Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Climate
• Water
• Energy
• Waste
• Product
• Packaging

Environmental Achievements

• Reduced carbon footprint by 9% (compared to 2020 baseline)
• Reduced water withdrawal by 1% (compared to 2020 baseline)
• Reduced food waste by 14% (compared to 2020 baseline)
• Increased recycled material use in products to 28% (from 2020 baseline of 20%)
• 1.03 MW solar power installed in Pakistan

Social Achievements

• Reduced safety-related incidents by a significant amount (specific percentage not explicitly stated, but a 60% reduction was targeted for 2023)
• Improved gender diversity to 33% (from 32% in 2020)
• Conducted 13,340 hours of soft skills training for employees in Pakistan
• Contributed US$ 2.80 million to 38 different organizations for community support

Governance Achievements

• Established a comprehensive governance framework mimicking that of a publicly listed entity
• Implemented a robust risk management framework aligned with COSO principles
• No non-compliances on the social and economic front in all operating regions

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption by 15% due to 13% production increase
• Increased waste generation by 5%
• Challenges in managing the environmental impact of products from raw material sourcing to end-of-life disposal
• Supply chain disruptions (implied)

Mitigation Strategies

• Investing in energy-efficient equipment and alternative energy projects (solar, wind, hydro)
• Implementing energy conservation drives and process improvements
• Exploring options to switch to more environment-friendly raw materials
• Implementing the 5R approach (Reduce, Remove, Refuse, Reuse, Recycle) for waste management
• Working with supply chain partners to reduce packaging waste and explore sustainable options
• Developing Effluent Treatment Plants (ETPs)

Supply Chain Management

Supplier Audits: 9 SEDEX audits (2021)

Responsible Procurement

• Supplier Code of Conduct
• Periodic supplier reviews and assessments
• Working with suppliers to manage supply chain disruptions

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather patterns, floods, and droughts

Transition Risks

• Government policy shifts

Opportunities

• Transitioning to low carbon technologies, exploring energy efficiencies and innovation

Reporting Standards

Frameworks Used: GRI Standards (Core level)

Certifications: ISO 14001, ISO 45001, ISO 9001, GRS (Global Recycle Standard), BCI (Better Cotton Initiative), RCS (Recycled Claim Standard), OEKO-TEX, SEDEX

Third-party Assurance: Sustainability Pty Ltd., Australia

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Products using recycled materials, organic cotton, biodegradable materials

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• People
• Climate
• Water
• Energy
• Waste
• Products
• Packaging

Environmental Achievements

• GHG Emission reduced by 23% to 55,838 Tons CO2e
• Energy Consumption reduced by 5% to 1,169,559 GJ
• Renewable Energy increased by 20% to 618,292 GJ
• Water Withdrawal reduced by 21% to 1,197 ML
• Recycle Materials consumption increased by 16% to 11,467 Metric Tons
• Waste Generated reduced by 6% to 6,409 Metric Tons
• Food Waste reduced by 46% to 59 Metric Tons
• Plastic in Packaging reduced by 46% to 338 Metric Tons

Social Achievements

• Gender Diversity increased by 2% to 34%
• Women in Management increased by 2% to 17%
• Safety Incidents reduced by 25%
• Training Hours 19.18 hours per employee - 205,706 total training hours
• Contributed US$ 3.8 million to charitable causes

Governance Achievements

• No critical concerns reported for 2022
• Implemented a group-wide Supplier Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Increase in electricity consumption, biomass consumption, and an overall reduction in output
• Bringing about mindset change within the organization regarding sustainability

Mitigation Strategies

• Several awareness drives, culminating in a sustainability week
• Advisory Board reviewing performance against three-year targets at quarterly board meetings
• R&D team developed a solvent-free process for highest volume product

Supply Chain Management

Supplier Audits: 54% of top 236 suppliers screened in 2022

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 9001, ISO 14001, ISO 50001, ISO 45001, ISO 13485, ISO 27001, OEKO-TEX ® 100 Standard, WWF Green Office, 5S, Global Recycled Standard (GRS), Recycled Claim Standard (RCS), SMETA 4-Pillar, Organic Content Standard (OCS), Global Organic Textile Standard (GOTS), Better Cotton Initiative (BCI)

Third-party Assurance: Corporate Social Responsibility Centre Pakistan

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 15

Sustainable Products & Innovation

• eco-friendly SplendorTM
• eco-friendly Splendor TM Winter
• eco-friendly Splendor TM Lite
• eco-friendly PU
• eco-friendly ANR (Advanced Natural Rubber)
• eco-friendly NRS (Natural Rubber Sponge)
• eco-friendly PFT Cut DA5
• eco-friendly PU Cut DA4
• eco-friendly Splendor TM Cut

Awards & Recognition

• Best Digitalization Process Enabler of the Year - NBQSA 2022
• Silver Award winner in the Manufacturing, Engineering, and Construction Industrial Category - NBQSA 2022

Environmental Metrics

ESG Focus Areas

• People
• Climate
• Water
• Energy
• Waste
• Product Packaging

Environmental Achievements

• Overall greenhouse gas emissions reduced by 19% over 2020 vs the 20% target
• Water withdrawal reduced by 34%
• Energy consumption reduced by 15%
• Waste generated reduced by 15%
• Plastic in packaging reduced by 51%
• Food waste reduced by 75%

Social Achievements

• Increased women in management to 19% (target 15%)
• Training hours per employee increased to 21.88 (target 18)
• Significant reduction in safety-related incidents (close to 60% target)

Governance Achievements

• No critical concerns about legal or environmental issues reported in 2023
• No incidents of child or forced labor reported in 2023
• No reported non-compliance with environmental and social laws in 2023

Climate Goals & Targets

Environmental Challenges

• Replacement of HCFC equipment remains an area of focus
• Recycled material used in products remained low given the demand profile
• Target for reducing plastic consumption remains challenging
• Target for reducing waste generated from raw material packaging needs focus
• Gender diversity target not achieved due to downside in demand in regions with large female workforce

Mitigation Strategies

• Plan to achieve ‘0’ HCFC equipment by 2026
• Focus on waste generated from raw material packaging in 2024
• Continue to work with customers to achieve plastic consumption reduction target in coming years
• Increase renewable energy generation in 2024
• Promoting diversity, equity, and inclusion to improve gender diversity

Supply Chain Management

Supplier Audits: 44 major suppliers assessed for environmental aspects (31% of total); 76 assessed for social aspects (39% of total)

Responsible Procurement

• Supplier code of conduct focusing on human rights, labor practices, and environmental impacts
• Due diligence assessing safety and risks associated with purchased products

Climate-Related Risks & Opportunities

Physical Risks

• Cyclone
• Flood
• Water Scarcity
• Heat Wave

Transition Risks

• Regulatory Risk
• Technology Risk
• Market Risk
• Reputation Risk

Opportunities

• Resource Efficiency
• Cleaner Technology
• Eco-Friendly Products
• Circularity

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 45001 (seven units)

Third-party Assurance: Corporate Social Responsibility Centre Pakistan

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• 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)
• Goal 15 (Life On Land)
• Goal 16 (Peace, Justice and Strong Institutions)
• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 5 (Gender Equality)

Not disclosed

Sustainable Products & Innovation

• 14 sustainable products introduced in 2023, including eco-based gloves with recycled yarns

Awards & Recognition

• NCE Export Awards (Sri Lanka)
• Fire Safety Award (Pakistan)
• FITIS, DEX Awards 2023 (Gold, Silver, Bronze)
• Gallup Exceptional Workplace Award (GEWA, Pakistan)