Climate Change Data

Environmental Metrics

ESG Focus Areas

• CSR
• Employee Development
• Community Engagement
• Health and Safety
• Environmental Protection

Environmental Achievements

• Not disclosed

Social Achievements

• Organized a polio immunization day in collaboration with Rotary International Club, Lahore.
• Celebrated Creative Art Day at Ilmgah school.
• Organized a Corrosion Awareness Technical Seminar.
• Conducted training sessions on enhancing HTLL product knowledge and liberating passion.
• Hosted a grand Iftar dinner for business partners.

Governance Achievements

• Expansion and specialization of the Internal Audit department.
• Initiated an integrated budgeting system.
• Adoption of Health, Safety and Environment standards (ISO 14001).

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Import of finished lubricants from SK Lubricants of South Korea

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001:2008 (mentioned for Quality Management)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment, Health and Safety
• Corporate Social Responsibility
• Road Safety

Environmental Achievements

• Introduced products with low emissions
• Planted trees in different cities and towns
• Participated in Earth Hour and beach clean-up activities

Social Achievements

• Established Sabra Hamida Trust for education, healthcare, and welfare causes
• Donated Rs. 11 million to various causes
• Sponsored Rotary Sports Festival
• Organized medical camps and polio immunization drives
• Supported Clean Pakistan initiative
• Partnered with Shaukat Khanum Cancer Hospital for anti-tobacco campaign
• Organized blood donation drives
• Sponsored wheelchairs for the disabled
• Organized CSR motivator session for employees

Governance Achievements

• Complied with the Code of Corporate Governance
• Established an Audit Committee and HR & Remuneration Committee
• Implemented Oracle financials for enhanced performance

Climate Goals & Targets

Environmental Challenges

• Fluctuations in exchange rates
• Political instability and law and order situation
• Natural calamities
• Counterfeit oil
• Distribution/team retention

Mitigation Strategies

• Strengthened working capital cycle
• Improved working capital efficiency
• Regularly review risk matrix
• Decisive reaction to market conditions
• Prudent liquidity risk management
• Diversification of investment portfolio
• 95% customer contracts ensured for advance cash against deliveries

Supply Chain Management

Responsible Procurement

• Partnership with SK Lubricants

Climate-Related Risks & Opportunities

Physical Risks

• Natural calamities affecting agricultural areas

Transition Risks

• International and local infiltration affecting sales

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Code of Corporate Governance

Certifications: ISO 9001, EMS14001

Sustainable Products & Innovation

• Products with low emissions

Awards & Recognition

• Consumer Choice Award (5 consecutive years)
• PakWheels People’s Choice Award for Best Engine Oil
• UNGC Business Excellence Award
• Energy Award

Environmental Metrics

ESG Focus Areas

• Education
• Healthcare
• Skill Development
• Environmental Protection
• Social Welfare
• Road Safety

Environmental Achievements

• Initiated nationwide CSR activity updating the image of Traffic Police cabins in Lahore, Gujranwala, Multan & Karachi.
• Started first series of Plantation drive donating almost 1000 plants at Government College University.
• Introduced products that are pollution free through low emissions.

Social Achievements

• Established Sabra Hamida Trust contributing towards education, health and other charitable and welfare causes. Donated Rs 12.5 million.
• Organized and sponsored the Annual Rotary Sports Festival for special children.
• Arranged “LAHORE LAHORE HAI” tour for students from an orphanage house of Peshawar.
• Visited Sundus Foundation to celebrate Eid with children suffering from life-threatening diseases.
• Visited The Art of Living Centre to support physically impaired young individuals.
• Launched long service recognition scheme honoring employees with uninterrupted service of 15 years and 60 years of age.
• Continued “My Best Salary” award based on target achievements.

