Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Profit

Environmental Achievements

• Expanded forestation to 200 hectares in Punjab and Khyber Pakhtunkhwa.
• Rehabilitated mangrove plantation along the shoreline.
• Developed and promoted water conservation technologies (drip irrigation, PVC geomembrane).

Social Achievements

• Flood relief initiatives, including medical camps treating over 27,000 victims and providing clean drinking water.
• Launched technical education scholarship program for community children.
• Supported community schools and conducted sessions with teachers and parents to improve education quality.
• Organized Environment & Education Festival at Port Qasim.
• Company-wide Hepatitis B vaccination camp.

Governance Achievements

• Signed the UNGC Global Compact.
• Maintained ISO 14001, ISO 9001:2000, and Investors in People certifications.
• Aligned governance framework to industry best practices.

Climate Goals & Targets

Environmental Challenges

• Limited availability of VCM, impacting PVC production and margins.
• Decline in domestic PVC sales volume.
• Incremental costs associated with new investments resulting in losses.

Mitigation Strategies

• Initiated PVC exports to counter lower domestic demand.
• Focused on operating integrated facility at design level to obtain full economic benefits.
• Developed and promoted High Efficiency Irrigation System (HEIS) to address water scarcity and increase agricultural productivity.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference for local vendors where possible.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Application level A+

Certifications: ISO 14001:2004, ISO 9001:2000, Investors in People

Third-party Assurance: URS

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• High Efficiency Irrigation System (HEIS)
• PVC geomembrane for water conservation
• PVC pipes for various agricultural applications

Awards & Recognition

• ACCA-WWF Pakistan Environmental Reporting Awards (three consecutive years)
• Second place at the ICAP-ICMAP Best Corporate Report Awards 2009 (overall category); first place in the chemicals category

Environmental Metrics

ESG Focus Areas

• Ethics & Integrity
• Health, Safety & Environment
• Innovation & Risk Taking
• Our People
• Community & Society

Environmental Achievements

• Achieved a DuPont rating of 3.2 in Personnel Safety Management systems (PSM) audit and a rating of 3 in Process Safety and Risk Management (PSRM)
• Received ISO 14001 Certification in 2010 and again in 2011.
• Planted 5 acres of mangrove plantation.
• Implemented aerobic bacteria-based water treatment system for safe disposal of water.

Social Achievements

• Launched various water conservation projects including Demand Based Irrigation System and Mini Drip Micro Irrigation Schemes.
• Provided agricultural rehabilitation to flood-affected communities.
• Worked with Pakistan Army for installation of Hydro Power units in villages.
• Continued reforestation program launched in 2009.
• Conducted Employee Engagement Survey.

Governance Achievements

• Established Board Audit Committee (BAC) and Board Compensation Committee (BCC).
• Aligned governance framework with the code of Corporate Governance and industry’s best practices.
• Secured A+ in GRI self-evaluation.

Climate Goals & Targets

Environmental Challenges

• Fluctuation in PVC and Ethylene prices and demand.
• Energy crisis expected to influence PVC and Caustic Soda demand.

Mitigation Strategies

• Focus on obtaining full economic benefits despite challenging circumstances.
• Initiatives to reduce indirect energy consumption through carefully selecting energy-efficient materials and substituting phone/video conferences for travel.

Supply Chain Management

Responsible Procurement

• Preference for local vendors where possible.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 14001, ISO 9001-2008

Third-party Assurance: United Registrar of Systems Ltd. (URS)

Awards & Recognition

• Second position at the ICAP-ICMAP Best Corporate Report Awards 2011
• Best Environment & Sustainability Report Awards from ACCA-WWF Pakistan

Environmental Metrics

ESG Focus Areas

• Water Conservation
• Health, Safety, and Environment (HSE)
• Community Development
• Education
• Innovation
• Ethics and Integrity
• Employee Engagement

Environmental Achievements

• Achieved a Total Recordable Injury Rate (TRIR) of 0.12
• Improved PVC-1 plant capacity by 6,000 MT through the Hot Water Charging project
• Planted 5 acres of mangrove plantation
• WWF Green Office certification for Plant, Port Qasim
• No NEQS excursions reported in 2013

Social Achievements

• Launched Hydrochloric acid (HCl) and captured significant market share
• Sponsored 24 youths for City & Guilds Standard Technical Training at Hunar Foundation
• Signed an MOU with the Citizens Foundation to set up a school
• Launched Lean Six Sigma with Motorola Solutions – 25 Green Belt projects initiated
• Employee Engagement Index increased by 44% from 2011 to 46 in 2013
• 100% of employees received regular performance and career development reviews

Governance Achievements

• Established Board Audit Committee (BAC) and HR & Remuneration Committee (HRC)
• Implemented SAP software to automate processes and reduce errors
• Received SAP & Siemens Award for ‘running more efficiently with SAP’
• 100% compliance with HSE Policy & programs
• Risk based control program in place governed by the Board Audit Committee

Climate Goals & Targets

Environmental Challenges

• Process upsets at the start of the year impacting PVC production (94% of plan)
• Energy crisis expected to present a challenge in 2014
• High international Ethylene prices due to high crude oil prices and geopolitical tensions

Mitigation Strategies

• Hot Water Charging project on PVC improved plant capacity from August onwards
• Foreign exchange risk management strategy realigned
• Lean Six Sigma launched to improve process efficiency
• Focus on safe and stable plant operations and improving operational efficiencies

Supply Chain Management

Responsible Procurement

• Preference for local vendors where feasible

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI) Framework, UN Global Compact (UNGC)

Certifications: ISO 14001, ISO 9001-2008, WWF Green Office (Head Office and Plant)

Third-party Assurance: United Registrar of Systems (URS)

