Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Quality
• Responsibility

Environmental Achievements

• Rolled out a new program to collect and reuse wooden cable drums.
• Taken initiatives to manufacture Restriction of Hazardous Substances (RoHS) certified cables.
• Implemented measures to minimize waste generation and reduce environmental pollution.
• Achieved Global Green Mark Certificate Silver award for electric cables.

Social Achievements

• Achieved 92.16% employee retention rate.
• Provided required Personal Protection Equipment (PPE) to shop floor employees.
• Carried out safety awareness meetings & workshops.
• Engaged employees in several non-work related activities to balance personal & professional life.
• Maintained a balance between skilled and unskilled workers.

Governance Achievements

• Maintained high level of corporate governance adhering to guidelines issued by regulatory bodies.
• Established an Audit Committee, Remuneration Committee, and Related Party Transactions Review Committee.
• Compliant with section 7.10 of the Listing Rules of the Colombo Stock Exchange.

Climate Goals & Targets

Environmental Challenges

• Revenue stemming from government contracts declined by 47.5% due to delays in awarding contracts.
• Slowdown in large infrastructure projects affected the construction sub-sector.
• Depreciating currency and rising interest rates affected net finance costs.
• Sierra Industries (Pvt) Ltd. underperformed expectations.

Mitigation Strategies

• Focused on expanding market share in dealer, projects, and export markets (achieving >20% growth).
• Implemented cost rationalization and risk management strategies.
• Rolled out upgraded ERP system and Business Intelligence software.
• Implemented revival strategies for Sierra Industries (Pvt) Ltd., including talent acquisition, marketing realignment, product quality improvements, and cost rationalization.
• Evaluating option to dispose of investment in Sierra Power (Private) Ltd.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Sri Lanka Financial Reporting Standards, Companies Act No. 7 of 2007, Listing Rules of the Colombo Stock Exchange, Code of Best Practice on Corporate Governance

Certifications: ISO 9001, ISO 14001, OHSAS 18001, SLS

Third-party Assurance: KPMG, Chartered Accountants (financial reports only)

Sustainable Products & Innovation

• RoHS certified cables

Awards & Recognition

• UDC Best Cable Manufacture of the Year (2011)
• IESL Engineering Excellence Award (2011)
• Sri Lanka Malaysia Business Awards Gold Award (2010)
• CNCI Achiever of Industrial Excellence Merit Awards (2010)
• Quality Crown Award
• CIOB Green Mark Certificate Silver award (2015)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 14% water saving for non-machine purposes
• Solar power generation enhanced up to 1 MW
• Waste reduction methodologies implemented
• First company in Sri Lanka to obtain SLS certification for locally manufactured solar cables

Social Achievements

• Achieved 90% training objectives
• Attrition rate dropped by 13%
• Donations for needy families in the midst of COVID-19 crisis
• Electrician trainings
• Skills development training for employees

Governance Achievements

• First Integrated Annual Report awarded a Silver Award at CA Sri Lanka 55th Annual Report Awards

Climate Goals & Targets

Environmental Challenges

• Easter Sunday attacks and COVID-19 outbreak impacting the economy
• Weakening global demand affecting exports
• Sri Lankan rupee depreciation impacting raw material imports
• Long delays in payments for government-related projects
• Overseas competitors offering lower prices for Aerial Bundle Cables

Mitigation Strategies

• Close monitoring and astute mitigation strategies to lower the impact of exchange rates
• Efficient operational practices, scrap management, and waste reduction
• Strategic mitigation strategies to reduce exchange losses by 48%
• Lobbying efforts to prioritize local cable manufacturers in government tenders
• Focus on expanding market share in vital market segments

Supply Chain Management

Responsible Procurement

• Maintain long-term relationships and partnerships with suppliers
• Feedback evaluation
• Registration of suppliers
• Monitoring suppliers for quality adherence, acquiring quality raw material, ensuring timely delivery

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Expanding into renewable power generation

