SUSTAINABLE VALUE - rsmgcblog.files.wordpress.com has also commissioned the dyed yarn project, ... The report will provide you with accounts of ... including 9,769 kg/day acrylic yarn

INDO PHIL TEXTILE MLLSSUSTAINABILITY REPORT 2016-17

SUSTAINABLEVALUE

CONTENTSThe Context Unit Head’s MessagePerformances’ Snap Shots

CSO’s EpilogueAssuranceGRI IndexContribution to UNSDG Definitions & Acronyms

Strategic Stakeholder Engagementand Future Proofing

Balancing Economic Values

Operations and Products

ABG Sustainability Framework

Our Values Steer Our Conduct

Ten “Missions” of Resource Stewardship

The Board

Material Issues

Steering Sustainability

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65

20

07

10

15

11

16

13

17

Footprint

Sustainability Mission

Governance & Management

Resource Stewardship

Compliance & Risk ManagementAligning manufacturing processes with our sustainability goals Energy & CarbonWater & EffluentsBiodiversityMaterials & WasteHealth & SafetyChemical ManagementCaring and SharingSocial & LabourResponsibility to CustomerResponsible Supply ChainProduct StewardshipStakeholder Engagement

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Indo Phil Textile Mills Sustainability Report 2016-17 | 1

The Context Dear Reader,

It brings me great pleasure to introduce to you our third sustainability report for Indo Phil Group of Companies comprising of Indo Phil Textiles, Indo Phil Cotton and Indo Phil Acrylic (to be referred as IPT).

IPT continues to go through a difficult phase, marked by declining margins of cotton and acrylic yarns. The IPT team has undergone changes in the leadership team, with new blood coming in to propel the business ahead. IPT also suffered due to a fire incident, which had halted operations in the plant. However, this did not stop the team from completing their orders committed, as they proactively managed to get the orders to the customer by outsourcing, and as a result, not a single order was lost. The most critical focus area for the Overseas Spinning business is VAP portfolio enhancement and the team has been working to enhance the product mix. The business has also commissioned the dyed yarn project, which will look to diversify their product range.

We continue to move ahead in our sustainability roadmap, having already reached a level of maturity in stakeholder engagement and responsible stewardship. We are embarking on a journey of future proofing our business, which would look at the long term strategy for the business.

The report will provide you with accounts of actions taken by us along with results achieved; I also encourage you to give us your feedback on the report, and share your kind views.

Enjoy reading!

Thomas Varghese,Business Head


Unit Head’s Message It is my pleasure to introduce to you our third Sustainability report following GRI G4 guidelines, covering the reporting period April 2016 to March 2017, disclosing our sustainability processes and performance.We endeavour to uphold sustainability values as laid down by the Group while ensuring long term sustainability of the unit.

At IPT, 2016-17 was a challenging year, not only from market perspectives but also operational issues including a fire that broke out in our acrylic dye house. The team rallied despite tough situations to continue operations and serve our customers. We believe that our focus on sustainability aspects has prepared us to face the challenges.

Our major focus in the reporting period was on safety and hygiene. Safety teams were formed in our acrylic, cotton and textile mills. Our fire hydrant systems and our emergency preparedness were strengthened. Safety and health awareness programs were conducted for all our employees. We focussed on energy and water conservation, conducted electrical audits and brought in external safety experts. We received the OHSAS 18001 certification for our unit. You will read more about these efforts as you go through the report.

We have also conducted manpower studies through experts as a part of our cost optimisation programme. Our focus is to increase our Value Added Products (VAP). We have organized our facilities to produce differentiated products more suitable for low speed machines. We endeavour to increase our export volume, leveraging the advantage in Turkey and European markets.

We have launched the Bosstomer programme, where the entire focus of both operations and marketing is Customer. We have conducted customer surveys to identify improvement areas and develop new products like melange and dyed yarns.

