Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health, Safety, and Environment
• Social Support to Community
• Employee Engagement
• Women Development and Gender Diversity
• Energy Conservation

Environmental Achievements

• Achieved best ever TRIR of 0.075 (Total Recordable Incident Rate) and 22.1 Million combined safe working hours.
• Planted 1,000 trees.
• Implemented Clean Development Mechanism (CDM) project at Nitric Acid Plant, resulting in significant reduction in GHG emissions (985,545 tCO2e abatement).

Social Achievements

• Contributed PKR 154 million towards welfare activities in health and education sectors.
• Launched Employee Volunteer Program (EVP).
• Supported local schools and community health initiatives.
• Conducted trainings for employees on various topics including safe driving and catering hygiene.

Governance Achievements

• Full compliance with the Code of Corporate Governance.
• Pakistan Credit Rating Agency (PACRA) upgraded long-term entity rating to AA- and short-term rating to A1+.
• Effective Internal Audit function operating within the framework of the Code of Corporate Governance.

Climate Goals & Targets

Environmental Challenges

• Severe gas shortage impacting operations.
• Reluctance of farmers to invest in Nitrogen fertilizers due to low commodity prices.
• Competition from new brands in the market.

Mitigation Strategies

• Ammonia De-bottlenecking and Capacity Enhancement Project to improve plant performance.
• Strengthened distribution network to ensure product availability.
• Effective marketing and technical services to educate farmers and promote product benefits.

Supply Chain Management

Supplier Audits: Over 650 audits conducted for dealer shops.

Responsible Procurement

• Product stewardship program under IFA’s Protect and Sustain Program.

Climate-Related Risks & Opportunities

Physical Risks

• Climate change and water scarcity impacting agriculture.

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007

Environmental Metrics

ESG Focus Areas

• Health, Safety, and Environment (HSE)
• Corporate Social Responsibility (CSR)
• Women Development and Gender Diversity
• Employee Engagement
• Sustainability

Environmental Achievements

• Achieved ISO 14001:2004 (Environmental Management Systems) certification.
• Achieved OSHA compliance at level 3.6 (DuPont certification).
• Ammonia plant revamp increased capacity by 10% and improved energy efficiency.
• Implemented Clean Development Mechanism (CDM) project at Nitric Acid Plant, reducing GHG emissions.
• Planted 14,000 trees.

Social Achievements

• Launched employee wellness program "Feel Well Do Well."
• Increased CSR contributions towards health and education sectors.
• Supported charitable institutions with PKR 226 million investment.
• Operated Fatima Sarsabz School with 110 students.
• Provided Earthquake Relief Drive worth PKR 3.5 million.

Governance Achievements

• Maintained AA- long-term and A1+ short-term entity ratings (PACRA).
• Maintained AA- long-term and A-1 short-term rating (JCR-VIS).
• Implemented a robust Risk Management Division.
• Established and promulgated the "Whistle Blowing Policy."
• Achieved ISO 27001:2013 (Information Security Management System) certification.

Climate Goals & Targets

Environmental Challenges

• Difficult period in Pakistan’s agricultural sector leading to lower sales.
• Continuous drop in crop prices.
• Increase in fertilizer prices to mitigate impacts of gas price increase.
• Delay in implementation of the Farmer Relief Plan and “Kissan Package” announced by Government.
• Rumors of reversal of Urea price increase.

Mitigation Strategies

• Undertook De-Bottlenecking project and other efficiency measures to improve production.
• Launched marketing initiatives to promote brand awareness and increase sales.
• Implemented cost optimization measures.
• Developed alternative sourcing strategies (not explicitly stated, but implied by actions).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Climate changes and water scarcity impacting agriculture

Transition Risks

• Continuing energy crises

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007, ISO 27001:2013

Third-party Assurance: Deloitte Yousuf Adil Chartered Accountants

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• British Safety Council - International Safety Award

Environmental Metrics

ESG Focus Areas

• Health, Safety, and Environment (HSE)
• Women Development and Gender Diversity
• Social Support to Community
• Sustainability

Environmental Achievements

• Reduced KPIs (Paper, Power & Waste) by more than 5% in 2016 through WWF Green Office Program
• Energy saving of 1008 MWHr during the winter season by installing VFDs at new cooling tower
• 2,196 MWHr energy conserved by taking Cooling Water Booster pump offline during 2016 summer
• Steam optimization of 19.2 MT/Day by studying O&U De-aerator pressure & dissolved oxygen

Social Achievements

• Launched "Wall of Kindness" in Multan providing clothes, shoes, and other necessities to the poor
• Iftar Drive providing food and drinks to over 500 individuals in General Hospital, Lahore
• Spent Rs. 49 million on various education projects (donations, in-kind support, scholarships)
• Fatima Vocational Centre, Sadiqabad, trained 60 girls in two batches in knitting, sewing, grooming, and cooking