Governance Achievements

• Complied with the Code of Corporate Governance as set out by the Pakistan Stock Exchange.
• Established an Audit Committee and Investment Committee.
• CEO and Mr. J. Won Park completed the certification for the Directors Training Programme.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in Exchange rates affecting the non-availability of forward cover on POL products.
• Stiff competition in the market.
• Political instability and law and order situation.
• Natural calamities affecting agricultural areas.
• Counterfeit oil and international/local infiltration affecting sales.
• Expensive lands and properties at key locations for express service centers.

Mitigation Strategies

• Focus on managing optimal levels of inventory and trade receivables, sound business performance, operating efficiencies and cost savings.
• Effective Cash Management System projecting and monitoring cash inflows and outflows.
• Careful management of capital expenditure through rigorous evaluation of profitability and risks.
• Regular project review for delivery on time at budgeted cost.
• Large capital expenditure backed by long-term contracts to minimize cash flow risk.
• Incorporation of Express Centers into fuel stations to be established under the Oil Marketing Company Project.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 4: Quality Education

CSR initiatives focused on achieving excellence in quality education, particularly for low-income families.

Awards & Recognition

• CSR Award 2016-17
• Consumers Choice Award (5th year in a row)

Environmental Metrics

ESG Focus Areas

• Education
• Environment
• Healthcare

Environmental Achievements

• Nationwide Plantation drive “Greener Pakistan” planting 30,000 trees.
• Introduction of environment-friendly products with low emissions.

Social Achievements

• Launched Ilmgah School, educating 370 children.
• Organized blood donation camps and medical camps.
• Launched CHILD ABUSE AWARENESS AND PREVENTION CAMPAIGN.
• Sponsored FAST National University’s “Care For All” annual event.
• Provided flood relief and ration packages to IDPs.
• Updated Traffic Police cabins in major cities.

Governance Achievements

• Established a dedicated Office of Strategic Management.
• Co-opted Ms. Mavira Tahir as Non-Executive Director to ensure board diversity.
• Received “Best Taxpayers Award” from Pakistan Customs.

Climate Goals & Targets

Environmental Challenges

• Imposition of new/enhanced taxes, duties, and levies.
• International crude oil price fluctuation and regulatory compliance matters.
• Stiff competition in the lubricant market and increasing new entrants.
• Human resource turnover.
• Information system breakdown and obsolescence of technology.
• Threats associated with the prevention of intellectual capital.
• Foreign exchange risk and non-availability of exchange cover.
• Risk associated with financial capital due to economic conditions.
• Rupee depreciation risk and inflation.

Mitigation Strategies

• Adjusted pricing strategy to remain competitive.
• Invested in a blending plant to reduce costs.
• Adopted aggressive marketing strategy and built customer loyalty.
• Provided competitive financial incentives and training to retain employees.
• Implemented vendor evaluation system and offsite backup facility for IT systems.
• Developed BCP and DRP for IT systems.
• Implemented a comprehensive data security policy.
• Developed strategies for working capital management to manage currency risk.
• Did not extend credit to distributors and dealers except for financially sound industrial customers.
• Investment Committee approves all investments.
• Managed liquidity risk through internal cash generation and credit lines.

Supply Chain Management

Responsible Procurement

• Vendor evaluation system

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNGC

Certifications: ISO 9001:2015, EMS 14001

Sustainable Products & Innovation

• ZIC X7 FE (fuel-efficient)
• ZIC TOP (PAO Technology)
• X7 FE0W20 (YUBASE Technology)

Awards & Recognition

• UN Global Compact First Prize
• NFEH CSR Excellence Award
• EFP Award for Excellence in Women Empowerment
• Consumers Most Preferred Lubricant Brand
• PakWheels Most Popular Engine Oil Award

Environmental Metrics

ESG Focus Areas

• Environment, Health & Safety
• Corporate Social Responsibility

Environmental Achievements

• Introducing pollution-free products with low emissions

Social Achievements

• Focus on education, healthcare, skill development, environmental protection and social welfare; donated PKR 18.07 million to various causes; First Prize in the Large National Category at the United Nation Global Compact CSR Awards; acknowledgement at the 10th National CSR Excellence Awards Ceremony 2018.