Reporting Standards

Frameworks Used: IIRC Framework, GRI Standards

Certifications: ISO 9001, ISO 14001, ISO 45001, SLS 412, 733, 750, 1186, 1504, 1542, BS, AS, NZS, NFC, JIS, ASTM, IEC standards, Builder Green Certification

Third-party Assurance: KPMG, Chartered Accountants

Sustainable Products & Innovation

• Solar cables
• Low Smoke Halogen Free (LSHF) cables
• Fire Resistant (FR) cables

Awards & Recognition

• Silver award at the CA Sri Lanka 55th Annual Report Awards (2019)
• Bronze Award for Industry Sector - Extra Large Category (NCE Export Award 2017)
• Gold Award for excellence in industrial sector (CNCI Industrial Excellence Award)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Good Governance
• Community Development
• Socio-economic Growth

Environmental Achievements

• Reduced rework from 11% to 3%
• Installation of 1MW solar system
• Energy recovery through micro machines
• Switching to LED lighting
• Introduced energy-efficient production processes
• Planted over 300 fruit plants

Social Achievements

• No layoffs, redundancies or pay cuts during challenging times
• Employee engagement initiatives (singing competition, Christmas celebrations)
• Training and development initiatives (technical and soft skills)
• Collaboration with NAITA for NVQ level training
• Platform "Forward together" for female employees
• Awareness programs on Women Empowering Day

Governance Achievements

• Continuous compliance with ethical and governance standards
• Proactive response to COVID-19 and economic pressures
• Strategic review to address socio-economic transformation and sustainability
• Strong ESG commitment across all operations

Climate Goals & Targets

Environmental Challenges

• Lingering impact of COVID-19
• Rising raw material prices
• Downward spiraling local currency
• Power outages
• Transportation issues due to fuel shortages
• Supply chain disruptions
• Foreign exchange crisis
• Unfavorable economic situation affecting state sector clients
• Significant depreciation of the Rupee against the US Dollar
• Higher inflation

Mitigation Strategies

• Proactive foreign currency funding for raw material importation
• Strategic review and re-shaping of company strategy
• Full compensation for employees without deductions
• Realigning sales model
• Aggressive collection plans
• Encouraging cash on deliveries
• Stringent monitoring and reducing credit periods
• Developing competencies to meet international standards
• Working towards obtaining the Certificate of Ethical Trading (CET)
• Timely strategic investments
• Second phase of AI technology project
• Setup of a plant to exclusively manufacture photovoltaic cables

Supply Chain Management

Responsible Procurement

• Strong network of suppliers
• Procurement protocols
• Supplier assessments based on certifications, history, facilities, pricing, and compliance

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Low Smoke Halogen Free Cables
• FR cables
• Solar cables

Awards & Recognition

• Best Manufacturer of the year - large category at the South Asian Business Excellence Awards 2021
• Top Ten Winner - Best Management Practices Company Awards 2022

Environmental Metrics

ESG Focus Areas

• Environmental stewardship
• Stakeholder engagement
• Social responsibility
• Ethical business practices
• Governance

Environmental Achievements

• Reduced carbon footprint year-on-year (specific quantification not provided)
• Installation of 1MW solar system
• Reduced plant operating days to save energy

Social Achievements

• Implemented programs to raise awareness through social media
• Formed an alliance with AIESEC for CSR initiatives (awareness campaigns, job fairs)
• Provided extensive internship programs
• Provided nutritional supplements to Oruwala primary school
• Maintained industry-par retention levels
• Provided training opportunities, performance evaluation, rewards schemes, and a conducive work culture

Governance Achievements

• Compliance with the Code of Best Practice on Corporate Governance issued by ICASL
• Adherence to all required industry regulations, including ISO and SLS certifications
• Robust governance system with appropriate internal controls to ensure ethical manufacturing practices
• Implementation of CCTV surveillance

