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Widening the network of local suppliers
• Investing in supplier development and empowerment
• Supplier screening for financial, social and environmental criteria

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions
• Erratic weather patterns affecting agricultural supply and tourism

Transition Risks

• Government policies on renewable energy
• Global drive towards renewable energy

Opportunities

• Development of energy-efficient products
• Investments in renewable energy

Reporting Standards

Frameworks Used: GRI Standards, Integrated Reporting Framework, UN Global Compact Principles

Certifications: ISO 9001, BRC, SA8000, SMETA / SEDEX, ISO 14064-1:2018, Rainforest Alliance, ISO 14001:2015, ISO 50001:2011

Third-party Assurance: Ernst & Young

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Recycled fabric made from ocean plastic
• Plastic-free cleaning equipment
• Horticultural and erosion control products
• Carbon nano tubes for solid tyres

Awards & Recognition

• Presidential Environment Award
• Asia Sustainable Reporting Award
• Singer: ‘People’s Choice Brand of the year’

Environmental Metrics

ESG Focus Areas

• Sustainability
• Community Investment
• Employee Well-being
• Environmental Protection
• Supply Chain Sustainability

Environmental Achievements

• Reduced CO2e by 1,240 MT during 2020/21
• 2/3 of raw material for Sri Lankan operations now comes from green sources
• Constructed 69 new pollution-free charcoal pits during 2020/21
• Removal of fossil fuels usage for AT process in the pellet plant

Social Achievements

• Puritas Sath Diyawara expanded to provide over 190,000 liters of purified water per day to over 43,800 beneficiaries
• Invested approximately Rs. 14 million towards COVID-19 relief initiatives
• Launched 25 social and environmental sustainability-focused initiatives in celebration of Puritas’ 25th anniversary
• Maintained Customer Satisfaction Score above 80% for 5th consecutive year
• Retained all employees at full remuneration and ensured job security while granting annual increments and bonuses

Governance Achievements

• Published first integrated annual report
• Implemented strict COVID-19 safety protocols and obtained SLS Certification for COVID-19 management systems
• Adhered to the Code of Best Practice on Corporate Governance 2017

Climate Goals & Targets

Environmental Challenges

• Supply and price volatility of raw materials due to COVID-19 disruptions and global shipping crisis
• Uncertainties in regional markets impacting Puritas’ water and wastewater treatment projects
• Low-cost competition for activated carbon products and water treatment projects
• COVID-19 pandemic impacting global supply chains and manufacturing operations
• Regulatory changes impacting foreign currency earnings and importation of goods

Mitigation Strategies

• Diverse, extensive raw material procurement network across major coconut producing countries
• Backward integration to charcoaling and partnering with charcoal/shell suppliers
• Consolidating international procurement network
• Regeneration of spent carbon
• Adequate measures to ensure employee safety and cost rationalisation
• Frequent online communication and virtual factory tours
• Focus on value-added carbons and superior after-sales services
• Concentration on larger-scale projects
• Emergency response and business recovery plans
• Persistent monitoring of performance and compliance with regulatory changes

Supply Chain Management

Responsible Procurement

• Backward integration to charcoaling
• Partnering with charcoal/shell suppliers
• Consolidating international procurement network
• Haritha Angara program supporting suppliers to adopt pollution-free charcoaling
• Vertical Kiln charcoaling in Thailand

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, International Integrated Reporting Council’s Integrated Reporting Framework, Smart Integrated Reporting Methodology™, “Guidelines for the Presentation of Annual Reports 2021”, published by The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka), UN Global Compact principles, UN Sustainability Development Goals, Companies Act No. 07 of 2007, Sri Lanka Accounting Standards (SLFRS/LKAS), Code of Best Practice on Corporate Governance, 2017, Listing Rules of the Colombo Stock Exchange

Certifications: ISO 9001, ISO 14001, ISO 22000, HACCP, GMP, Halal, WQA Sustainability, KOSHER, NSF, SLS:1672:2020 COVID Management System, BFE, VFE, OMRI

Third-party Assurance: Ernst & Young Sri Lanka

Sustainable Products & Innovation

• Oxypura facemasks
• Energy Storage Carbons
• Chloramine removal carbon series
• Coconut pellet new developments
• Respirator carbons
• Impregnated carbons for room air filters

Awards & Recognition

• The Green World Awards 2020 (UK) – Gold award
• The Ceylon National Chamber of Industries (CNCI) Achiever Awards 2020
• National Chamber of Exporters of Sri Lanka – 28th Annual NCE Export Awards 2020
• Ministry of Plantations and Coconut Development Authority

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced total emissions by 12% to 30,212 MT CO2 eq
• 51% of raw materials consumed from green charcoaling sources
• Generated and provided more than 1.5Mn kWh of power to the national grid

