S U S T A I N A B I L I T Y S T R A T E G Y

Transcription

1 OUR SUSTAINABILITY JOURNEY S U S T A I N A B I L I T Y S T R A T E G Y

2 MESSAGE FROM THE BOARD As a fourth generation family business, sustainability has always been in our DNA. Our embedded values, passed on through generations, have long placed sustainability as part of the Hirdaramani business approach. It was in 2006, after watching an Inconvenient Truth by Al Gore that we decided to elevate sustainability as a core focus area in our strategy. The opening of Mihila (meaning - Earth) in 2008, Asia s first CarbonNeutral Apparel factory, was the start of an extensive group wide environmental sustainability journey. Focusing on four pillars - water, waste, energy and people - the Hirdaramani sustainability plan was implemented across the Group. Investments in renewable energy cemented the vision of Hirdaramani to become a greener organisation. Today, our strategy is linked to the UN Sustainable Development Goals. This guides both our environmental and social sustainability goals, enabling us to pursue a people, planet, profit approach and do our part for the prosperity of future generations. We acknowledge that in order to make an impact, there is need for collaboration. We continue to actively support such initiatives as the Sustainable Apparel Coalition, as well as partnering with stakeholders throughout the supply chain to promote sustainable practices.

3 OUR VALUES Love what you do Be passionate, strive for your best work & always look for ways to improve. Make an Impact C r e ate positive, genuine & s u s t ainable change. Trust & Respect Be open, honest, truthful and value the i deas of others. Innovation & Creativity Think outside the box and be curious in all that you do. One Team W o r k c o o peratively to achieve common g o als & objectives effectively

4 OUR SUSTAINABILITY STRATEGY At Hirdaramani, sustainability is a part of our DNA. As an industry leader, we understand its immense responsibility to support the environment its people and its community. Guided by our own innovation, investments and strong corporate governance, we see the new wave of sustainability as an exciting opportunity for social, environmental and economic growth. Pillars of Sustainability There are five core pillars that make up the our sustainability strategy. These pillars guide our overall sustainability journey and ensure that all employees understand and are included in their role in this journey. OUR PLANET OUR PEOPLE OUR PRODUCT OUR COMMUNITY

5 U N I T E D N A T I O N S S U S T A I N A B L E D E V E L O P M E N T G O A L S At Hirdaramani, we actively support the UN Sustainable Development Goals - each of our group's key sustainability targets are designed to align with one of the following six SDGs.

6 OUR PLANET C o m m i t m e n t : T o r e d u c e o u r i m p a c t o n t h e e n v i r o n m e n t, f o c u s i n g o n w a t e r, w a s t e, e n e r g y, c h e m i c a l s a n d r a w m a t e r i a l s. E N E R G Y Reduce consumption, increase efficiency and increase renewables W A T E R Reduce consumption, increase use of recycled water, treat water to highest standard W A S T E Reduce material waste, emissions, effluents & increase recycling, lean production and material optimisation C H E M I C A L S ZDHC adherence & constant monitoring of chemical use to meet requirements

7 OUR PLANET PROJECTS & INITIATIVES Eco Champion Initiative The Eco Champion initiative is designed to empower our employees to take initiative and lead their peers to more sustainable practices within all Hirdaramani facilities. Rooftop Solar Project In partnership with Wind Force, Hirdaramani facilities will be installed with solar panels. Energy & Water Conservation At Hirdaramani, we continue to invest in resource conservation projects such as energy saving lights, water efficient tap fixtures, sky lights, evaporative cooling systems and rainwater harvesting tanks. Chemical Management Lead by the dedicated Chemical Management Committee, we continue to work towards ZDHC requirements in all factories. Our group aims to be 100% ZDHC adherent by LEED Certified Facilities We are proud to have 4 LEED Gold certified facilities and 2 LEED Platinum certified facilities.

8 Our People Commitment: To support the physical and mental wellbeing of our people and encourage a workplace of diversity, equal opportunity, inclusion and personal growth. WELLBEING The Wonders of Wellbeing program is central to our company's commitment to the physical and mental wellbeing of our employees TRAINING & EDUCATION Our training programs support personal and professional growth to encourage career progression and a productive and inspiring work environment. DIVERSITY & EQUAL OPPORTUNITY We actively support employees and community members to achieve equality based on factors like gender, faith, culture and physical ability.

9 OUR PEOPLE Wonders of Wellbeing The Wonders of Wellbeing (WOW) program has educated 4000 employees, trained 700 WOW Champions and is running in 8 facilities. PROJECTS & INITIATIVES Fair Trade We have 5 Fair Trade USA Certified facilities, funding initiatives such as a day care centre and financial benefits to employees. Training & Awareness Our group's dedicated training and career development program 'CARE' focuses on the personal and professional development of all employees.

