Melstacorp PLC

Climate Impact & Sustainability Data (01 April 2020 to 31 March 2021)

Better waste and energy management in manufacturing processes
Reducing carbon footprint through green initiatives
Reducing dependency on fossil fuels
Enhancing forest cover and food security through tree planting
Over 50% of bottles used for alcohol and spirits being recycled
Wastewater treatment plants and environmentally friendly effluent management system
Use of methane discharged during purification for factory consumption
Texpro using biomass thermic fluid heaters instead of fossil fuel consuming equipment

Compliance with all relevant provisions of the Code of Best Practice of Corporate Governance
Establishment of a governance structure aligned to laws and regulatory mandates
Board comprises eight Directors (three Executive, three Independent Non-Executive, two Non-Independent Non-Executive)
Board sub-committees identify and manage economic, environmental and social performance, including risks and opportunities, as well as compliance
Ongoing Board education to ensure Directors remain abreast of legislation and regulations

Significant social and economic disruption caused by the COVID-19 pandemic
Impact of the pandemic on the tourism sector
Import restrictions affecting businesses
Sharp depreciation of the Sri Lankan rupee
Losses in telecommunication subsidiaries
Depressed economic environment hindering divestiture of investments
Increased production costs within the tea and rubber sectors
Rising input costs, diminishing workforce, declining productivity, and uneconomic age profile in tea bushes
Impending ban on the import of chemicals and fertilizer
Declining revenues from fixed-line voice business in telecommunication sector
Low pricing, high taxes, and ever-increasing operational and capital expenditure in telecommunication sector
Restrictions on overseas travel affecting tourism and leisure industry
Continuous interruptions in business and drop in demand for garments in textiles sector
Reduced unit price for electricity generated by Bogo Power
Depreciation of the rupee, increased freight cost, and inability to open site letters of credit hampering Melsta Gama operations
Possible further depreciation of the Sri Lankan rupee and a third wave of the pandemic

Restructuring business procedures to meet challenges posed by the pandemic
Prudent claim management and control of overheads in financial services
Turnaround in performance of plantation subsidiaries through good agricultural practices and cost control
Expanding the scope of services in the health sector
Melsta Laboratories becoming a key player in providing PCR tests
Reducing both direct and indirect costs in leisure sector to mitigate losses from low occupancy
Prudent management of fixed costs, reduction in bank interest rates, and efficient management of working capital in textiles sector
Aggressive base station optimisation plan in telecommunication sector
Introducing solutions for efficient virtual operations and customer service in financial services
Waste to energy plant commissioned by Aitken Spence

Supplier Policy ensures a level playing field and equal opportunities for all suppliers
Procedures to ensure responsible behaviour towards suppliers
Emphasis on good corporate conduct, responsible sourcing, and production of quality products
Permeating best practices to the entire supply chain

Climate Change Data