Ittehad Chemicals Limited
Climate Impact & Sustainability Data (2021, 2023-07 to 2024-06)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Sustainability
- Environmental Protection
- Health and Safety
- Corporate Social Responsibility
Environmental Achievements
- Efficiency improvement of gas-fired power plant, enhancing plant capacity by almost 20% and fuel efficiency by 9%, thus reducing carbon emissions significantly.
- Initiated work on a full-capacity wastewater treatment plant to reduce the impact of effluent discharge.
Social Achievements
- Contributed Rupees 9,522,155 to various charitable organizations.
- Encouraged employees, suppliers, customers and their families to get vaccinated against COVID-19 and set up free vaccination camps.
Governance Achievements
- Maintained entity ratings at ‘A- /A-2‘(Single A Minus / A-Two) with a “Positive” outlook by VIS Credit Rating Company Limited.
- Complied with the requirements of the Listed Companies (Code of Corporate Governance) Regulations 2019 (CCG).
Climate Goals & Targets
Medium-term Goals:
- Upgradation of power plant engines to increase capacity and improve fuel efficiency.
Short-term Goals:
- Expanded capacity of LABSA/SLES Plant by 46,000 M. Tons per annum.
Environmental Challenges
- Global pandemic (COVID-19) affecting production, distribution, and lifestyle.
- Hampered domestic and international supply chains causing input shortages.
- Decreased domestic and international demand.
- Ongoing geopolitical scenario, global economic landscape, higher energy costs, and slowdown in domestic economic activity amidst the COVID-19 pandemic.
Mitigation Strategies
- Developed an online ordering system (Sales Portal) for customers.
- Implemented Qlik Sense Business Intelligence module for optimized decision-making.
- Implemented an integrated outbound logistics process through SAP to reduce paper usage and improve processing time.
- Contracted Engine OEM (M/S Wartsila) for efficiency enhancement of the power plant.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2023-07 to 2024-06
Environmental Metrics
ESG Focus Areas
- Environmental Protection
- Health and Safety
- Sustainable Energy Use
- Diversity, Equity, and Inclusion (DE&I)
Environmental Achievements
- Efficiency Improvement of Gas Fired Power Plant: Enhancing plant capacity by almost 20% and fuel efficiency by 9%, thus reducing carbon emissions significantly and minimizing our dependence on the national grid.
- Initiated work on a full capacity waste water treatment plant to reduce the impact of effluent discharge to the waste water streams in the area and also help us conserve ground water.
Social Achievements
- Financial contribution of more than Rupees 30 Million to several charitable institutions.
- Implementation of several community-focused programs to promote education, health, and social welfare.
- Sports activities and other recreational programs for employees.
Governance Achievements
- Conduct of a Corporate Briefing Session to present its strategic direction, financial position, operational activities and overall performance.
- Compliance with the Listed Companies Code of Corporate Governance Regulations, 2019
Climate Goals & Targets
Long-term Goals:
- ICL intends to connect with GCF and other such grants for its sustainability initiatives.
- ICL plans to enhance its market base and export to Europe and Middle East. The ESG requirements of these markets and customers to be adequately met.
Medium-term Goals:
- The biomass Power Plant would be versatile, able to take any type of biomass as energy source. There are plans to set up collection / aggregation facilities for biomass as well – ICL aspires to be the leader in utilization of biomass.
- ICL plans to diversify towards sustainable chemistry and biochemistry and produce green chemicals.
Short-term Goals:
- New ESG Strategy to be in place before the upcoming Biomass Power plant is operational (August – December 2024).
Environmental Challenges
- Pakistan is facing economic, geopolitical, and external debt challenges that may impede short-term growth.
- Rising utility costs continue to present significant challenges in cost management.
Mitigation Strategies
- Implementation of a variety of strategies to manage and mitigate risks, including environmental protection, health and safety, and sustainable energy use.
- Focus on strategic initiatives that will strengthen its market position and ensure sustainable growth.
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- unpredictable weather patterns, leading to occurrences such as flash floods, severe droughts, glacial lake outbursts, intense heat waves and unexpected rainfall