Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Received 6th Annual Environment Excellence Award 2009 from the National Forum for Environment and Health (NFEH)
• Instituted paper and waste recycling within the organization
• Implemented measures to reduce water consumption
• Achieved ISO 14001 certification
• New gas turbine project commissioned, reducing CO2 emissions by 72 tons per day
• Eliminated use of hazardous chromium in cooling water system

Social Achievements

• Undertook numerous projects within the organization and community through the CSR team
• Worked with several reputable NGOs on various projects
• Instituted health and hygiene awareness sessions
• Held weekly free health camps for women
• Sponsored eye camps, providing free treatment and cataract surgeries
• Donated water filtration plants to the Children's Hospital and villages near the plant
• Sponsored vocational training programs for boys and girls
• Provided internship opportunities for university students
• Organized factory visits for students
• Provided Hajj and Umrah opportunities for employees
• Provided emergency relief to IDPs of Swat and Wana

Governance Achievements

• Complied with all corporate and financial reporting requirements of the Code of Corporate Governance
• Established an audit committee with four members
• Held at least one Audit Committee meeting per quarter
• Established an effective internal audit function
• All related party transactions were on an arm's length basis and reviewed by the Audit Committee and Board of Directors
• Annual Report 2008 won 4th position in Chemical & Fertilizer category

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown
• Energy crisis
• Security situation in the country
• Gas load shedding and restricted supply of gas
• Availability of DAP and other Urea substitutes
• Obsolescence
• Impairment loss on short-term investments
• Decline in share of profit from associate

Mitigation Strategies

• Risk management system
• Hedging
• Business planning
• Succession planning
• Training
• Internal audit
• Comprehensive insurance cover
• Technical studies to maximize plant production and energy efficiency

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• 6th Annual Environment Excellence Award 2009
• National Environment Excellence Award 2009

Environmental Metrics

ESG Focus Areas

• Food Availability and Affordability
• Energy Availability and Affordability
• Sustainability
• Diversity
• Integrity
• Teamwork
• Accountability
• Commitment to Excellence

Environmental Achievements

• 217 MW power plant in Qadirpur utilizes permeate gas for reduced carbon emissions

Social Achievements

• CSR Relief activities for Thar drought victims
• Solar panel installation at TCF school in Hub
• Women’s Health Camp
• e-education program
• LRBT eye camp
• Blood Donation Drive
• Beach Cleanup

Governance Achievements

• Best Corporate Governance Award 2014, World Finance, London (Engro)

Climate Goals & Targets

Environmental Challenges

• Gas supply shortage to DH Fertilizers, resulting in reduced urea production
• Losses in rice portfolio due to commodity price crash, rupee appreciation, and reduced competitiveness
• Tough external environment for Engro Foods (higher commodity prices, inflation, competition)

Mitigation Strategies

• Engro Fertilizers accelerated deleveraging
• Engro Foods focused on core business, improving revenue and profitability
• Engro Eximp restructuring and cost controls
• Negotiations with Pakarab Fertilizers for out-of-court settlement

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Best Corporate Governance Award 2014, World Finance, London (Engro)
• KSE Top 25 Companies Award, 2010 (Dawood Hercules Corporation)
• Investor Relations Award 2014, 11th CFA Pakistan Annual Excellence Awards (Engro)
• Corporate Social Responsibility Award (Hubco)
• Engro declared the Best Coordinator for Green Office by WWF Finland

Environmental Metrics

ESG Focus Areas

• Food and Energy security
• Sustainability
• Diversity
• Teamwork
• Accountability
• Commitment to Excellence
• Integrity

Environmental Achievements

• Commissioned Tenaga Generasi Limited (TGL) wind power plant on October 11, 2016, which dispatched 18 GWh of energy by year-end.
• Engro Foods increased milk yields by approximately 20% since inception.
• Sindh Engro Coal Mining Project (SECMC) commenced dewatering of aquifers in the first quarter of 2017.

Social Achievements

• The Dawood Foundation (TDF) launched a campaign on educating people and creating awareness regarding mental illness in society.
• TDF launched Magnifi-Science Exhibition, attracting over 40,000 visitors.
• Engro Fertilizers' Rahbar project aims to benefit 500,000 farmers through knowledge-based interventions.
• SECMC created over 1,000 jobs.

Governance Achievements

• Compliance with the Code of Corporate Governance.
• One more director completed the Corporate Governance Leadership Skills Program.

Climate Goals & Targets

Environmental Challenges

• Subdued urea prices due to a slump in the global commodity market.
• Intense competition and new entrants in the dairy sector.
• Government taxation on the dairy sector.
• Oversupply in the urea market.
• Regulatory duty on imported dairy powder.
• Auto power transformer failure at the power purchaser end for Engro Powergen Qadirpur Limited (EPQL).
• Complex regulatory environment in Pakistan impacting growth.
• Tax on intercorporate dividends reducing expansion incentives.
• Onerous reporting requirements discouraging international investment.

Mitigation Strategies

• Engro Corp divested majority investment in Engro Foods to Friesland Campina, retaining significant ownership.
• Engro Fertilizer absorbed most of the increased cost of production due to regulatory duty and passed very small amounts to consumers.
• Engro Fertilizer allocation of 26 MMSCFD of gas will contribute to its profitability.
• Post-acquisition by RFC, Engro Foods will benefit from their experience, research background, and innovation.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• PSX Top 25 Companies Award 2015