Awards & Recognition

• SAP & Siemens Award for ‘running more efficiently with SAP’
• Best Corporate Report award nominations (2009-2011)

Environmental Metrics

ESG Focus Areas

• Renewables
• Carbon Offsetting & Emissions Reduction
• Water Conservation
• Plastic Recycling

Environmental Achievements

• Pakistan’s first water recycling plant in an integrated chemical complex
• Chlorine dioxide facility – conserving water for sustainable operations
• Circular Plastics program to reduce single use plastics
• First carbon neutral Ethylene voyage in Asia
• Work towards carbon neutrality as a long term goal

Social Achievements

• 20,000+ patients treated in 2021 free of charge
• 500 students in Ghagar Phatak area provided with quality primary education in 04 schools
• PKR 22M spent on clinic for primary healthcare
• 5 million liters of clean drinking water provided to 25K residents via 05 water filtration plants on solar power
• 16M+ safe manhours completed without LWI

Governance Achievements

• Successfully completed key projects: PVC expansion to 300 KTA, VCM debottlenecking and OneSAP (Digitization)
• Secured TERF financing to the tune of PKR3.65 BN

Climate Goals & Targets

Environmental Challenges

• Gas supply challenges
• COVID-19 disruptions
• Operational issues, longer than expected turnarounds, disruptions caused by climate events and higher freight costs
• Reliable supply of gas will continue to pose a major challenge for the overall chlor alkali business

Mitigation Strategies

• Oxy Vent Recycle (OVR) project nearing completion to improve raw material efficiency ratio and limit imports
• Progress on High Temperature Direct Chlorination (HTDC) project expected to bring further energy efficiencies and reduce carbon dioxide emissions (commissioning in 2023)
• Hydrogen Peroxide project (strategically aligned with Chlor Alkali business) expected to come online in 2023

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Disruptions caused by climate events

Awards & Recognition

• Best Corporate & Sustainability Report Awards: 2nd in Chemical sector, 3rd overall
• 3rd position at South Asian Federation of Accounts (SAFA BPA Awards)
• 5 awards at GDEIB across different categories
• 3 awards at 7th International Environment, Health & Safety Awards
• Only South Asian finalist at IChemE Global Awards 2021

Environmental Metrics

ESG Focus Areas

• Health, Safety & Environment
• Community Development
• Sustainability
• Diversity & Inclusion
• Circular Economy

Environmental Achievements

• Successfully commissioned the Oxy Vent Recycle (OVR) Project, reducing leakages by 44%
• Planted 280 trees onsite
• Developed a consolidated waste register to track all types of waste generated onsite
• Progressing on track to deliver its Hydrogen Peroxide plant and other efficiency projects aimed at reducing carbon footprint and improving energy efficiency.
• Collaboration with KSBL with the Circular Plastics Institute to catalyze a circular economy for plastics in Pakistan.

Social Achievements

• Highest-ever ratio of diverse inductions into trainee programs (37% female GTEs and 50% female TAEs)
• Successfully completed the first-ever ENableall internship program for differently abled persons
• Established a healthcare facility in the Ghaggar Pathak area treating 31,000+ patients
• Operates three primary schools and one micro-school, providing education to 580 students (28% girls)
• Operates 5 water filtration plants providing over 7 million liters of clean drinking water

Governance Achievements

• Maintained strictest compliance to high standards of operational safety (TRIR at 0.1)
• Improved long-term credit rating to AA (PACRA), maintaining short-term rating at A1+
• Established a rigorous Code of Conduct with mandatory training for all employees
• Implemented Risk Alive, an AI-based risk prioritization and management approach
• Successfully implemented key performance indicators after benchmarking with international best practices

Climate Goals & Targets

Environmental Challenges

• Adverse local macroeconomic developments and gas availability issues
• Sharp decrease in global PVC prices due to recessionary pressures
• Devastating floods impacting economic activity
• High headline inflation and depleting foreign reserves
• Uncertainty over gas availability, especially during winter
• PVC dumping despite anti-dumping duty
• Increasing impediments to establishing import Letters of Credit
• Supply chain disruptions and delays in equipment delivery

Mitigation Strategies

• Contracting the supply of RLNG to ensure continuous production
• Implementing a competitive pricing mechanism and customer engagement efforts
• Stringent cost controls, strategic raw material sourcing, and procurement optimization
• Investing in efficiency projects
• Liaison with government through different forums
• Replenished stock through local stockists
• Developing a consumption rationalization plan
• Assessing in-house/local manufacturing and local market support
• Presenting a case to SBP highlighting the criticality of parts

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme and extended monsoon seasons
• Rising fog in winters
• Scarcity of water

Transition Risks

• Gas supply unavailability
• Volatility in international commodity prices

Opportunities

• Alternative energy sources and energy efficiency projects

Reporting Standards

Frameworks Used: International Financial Reporting Standards (IFRSs), Listed Companies Code of Corporate Governance, 2019, Pakistan Stock Exchange listing regulations, Best practices on corporate reporting promoted by ICAP, ICMAP, and SAFA

Third-party Assurance: A. F. Ferguson & Co. Chartered Accountants

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 6: Clean Water and Sanitation
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation, and Infrastructure
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

EPCL's initiatives in education, healthcare, water filtration, job creation, digital transformation, sustainable projects, and environmental conservation contribute to these goals.

Awards & Recognition

• PSX Top 25 Companies Award
• 11 Global Diversity & Inclusion Benchmark (GDIB) Awards
• Account Response Rate Leader Award
• Gender Diversity Award
• Customer Gauge Award
• 3 CSR Awards
• Best Corporate Report Award (2nd position)
• Best Presented Annual Report (joint Silver award)
• Risk Alive Inspire Award
• Top 10 Best Practice Case Studies Award
• Best Case Study Award from ILO
• Gender DEI Toolkit