Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment Protection
• Energy Conservation
• Waste Recycling
• Occupational Safety and Health
• Equal Opportunity Employer
• Community Welfare Schemes
• Consumer Protection Measures

Environmental Achievements

• Installed Effluent Water treatment plants at all dyeing, printing and garments production facilities
• Regular tree plantation drives at offices and factories
• Implemented energy conservation techniques (LED lights, waste and heat recovery plants)
• Installed caustic soda recovery plant, water treatment plants, cotton recycling plants and oil recycling machines

Social Achievements

• Regularly organizes medical camps for malaria, typhoid, dengue and eye sight for employees and communities
• Established dispensaries with ambulances at production facilities
• Provides equal employment opportunities
• Workforce of Garments and Home Textile Divisions is dominated by women

Governance Achievements

• Complied with the requirements of the Listed Companies (Code of Corporate Governance) Regulations, 2017
• Established Audit Committee and Human Resource & Remuneration Committee
• Conducted annual evaluation of Board’s performance, Members of the Board and its Committees

Climate Goals & Targets

Environmental Challenges

• Fluctuations in cotton yarn demand and prices
• US-China trade war and weak Chinese currency
• Rising cost and unavailability of energy
• Unprecedented hike in benchmark interest rate
• Currency risk
• Interest rate risk
• Credit risk
• Liquidity risk
• Economic uncertainties and difficulties in the textile industry (global slowdown, Brexit, US-China trade dispute, currency depreciation, rising interest rates)
• Government imposed 17% GST on textile sector

Mitigation Strategies

• Procurement of cotton in bulk
• Building strong relations with customers, broadening customer base, developing innovative products
• Diversified fuels (coal, furnace oil, biomass, diesel, solar energy), energy conservation measures, installing power plants
• Prudent working capital management
• Hedging currency risk exposure
• Maintaining low leveraged capital structure (max 40% equity, 60% debt)
• Strong financial standing of customers
• Securing electricity connections from WAPDA
• Booking purchase of griege fabric
• Introducing lean management concept

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Financial Reporting Standards (IFRSs)

Certifications: Customs-Trade Partnership Against Terrorism (C-TPAT), OEKO Tex Standards 100, SA-8000, WRAP, SEDEX

Third-party Assurance: Riaz Ahmad & Company, Chartered Accountants

Environmental Metrics

ESG Focus Areas

• Environment Protection
• Energy Conservation
• Waste Recycling
• Occupational Safety and Health
• Community Welfare
• Consumer Protection
• Equal Opportunity Employer

Environmental Achievements

• Installed Effluent Water treatment plants at all dyeing, printing and garments production facilities
• Regular tree plantation drive at its offices and factories
• Implemented energy conservation techniques (LED lights, waste and heat recovery plants)
• Installed caustic soda recovery plant, water treatment plants, cotton recycling plants and oil recycling machines

Social Achievements

• Formulated a crisis management team to implement directives for preventing the spread of COVID-19
• Launched awareness campaigns on COVID-19 precautions
• Organized regular medical camps for malaria, typhoid, dengue and eye sight
• Established dispensaries and equipped ambulances at production facilities
• Provides equal opportunity for employment and career progression to all irrespective of gender, class and religious discrimination

Governance Achievements

• Complies with all the relevant requirements of Companies Act, 2017 and the Listed Companies (Code of Corporate Governance) Regulations, 2019
• Developed a mechanism for annual evaluation of Board’s own performance, Members of the Board and its Committees
• Approved the revised vision and mission statements

Climate Goals & Targets

Environmental Challenges

• Reduction in sales due to outbreak of Covid-19 pandemic
• Decrease in dividend income
• Decrease in exchange gain on foreign currency
• Decrease in export sales due to unfavorable quantity variance because of lockdown in USA, Europe and China
• Rising cost and un-availability of energy
• Currency risk
• Cotton Supply and Price fluctuations
• Export Demand and Price fluctuations
• Interest rate risk
• Credit risk
• Liquidity risk

Mitigation Strategies

• Reconsidered cotton buying strategy due to rising trend in cotton prices
• Closely watched the dynamics of local and international cotton markets
• Building strong relations with customers, broadening customer base, developing innovative products, providing timely deliveries
• Opted for diversified fuels (coal, furnace oil, bio-mass, diesel, solar energy)
• Installed power plants for generating electricity at all locations
• Secured electricity connections from WAPDA
• Improved cashflows from operations
• Reduction in average bank borrowing rate and decrease in average short term borrowings
• Procurement of cotton in bulk at the start of the harvesting season
• Maintaining low leveraged capital structure
• Keeping gearing ratio at the maximum of 40% equity and 60% debt
• Maintaining sufficient cash and availability of funding through committed credit facilities

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Occupational Safety and Health
• Community Welfare
• Equal Opportunity Employer
• Environment Protection
• Waste Recycling
• Energy Conservation
• Corporate Governance

Environmental Achievements

• Existing solar power generation capacity is 3.54 MW. Installation of further 3.20 MW solar power plant at Spinning Division, Feroze Watwan is underway.
• Projects of 7.63 MW solar power plants are under acquisition and installation phase.
• Installed water treatment plants, cotton recycling plants and oil recycling machines at different sites to recycle the water, waste cloth and oil for maximum saving of natural resources.
• Installed LED lights, powerless ventilators, solar power plants, natural lights (solatubes), solar water heating systems and waste heat recovery units at our production facilities.