10 Our Products C o m m i t m e n t : T o c r e a t e t h e h i g h e s t q u a l i t y p r o d u c t s w i t h a f o c u s o n i n n o v a t i o n, t e c h n o l o g y, p r o d u c t i o n e f f i c i e n c y a n d a h i g h l y s k i l l e d a n d p a s s i o n a t e w o r k f o r c e. R A W M A T E R I A L S Working with customers and raw material suppliers to increase our consumption of sustainable raw materials P R O C E S S E F F I C I E N C Y A focus on LEAN manufacturing, improving productivity and maintaining system discipline in all company operations. I N N O V A T I O N & T E C H N O L G O Y Investment in technologies to achieve sustainability, efficiency and process goals and improvements.

11 OUR PRODUCTS PROJECTS & INITIATIVES Ethical Sourcing We have a dedicated ethical sourcing committee overseeing the sourcing of raw materials like BCI Cotton, GOTS certified products and recycled raw materials. BCI Cotton aims to make global cotton production more environmentally and socially sustainable. Our goal at Hirdaramani is to source 80% BCI certified cotton by. The Global Organic Textile Standard: We source and produce GOTS certified products, the world's leading textile processing standard for organic fibres. Recycled: We source a variety of recycled fabrics for our brands. This can include recycled polyester, cotton, wool, nylon and more. Hirdaramani Discovery Lab The Hirdaramani Discovery Lab is our group's dedicated product innovation and technology centre for the woven cluster. The focus of this centre will be developing and implementing product, process and technical innovations to achieve higher levels of sustainability and productivity. It will also be a LEED Certified building.

12 Our Community Commitment: To create positive impact in our local communities through financial support, employee engagement, stakeholder engagement and community initiatives. EDUCATION Our group supports numerous schools in Sri Lanka in the form of funding school uniforms, tree planting, building renovations and Fair Trade day care centre initiatives. HEALTH Our group supports a number of local hospitals in the form of ward maintenance and financial support for various projects. DISASTER RECOVERY We actively support the rehabilitation of disaster-affected communities, particularly in areas surrounding our facilities. BIODIVERSITY Protecting the natural environment surrounding all Hirdaramani facilities and supporting biodiversity projects in local communities.

13 OUR COMMUNITY PROJECTS & INITIATIVES Hiniduma Bio-Link Project As a partnership with Patagonia and the Carbon Consulting Company, 4,000 trees were planted as a part of the Hiniduma Bio-Link Project Tesco School Uniform Project Since 2010 our group has been one of Tesco's key partners for this school uniform program in Sri Lanka. Hirdaramani has assisted 25 schools and distributed over uniforms. School & Hospital Projects Our facility teams fund and provide assistance for over 20 schools and two hospitals across Sri Lanka, providing resources like school shoes, classroom supplies and renovations. Disaster Recovery As a group, we have a long history of providing support to areas impacted by disaster. Over the years, Hirdaramani has supported victims of the 2004 Tsumami, seasonal flooding and other natural disasters across Sri Lanka.

14 PIONEERING CHANGE: THE HIGG INDEX T h e H i r d a r a m a n i g r o u p i s a n a c t i v e m e m b e r o f t h e S u s t a i n a b l e A p p a r e l C o a l i t i o n a n d s t r o n g s u p p o r t e r o f t h e H i g g I n d e x a n d S o c i a l & L a b o r C o n v e r g e n c e P r o j e c t. H I G G 2. 0 Self Assessment in All Facilities 2017: Verified 10 facilities H I G G 3. 0 Piloted & Implementing in SL & Bangladesh Planned - Self Assessment in All Facilities S O C I A L & L A B O R C O N V E R G E N C E Active Member On Steering Committee

15 KEY TARGETS E N V I R O N M E N T 2019 Ongoing Ongoing Ongoing 2018 Ongoing Average Higg Score of 80 20% Energy Consumption Reduced* 20% Electricity Consumption Reduced* 15% Electricity from Renewable Energy 35% Water Consumption Reduced* 100% ZDHC adherence WOW Program and/or BSR Her+ Program implemented group wide Supervisor Development Program to reach 80% of supervisors Career Enhancement Program to reach 60% of executives Provide financial and non-financial support to X children Implement disaster prevention projects & provide relief in the event of a disaster Provide financial and non-financial support to X number of local hospitals 80% Cotton Sourced be BCI Certified Complete the building and development of the Hirdaramani Discovery Labs Centre Continuously invest in innovation and product enhancing technologies