Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Employee Well-being
• Community Development
• Ethical Business Practices
• Environmental Conservation

Environmental Achievements

• Recycled and reused 9,556 m3 of water (8.1% of total water consumption).
• Reduced carbon footprint to 0.2087 tCO2e per million rupees turnover.
• Installed large-scale solar panels to reduce carbon footprint and generate renewable energy.

Social Achievements

• Named one of the Best Workplaces in Asia 2019.
• Recognized as the Healthiest Workplace in Sri Lanka 2018.
• Voluntarily invested Rs. 89 million in community development and environmental conservation.
• Provided technical education to youth through DIMO Academy for Technical Skills.
• Launched a harvester operations training program in collaboration with the Ministry of Skills Development and Vocational Training.

Governance Achievements

• Complied with the Code of Best Practices on Corporate Governance 2017.
• Obtained independent assurance on consolidated financial statements from KPMG.
• Obtained independent assurance on non-financial information from DNV Business Assurance Lanka (Pvt) Ltd.

Climate Goals & Targets

Environmental Challenges

• Adverse economic conditions impacting automobile sales.
• High interest rates and increased borrowing costs.
• Volatility in government regulations and tariff policies.
• Risk of disruptions to relationships with key business partners.
• Risk of losing operational and confidential data due to security breaches.
• Possible employee health and safety issues.
• Potential negative impact on reputation from unacceptable corporate behavior.
• Possible customer health and safety issues.

Mitigation Strategies

• Diversification strategy to reduce dependence on automobile sector.
• Strengthening relationships with business partners.
• Implementing extensive IT security controls and reviews.
• Prioritizing employee health and safety through policies and management systems.
• Establishing a stakeholder engagement process to manage material issues.
• Implementing ISO 9001:2015 certified Quality Management System to ensure product quality and safety.

Supply Chain Management

Supplier Audits: Annual evaluations on a sample basis

Responsible Procurement

• DIMO Supplier Code

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, International Integrated Reporting Framework V1.0, Greenhouse Gas Protocol - Corporate Standard

Certifications: ISO 9001:2015, ISO 14001:2015, SA 8000:2014

Third-party Assurance: DNV Business Assurance Lanka (Pvt) Ltd; KPMG

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• LED bulbs
• Hybrid passenger vehicles
• Energy conserving lighting solutions
• Waste water treatment solutions
• Euro4-enabled commercial vehicles
• Renewable energy solutions

Awards & Recognition

• Best Workplaces in Asia 2019
• Healthiest Workplace in Sri Lanka 2018
• CMA Excellence in Integrated Reporting Awards 2018
• 54th Annual Report Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Employee Well-being
• Corporate Governance
• Sustainability
• Community Investment
• Responsible Value Chain

Environmental Achievements

• Reduced carbon emission per one million revenue to 0.19 tCO2e (2018/19 – 0.21 tCO2e)
• Recycled and reused 8,616 m3 of water (2018/19 – 9,556 m3)
• Harvested 1,732 m3 of rainwater (2018/19 – 883 m3)
• Installed solar panels with an electricity generation capacity of 1,744 KW annually
• Entered into a contract with Vestas for a 104 MW Wind Power Project

Social Achievements

• Recognised as a Best Workplace in Asia by the Great Place to Work Institute
• Recognised as a ‘Healthiest Workplace’ by the AIA Vitality Study
• Employee engagement score increased to 4.11 (2018/19 – 3.89)
• Rs. 3,357 million monetised resources distributed as employee benefits (2018/19 – Rs. 2,966 million)
• 15,714 training hours were achieved through 213 training programs
• SA 8000: 2014 accredited labour practices

Governance Achievements

• Published 10th Integrated Annual Report
• Prepared report in accordance with GRI Standards: Comprehensive option
• Established four Board Committees: Audit, Remuneration, Nomination, and Related Party Transactions Review Committee

Climate Goals & Targets

Environmental Challenges

• Easter Sunday terror attacks
• Imposition of luxury tax on vehicles
• Reduction in vehicle imports
• Vulnerability of the Sri Lankan Rupee
• Impact of post-COVID-19 and import restrictions
• COVID-19 pandemic affecting profitability, cash flow, and operational capability
• Temporary suspension of imports impacting vehicle sales and aftersales segments
• Slow growth in the agriculture sector (0.6% compared to 6.5% in 2018)
• Decline in tourism due to Easter attacks

Mitigation Strategies

• Formed two teams to address short-term and medium/long-term effects of challenges
• Curtailed discretionary expenses
• Negotiated debt moratoriums with lenders
• Secured long-term borrowings to fund permanent losses
• Stress testing and scenario planning for supply chain responsiveness
• Secured supplies already imported
• Formed an emergency health and safety committee
• Transforming sales of goods onto online platforms
• Home delivery of offerings
• Stringent measures to ensure customer health and safety
• Revamping business models to improve cost, quality, and delivery
• Investing in digital transformation
• Pursuing diversification through strategically appropriate acquisitions