Governance Achievements

• Compliance with the Code of Corporate Governance
• Successful completion of Ammonia Revamp and Debottlenecking Project
• Repaid entire outstanding portion of expensive loans with proceeds from issuance of Sukuk certificates
• Established a new Risk Management Division

Climate Goals & Targets

Environmental Challenges

• Oversupply, price fluctuations, subsidy execution, and climbing inventories in the fertilizer industry
• Poor crop prices leading to deterioration in farmer economics
• Delayed announcement of subsidy muffled off-take in the first half of the year
• Reduction of DAP prices in the international market impacted NP prices

Mitigation Strategies

• Well-planned and efficiently organized marketing strategies
• Improvement of plant reliability and operations
• Effective market penetration strategies for NP
• Issuance of Sukuk certificates to repay expensive loans

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Climate changes and water scarcity impacting agriculture

Transition Risks

• Continuing energy crises

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007, DuPont Process Safety Management (Compliant at level 3.6)

Third-party Assurance: Deloitte Yousuf Adil Chartered Accountants

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Health, Safety, and Environment (HSE)
• Corporate Social Responsibility (CSR)
• Women Development and Gender Diversity

Environmental Achievements

• Achieved Excellence level 4.0 in DuPont Safety Ratings (OSHA system of USA)
• Achieved 42 million safe working hours (a record in the domestic fertilizer industry)
• Reduced energy index at the Ammonia Plant by 0.15 Gcal/MT
• Reduced natural gas consumption through various initiatives
• Recycled effluent water for horticulture purposes
• Reduced use of plastic bottles in offices

Social Achievements

• Graduation of fifth batch of female vocational training students at Fatima Vocational Training Centre
• Establishment of women enabling platform "SHEMATERS"
• Donated PKR 582,029,308 in charitable donations to health and education sectors
• Launched Fatima Mobile Clinic providing door-to-door medical services
• Implemented Employee Volunteer Program (EVP)

Governance Achievements

• Maintained long-term and short-term entity ratings at AA- and A1+ respectively by PACRA and AA- and A-1 by JCR-VIS
• Complied with all corporate and financial reporting requirements
• Implemented an Enterprise Risk Management function
• Successfully completed second ISMS Surveillance Audit, maintaining ISMS certification for three consecutive years

Climate Goals & Targets

Environmental Challenges

• Stiff market competition and pricing pressures
• Non-availability of gas at subsidiary company Fatimafert Ltd.
• Relatively new brand competing against established brands
• Dependence on single source of natural gas supply
• Imbalanced logistics support
• Climate changes and water scarcity impacting agriculture
• Continuing energy crises
• Volatile law and order situation
• Weak economic situation of farmers

Mitigation Strategies

• Productivity and efficiency enhancement initiatives
• Robust campaigning for CAN and NP
• Process improvements in production and technical operations
• Customer-focused marketing strategies
• Investment in efficiency and reliability improvement projects
• International collaborations for business development
• Exploring further investment opportunities
• Strengthening HSE culture
• Implementing risk mitigation strategies

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Climate changes and water scarcity impacting agriculture

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: DuPont Process Safety Management (Excellence Level 4.0), HACCP Food Safety Certification, ISO/IEC 17025, IFA Protect and Sustain Stewardship, IFC Performance Standards, ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007, WWF Green Office Program

Awards & Recognition

• Best Award from the Association for Talent Development, USA
• Top three philanthropist organizations by volume of donations (Pakistan Center for Philanthropy)
• NFEH International CSR Award (Education & Scholarships and Healthcare Initiatives)
• Recognition at the sixth international CSR Summit

Environmental Metrics

ESG Focus Areas

• Health, Safety, Environment
• Corporate Social Responsibility
• Talent Sustainability
• Sustainability

Environmental Achievements

• Achieved 77.35 Safe Million Man Hours (SMMH) for the three fertilizer manufacturing sites without any Lost Time Injury (LTI)
• Sadiqabad Plant won International Safety Award by British Safety Council, The Royal Society for the Prevision of Accidents (RoSPA) Gold Award, National Safety Council-USA Leadership Award and 17th Annual Environment Excellence Award.
• Planted more than eleven thousand trees
• Sadiqabad Plant achieved a world class Total Recordable Incident Rates (TRIR) of 0.03

Social Achievements

• Launched and implemented the company-wide Talent Recognition Program, acknowledging contributions of over 450+ employees.
• Employee engagement index (EEI) improved by 12% compared to 2019.
• Delivered over 17,400 training hours across the organization.
• Launched in-house learning platform “FG E-Learning” and partnered with LinkedIn Lynda.
• Mukhtar A. Sheikh Hospital provided exceptional healthcare services.
• Supported students of various educational institutes.

