engro csr report

8/12/2019 Engro CSR Report

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ContentsIntroduction: ............................................................................................................................................ 3

Corporate Core Values: ........................................................................................................................... 5

Innovation & Risk Taking: .................................................................................................................. 5

Health, Safety & Environment: ........................................................................................................... 5

Ethics & Integrity: ............................................................................................................................... 5

Community & Society: ........................................................................................................................ 5

Our People: .......................................................................................................................................... 6

Sustainable Business Solution: ................................................................................................................ 6

Community and Workplace Performance: .......................................................................................... 7

Community Health Programs: ....................................................................................................... 10

Disaster Management: ................................................................................................................... 11

Employee Volunteerism: ............................................................................................................... 12

Health & Safety for Employees: .................................................................................................... 13

Community Education Programs: ................................................................................................. 14

Livelihoods and Capacity Building: .............................................................................................. 19

Environmental Performance: ............................................................................................................. 21

Eco Efficiency ............................................................................................................................... 23

Engro Performance: ....................................................................................................................... 24

Environmental Stewardship........................................................................................................... 28

Commitment fulfilled .................................................................................................................... 28

Engro and WWF ............................................................................................................................ 31

Economical Performance: ................................................................................................................. 34

Improvement of Business process performance: ........................................................................... 34

Enhancement of Corporate Governance: ....................................................................................... 35

Improvement of Supply Chain Management: ............................................................................... 35


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Enhancement of Product and Process Quality:.............................................................................. 36

Marketing and Brand Management: .............................................................................................. 37

Business Expansion and Investor Attraction: ................................................................................ 38

Improvement of Customer Relation: ............................................................................................. 38

Issues and Risk Management: ....................................................................................................... 38


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Introduction:

Engro Corporation Limited is one of Pakistans largest conglomerates with businesses ranging fromfertilizers to power generation. In the interest of better managing and overseeing businesses of

subsidiaries and affiliates that are currently part of Engro s capital investment, Engro Chemical

Pakistan Limited converted into a holding company structure. As part of this process, two major

changes occurred with effect from January 1, 2010; Engro Chemical was renamed as Engro

Corporation Limited and it demerged and transferred its fertilizer business into a separate wholly

owned subsidiary, Engro Fertilizers Limited. Besides providing the long term vision for the company

and overseeing performance of the subsidiaries and affiliates, Engro Corporation Limited is also

responsible for allocation of capital, management of talent, leadership development, HR guiding policies, leadership role in public relations and CSR activities, control structures, legal and IT support.

From its inception as Esso Pakistan Fertilizer Limited in 1965 to Engro Corporation Limited in 2010,

Engro has come a long way and will continue working towards its vision of becoming a premier

Pakistani company with a global reach. Currently 3,881 employees are working in all the business

units of Engro Corporation where majority of the employees are belonging to engro food and engro

fertilizer limited.

Seven businesses are there in Engro Corporation

Engro Fertilizer Limited : Engro Fertilizers

Limited, an Engro Corporation subsidiary, is

one of the leading fertilizer manufacturing and

marketing companies in the country with

annual urea production capacity of 2.3 Mn

tons. It is primarily engaged in the

manufacturing and marketing of urea and NPKfertilizers. In addition, the company also

markets and distributes phosphate and zinc

based fertilizers, which are imported by Engro

EXIMP. The business markets a wide variety

of fertilizer brands besides Engro Urea, which

include some of the most trusted brand names

by Pakistani farmers including Engro Zarkhez,

Zingro and Engro DAP.

Engro Food Limited: Engro Foods Limited is

an 87% owned subsidiary engaged in the

manufacturing, processing and marketing of

dairy products, ice cream and fruit juices. The

business owns two milk processing plants in

Sukkur & Sahiwal and operates a dairy farm in

Nara. In its continued pursuit for excellence,the business has established several brands

that have already become household names in

Pakistan such as Olper s (milk), Omore (ice

cream), Olpers Lite (low fat milk), Dairy

Omung (UHT dairy liquid), Tarang (tea

whitener), Omung Lassi, Omung Dobala,

Olpers Tarka (Desi Ghee) and Olpers Cream.

The business also manages and operates Al

Safa Halal, a meat processing and marketing

company based in Canada.