Supply Chain Management

Supplier Audits: 301 suppliers pledged to adhere to DIMO’s subcontractor work permit scheme

Responsible Procurement

• DIMO Supplier Code (including labour practices and health and safety commitments)

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Renewable energy investments

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, International Integrated Reporting Framework (IIRF) V1.0

Certifications: ISO 9001:2015, ISO 14001:2015, SA 8000:2014

Third-party Assurance: KPMG (Financial Statements only; assurance on non-financial information could not be conducted due to COVID-19)

Sustainable Products & Innovation

• LED bulbs
• Hybrid and electric vehicles and construction machinery
• Energy-efficient products

Awards & Recognition

• ACCA Sustainability Reporting Awards 2019 (runners-up)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Gender equality
• Carbon emissions
• Road safety
• Vocational education
• Smart agriculture

Environmental Achievements

• Reduced carbon emission to generate one-million-rupee turnover to 0.16 tCO2e from 0.19 tCO2e in 2019/20
• Generated 2,981,823 KWh renewable energy to the national grid

Social Achievements

• Recognised as a great place to work for the 8th consecutive year by the Great Place To Work Institute Sri Lanka
• Recognised as a ‘Healthiest Workplace 2020’ in the large organisation category by the AIA Vitality Study
• Provided 16,034 training hours through 131 training programs
• Provided job opportunities through 174 new recruitments

Governance Achievements

• Improved ROE to 4% from 2% in 2019/20
• Improved employee engagement score to 4.06 from 4.11 in 2019/20
• Improved customer satisfaction index to 89% from 90% in 2019/20

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting supply chains and consumer purchasing decisions
• Government restrictions on vehicle imports
• Government restrictions on inorganic fertiliser and pesticide imports
• Political developments in Myanmar affecting operations
• Rupee depreciation against the US dollar

Mitigation Strategies

• Re-organised vehicle sales team to focus on pre-owned vehicles
• Stringent cost-cutting measures
• Revised business plan with stretched targets
• Assessing and quantifying the impact of the fertiliser and pesticide ban
• Seeking resource re-allocation options
• Exploring alternative strategies such as cost optimisation and broadening of revenue streams

Supply Chain Management

Responsible Procurement

• Ensuring principals have core values that complement our own

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), GRI Standards: Comprehensive option, Greenhouse Gas Protocol Corporate Standard

Certifications: ISO 9001:2015, ISO 14001:2015

Third-party Assurance: KPMG, Chartered Accountants

Sustainable Products & Innovation

• Solar panels
• Energy efficient lighting solutions
• Hybrid excavators

Awards & Recognition

• Overall Winner for Integrated Reporting by CMA Excellence at the Integrated Reporting Awards 2020 (6th consecutive year)
• National Award for training excellence in the small-scale sector in 2021

Environmental Metrics

ESG Focus Areas

• Financial Capital
• Manufactured Capital
• Human Capital
• Social & Relationship Capital
• Intellectual Capital
• Natural Capital

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Third-party Assurance: KPMG

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emission by 10% from a 2019 baseline
• 60% Reuse of treated water
• Zero Landfill
• 1:1 Restoration of 10.83 hectares of land
• 5,712.18 Tons CO2e reduced & removed (DIMO Lanka Solar Power Project)

Social Achievements

• Created a positive impact in 4,132 individuals
• 14% Women in decision-making roles
• Launched 'Lassana Hetak' book donation campaign impacting 801 children
• Supported 10 visually impaired entrepreneurs
• Marine Turtle Conservation project protecting 1,314 nests and 153,815 eggs

Governance Achievements

• Implemented a Whistle-blower policy
• Established an Anti-Harassment Helpline
• Implemented EHS Watch initiative to report environmental and health and safety observations

Climate Goals & Targets

Environmental Challenges

• High employee turnover in 2022/23 due to unstable political and economic conditions
• Managing environmental impact from operations

Mitigation Strategies

• Implemented initiatives to improve employee engagement and retention
• Implemented various environmental management systems (EMS) and initiatives to reduce environmental impact

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Greening supply chains

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB, Greenhouse Gas Protocol Corporate Standard, SLFRS S1 & S2, International Integrated Reporting Framework

Certifications: ISO 14001:2015, ISO 9001:2015, ISO 45001:2018, ISO 14064-2:2019

Third-party Assurance: Institute of Chartered Accountants of Sri Lanka

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• DIMO Fertilizer
• Renewable energy solutions

Awards & Recognition

• Not disclosed