Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Secured Rainforest Alliance certification for most tea estates, targeting completion in early 2012.
• Upgraded Bearwell factory (600,000 kg capacity) and refurbished Clarendon factory (300,000 kg capacity).
• Hydro Power Plants at Radella, Somerset, and Palmerston fully operational, powering the national grid.
• Fuel wood planting program to reduce carbon footprint and energy costs.
• Replaced all Auto Diesel Burners in high-grown estates factories with wood-fired Hot Water Generators, resulting in 3,309 tons of CO2 saved per annum.

Social Achievements

• Investments in improving housing, water, sanitation, and related social welfare activities amounted to Rs. 11.1 Mn in 2011.
• Continued investment in improving welfare and social infrastructure amounting to Rs 11.1Mn during the year on housing, water and sanitation.
• Further Rs. 108 Mn was incurred on medical, childcare, housing, sports and recreation.
• Directly involved in developing 2.7 km of roads linking communities over high-grown estates.
• Obtained Ethical Tea Partnership Certification for all 17 Estates.

Governance Achievements

• Annual Report for 2010 received a Bronze Award from the League of American Communications Professionals.
• Recognised as the Best performing (highest GSA) Regional Plantation Company for 2010 in high and low-grown categories.
• Adopted a formal Corporate Governance Statement covering Board responsibilities, Management Committee responsibilities, and governance processes.
• Complied with Corporate Governance rules laid down under the Listing Rules of the Colombo Stock Exchange and the Code of Best Practice on Corporate Governance.

Climate Goals & Targets

Environmental Challenges

• Increasing costs, particularly wages (28% increase due to a new Collective Agreement) and commodity prices.
• Global economic downturn and recession in US and Europe.
• Civil unrest in the Middle East impacting international tea auctions.
• Depressed tea prices due to softer demand from Middle Eastern countries.
• Need for a breakthrough in productivity to remain viable.
• Erratic weather patterns affecting crop yields and quality.
• Intense competition leading to a decline in bought leaf intake.
• Liquidity constraints.
• Rising energy costs and restrictions on harvesting fuel wood.
• Resistance from trade unions to land use diversification.

Mitigation Strategies

• Emphasis on quality, favorable weather for tea crops, fertilizer subsidy, and significant reduction in finance cost.
• Operational strategies and careful management of liquidity mitigated the impact of adverse trading conditions.
• Investments in replanting low-yielding tea fields, improving factory throughput, and social and welfare infrastructure.
• Exploring alternate avenues of income generation.
• Adding value to teas in collaboration with Mabroc Teas (Pvt) Ltd.
• Accelerated fuel wood planting program.
• Good agricultural and manufacturing practices (GAMP).
• Differentiation strategy and marketing mix to cater to customer demands.
• Careful management of manpower with flexibility to handle high cropping months.
• Sustainable agricultural practices to conserve soil and build carbon in the soil.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Encourage mutual visits to ensure standards of raw material

Climate-Related Risks & Opportunities

Physical Risks

• Vagaries of weather resulting in loss of crop and quality

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI version 3 of 2006

Certifications: Rainforest Alliance, Ethical Tea Partnership, ISO 22000, HACCP

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Bronze Award from the League of American Communications Professionals (2010 Annual Report)
• Best performing Regional Plantation Company for 2010 (Forbes and Walker Tea Brokers)

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced GHG emissions through various initiatives (details not quantified in report)

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Data limitations and uncertainties in emission factor calculations (e.g., transportation data, electricity emission factors)

Mitigation Strategies

• Internal audits performed on recorded GHG inventory data; use of international standards and methodologies for calculation.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO 14064-1:2018, GHG Protocol

Certifications: Null

Third-party Assurance: Sri Lanka Climate Fund

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Action
• Water Stewardship
• Sustainable Land Management
• Biodiversity Conservation
• Circular Resource Management
• Community Empowerment
• Health and Nutrition
• Community Capacity Building
• Youth Empowerment
• Great Place to Work
• Value Chain Management
• Diversity and Inclusion
• Fair Labor Practices
• Board Diversity
• Stakeholder Engagement
• Policy Compliance
• Risk & Opportunity Management
• Accurate Reporting and Transparency

Environmental Achievements

• 86% renewable energy share (FY 2023/24)
• 5159 kg waste recycling (FY 2023/24)
• GHG emissions intensity of 1.93 (FY 2023/24)
• Reduced water withdrawn by 6% in 2023/24
• First company in Sri Lanka to commit and verify a Science-Based Target (SBT)

Social Achievements

• 89% employee retention rate (FY 2023/24)
• Rs. 103.6 Mn investment in "A Home for Every Plantation Worker" (FY 2023/24)
• Rs. 14.4 Mn training investment (FY 2023/24)
• 99% employee satisfaction rate
• 24 female field supervisors appointed (first time in the industry)
• Obtained the “Mother & Child Friendly Seal for Responsible Business”
• Launched an ESG data-book for public use

Governance Achievements

• Achieved a stakeholder engagement index of 3.7 out of 5 in 2023/24
• Ranked #25 in Transparency in Corporate Reporting 2023
• Numerous awards for reporting, governance & transparency

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on tea cultivation (reduced yields, water scarcity, extreme weather events)
• Stricter environmental regulations
• Shifting consumer preferences towards sustainable products
• Need for investment in climate-friendly technologies
• Reputational risks related to environmental impact
• Water scarcity
• Soil degradation and erosion
• Deforestation

Mitigation Strategies

• Climate adaptation plan
• Climate risk management strategy
• Investment in renewable energy
• Sustainable agriculture practices
• Water conservation technologies
• Biodiversity conservation program
• Waste management system
• Sustainable land management practices
• Stakeholder engagement
• Compliance with regulations
• Risk management framework
• Transparency in reporting

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Temperature increases
• Water scarcity
• Extreme weather events
• Pest and disease outbreaks

Transition Risks

• Regulatory risks
• Market risks
• Technology risks
• Reputation risks

Opportunities

• Renewable energy adoption
• Sustainable agriculture practices
• Eco-tourism development

Reporting Standards

Frameworks Used: UN SDGs, SASB, TCFD, TNFD, GRI, Integrated Reporting Framework

Certifications: ISO 9001:2015, ISO 22000:2018, Rainforest Alliance, Great Place to Work, ISO 14064-1:2018, ISO 14001:2015, ISO 50001:2018, Eco Label Certification, Mother & Child-Friendly Seal

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 16
• SDG 17

The report details how various initiatives contribute to each SDG.

Awards & Recognition

• Best Corporate Citizen 2023
• Numerous awards for reporting, governance & transparency