Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental Protection
• Community Development
• Employee Well-being
• Ethical Manufacturing

Environmental Achievements

• More than 70% of Azgard's energy needs are met through renewable resources.
• Developed a technology that recycles industrial and post-consumer waste into usable fibers.
• Installed Eco Applicator in mercerizing process to lower water usage.
• Optimized water usage in cooling cans on various machines.
• Reuses steam condensate and jacket water to save energy.
• Implemented a closed-circuit cooling tower system with near-zero blow-down.
• Successfully implemented the ZDHC (Zero Discharge of Hazardous Chemicals) program.
• Achieved excellent ratings in Green to Wear Audits.

Social Achievements

• Implemented a COVID-19 management plan including 100% vaccination of staff.
• Operates a 24/7 dispensary providing first aid and minor treatment to workers.
• Provides workers with PPE and conducts regular testing for occupational hazards.
• Provides free Hepatitis vaccination and treatment.
• Conducts bi-annual vaccination activities for workers.
• Provides ergonomic chairs and anti-fatigue mats for stitching workers.
• Organizes community betterment programs, including training sessions on water, HSE, energy, waste management, and labor laws.
• Initiated a training program with the Punjab Skill Development Fund to provide quality skills to the local population.
• Celebrates religious and national festivals with employees.
• Provides subsidized food, recreational facilities, dormitories, and transportation to workers.

Governance Achievements

• Board of directors is predominantly independent/non-executive.
• Formal remuneration policy for directors and senior management.
• Fully functional Audit Committee with three members (two independent directors and one non-executive director).
• Efficient internal control system with operational, financial, and compliance controls.
• Board-approved 'Governance of Risks and Internal Control Measures' policy.
• All Directors have acquired certification under a Directors' Training Program or have obtained exemption from the Securities and Exchange Commission of Pakistan.

Climate Goals & Targets

Environmental Challenges

• Margin compressions due to increased input costs (raw materials, energy, freight).
• Adversely affected by government policy changes and pending DLTL notification.
• Significant increase in cost due to increased energy tariffs, gas shutdowns, and low gas pressure.
• High inflation and KIBOR rates.
• Increased cost inflation exceeding the ability to pass on increased costs through product pricing.
• Additional tax burden due to the imposition of supertax.
• Unreleased funds from National Bank of Pakistan.
• Growing competition domestically and from neighboring countries.
• Unapproved textile policy by the Government of Pakistan.
• Impact of the Russia/Ukraine conflict on sales and shipping.
• Poor retail sales performance and increasing expectation of a recession in developed countries.

Mitigation Strategies

• Financial restructuring scheme to reduce debt burden and finance cost.
• Sale of spinning unit to receive funds for distribution among creditors.
• Continuous efforts to become a leader in sustainability.
• Investment in sustainable, waterless, and energy-efficient products.
• Continuous improvement and adoption of emerging trends.
• Empowering people by helping them develop skills needed to succeed in a global economy.
• Working with local communities to increase their capacity and knowledge.
• Maintaining internationally recognized certifications for labor welfare and environmental protection.

Supply Chain Management

Responsible Procurement

• Using organic cotton and recycled fibers.
• Implementing processes to reduce emissions and chemical use.
• Using technologies to reduce water usage.
• Adhering to internationally recognized standards of decent work.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, Textile Exchange standards, Global Organic Textile Standard (GOTS), Organic Content Standard (OCS), Global Recycled Standard (GRS), Recycled Content Standard (RCS), Content Claim Standard (CCS), Better Cotton Initiative (BCI), SA-8000 (Social Accountability), Higg Index (FSLM), Oekotex Standard 100, Made in Green Label, SEDEX, WRAP, BSCI, ZDHC

Certifications: ISO 14001:2015, ISO 9001:2015, SA-8000

Third-party Assurance: Grant Thornton Anjum Rahman

Sustainable Products & Innovation

• Circular 9.0 denim collection
• Denim of the future