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Engro polymer and chemicals Limited :

Engro Polymer & Chemicals Limited is a 56%

owned subsidiary of the group and the only

manufacturer of polyvinyl chloride (PVC) in the

country. It also manufactures and markets

caustic soda, sodium hypochlorite and

hydrogen gas. The company has an annual

production capacity of 156kt of PVC and 106kt

of caustic soda. The Company s vinyl chloride

monomer (VCM) plant began production in the

first quarter of 2010 successfully

making the plant the only fully integrated

Chemical Complex in Pakistan. The firm

markets its products under the name of

SABZ.

Engro PowerGen Limited : Engro Powergen

Limited owns and operates Engro Powergen

Qadirpur Limited, a 220 megawatt power plant

and the group's first initiative in the power

sector of Pakistan, which is 10% directly

owned by the holding company and 84% via

Engro Powergen. The remainder is owned by

the International Finance Corporation (IFC)

and employees. In 2010, Engro Powergen

entered into a joint venture with the Sindh

government, to establish the Sindh Engro Coal

Mining Company Limited, to mine coal fromThar Block-II. A wholly owned subsidiary, Thar

Power Company (THARCO) was incorporated

with the objective of developing power plants

based on Thar coal.

Engro EXIMP private limited: Engro Eximp

(Private) Limited is the group's commodity

trading business that deals primarily in the

import and trading of phosphate-based

fertilizers for Engro Fertilizers Limited such as

DAP, MAP, MOP and SOP, and also imports

micronutrients like Zinc Sulphate, which it

supplies as raw materials to Engro Fertilizer's

Zarkhez plant for manufacturing blended

fertilizers. Over the past five years, Engro

Eximp has become the single

largest importer of phosphates and potash

fertilizers in Pakistan. Engro Eximp is also

engaged in imports of food and energy

commodities such as sugar, palm oil, wheatand coal. EXIMP owns 100% stake in Engro

EXIMP Agriproducts Ltd. which is involved in

procurement, processing and export of rice to

markets in the Middle East and the European

Union along withlocal sales. The company

owns and operates a state-of-the-art paddy

processing plant in Pakistan s core basmati

belt with processing capacity of 120 KT of

paddy, making it the largest rice processing

and finishing mill in the country.

Engro Vopak terminal Limited: Engro

Corporation owns a 50% stake in Engro Vopak

Terminal Limited, a joint venture with Royal

Vopak of the Netherlands. The company isengaged in the handling and storage of a

variety of imported chemicals including

liquefied petroleum gas (LPG), Acetic Acid,

Paraxylene, Mono Ethylene Glycol, Ethylene

Dichloride, Ethylene and Phosphoric acid. The

business has also launched Pakistan's first

cryogenic import facility for ethylene.

Elengy terminal Pakistan Limited: ElengyTerminal Pakistan Limited is a 100% owned


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subsidiary of the company, which has been

created to establish and operate a terminal for

the handling, regasification, storage, treatment

and processing of Liquefied Natural Gas (LNG)

Re-gasified Liquefied Natural Gas (RLNG),

Liquid Petroleum Gas (LPG), Natural Gas

Liquid (NGL) and all other related liquids,

gases and chemical & petroleum products.

Corporate Core Values:

Innovation & Risk Taking:

Success requires engro to continually strive to produce breakthrough ideas that result in improved

solutions and services. Engro encourage challenges to the status quo and seek organizational

environments in which ideas are generated, nurtured and developed. Engro appreciates employees

for well thought out risks taken in all realms of business and for the results achieved due to them,

cknowledging the fact that not all risks will result in success.

Health, Safety & Environment:

Engro will manage and utilize resources and operations in such a way that the safety and health of

their people, neighbors, customers and visitors is ensured. Engro believe our safety, health and

environmental responsibilities extend beyond protection and enhancement of their own facilities.

Ethics & Integrity:

engro do care how results are achieved and will demonstrate honest and ethical behavior in all

their activities. Choosing the course of highest integrity is their intent and they will establish and

maintain the highest professional and personal standards. A well-founded reputation for

scrupulous dealing is itself a priceless asset.

Community & Society:

Engro believe that a successful business creates much bigger economic impact and value in the

community, which dwarfs any philanthropic contribution. Hence, at Engro, sustainable business

development is to be anchored in commitment to engage with key stakeholders in the community


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and society.

