Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Agriculture
• Climate Change
• Community Empowerment
• Circular Economy
• Gender Equality

Environmental Achievements

• 13% reduction in GHG emissions from 3331 tCO2e to 2886 tCO2e
• Invested Rs. 85 Mn in rooftop solar systems with a collective generation capacity of 625 kW (35% of Up Country region’s annual energy requirement)
• Created an 18 km “Peak-Ridge Forest Corridor”,
• Launched the “Green Planet” tree planting program (1,000 native plants planted)

Social Achievements

• 100% of eligible employees received COVID-19 vaccination
• Rolled out Revenue Share Model (RSM) to 9 estates, benefiting almost 1,850 families
• Completed pilot project on NVQ qualifications and Skills Passports for field staff
• Implemented the Mother and Child Friendly plantation initiative
• Provided 44 new housing units and 9 new child development centers

Governance Achievements

• Published first integrated annual report
• Updated Energy Management, Environment, and Gender Equality policies
• Improved alignment with UN SDGs

Climate Goals & Targets

Environmental Challenges

• Rising cost of fertiliser, shortages in fuel and other input materials
• Ban on Oil Palm cultivation
• Erratic weather conditions affecting yields
• Unavailability of fertiliser and chemicals
• High labour turnover
• Highly volatile global market conditions
• Interest rate risk
• Liquidity risk

Mitigation Strategies

• Production of organic fertiliser and securing available chemical fertiliser
• Maximising the production of Vermiwash and Organic Liquid Fertiliser
• Buying back weeds to minimise the usage of available Agro Chemicals
• Investing in building diesel buffer stock and generators
• Maintaining firewood buffer stock
• Implementing effective vehicle running plan
• Training, development and performance management to reduce labour turnover
• Crop diversification to reduce dependence on single crops
• Leveraging concessionary lending rates
• Structuring borrowings to ensure sufficient liquidity

Supply Chain Management

Supplier Audits: Annual Supplier Audits

Responsible Procurement

• Service Providers Selection Policy
• Adherence to ILO standards (no child labour, forced labour, discrimination, etc.)
• Annual audits of selected suppliers
• Social and environmental impact assessments

Climate-Related Risks & Opportunities

Physical Risks

• Erratic weather conditions affecting yields

Transition Risks

• Energy crisis, power interruptions and the shortage in diesel and oyster fuels affecting the day to day running of factories

Opportunities

• Investment in renewable energy

Reporting Standards

Frameworks Used: IIRC’s Six Capitals Framework, GRI Standards “In Accordance Core”, UN Sustainable Development Goals

Certifications: ISO 22000:2018, HACCP, ISO 14001:2015, ISO 9001:2015, Rainforest Alliance, Ethical Tea Partnership, Fair Trade, Fair Rubber, Forest Stewardship Council TM, Eco Label, Climate Neutral Now

Third-party Assurance: KPMG, Chartered Accountants (financial statements); Sri Lanka Climate Fund (GHG Inventory)

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 17

HPL's initiatives contribute to these goals through various programs related to poverty reduction, food security, health and well-being, education, gender equality, water access, renewable energy, resource efficiency, innovation, equal opportunities, affordable housing, sustainable resource management, climate action, biodiversity conservation, and global partnerships.

Sustainable Products & Innovation

• Single Origin Teas
• Value added teas
• FSC-COC certified rubber products

Awards & Recognition

• Bronze Award - Plantation Sector (56th Annual Report Award 2021)
• Runners Up - Agriculture and Plantations Sector (National Business Excellence Award 2021)
• Merit Award - Excellence in Corporate Social Responsibility (National Business Excellence Award 2021)
• Merit Award - Gouravilla Estate (National Cleaner Production Awards – 2021)

Environmental Metrics

ESG Focus Areas

• Climate Change Adaptation
• Biodiversity
• Water Conservation
• Waste Management
• Community Empowerment
• Employee Wellbeing
• Gender Equality
• Ethical Sourcing
• Renewable Energy
• Circular Economy
• Automation & Digitalization
• Crop Diversification

Environmental Achievements

• Alton and Gouravilla estates certified as Carbon Neutral
• Regrow project – 155 hectares of forest restored
• 8,181 native trees planted
• 66.3 million liters of rainwater harvested
• 374 tons of compost produced
• Increased renewable energy generation to 1,110 MWh

Social Achievements

• She-Essentia project launched to address period poverty
• 15 new housing units built
• 104 medical camps conducted
• Rs. 1,491 million in employee benefits distributed
• Employee Trust Index of 99%
• 40 rubber tappers obtained NVQ Level 3 certification

Governance Achievements

• Establishment of an ESG Steering Committee
• Adoption of Hayleys Group's Bribery and Anti-Corruption Policy
• Implementation of Shareholder and Investor Communications Policy
• Compliance with SLFRS S1 and S2 Sustainability Disclosure Standards

Climate Goals & Targets

Environmental Challenges

• Labor outmigration
• Subdued tea prices
• Pestalotiopsis disease in rubber
• Extreme weather patterns
• High cost of living
• Geopolitical uncertainty

Mitigation Strategies

• Crop diversification
• Mechanization of harvesting
• Investment in renewable energy
• Revenue-sharing models
• Community empowerment programs
• Cost optimization initiatives

Supply Chain Management

Supplier Audits: 140/year

Responsible Procurement

• Supplier code of conduct
• Supplier sustainability requirements
• Annual due diligence

Climate-Related Risks & Opportunities

Physical Risks

• Extreme rainfall
• Prolonged drought
• High temperatures

Transition Risks

• Changing buyer requirements
• Increased demand for sustainable products

Opportunities

• Renewable energy integration
• Carbon sequestration
• Development of climate-resilient products

Reporting Standards

Frameworks Used: Integrated Reporting Framework, GRI 13: Agriculture, Aquaculture and Fishing Sectors Standards 2022, UN Sustainable Development Goals (UNSDGs), SLFRS S1, SLFRS S2, UN Global Compact (UNGC)

Certifications: ISO 14001:2015, ISO 22000:2018, ISO 45001:2018, Rainforest Alliance, Fairtrade, Fair Rubber, FSC, Eco Label, GHG Inventory Verification, Ecosystem Restoration Verification

Third-party Assurance: Ernst & Young, Chartered Accountants

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 12
• Goal 13
• Goal 14
• Goal 15

HPL's initiatives contribute to these goals through various programs related to poverty alleviation, health, education, gender equality, water conservation, renewable energy, responsible consumption and production, climate action, and biodiversity conservation.

Sustainable Products & Innovation

• Value-added tea
• Coconut oil
• Coffee products
• Reusable sanitary napkins
• Bottled honey

Awards & Recognition

• LMD's 'Most Awarded' Special Edition (No. 17 overall, No. 3 in Plantations Sector)
• CMA Excellence in Integrated Reporting Awards
• Great Place to Work certified
• National Business Excellence Awards
• Commonwealth Business Excellence Awards
• Mother and Child Friendly Seal for Responsible Business
• TAGS AWARD
• SAFA GOLD Award
• ACCA Sri Lanka Sustainability Reporting Awards