Social Achievements

• Supported livelihoods of over 400 micro-entrepreneurs
• Provided financial assistance under the Haritha Angara Programme: Rs.73 Mn
• Provided clean water to remote villages, benefiting an estimated 59,918 people
• Provided 1,167 jobs in Sri Lanka

Governance Achievements

• Revision of strategic plans to respond to volatile business landscape
• Increased oversight by Board and Audit Committee on Risk Management
• Increased oversight of Treasury functions to manage foreign exchange, interest rate volatility and liquidity
• Increased oversight of supply chain management

Climate Goals & Targets

Environmental Challenges

• Impacts of the prolonged pandemic
• Global supply chain disruptions
• Sri Lanka’s economic crisis
• Energy crisis
• Rapid inflation
• Increased interest rates

Mitigation Strategies

• Diverting orders between manufacturing locations
• Working with parent company’s Freight Solutions Task Force
• Increasing raw material and finished goods inventories
• Executing orders well ahead of time
• Equipping all manufacturing plants with continuous running generators
• Increasing fuel inventories
• Evaluating renewable energy solutions
• Accelerating lean manufacturing projects
• Focusing on effluent treatment systems and water/wastewater treatment

Supply Chain Management

Supplier Audits: 6%

Responsible Procurement

• Haritha Angara Programme
• Vertical Kiln Charcoaling Programme
• Supplier screening processes
• Technical and financial assistance
• Ethical procurement practices

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions

Transition Risks

• Stringent environmental regulations

Opportunities

• New opportunities in the water and air purification and super capacitor industries

Reporting Standards

Frameworks Used: Framework, GRI Standards, UN Global Compact Principles, UN Sustainability Goals & Targets, Task Force on Carbon Related Disclosures

Certifications: ISO 9001, ISO 14001, ISO 22000, Halal, KOSHER, NSF, WQA Sustainability

Third-party Assurance: Ernst & Young

Sustainable Products & Innovation

• Hard carbon for LIB and SiB
• Superior Wood carbon for Chloramine removal
• Impregnated carbons for respirators
• Hydrocove
• Odour removal products

Awards & Recognition

• Best Exporter of the Year
• Top Ten Winner in Best Management Practices
• National Level Manufacturing Sector Award
• Sri Lanka Best Employer Brand Awards
• National award for Systems, Procedures and Actions for the Prevention of COVID-19
• National Award for Zero Accidents

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Employee Retention
• Employee Motivation
• Supply Chain Partnerships
• Community Relationship
• Market Expansion
• Competitive Position
• Consistent Returns
• Cash Flow Position

Environmental Achievements

• 195 MT of waste recycled
• Managing Scope 1 emissions
• Managing water consumption

Social Achievements

• 6 employees were promoted
• 5,957 skill training hours
• 845 hours of safety training
• 100% reduction in major injuries
• Rs. 1.64 million invested in community welfare
• Launched a vegetable cultivation project

Governance Achievements

• Formulated corporate purpose: “Inspire Innovative and Inclusive Eco-friendly Living”
• 3-year ESG roadmap drawn up
• Compliance award for Hayleys Fibre PLC annual report

Climate Goals & Targets

Environmental Challenges

• Severe negative headwinds both locally and globally impacting all spheres of operations
• Escalating geopolitical tensions and resultant economic vulnerabilities
• Looming recession
• Sri Lankan economy hurtling towards another crisis
• Rising interest rates, low market liquidity and soaring inflation
• Demand downturn from key markets
• Surging inflation
• Geopolitical issues affecting economic stability in the EU
• Fuel shortages, power outages

Mitigation Strategies

• Inventory, liquidity, cost control and supply chain resilience were prioritized
• Strengthened global market outreach across untapped territories
• Research and new product development
• Mobilised cash flows to reduce gearing position
• Built up emergency fuel stocks and other essential imports
• Expedited freight capacity planning
• Cost efficiencies initiatives
• Liquidity management strategies to reduce Group gearing
• Vegetable cultivation project for employees
• Diversification into new non-traditional global markets
• Investment in facilities (Rs. 143 million)

Supply Chain Management

Supplier Audits: Annual evaluation of local suppliers

Responsible Procurement

• Stringent procurement guidelines
• Supplier vetting based on quality, price, delivery record, credentials, and after-sales service support

Climate-Related Risks & Opportunities

Physical Risks

• Atmospheric changes affecting temperature and precipitation levels in coconut growing regions

Transition Risks

• Not disclosed

Opportunities

• Invest in renewable energy
• Use of low toxicity chemical agents
• Use of biodegradable/reusable waste materials