Our People:

Engro strongly believe in the dignity and value of people. Engro must consistently treat each other

with respect and strive to create an organizational environment in which individuals are fairly treated,

encouraged and empowered to contribute, grow and develop themselves and help to develop

each other. Engro do not tolerate any form of harassment or discrimination.

Sustainable Business Solution:After CEO and president asad umer, new president ali ansari joined engro corporation. After joining of

ali ansari, engro started to think about the influence of CSR globally. So in last couple of years, Engro

have tried to see what is the impact of their value chain to society, economy and environment whether

it would be a product or processes.

The main objective of applying CSR activities is to improve the socio economic model of the local

community along with the strengthen of value chain of engro group of companies also recognize the

importance of protecting the environment while conducting its business and believe that caring for theenvironment is not only an ethical and legal obligation but also a mechanism for success. In addition

to growing business in a profitable, ethical and sustainable way, Engro is committed to invest in host

communities, as well as to mitigate their environmental footprint. As responsible corporate citizens,

engro continue to strive towards integrating sustainability into their business.

For Engro Corporation, the major priorities in promoting sustainability are

1. Community & Workplace Performancea. Community Health Programs

b. Disaster Management

c. Employee Volunteerism

d. Health and Safety for employees

e. Community Education Program

f. Livelihood & Capacity Building

2. Environmental Performancea. Eco efficiency


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b. Climate Change Commitments

c. Water Consumption

d. Energy Consumption

e. Environmental Stewardship

f. Engro and WWF

g. Electrical Consumption

h. Waste Reduction

i. Paper Reduction

3. Economical Performance

a. Improvement of business process performance

b. Improvement of supply chain management

c. Enhancement of product & process quality

d. Marketing and brand management

e. Business Expansion and Investor attraction

Community and Workplace Performance:

Engro is sensitive to the needs of its stakeholders especially those of its host communities, and most of

its social investments directly address these needs. Engro Foundation plays a leading role in making

meaningful investments towards addressing the social and economic needs of these communities.

Engro Foundation serves as a single platform for community engagement activities and social

investments of Engro affiliates. By pooling their financial and managerial resources under the

Foundation, Engro seeks to create large scale social impact. The idea is that engro foundation is

having expertise for all these CSR activities and having expert people over there to effectively execute

and monitor the CSR programs. Engro Foundation leads the corporate citizenship program for Engro

Corporation and its group companies, each of which have pledged 1% of their profit before tax to

Engro Foundations social investment pro grams.


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Over the years engro strategy for community investments has evolved. From indulging into mere

corporate philanthropy, where they just invested in CSR to maintain their social license to operate,

Engro is now shifting its focus towards integration of its CSR activities in to the respective value

chains of its group companies. This shared value approach will ensure a sustainable and collective

growth of businesses, societies, stakeholders and nation in large.

MajorSocial

Aspects ofCSR

Best HRMPractices

Health &Safety

EffectiveCommunity

Relations

ActiveCommunicato

n

StakeholderEngagement


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Community Health Programs:

Health care is one of the major concerns of Pakistan. Engro colonies are situated in the places where

proper health care services were not available. To provide health aids, Engro initiated variety of

program because they believe, The mainstay of a healthy community is its mental and physical

well being .

According to statistics, there were more than 29,000 beneficiaries who had taken advantage of EngroHealth Initiatives which incurred PKR 11 million. Some of the initiatives were:

Snake Bite Treatment Clinic at Daharki:

Engro established a snake bite treatment centre in 1977 which provides free treatment. The centre

provided services to over 7,000 patients in 2013.

Sahara Clinics Network:

The network established in partnership with Sahara Welfare Society, operate regular and mobile

clinics covering Daharki, Qadirpur, Jung and other adjoining areas. Alongside treatment of patients

and provision of medicines, Sahara clinics go beyond the conventions by educating the community on

the preventive measures, improving sanitation and hygiene.

Blessing Foundation Clinic, Sukkur:

Our partnership with Blessing Foundation Clinic serves communities living below the poverty line

close to Engro Foods Sukkur plant.


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Clean water for the citizens of Karachi Engros sustainable product :

Most important contribution was made by Engro Polymer in the health sector by introducing and

advocating the use of sodium hypochlorite instead of chlorine for water purification. The south salesteam put their untiring efforts for convincing Karachi Water and Sewerage Board (KWSB) to make a

shift from convenient use of Chlorine to Sodium Hypochlorite. This step ensures that the citizen of

Karachi will now have an access to clean and safer water.