Governance Achievements

• Complied with the requirements of the Code of Corporate Governance.
• Established a transparent and formal process for ascertaining the remuneration of the directors.
• Reconstituted the Audit Committee, Human Resource and Remuneration Committee, and Nomination and Risk Management Committee.
• Maintained the long term and short term entity ratings at AA- and A1+ respectively by Pakistan Credit Rating Agency (PACRA).

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Locust attack
• Shortage of gas at Sheikhupura plant (8 months shutdown)
• Uncertain Government Policy Outlook regarding the fertilizer sector
• Weak economic situation of farmers

Mitigation Strategies

• Developed comprehensive business continuity strategies and practices to combat the virus.
• Aggressive strategies including capitalization of the “Salam Kissan” campaign and customer focus programs.
• Improvement in plant reliability and operations coupled with various cost optimization initiatives.
• Close coordination with the Government for early settlement of overdue GST refunds.
• Various cost / efficiency initiatives
• Implementation of robust Operating and maintenance discipline.

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: GRI G3.1

Certifications: DuPont Process Safety Management Excellence Level-4, HACCP Food Safety Certification, ISO/IEC 17025, IFA Protect and Sustain Stewardship, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, WWF Green Office Program

Third-party Assurance: Yousuf Adil Chartered Accountants

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 9th Annual International Corporate Social Responsibility Award (TPN)
• 12th Corporate Social Responsibility Awards 2020 (NFEH)
• International Safety Awards (British Safety Council)
• RoSPA Gold Award
• National Safety Council-USA Leadership Award
• 17th Annual Environment Excellence Award (NFEH)
• Pakistan Digital Award (PDA)

Environmental Metrics

ESG Focus Areas

• Health, Safety, Environment
• Corporate Social Responsibility
• Talent Sustainability

Environmental Achievements

• Sadiqabad plant achieved the Guinness World Records title for clocking 60.22 Million Safe Man-Hours
• Sadiqabad Plant sustained its Excellence level on DuPont’s Process Safety Management System (PSM)
• Sheikhupura Plant achieved Compliance level on DuPont’s PSM
• Planted more than twenty six thousand trees

Social Achievements

• Celebrated ‘Kissan Day’ and further strengthening its ‘Salam Kissan’ campaign
• Launched loyalty program, “Sarsabz Royals”, engaging dealer network
• Launched Digital Marketing initiatives
• Contributions to health, education and various welfare activities (Rs 713 million)

Governance Achievements

• Compliance with the Code of Corporate Governance
• Long-term and short-term entity ratings maintained at AA and A1+ respectively by PACRA

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Diminishing gas reserves
• Uncertain Government policy outlook
• Shortage of gas
• Economic situation of farmers
• Long pending tax refunds
• International situation post COVID-19

Mitigation Strategies

• Cost improvement measures
• Selling & marketing spend to ensure improved profit delivery
• Mitigation of inflationary pressure and the impact of rupee devaluation
• Continuous efforts towards manufacturing excellence
• Process improvement initiatives
• Enhanced focus on employee development
• Exploring further opportunities both inside and outside the fertilizer sector

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, IFA Protect and Sustain Stewardship, WWF Green Office Program

Awards & Recognition

• Guinness World Records for 60,220,000 safe man-hours
• British Safety Council Award
• RoSPA Gold Category Award
• International Fertilizer Association (IFA) Protect and Sustain Stewardship
• Quality Management System (QMS) ISO 9001:2015
• Environment Management System (EMS) ISO 14001:2015
• Occupational Health and Safety Management Systems (OHSAS) ISO 45001:2018
• WWF Green Office Program
• Fire and Safety Award by NFEH & PFPA
• 18th AEEA Award for Environment Excellence
• 7th International Summit Awards for EM and HSE
• Perfect Record Award by US National Safety Council
• Fire & Safety Excellence Award by National Forum for Environment & Health (NFEH)
• Annual Environment Excellence Award (AEEA)
• Best Tree Plantation Campaign Award by NFEH

Environmental Metrics

ESG Focus Areas

• Health, Safety, and Environment
• Talent Sustainability
• Corporate Social Responsibility

Environmental Achievements

• Sadiqabad plant achieved AWS International Water Stewardship Certification
• 104.6 combined Safe Million Man-Hours for three fertilizer plants
• Zero Total Recordable Injury Rate (TRIR)

Social Achievements

• Celebrated ‘Kissan Day’ and strengthened ‘Salam Kissan’ campaign
• Launched ‘Sarsabz Tabeer’ loyalty program for female farmers
• Provided flood relief to over 500 families

Governance Achievements

• Pakistan Credit Rating Agency (PACRA) upgraded long-term entity rating to AA+
• Compliance with the Code of Corporate Governance