Reporting Standards

Frameworks Used: GRI Universal Standards (In Reference), International Integrated Reporting Council’s (IIRC) Framework, United Nations Sustainable Development Goals (SDGs)

Certifications: ISO 9001

Third-party Assurance: Ernst & Young

UN Sustainable Development Goals

• Goal 7
• Goal 13

Promoting resilient agriculture practices; Raising awareness among employees and other stakeholders to promote the efficient use of water resources; Investment in safeguarding the health and wellbeing of employees and the wider community; Non-discriminatory employment; Drive in product and process innovation; Investment in reducing socioeconomic inequalities; Commitment to preserve natural ecosystems; Developing sustainable growing mediums; Partnerships for knowledge enhancement and to drive innovation; Minimise waste in manufacturing

Sustainable Products & Innovation

• Coir based growing media with increased water retention properties
• Strawberry charcoal briquettes
• Fertiliser enriched growing media
• Haygreen branded line of growing mediums

Awards & Recognition

• Silver Award - Coconut & Coconut Products Sector (Large category) at National Chamber of Exporters of Sri Lanka - Hayleys Fibre PLC
• Silver Award - Coconut & Coconut Products Sector (Large category) at National Chamber of Exporters of Sri Lanka - Bonterra Ltd.
• Awards for excellence in Total Productivity Management (TPM)
• Hayleys Chairman’s awards for fibre feeding automation
• Compliance award for Hayleys Fibre PLC annual report

Environmental Metrics

ESG Focus Areas

• Climate change
• Biodiversity
• Water
• Materials and waste
• Engaged team
• Health, safety and well-being
• Supplier relationships
• Customer relationships
• Community relationships

Environmental Achievements

• 68% reliance on renewable energy
• 196,166 MWh renewable energy generation
• 69,382 trees planted
• 14% recycled water usage
• 3 companies committed to SBTI with 2 obtaining verification of its targets

Social Achievements

• Rs. 53.12 bn payments to employees
• Rs. 183 mn investments in training
• 707,580 CSR beneficiaries
• Multiple sectors engaged in leadership development programmes
• Launch of ‘Momentum’ – creating a family-friendly workplace

Governance Achievements

• Establishment of Sector-level ESG Committees
• Launch of new Bribery and Anti-Corruption Policy
• Launch of Shareholder and Investor Communications Policy
• Full compliance with revised CSE Listing Rules by April 1st, 2024
• Appointment of two new Independent Non-Executive Directors

Climate Goals & Targets

Environmental Challenges

• Appreciation of the Sri Lankan Rupee
• Escalating cost of production
• Subdued domestic demand
• Global geopolitical tensions
• Supply chain disruptions
• Talent migration
• Climate change impacts

Mitigation Strategies

• Geographical diversification of supply chains and markets
• Focus on reducing lead times
• Value-added product propositions
• Forward foreign exchange contracts
• Currency swaps
• Close monitoring of forex movements
• Regional expansion
• Proactive and timely management of pricing strategies
• Measures to safeguard employees
• Sector-level carbon reduction goals
• Group-wide push towards renewable energy
• Numerous biodiversity initiatives
• Strategic focus on leadership development and succession planning
• Resumption of employee engagement activities
• Measures to create a family-friendly workplace

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• 82% local suppliers for Plantations
• 54% local suppliers for overall operations
• Supplier development programs

Climate-Related Risks & Opportunities

Physical Risks

• Fluctuations in rainfall and precipitation
• Rise in temperatures
• Erratic weather patterns
• Impacts on agricultural produce

Transition Risks

• Stringent environmental and emission regulations
• Energy policies
• Customer requirements on sustainability

Opportunities

• Investments in renewable energy
• Sustainable innovation

Reporting Standards

Frameworks Used: GRI Standards (2021), Climate Disclosure Standards Board- Water related disclosures, SASB, TFCD, UN Global Compact, UNGC CEO’s Water Mandate, SLFRS S1 and S2

Certifications: ISO 14001, ISO 45001, ISO 14064-1(2018), ISO 50001, ZDHC Level 1, ZDHC Level 3

Third-party Assurance: Ernst and Young (Financial); KPMG (Integrated Reporting)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Biodegradable gloves
• Gloves made from recycled waste
• Recyclable fabrics
• Eco Stretch fabric
• Warna by Mahogany organic dye
• Growing media solutions
• Aluminium balconies, decking, and artificial walls

Awards & Recognition

• Overall Excellence in Corporate Reporting (TAGS Awards 2023)
• Overall winner at the ACCA Sustainability Reporting Awards 2023
• 17 wins at the 25th Presidential Export Awards
• Best Corporate Citizen Sustainability Award (Talawakelle Tea Estates)
• Best SDG Impact Award (Hayleys Fabric)