Mahmood Textile Mills Limited
Climate Impact & Sustainability Data (2019-2020, 2020-07 to 2021-06)
Reporting Period: 2019-2020
Environmental Metrics
Total Carbon Emissions:1200 tCO2e reduction (from 3.5 MW solar PV)
Renewable Energy Share:Not specified, but 3.5 MW solar PV installed.
Total Energy Consumption:1840 MWh/year (from 3.5 MW solar PV)
ESG Focus Areas
- Renewable Energy
- Green Office
- Green Buildings
- Supply Chain Sustainability
- Water Conservation
- Waste Reduction
- Community Development
- Education
- Employee Well-being
- Workforce Diversity
Environmental Achievements
- Operating at a 3.5 MW solar PV, with a reduction in 1200 tons of CO2 footprint and 1840 MWh annual production.
- Reduction in paper usage through Human Resource Information Systems and ERP system archiving.
- Installation of 15 water filtration plants, catering to 166,000 people daily.
- Planting approximately 3,000 trees.
Social Achievements
- Launched welfare activities focusing on child education and clean drinking water.
- Running three schools in Kabirwala and one in Muzaffargarh with a subsidized model catering to 1,000 students.
- Sponsoring education funds to many deserving students.
- Organized Literacy Training Program for 300 low-literate skilled workers.
- Weekly upskilling trainings for women working at the mills.
- Distribution of food hampers and medical kits to health workers during the COVID-19 pandemic.
Governance Achievements
- Adherence to the principles of Corporate Governance mandated by the SECP.
- Implementation of all prescribed stipulations of the Listed Companies (Code of Corporate Governance) Regulations, 2019.
- Establishment of an effective internal audit function.
- Reconstitution of the board with 7 directors and a CEO, including the addition of one independent director and one female director.
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Add another 3.5 MW of solar PV before the closing of the next financial year.
- Reach 2000 participants in the Literacy Training Program by the end of the next fiscal year.
Short-term Goals:
- Plant 10,000 trees in the next financial year.
Environmental Challenges
- COVID-19 pandemic leading to production losses and decreased sales.
- Significant drop in yarn and fabric prices.
- Buyers refusing to lift contracted goods or insisting on revised rates.
- Increased debtors' turnover days.
- Bleak picture for local cotton production in 2020-21.
Mitigation Strategies
- Implemented a Post Traumatic Growth (PTG) strategy.
- Cut sales revenue during the mid-COVID period.
- Availed government and SBP facilities to ease cash flow and resume operations.
- Implemented a comprehensive strategy by adhering to Industrial SOPs for COVID-19.
- Placed an advanced Business Intelligence System for quicker and accurate reporting.
Supply Chain Management
Supplier Audits: Pilot audits conducted by qualified external auditors.
Responsible Procurement
- Using energy-efficient fans, reducing wastewater, and using compressed air for effective processing.
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: International Integrated Reporting Council (IIRC)
Certifications: Inditex (social audit)
UN Sustainable Development Goals
- Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2020-07 to 2021-06
Environmental Metrics
Total Carbon Emissions:2500 tCO2e reduction
Renewable Energy Share:7.0 MW solar PV (aiming for 2.5 MW more)
Total Energy Consumption:3700 MWh annual production
ESG Focus Areas
- Renewable Energy
- Green building
- Green office
- Tree Plantation
- conserving resources
- reducing waste
- Employee health & safety
- Women empowerment
- Education
- Clean drinking water
- Community development
Environmental Achievements
- Operating at a 7.0 MW solar PV, with reduction in 2,500 CO2 tons carbon footprint, 3,700 MWh annual productions and reduction in operating costs.
- MG Apparel facility in process of being recognized as LEED platinum certified.
- 25 water filtration plants installed, catering to 200,000 people daily.
- Approximately 10,000 trees planted annually.
Social Achievements
- Three schools established in collaboration with Care Foundation, providing free education to approximately 1,000 local students.
- 100% of workforce vaccinated against COVID-19.
- MG Apparel project achieved goal of enabling economic empowerment of 75% women.
- Literacy Training Program for 300 low-literate skilled workers.
Governance Achievements
- Full compliance with the requirements of the Code of Corporate Governance as contained in the Listing Regulations of Pakistan Stocks Exchange.
- Effective internal audit function established.
Climate Goals & Targets
Long-term Goals:
- Achieve zero carbon emissions goal.
Medium-term Goals:
- Convert existing buildings to GOLD/Silver LEED certification.
- Expand MG Apparel capacity to 35,000 units/day within 18 months.
- Add 35,328 spindles to existing production line.
Short-term Goals:
- Add another 2.5 MW of solar PV before the closing of next financial year.
- Improve waste management practices.
- Implement Green Purchase Policy.
Environmental Challenges
- Decreasing cotton production in Pakistan, leading to reliance on imported cotton and high production costs.
- Increase in GST on cotton by 7%, impacting liquidity and working capital.
- Potential upward revision of SBP policy rate.
- Supply chain disruptions due to COVID-19 pandemic.
Mitigation Strategies
- Strategic decision to reduce short-term investments.
- Wise procurement of a mix of local and imported cotton.
- Altered power consumption mix using natural gas, furnace oil, and solar panels.
- Investment in state-of-the-art machinery for cost efficiency.
- Implementation of COVID-19 SOPs and vaccination drives.
Supply Chain Management
Supplier Audits: Pilot audits conducted by qualified external auditors
Responsible Procurement
- Using energy efficient fans, LED lights, power monitoring systems, reducing wastewater, heat recovery from hot wastewater, use of hot water within the respective department, and using compressed air for effective processing.