Hela Apparel Holdings PLC
Climate Impact & Sustainability Data (2021-04 to 2022-03, 2022-04 to 2023-03)
Reporting Period: 2021-04 to 2022-03
Environmental Metrics
Total Carbon Emissions:23,297.4 tCO2e/year (FY 2020/21)
Scope 1 Emissions:763.7 tCO2e/year (FY 2020/21)
Scope 2 Emissions:4,152.0 tCO2e/year (FY 2020/21)
Scope 3 Emissions:18,381.7 tCO2e/year (FY 2020/21)
Renewable Energy Share:10% (FY 2021)
Total Energy Consumption:95,543 GJ/year (FY 2021/22)
Water Consumption:132,235 m3/year (FY 2021/22)
Waste Generated:2,496,602 kg/year (FY 2021/22)
Carbon Intensity:Not disclosed
ESG Focus Areas
- Climate Stability
- Inclusivity
- Equality
Environmental Achievements
- ISO 14064-1:2018 certification for quantification and reporting of greenhouse gas emissions across the Group
- Investments in renewable energy (solar power generation at four Sri Lankan facilities)
- Reduced waste sent to landfills (aiming for elimination)
- Implemented a comprehensive Chemical Management Plan to reduce the negative impact of chemicals on the environment
Social Achievements
- Launched flagship employee-empowerment initiative “Hela Diriliya”
- Launched Hela Diridaruwo scholarship programme (partnership with Tesco and Berendina Development Services)
- Expanded implementation of the Personal Advancement and Career Enhancement (P.A.C.E.) initiative
- Hela Freshi initiative (distribution of clean drinking water in Kenya and Ethiopia)
Governance Achievements
- Successful completion of public listing on the Colombo Stock Exchange
- Establishment of Remuneration, Nomination, and Related Party Transactions Review Committees
Climate Goals & Targets
Long-term Goals:
- Align with Science-Based Target initiatives (SBTi) to reduce GHG emissions and support the global aim to reach net zero by 2050
Medium-term Goals:
- Increase regional sourcing from Africa to 50% by 2023
- Achieve over 5,000 P.A.C.E. graduates across the global footprint by 2024
Short-term Goals:
- Reduce energy consumption to 1 kWh per Standard Production Hour by 2025
- Reduce per person water consumption to 25 litres per day by 2025
- Develop 500 Hela Diriliya entrepreneurs in Sri Lanka by April 2023
Environmental Challenges
- COVID-19 pandemic disruptions (supply chains, absenteeism)
- Depreciation of the Sri Lankan Rupee
- Global supply chain disruptions and high freight costs
- High commodity prices (cotton)
- Conflict in Ethiopia (suspension of AGOA eligibility)
- Temporary labor dispute in Kenya
- Economic crisis in Sri Lanka
Mitigation Strategies
- Proactive steps to minimize COVID-19 transmission
- Provision of private quarantine facilities and direct procurement of vaccines
- Focus on localizing supply chains (increased raw material sourcing from Africa)
- Diversification of manufacturing footprint across Africa (Egypt)
- Improved digital infrastructure (SAP S/4HANA ERP system)
- Diversification of financing sources
- Policy accommodations for exporters (direct fuel purchasing in US Dollars)
Supply Chain Management
Supplier Audits: Routine supplier audits (announced and unannounced)
Responsible Procurement
- Supplier Code of Conduct
- Hela Group Policy on Cotton Fibre Sourcing
- FibreTrace technology
- US Cotton Protocol
- Better Cotton Initiative
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: UN Global Compact, ISO 14064-1:2018, HIGG Facility Environmental Module (FEM)
Certifications: ISO 14064-1:2018, WRAP, SMETA, SLCP
Third-party Assurance: PricewaterhouseCoopers
UN Sustainable Development Goals
- SDG 1
- SDG 3
- SDG 5
- SDG 6
- SDG 7
- SDG 8
- SDG 12
- SDG 13
- SDG 15
- SDG 16
- SDG 17
Not disclosed
Sustainable Products & Innovation
- SeaCell smart fibre range
- Nature Tech fabrics
- Tea Hues natural dyes
Awards & Recognition
- Tesco’s Collaboration Award