Disaster Management:

Engro have been involved aggressively in community advancement. Engro always stood first if there

is a call for help due to any unforeseen disaster. Some initiatives were:

Baluchistan suffered multiple earthquakes during the year, which resulted in the deaths of over 800

people and destruction of at least 21,000 houses and affecting over 300,000 people. At that

cataclysmic time, Engro and its employees once again reiterating their commitment to the national

issues of Pakistan came forward with various relief activities for those affected by the devastating


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earthquake. Rs 1 million (0.3 million from employees) contributed to Pakistan Poverty Alleviation

Fund for Baluchistan Earthquake relief.

In order to facilitate the flood affected populaces through rehabilitating lives, as a means of fullyrecovering from past recurring floods, Engro continued its relief efforts during the year. In providing

ongoing relief, our contributions help support those in much need to fully recover from previous

devastation.

Distributed over 90,000 milk packets in 315 flood affected villages of Punjab,

Distributed dry food to flood affected families in Ghotkis katcha area,

Organization of 2 camps by Engro Eximp in the flood affected areas in the rice belt of Punjab

and distribution of packed food items.

Employee Volunteerism:

Engro supports and encourages employees to take active part in community development. EnVision

(Engro Volunteers in Service of the Nation) is an initiative taken by Engro to promote the culture of

volunteerism.

VolunteerPrograms

CareerCounseling

andMentorship

BloodDonation

Camps

SafetyAwarness

Camps

MotivationalLectures


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TCF Rehbar Program: Employees of engro corporation are actively participated in the TCF rahbar

program. TCF rahbar program is a mentorship program is aimed at the development of youth as

responsible individuals and as productive members of society. The role of a mentor in rahbar is to

encourge the mentee to develop a positive thought process, a vision for his/ her future, the capacity to

deal with the failure that he/ she will inadvertently confront on this journey.

Health & Safety for Employees:

Moreover, Engro is not only providing quality health to local community but also employing

unsurpassed health and safety measure for its workforce.

Engro HSE policy is an important ingredient of our overall code of business conduct. It states that to

be recognized as a world class performer in the field of Health, Safety and Environmental

Management Engro will:

Conduct its business in a manner that protects the health and safety of employees, contractors, others

involved in our operations and the community in which we operate.

Continuously improve environmental performance to achieve sustainable development.

Strengthen its business by making Health, Safety & Environment (HSE) consider ations an integral part of all business activities.

Comply with all laws & regulations.

Practice transparent public reporting of the HSE performance.

Ensure that HSE is a major responsibility of appropriately trained, empowered & accountable

employees & management.

Promote a culture of learning & practicing HSE management among employees and contractors.

Encourage off the job HSE awareness among employees and families.

To achieve the objectives, Engro shall

Health

1. Identify and evaluate health risks

related to its operations that

potentially affect its employees,

contractors or the public.

2. Implement programs and

appropriate protective measures to

control such risks, including

appropriate monitoring of its potentially

affected employees. Carry out


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E-Learning Pilot Project:

This project was started in april 2013 with the collaboration of engro food, citizen foundation dawood

foundation and literate pakistan foundation in sahewal, khanewal and burewala districts. The

objectives of this pilot project was to testing self-learning concept with the help of technology based

tablets and mobile phones. It digitized content put up to mobile phones and tablets for self- learning

and evaluated teacher-less model. It guarantee that basic literacy would be improved like reading

newspaper, writing essay and basic mathematics skills within 4 months.

How Project Executed: Multiple pilots were run concurrently in 15 locations for children between 12-

21 with no access to schools. These pilots project were executed at 13 engro food MCCs and 2 TCF

schools. 350+ students attended the programs. Sessions were conducted 2 hours perday, 6 days a

week.


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Learning from E-learning pilot: 90% of the enrolled students passed the final qualifying exams.

Despite the challenges, high temperature and power outages, the attendence was fairly consistent.Technology devices motivated children to attend session. Pronounciation of

children improved as they could replay the recorded instruction manual. Boys

showed interest in getting further vocational and technical education. Girls also

overcame the shyness and towards the end of the program became more

confident.

Akram who is 12 years old, was part of the group when 5 seven-inch tablet

were distibuted among group of children he said I FEEL I HAVE MORE

POWER IN MY HAND.