Climate Goals & Targets

Environmental Challenges

• Economic and political instability in Pakistan
• Depreciation of Pakistani Rupee against US Dollar
• High inflation, rising fuel prices
• Supply chain disruptions due to climate change
• Retrospective imposition of Super Tax
• Below par performance of investment portfolio
• Unprecedented floods & rainfall impacting farmers' economics
• Non-availability of foreign exchange for import of raw materials

Mitigation Strategies

• Efficient utilization of resources
• Strategic allocation of resources
• Cost optimization efforts
• Improvement in plants’ efficiency and reliability
• Process improvement initiatives
• Enhanced focus on employee development
• Gas pressure enhancement project
• Investments in gas-related infrastructure

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• High rains and flash floods

Reporting Standards

Frameworks Used: GRI 3.1

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, AWS International Water Stewardship Certification

Awards & Recognition

• MARCOM International Marketing Award (2018)
• AVA Digital Award (2019)
• Pakistan Digital Awards (PDA) (2020, 2021, 2022)
• Asian Experience Award (Singapore) (2022)
• IFA Green Leaf Award (1st runner-up)
• British Safety Council International Safety Awards
• RoSPA Gold Category Award
• AEEA Award for Environment Excellence
• International Summit Awards for Health, Safety and Environment Performance
• Fire and Safety Award by NFEH and PFPA

Environmental Metrics

ESG Focus Areas

• Health, Safety, and Environment (HSE)
• Corporate Social Responsibility (CSR)
• Sustainability
• Employee Well-being
• Community Development
• Environmental Protection
• Governance and Ethical Practices
• Diversity, Equity & Inclusion (DE&I)

Environmental Achievements

• Achieved 75.1 million safe man-hours at Sadiqabad plant, 28.5 million at Multan plant, and 17.3 million at Sheikhupura plant with zero Total Recordable Incident Rate.
• Sadiqabad plant achieved near “Best in Class” in first Risk Based PSM Maturity Assessment by CCPSUSA.
• Multan Plant implemented DuPont Risk-Based PSM approach and Environmental Management System (EMS).
• Sheikhupura Plant achieved RoSPA Health & Safety Award and International Safety Award (ISA) 2023.
• Implemented ENCON project to conserve energy and reduce CO2 emissions at Multan plant.
• Sadiqabad plant secured AWS International Water Stewardship Certification.

Social Achievements

• Celebrated 5th Kissan Day with a campaign honoring farmers.
• Launched Sarsabz Tabeer to empower female farmers.
• Provided training to over 1,000 women in rural communities.
• Sarsabz Royals loyalty program achieved record breaking redemption (44% growth).
• Introduced innovative fixtures for branding retail shops.
• Executed 19 technical seminars and 4 Mega Farmer Conventions engaging over 3 million farmers.
• Recognized as the “Best Place to Work” in the Manufacturing and Engineering industry.
• Received NUST Best Engagement Award.

Governance Achievements

• Amalgamation of Pakarab Fertilizers Limited into Fatima Fertilizer Company Limited.
• Successfully completed a comprehensive restructuring through the Scheme of Compromises, Arrangements and Reconstruction.
• Maintained long-term and short-term entity ratings at AA+ and A1+ respectively by PACRA.
• Complied with the requirements of the Listed Companies (Code of Corporate Governance) Regulations, 2019.
• Implemented a robust Total Reward Strategy resulting in a 3% improvement in employee attrition.

Climate Goals & Targets

Environmental Challenges

• Challenging economic environment in Pakistan (high inflation, high interest rates, depreciating Pak Rupee).
• Gas price increase.
• Import embargos and limited availability of foreign currency.
• Uncertain government policy outlook.
• Shortage of gas and diminishing gas reserves.
• Weak economic situation of farmers.
• Volatile tax regime and long-pending tax refunds.
• Unstable economic and political environment.
• Climate change disrupting fertilizer consumption.

Mitigation Strategies

• Exploring indigenous sources of raw materials and in-house fabrication of capital spares.
• Exploring multiple investment avenues in manufacturing and services sectors.
• Actively planning to participate in corporate farming initiatives.
• Investing heavily in collaboration with other industry players to ensure gas supply.
• Engaged with the government for tax refunds, subsidies, and gas pricing determination.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI 3.1

Certifications: ISO 14001, ISO 9001, ISO 45001, AWS International Water Stewardship Certification, IFA Protect and Sustain Stewardship

Sustainable Products & Innovation

• New SKU of Sarsabz Nitrophos in 25 KG packaging

Awards & Recognition

• DRUM Award (London)
• Digital Leaders Award Pakistan
• Asian Experience Award (Singapore)
• Best Place to Work Award
• NUST Best Engagement Award
• Three Pakistan Digital Awards