- Sri Lanka’s Best Exporter Award (Apparel – Medium Category)
- Two awards at the National Business Excellence Awards
- Tesco Sustainability Award
- Asda Global Sustainability Conference Award
Reporting Period: 2022-04 to 2023-03
Environmental Metrics
Total Carbon Emissions:31,613 MT CO2e
Scope 1 Emissions:1,118 tCO2e
Scope 2 Emissions:5,630 tCO2e
Scope 3 Emissions:22,945 tCO2e
Renewable Energy Share:39%
Total Energy Consumption:86,880 GJ
Water Consumption:190,926 megalitres
Waste Generated:2,880 tons
Carbon Intensity:Not disclosed
ESG Focus Areas
- Fair & Ethical Labour Practices
- Occupational Health & Safety
- Employee Engagement & Development
- Sustainable Supply Chains
- Energy & GHG Emissions
- Materials & Waste
- Water Stewardship
- Sustainable Community Development
- Customer Satisfaction
Environmental Achievements
- Received ISO 14064-1:2018 certification for quantification and reporting of greenhouse gas emissions for the second consecutive year.
- 39% of the Group's energy requirements in FY 2022/23 was generated from renewable sources (solar & biomass).
- 100% of solid waste diverted from landfill
- Average HIGG FEM Score of 90% across all Facilities
Social Achievements
- Over 11,000 employees participated in Hela’s social capital projects
- Launched GEAR (Gender Equality and Returns) programme in partnership with Better Work.
- Launched Hela Diridaruwo scholarship fund in partnership with Tesco and Berendina.
- Expanded Hela Diriliya initiative, supporting employees and their families to develop supplementary income streams (now has over 600 participants).
Governance Achievements
- Appointment of a Chief Risk Officer.
- Rollout of SAP S/4HANA Fashion ERP system across Group by end FY 2022/23
- Strengthened risk and compliance function
Climate Goals & Targets
Long-term Goals:
- Net zero emissions by 2050
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Not disclosed
Environmental Challenges
- Volatile demand environment across key markets in Europe and North America due to rising inflation and interest rate hikes.
- Severe economic pressures across operating countries, particularly Sri Lanka's economic crisis.
- Temporary labour dispute at Kenyan manufacturing facility.
- Significant increase in distribution expenses due to unplanned air freight costs.
Mitigation Strategies
- Freezing of recruitment and amalgamation of two nearby manufacturing facilities in Sri Lanka to reduce overhead costs.
- Proactive purchase of fuel stocks to ensure continuous operation.
- Additional support and salary increments to Sri Lankan employees.
- Increased focus on operational excellence to reduce distribution costs.
- Diversification of customer base and financing sources.
Supply Chain Management
Supplier Audits: Routine supplier audits, including announced and unannounced on-site inspections.
Responsible Procurement
- Hela Supplier Code of Conduct
- Cotton Fibre Sourcing policy
- US Cotton Protocol
- Better Cotton Initiative
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: Integrated Reporting Framework of the International Integrated Reporting Council (IIRC), GRI Standards
Certifications: ISO 14064-1:2018, WRAP, SEDEX, Higg FEM, GOTS, GRS, OCS
Third-party Assurance: PricewaterhouseCoopers
UN Sustainable Development Goals
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
Group-wide initiatives across Hela's operating countries are focused on community empowerment and environmental stewardship.
Sustainable Products & Innovation
- Recycled cotton yarns
- Polyester fabric from recycled PET bottles
- Biodegradable fabrics
- Tea dye colours
- Reclaimed textile dye
Awards & Recognition
- Jockey International Best New Business Partner Award
- Tesco Empowerment Award
- Industry 4.0 award at the Dare to Dream Awards 2023