Build and adopt Schools:

Engro Foundation runs 11 primary schools in Katcha (riverine) belt of Ghotki district. Katcha areas

pose unique challenges which make running primary schools far more challenging than in any other

geography. Challenges include access as the area does not have roads and gets inundated every year,

availability of teachers as people are rarely literate, and law and order situation, as the area is safehaven for outlaws due to its inaccessibility. Katcha school program is the only education

program being run in the area. It currently enrols more than 900 students providing these students

their only access to high quality education .

Engro corporation contributed in different education programs with the collaboration of citizen

foundation. The citizen foundation has build a strong trust to implement the most effective

development programs so engro corporation is completely rely on the effective services of citizen

foundation and mostly performance evaluation is done by the citizen foundation on behalf of the engro

corporation for the schools build by the engro corporation. Two big interventions with TCF are one

school in daharki and another school in port kasim.


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Engro corporation build school with the

collaboration of TCF in daharki small city. School construction was started in 1999 and completed in

2000 at daharki small city where engro chemical fertilizer plant is present . School was opened and

started its operations in 2001. School name is engro campus this was the first TCF school outside

karachi with the collaboration of engro corporation. Currently 1100 students are there in the school.

Engro corporation was supporting this school since last 13 years but right now citizen foundation is

monitoring and managing the activities in engro campus school. Succes stories are there from engro

campus students like many students got top rank in sindh board also got admission in engineering

university like NED. School Land and building was financed by Engro worth Rs 22 million spread

over 2- 3 years. Engro polymer and chemicals build primary school in 2013 with the collaboration of

TCF. It is going to be started on 2015.

Engro foundation is currently Supporting 31 schools other

than TCF schools in which 13 schools are near fertilizer and

power generator plant, these are community based schools

partner with the government. Few government schools theyhave adopted and improve it like gave teachers, train

teachers, give curriculum. 4 schools are in sahiwaal near

milk plant (engro foods). Another 2 schools are in sukkur

district one school is in daharki which is sahara school. 11

schools are there in district court.

Engro corporation regularly evaluate these 31 schools, they

visit after every 40 days in which they monitor quality of


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education, infrastructure, teaching methodologies, monitor children grades.

Technical Training College, Daharki (TTC)

Engro took the lead in the development of Technical Training College, the first degree-awarding

institution in Daharki. TTC is a nationally and internationally accredited institution under the umbrella

of Pakistan Chemical and Energy Sector Skills Development Company (PCESSDC), having

affiliations with Sindh Board of Technical Education and City & Guilds, UK that offers 3-year

Diploma programs in Mechanical and Chemical Engineering to young people, being established in

2011. Engro Corporations CEO is PCESSDC s board member and VP Manufacturing Engro

Fertilizer acts as Secretary to the board. A number of Engro employees from Daharki work as

volunteers for TTC as and when needed. During the year, Engro conducted coaching classes for

students from CAER (Community awareness and emergency response) villages fo r TTCs entry test

preparation. Descon, MPCL, Seipem, USAID, PIDC are also the partners of this project.

Highlights at TTC during the year 2013:

Inauguration of library and hostel at the campus.

Induction of new batch of 68 student, taking up the

total enrolment at the college to 206 students.

Almost 41% of the new students came from CAER

villages, families of contractors working for Engro

Fertilizers Limited & Engro Powergen Limited and from

schools / coaching centres adopted and run by Engro. Vocational welding course which was initiated last

year saw its first batch pass out in November 2013

comprising of 20 students. The program was co-funded by

Engro with Pakistan Poverty Alleviation Fund.


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deworming, animal health management, importance of balance diet/nutrition of animals,

Mastitis control and its basic treatment, Tympani, Diarrhea, temperature, cough, wound

treatment, allergy reaction, tick and maggot therapy, common infectious and non- infectious

diseases of dairy cow/ sheep goat and their basic level treatment at the village level. FLEW are

also being given awareness on milk and milk business, breeds and breeding of dairy cows,

record-keeping, environment, and communication skills etc. FLEWs are provided with an

initial business support kit comprising medicines or Vanda (animal feed concentrate) bags.

FLEWS are generating income for their family.