Social Achievements

• Supported CARE Foundation, an NGO, to establish a school of 1,000 children at Bhikki in 2011.
• Arranged training of thousands of young people each year.
• Arranged medical camps for malaria, typhoid, dengue, eye sight and polio vaccination for workers, their families and general public living near manufacturing facilities.
• Established dispensaries under the supervision of qualified doctors at its mills which are equipped with ambulances.
• Provide equal opportunity for employment and career progression to women, disabled and minorities.
• All Board committees are headed by female directors. Women also occupies senior management positions who actively formulate and control strategic direction of the Company.

Governance Achievements

• Follows the best practices relating to corporate governance and complies with all the relevant requirements of Companies Act, 2017 and the Listed Companies (Code of Corporate Governance) Regulations, 2019 (the “Code”) with respect to composition, meetings and procedures of the Board of Directors (the “Board”) and its Committees.
• Developed a mechanism for annual evaluation of Board’s own performance, Members of the Board and its Committees in compliance with the provisions of Listed Companies (Code of Corporate Governance) Regulations, 2019.
• Successfully achieved targets and objectives set for the growth of the Company.

Climate Goals & Targets

Environmental Challenges

• Significant increase in raw material cost
• Adverse impact of coronavirus pandemic
• Shortage of local cotton, ban on imports from India and increase in the rates of imported cotton
• Covid-19 pandemic on demand of textile products
• Disproportionate increase in cotton prices as compared to yarn prices
• Multiple waves of coronavirus in Europe
• Imposition of coronavirus restrictions all over the world
• Drastic currency revaluation, increase in raw material prices and rise in freight lines charges
• Continuously rising prices of cotton

Mitigation Strategies

• Procuring major portion of its required cotton stocks by the end of October 2020
• Building strong relations with customers, broadening our customer base, developing innovative products without compromising on quality and providing timely deliveries to customers
• Opting for diversified fuels such as coal, furnace oil, bio-mass, diesel along with solar energy
• Taking measures to conserve energy at all manufacturing facilities
• Installing power plants for generating electricity at all locations along with securing electricity connections from WAPDA
• Re-evaluated its operations and processes, and successfully implemented improvements

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Companies Act, 2017, Listed Companies (Code of Corporate Governance) Regulations, 2019

Certifications: Oeko Tex Standards 100, C-TPAT Certification, SA-8000, WRAP and SEDEX certifications

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment Protection
• Community Welfare Schemes
• Equal Opportunity Employer
• Occupational Safety and Health
• Waste Recycling

Environmental Achievements

• Currently, 4.34 MW of electricity is generated from solar power plants and projects of 9.86 MW are under acquisition and installation phase.
• Established Effluent Water Treatment Plants to treat waste water before its discharge in order to preserve clean water sources.

Social Achievements

• A clean-up activity was organized on World Environment Day to encourage our employees and the local community about the importance of keeping our surrounding clean.
• A week-long training session on Gender-Based Violence was conducted for our management and production employees in collaboration with UN Women.
• Medical camps for malaria, typhoid, dengue, eye sight and polio vaccination for workers, their families and general public living near manufacturing facilities.
• Established dispensaries under the supervision of qualified doctors at its mills which are equipped with ambulances.
• Signed an MOU with the United Nations (UN) Women to promote gender equality and empower women at workplace.
• Expanded and upgraded our day-care facilities in our offices and mills to provide relief to working mothers.

Governance Achievements

• The Board ensures implementation of the best corporate governance practices and compliance with all prevailing regulatory requirements.
• The Board has constituted adequate number of Committees like Audit Committee and Human Resource and Remuneration Committee.

Climate Goals & Targets

Environmental Challenges

• Huge increase in raw cotton prices
• Increase in RLNG rate
• Shutdown of gas supply
• Disruption in global supply chain
• Covid-19 pandemic
• Rising cost and un-availability of energy i.e. electricity and gas shortage
• Currency risk
• Interest rate risk
• Credit risk
• Liquidity risk
• Devastating floods which have ruined most of cotton crop

Mitigation Strategies

• Procurement of major cotton stock in bulk at the start of the harvesting season
• Building strong relations with customers, broadening our customer base, developing innovative products without compromising on quality and providing timely deliveries to customers
• Opted for diversified fuels such as coal, furnace oil, bio-mass, diesel along with solar energy. The measures to conserve energy have also been taken at all manufacturing facilities of the Company.
• Installing power plants for generating electricity at all locations of the Company along with securing electricity connections from WAPDA
• Efficient working capital management, cost reduction strategies and a well-diversified investment portfolio

Supply Chain Management

Climate-Related Risks & Opportunities