Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Installation of a 12 MW waste heat recovery power plant at the Khairpur site.
• Use of waste collected from cities as an alternative fuel.

Social Achievements

• Created job opportunities for the local community.
• Provided free medical services and a dispensary at the sites.
• Provided free ambulance services and fire-fighting services to nearby areas.
• Supported various social and charitable causes.

Governance Achievements

• Compliance with the Listed Companies (Code of Corporate Governance) Regulations, 2019.
• Establishment of an effective internal audit function.

Climate Goals & Targets

Environmental Challenges

• Declining profitability in the cement industry due to dwindling local demand, rising production costs, and economic slowdown.
• Fierce competition due to increased cement production capacity.
• COVID-19 pandemic and resulting lockdown measures.
• Halt of cement exports to India due to import duties.

Mitigation Strategies

• Exploring new international markets for products.
• Bringing efficiencies in manufacturing processes and energy mix.
• Investing in waste heat recovery systems.
• Exporting clinker to contribute towards fixed costs and earn foreign exchange.
• Implementing a comprehensive risk-based compliance program.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Health and Safety
• Corporate Social Responsibility
• Environmental Protection
• Community Development

Environmental Achievements

• Installation of 10MW Waste Heat Recovery power plant at Hub site
• Installation of 30MW Coal Fired Power Plant at Hub site (operationalized after year end)
• Use of waste collected from cities as alternative fuel (partially)
• Plantation drive at all sites

Social Achievements

• Operation of two schools at DG Khan with 800+ students
• Free dispensary at all sites managing 10,000+ patients yearly
• Free ambulance services
• Job creation for local communities
• Charitable donations (water filtration plants, food distribution, support for Hindu Yatris)
• Free fire-fighting service for nearby areas

Governance Achievements

• Compliance with legal corporate governance practices
• Adherence to Integrated Reporting Framework
• Implementation of whistle-blowing policy
• Investors’ grievance policy
• Board’s annual self-evaluation

Climate Goals & Targets

Environmental Challenges

• Rising coal and other commodity prices
• Pressure on PKR/USD parity
• Volatile Afghanistan situation
• Tough competition in local market
• High taxation and duties
• High energy cost and inflation
• High interest rates
• Low exports of cement
• Covid-19 impact
• Supply chain disruptions

Mitigation Strategies

• Utilization of alternative energy sources (WHR, CFPP)
• Export of clinker to earn foreign exchange
• Cost optimization measures
• New export markets exploration
• Proactive risk management
• Robust treasury management system
• Advocacy through APCMA and other forums

Supply Chain Management

Responsible Procurement

• Purchasing packing material from subsidiary, Nishat Paper Product Company Limited
• Import of coal from South Africa

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Integrated Reporting Framework, IFRS, IFAS, Companies Act, 2017, Code of Corporate Governance Regulations, 2019

Certifications: ISO-9001-2015, ISO-14001-2015

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

Awards & Recognition

• Certificate of Merit in cement category in Best Corporate Report Award 2020

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon footprint through investment in Waste Heat Recovery (WHR) systems and the use of Refuse Derived Fuel (RDF) and other alternative fuels.
• Installation of 30 MW Coal Fired Power Plant at Hub site, making it self-sufficient in energy needs.
• Diversification of export markets, including securing orders from the USA.

Social Achievements

• Operation of two schools at DG Khan site with 800+ students.
• Provision of medical services to the local community through free dispensaries.
• Job creation and training opportunities for the local community.
• Donations and support for various social and charitable causes.

Governance Achievements

• Compliance with the Listed Companies (Code of Corporate Governance) Regulations, 2019.
• Implementation of a robust risk management framework.
• Establishment of an effective internal control framework, including an independent internal audit function.
• Implementation of IT governance and cybersecurity programs, policies, and procedures.

Climate Goals & Targets

Environmental Challenges

• Rising coal prices impacting cost of sales.
• Fluctuating exchange rates affecting income statement.
• Energy availability issues.
• Local demand fluctuations.
• High taxation and duties.
• High energy costs and inflation.
• High interest rates.
• Tough competition in the local market.
• Low cement exports.

Mitigation Strategies

• Maintaining stock levels and developing relationships with international coal suppliers.
• Replacing some coal with alternative fuels (RDF).
• Building captive power houses and installing WHR plants.
• Diversifying export markets.
• Negotiating freight costs.
• Hedging against FX losses.
• Negotiating loans at best possible spreads.
• Monitoring KIBOR and discount rates.
• Implementing cost optimization strategies.
• Continuous BMR and analyzing to eradicate operational inefficiencies.

Supply Chain Management

Responsible Procurement

• Long-term and constructive partnerships with key suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Infrastructure development in flood-affected areas

Reporting Standards

Frameworks Used: Integrated Reporting (IR) Framework, International Financial Reporting Standards (IFRS), Islamic Financial Accounting standards (IFAS), Companies Act, 2017, Code of Corporate Governance Regulations, 2019

Certifications: ISO 9001-2015, ISO 14001-2015

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

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 14: Life Below Water

DGKC's initiatives in education, health, community development, environmental protection, and alternative energy contribute to these SDGs.

Awards & Recognition

• Certificate of Merit in cement category in Best Corporate Report Award 2021