3. Female village milk collectors (FVMCs), who are trained for delivering door-step services to

the aforementioned livestock owners. Livestock owners who are far away from the company

milk collection centers (MCC), can sell milk to FVMC developed by engro corporation. Engro

train female in milk testing, handling and hygiene practices. The company provides milk

collectors with basic equipment such as collection utensils, a testing kit and record keeping

register. Those who collected large quantities are given cooler and generators. FVMC collect

milk regularly from dairy farmers in their villages at the company set prices and after

conducting the required tests they recieve commission based on volume collection. Ultimately

FVMCS are generating income for their family.

Training of milk producers

N


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Environmental Performance:

Health safety & Environment performance and programs at Engro are annually reviewed at the board

level. Engro recognize the importance of protecting the environment while conducting its business and

believe that caring for the environment is not only an ethical and legal obligation but also a

mechanism for success. Engro abides by all local environmental laws and regulations including

National Environmental Quality Standards (NEQS). Engro continually strive to align our HSEmanagement systems and processes to international best practices including Occupational Safety and

Health Administration (OSHA) and Dupont Workplace Safety Standards. Engro HSE System and

processes are regularly assessed and audited internally as well as independently by third parties.

Engro claimed that by focusing on eco-efficiency they are able to maintain their focus on

business growth while also reducing their environmental impacts. Through forensic planning

they continue to reduce their carbon footprint, energy consumption and use of natural

resources, on a relative basis every year.As part of our commitment to adhere to the highest global standards, the company not only

complies to national laws, but it has gone a step further by attaining and maintaining some of

the most stringent international certifications pertaining to the environment.

Engro complies with Pakistan's National Environmental Quality Standards (NEQS) and ensures it

follows all regulations laid out by the provincial environmental protection agencies in the area that it

operates in. Engros petrochemicals business is in compliance with ISO 14001:2004 standards and

has implemented a comprehensive environmental management system, which is regularly audited bythird parties. Moreover, the business has also acquired membership of three major institutions: Centre


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Eco Efficiency

When asked about Engros environmental efficiency the concerned authorities replied that

environmental risks and impacts that arises at the business level are best managed by individual

business units. Due to their multifaceted operations their environmental footprint is very complex and


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therefore requires a decentralized approach, this is the reason they dont have conglomerate -wide

environmental management system rather their businesses develop their own systems to suit their

varied operations.

Some of the focus areas of the company are listed as under:

1. The company monitors its greenhouse gas emissions and other substances in the atmosphere.

They have also introduced several measures to reduce their carbon footprint.

2. Secondly, they ensure that they maximize the efficiency of their resources from water to

energy and raw materials, so they try to minimize wastage from their manufacturing resources,

making their facilities greener and more planet-friendly.

3. Thirdly, they adhere to the highest and strictest global standards by pursuing internationally

recognized certifications. Their facilities are frequently audited by third parties who ensure

that they maintain the highest standards

Engro Performance:

Climate Change Commitments:

To reduce the impact of green-house gas emissions on the environment, Engro continue to invest in

the latest technologies, ensuring that their newer facilities are more efficient, in turn reducing

emissions per ton of urea and per megawatt of power consumption. During the year they shifted

production from the base plant to the more environmentally friendly EnVen plant with the help of

which they can significantly reduce their emissions. Further their foods business has invested in

installation of solar geysers at their area offices to substitute for the smoke that was generated through

burning of wood in the conventional cleaning in place. The application of this innovative and

renewable technology has helped them cut down on burning of approximately 50kg of wood on a daily

basis at their area offices.


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Water Consumption:

Engro is committed to improve water efficiency across their manufacturing and non-manufacturing

sites alike. Their manufacturing facilities at Daharki are equipped with a reverse osmosis plant that

reduces the flow of unsafe effluents from our plant by up to 150 gallons per minute. This water is

then recycled, complying with national regulatory standards on waste water treatment.

Engro Foods has installed waste water treatment facilities at sites in Sukkur and Sahiwal to ensure

that any water that is discharged from the facility is safe and does not pollute the region's water table.


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Engro Vopak has deployed use of ambient heat energy (heat from the atmosphere) for its ethylene

vaporizers which has resulted in potential savings of $1.4 million in energy costs and 4.3 tonnes of

C02 emissions per year .

Engro Eximp is also operating a husk boiler and a co-generation steam turbine, which has been

functional in 2013.