Climate Goals & Targets

Environmental Challenges

• Sri Lankan economic crisis (contraction of 7.8% GDP, high inflation, fuel shortages, power cuts, supply chain disruptions, foreign currency scarcity)
• Exchange rate fluctuations impacting imported raw materials
• Subdued demand conditions due to deterioration of purchasing power
• Rise in raw material and overhead costs

Mitigation Strategies

• Focused on project customers and export markets
• Assigned dealer sales network to Brown and Company PLC
• Applied strategic pricing techniques
• Leveraged dollar-denominated assets for imports (natural hedging)
• Adjusted credit strategies to mitigate default risk
• Restructuring of the loan book
• Market diversification strategies, including exploring new export markets

Supply Chain Management

Responsible Procurement

• Strict procurement procedures
• Supplier evaluation based on transparency, ethical conduct, quality, timely supply, and ROI
• Compliance with environmental and labor regulations

Climate-Related Risks & Opportunities

Awards & Recognition

• Gold award in the medium category of the electronic and electrical products sector (National Chamber of Exporters of Sri Lanka)
• Best Cable Manufacturer of the Year (South Asian Business Excellence Awards 2022)
• Certificate of Ethical Trading (CET)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced waste with Copper waste reducing by 1.3
• Utilized a 1 MW solar-powered system for production processes
• Manufactured solar cables compliant with the SLS 1542 standard
• Supported greenery development by planting trees

Social Achievements

• CSR initiatives supporting neighboring communities and schools
• Offered factory visits and internships to university students
• Maintained industry-par employee retention levels despite high turnover in other industries
• Provided opportunities for professional and personal growth for employees

Governance Achievements

• Established a strong corporate governance foundation embedding transparency, accountability, and integrity
• Complied with all relevant compliance best practices, including Colombo Stock Exchange rules and ICASL’s Code of Best Practice on Corporate Governance
• Implemented ethical work procedures adhering to ISO system certification and SLS products

Climate Goals & Targets

Environmental Challenges

• Subdued performance in the construction sector leading to a decline in local demand for cables
• High costs of imported raw materials exacerbated by currency fluctuations
• High overhead expenses
• Market competition from substandard products
• Decline in household purchasing power and labor shortages impacting the construction industry
• Increase in Value Added Tax (VAT), reduced demand for residential construction projects, decline in new commercial construction projects, and a highly competitive environment for available projects

Mitigation Strategies

• Increased focus on global market penetration
• Strategic pricing methods aligned with industry norms
• Innovative promotions
• Leveraging high-contribution stock in the project market
• Utilizing dollar assets for imports (Natural hedging) and prevented obtaining Letters of Credit
• Continued improvements to Research and Development leading to novel and innovative product designs
• Relocated the uPVC and HDPE pipe plant to the African Region

Supply Chain Management

Responsible Procurement

• Stringent procurement procedures
• Evaluation of suppliers based on transparency, ethical conduct, pricing, quality, delivery, and ROI
• Compliance with environmental and labor regulations

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Sri Lanka Accounting Standards (SLFRSs/LKASs), Companies Act No. 07 of 2007, Colombo Stock Exchange Listing Rules, Code of Best Practice on Corporate Governance (ICASL)

Certifications: ISO 9001, ISO 14001, ISO 45001, SLS 412, 733, 750, 1186, 1542, 1504-2-11, 1504-2-31

Third-party Assurance: KPMG (Chartered Accountants)

Sustainable Products & Innovation

• Solar cables
• Steel Tape armouring cables
• Tin Copper wires

Awards & Recognition

• Best Cable Manufacturer of the Year (South Asian Business Excellence Awards)
• Gold Award (National Chamber of Exporters of Sri Lanka)
• Gold Award (National Industry Excellence Awards)
• Merit Award (Sri Lanka National Quality Awards)
• Gold Award for Stall with Best Engineering Service Provider and Gold Award for Platinum Sponsor (INCO 2024)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Economic

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• sustainable sourcing practices

Climate-Related Risks & Opportunities