Governance Achievements

• Compliance with the Listed Companies (Code of Corporate Governance) Regulations, 2017; establishment of Board Committees (Audit, Human Resources and Remuneration, Risk Management, Corporate Social Responsibility, Investment); implementation of sound automated financial information systems with restricted access rights; procedural internal controls across all functions; regular internal and external audits.

Climate Goals & Targets

Environmental Challenges

• Challenging economic environment with increased bank rates and inflationary pressures impacting business operations and consumer demand for vehicle-related products.
• Rupee devaluation and import overhead costs in a fiercely competitive market.
• Significant increase in automobile prices due to rupee depreciation leading to decreased automobile sales.

Mitigation Strategies

• Increased local blending at HTBL (82% of imported product portfolio shifted to local packaging); local procurement of base oil and blending with SK Lubricants Korea formulation; focus on maintaining optimal inventory and trade receivables, sufficient cash and bank balances, and committed credit facilities; a budgeting and planning department for annual strategic planning, budgeting, and forecasting; rigorous evaluation of profitability and risks associated with capital expenditure; incorporation of express centers into fuel stations under the OMC Project.

Supply Chain Management

Responsible Procurement

• Local procurement of base oil

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Pollution-free products with low emissions

Awards & Recognition

• First Prize in the Large National Category at the United Nation Global Compact CSR Awards
• Acknowledgement at the 10th National CSR Excellence Awards Ceremony 2018
• Runner-up (2nd place) for 2018 Best Corporate Report Awards

Environmental Metrics

ESG Focus Areas

• Education
• Healthcare
• Environment
• Governance

Environmental Achievements

• Greener Pakistan Initiative: Planted more than 30,000 trees.
• Installation of RO plant in Bhai Kot near HTBL Plant site in collaboration with Alkhidmat foundation.

Social Achievements

• Won the Second Prize for ‘Living the Global Compact Best Practices Sustainability Award 2020’
• Achieved Third Position in Best Corporate & Sustainability Report Award 2020 in fuel and energy sector
• Rashan packages distribution campaign during Ramadan.
• MOU with Allah Walay Trust for provision of free healthy meal to underprivileged students of Ilmgah School Systems.
• Eye camp in collaboration with Lahore Friends Lions Club.
• Blood donation camp.
• Breast Cancer Awareness virtual session for female faculty.

Governance Achievements

• Compliance with the Listed Companies (Code of Corporate Governance) Regulations, 2019.
• Established a well-defined whistle-blowing policy.
• Annual evaluation of the performance of the Board.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic.
• Stiff competition in the lubricant market.
• Fluctuations in international crude oil prices.
• Changes in government policies and regulations.
• Rupee devaluation and inflation.
• Foreign exchange risk.
• Credit risk.
• Liquidity risk.
• Risk of reduction/shutdown in mobility due to political instability and strikes.

Mitigation Strategies

• Modified workplace norms to maintain distance while standing together.
• Investment in a blending plant (HTBL) to reduce costs.
• Aggressive marketing and customer loyalty programs.
• Close relations with consultants and advisors to understand and plan for changes in taxation and duties.
• Contact with regulators and other OMCs.
• Pre and post vendor evaluation system for IT systems.
• BCP and DRP for IT systems.
• Comprehensive policy for data security.
• Adjusting purchases based on realized demand.
• No credit extended to distributors and dealers except financially sound industrial customers.
• Proactive treasury management and a mix of equity, long-term and short-term financing.
• Credit lines with reputable banks.
• Adjusting prices to manage rupee depreciation risk.
• Managing orders to minimize foreign exchange risk.

Supply Chain Management

Responsible Procurement

• Supplier segmentation based on business objectives.
• Collaborative relationships with key suppliers.
• Transparency model for supplier interactions.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNGC

Certifications: ISO 9001:2008

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being

Sustainable Products & Innovation

• Locally blended lubricants.

Awards & Recognition

• Second Prize for ‘Living the Global Compact Best Practices Sustainability Award 2020’
• Third Position in Best Corporate & Sustainability Report Award 2020