Engro PowerGen Qadirpur pursued the solar power pilot project termed the enNova 360 Solar

Project for its residential colony in Daharki . The project which is connected to the grid on a net

metering basis has a rated capacity of generating 360KW of electricity via 1,200 solar panels . The

enNova 360 Solar project is the largest solar project completed to date in Pakistan.

Engros fertilizer business is the main consumer of energy as it uses natural gas which is not only

used for the generation of electricity but also as a raw material for producing fertilizer. The significant

increase of total energy consumption (from 56.12 million GJ to 67.19 million GJ) is mainly due to

increase in production. However the total energy intensity of fertilizers has reduced by 17.4% as

shown below. ( 1GigaJoule = 277.77777777778 kilowatt/hour)


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Environmental Stewardship

According to Engro it continues to critically analyze the impact of their decisions on the environment,

ensuring that their policies, procedures and initiatives are environmentally friendly. It ensures that

their environmental footprint continues to demonstrate their focus on the environment and their efforts

are align to the corporate interests with the nation. Therefore, first and foremost, they critically analyze

the impact of their decisions on the environment, ensuring that their policies, procedures and

initiatives are environmentally friendly. They ensure that they comply with legal guidelines, and in

many cases exceed these guidelines to safeguard the interests of the planet and the people which live

in it. They try to fully comply with the National Environmental Quality Standards laid out by the local

authorities. Having said that their aim is to go beyond these local certifications and incorporate

international best practices in Engros operations as part of their environmental stewardship efforts.

Commitment fulfilled

Engro Fertilizer


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1. During 2013, a waste reduction project was implemented. About 90 tons of hazardous catalyst

waste was shipped to a company in Netherlands for recycling .

2. A test run was conducted to generate biogas from organic food waste . The purpose of this projectwas to convert waste to useful energy and minimize the environmental footprint . The test-run was

completed successfully.

3. Forestation drive was conducted to combat negative footprint of Greenhouse Gas (GHG) emissions.

4. A project "ESOL (Environmental Solution)" has been implemented at manufacturing site to reduce

the number of environmental complaints received from internal and external stakeholders. The project

conceived and implemented solutions that significantly reduced the number of noise and ammonia

pollution complaints.

5. Engro Fertilizer is also in the process of development of its environmental footprint reduction

strategy.

Engro Foods

Engros innovations in energy have not only helped save money and reduce greenhouse gas emissions,

but such innovations have also helped its stakeholders. The installation of variable-frequency drive

(VFD) as a type of adjustable-speed drive used in electrical systems throughout various businesses has

helped significantly reduce energy consumption.

Variable Frequency Drives (which are used to vary the speed of motors as per required load) have

been installed at various points in Engro Foods' production processes (resulting in an overall saving of

12,908 GJ of energy and reduction in 617 tons of CO2 emissions , this year) including installations

of:

1. Ammonia compressor for dairy plant at Sahiwal.

2. Aerator of waste water treatment plant at Sahiwal to control dissolved oxygen.

3. Pasteurizers homogenizers and reducing the motor speed to 70%.

4. Complete circuit of water consumption has also been replaced with high efficiency motors at

Sahiwal plant.

Engro Eximp

1. In 2013 a steam turbine was commissioned to generate electricity which will conserve diesel

consumption and also reduce greenhouse gas emissions resulting from the burning of fossil fuel.


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2. A recycled condensate is being used to minimize raw water usage for steam generation.

3. Electrostatic precipitator has been installed (currently in construction phase) to stop generation of

ash laden water.4. Conversion of low pressure diesel boiler to rice husk is in progress which is a biomass and a carbon

neutral resource of energy production.

5. Effluent treatment plant is functional for treatment of waste water to approved drain prior to

disposal of water as per National Environmental Quality standards (NEQS).

Engro Vopak

1. Engro Vopak is a zero effluent discharge facility and conducts annual toxic gas and other emission

surveys.

2. The boundary wall lights were replaced with LED lights to improve overall energy consumption

resulting in a saving of 72 GJ of energy with this initiative.

3. Engro Vopak developed a new green area for sports adjacent to its material warehouse and also did

plantation of 15 trees in 2013.

4. Contribut ing towards environment, Engro Vopak sponsored World Oceans Day celebrations

organized by The National Institute of Maritime Policy Research. The main objective of the effort was

to raise awareness amongst the general public about keeping our oceans clean and preserving marine

life. The celebration included a beach cleaning activity and a carnival.

Engro Polymer and Chemicals

1. Engro Polymer and Chemicals has taken an initiative to take part in the Mangroves for future (MFF)

program by IUCN and has developed a proposal to conserve coastal eco system at port Qasim area.

2. Throughout the year the Company maintained strong liaison with Sindh Environmental ProtectionAgency (SEPA) and celebrated international environment days to show strong support for

environmental conservation activities in collaboration with SEPA.

Engro Powergen

Engros first Independent Power Project (IPP) the Engro Powergen Qadirpur plant, is widely

recognized for being Pakistans first green power plant and the only facility of its kind to reduce

carbon emissions via the utilization of permeate gas. As Engro forge ahead, it will continue to pave the


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Employee awareness through sessions, email, standees, banners, buntings and stickers

displaying a variety of messages with GO Logo

Modification of behaviour of employees

Turning off the lights around window panes where sunlight is available

Turning off lights and electrical appliances during lunch breaks

Colour coding of switches for easy identification to shut unnecessary lights when not required

Change of hardware from energy saver to LED lights

Discontinuation of halogen lights

Use of sun switches and motion detectors to save waste

Circuits modification, ele ctrical audit and Lux metering

Rewarding employees for taking responsibility


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Significant reduction in the electricity consumption is due to the fact that 2013 was the first full

implementation year for green office performance for Engro Foods (after certification in 2012).

Hence, Engro Foods implemented green office initiatives in 2013 resulting in significant reduction inelectricity consumption, whereas Engro Corporation, Engro Fertilizer and Engro Polymer were

already adhering to green office initiatives in previous years as well.

Waste Reduction

Initiatives taken included

Use of washable and reusable material Eliminating paper cups, plates

and plastic cutlery

Less paper usage

Use of recycled materials (like envelopes, tea coasters and carry bags)

Recycling waste through RLCC initiative

Use of glass bottles instead of PET

Elimination of secondary packaging at the purchasing stage

Paper Reduction

Initiatives taken included:

Transformation from duplex to secure, track able & controlled centralized

printing

Employee awareness

Making separate groups within Company

Assigning paper saving targets to each department

Centralized procurement of paper trays where employees drop paper used

on one side Others pick this and use the other side

Monitoring of print jobs sent by each employee

Promoting use of computers for presentations and proposals than taking prints.

In meeting each employee takes his own PC with pre shared presentation and no prints are

taken.

Use of multimedia and video conferencing


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Infrastructure in rural areas of Pakistan is very poor so Engro is also working on it as its CSR activities

which is also helpful for Engro to improve its supply chain management.

Dharki plant require gas to run, so there is Qadirpur gas field in Khotri in Sindh which is near toDharki so with the CSR to run a plant in remote area Engro supply chain management is also

improved which reduced its cost as well.

Enhancement of Product and Process Quality:Product and process quality improvement is necessary for sustainable business practices and Engro

continuously enhances its processes and products with CSR activities. Engro Eximp core business is

rice processing where there raw material is from farmers where they trained farmers that how can they

produce high quality crops of rice which benefits farmers and Engro both in long run further in food

region Engro trained there staff in getting quality milk from cows which enhances quality of their

dairy products and there processes also and these training enhances the standard of living of Engro

staff as and increases efficiency in processes as well. Engro in collaboration with USAID initiated thewomen empowerment through livestock development (WELD) aiming to provide women an


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Business Expansion and Investor Attraction:

Involving in CSR activities attract other foreign and local investors and other MNCs to establish

business relations with the company and consequently will result in more investment and business

expansion. Customers also prefer to be part of those companies which involve in CSR activities

resulting in expansion and more revenues.

Improvement of Customer Relation:

Customers are the most important aspect of any business. Engro understands the complexity of

relations with the customers; therefore, Engro strives hard for maintaining healthy and continuous

relation with its customers by providing quality products and services. To ensure that customers

remain satisfied, Engro take actions of complaints and suggestions quickly. Engro maintains

customers relations through active communication.

Issues and Risk Management:

Issues and Risks are the integral part of any business. All the subsidiaries review and mitigate thefinancial and operational risks faced by the business. In 2011, Enterprise Risk Management system

was deployed which continued to enhance the governance framework. Key risks and mitigating

actions as per Engro are:


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engro csr report

Documents