Key accounts management was another focus area which helped us to increase volume with high value accounts. We also focussed on qualitative engagement with key stakeholders like Dept. of Trade,


Board of Investment, Dept. of Finance, Dept. of Energy, the Indian Embassy and local government and semi government agencies. We were able to showcase the textile business, and increase the interest of government bodies in the textile sector which has resulted in the Board of Investments working on a roadmap for the textile industry.

We have initiated a talent management process for both expats and our Filipino employees. This will help develop a strong local second line leadership to steer IPT going forward.

Our customers are our assets and we put all out efforts to delight them. Despite the adverse economic conditions, our continued efforts in product innovation, especially in expanding our VAP portfolio, and

technology upgradation is expected to yield significant improvement. Going forward, we will continue to focus on our roadmap to achieve sustainability targets.

-S. L. Sipani


Performance - Snap Shot

Non GRI

Environment

Legend

Achievements No major changes Needs Improvements

COD (in mg/l)

BOD (in mg/l)

TSS (in mg/l)

Community Satisfaction Level

(%)

Customer Satisfaction Level

(%)

Oeko Tex Certified Products

Higg Index Environment

Module Score (%)ENHESA

PM (in mg/Nm3)

% RECYCLED & RENEWABLE MATERIAL

IN PACKAGING

WASH Pledge (%)

Supplier Satisfaction Level

(%)

Employee Satisfaction

Level (%)

GHG INTENSITY (in tCO2 eq/MT)

WATER INTENSITY (in m3/MT)

NOX (in mg/Nm3)

ENERGY SAVINGS (in GJ)

ENERGY INTENSITY (in

GJ/MT)

WASTE INTENSITY (in MT waste/MT

production)

pH

SOX(in mg/Nm3)

Higg Index Social and Labour

Module Score (%)

50

9

58

90.25 75

20

9487.54

49 95.5

70

86

87

2.17

33.27

6514,115

32.04

0.25

6.97

1,455

72

in 2016-17

in 2016-17

in 2016-17

in 2016-17 in 2016-17

in 2016-17

in 2016-17in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17

69

50

70

81.75 84

13.71

840

113

95.4

69

85

87

2.04

33.18

2774,665

25.38

0.21

7.23

969

74

in 2015-16

in 2015-16

in 2015-16

in 2015-16in 2015-16

in 2015-16

in 2015-16in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16


Performance - Snap Shot

Social

Economic

Legend

Achievements No major changes Needs Improvements

Average Training Hours

(in hrs)

Absentee Rate Decrease by 81%

Employee Diversity by Age Group

(<30: 30-50 :> 50)

Employees Returning from Parental Leave

Local Employment

(in %)

Training Hours (Male: Female)

No. of Stakeholder

Meetings

Employee Diversity (Male: Female)

PROPORTION OF PROCUREMENT

BUDGET FOR LOCAL PURCHASE (in %)

ECONOMIC VALUE GENERATED (in Mn

USD)ECONOMIC VALUE

DISTRIBUTED (in Mn USD)

Community Social Investments (in

USD)

% CONTRIBUTION OF VAP

LTI-FR Increase by 33%

New Employee Hires Increase by

51.5%

7.991.02

34:60:6

73%

98.8

10:90

656

25:75

10.53

46.2149.18

709.95

15

14.88

471

in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17

in 2016-17

4.5

5.43

32:63:5

98.75

5:95

163

24:76

11.73

54.38

55.64

31,889.64

23.45

11.2

288

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16

in 2015-16


FOOTPRINTOur economic, social and environmental footprint is extended across the globe through our supply chain, manufacturing operations and products. Our customers process our products and add value before delivering to the end user.

Operations and Products 07


Operations and ProductsGlobal Value Chain

Associations:

Indo Phil Textiles Mills Incorporated together with its subsidiaries Indo Phil Acrylic Manufacturing Corp. and Indo Phil Cotton Mills Inc. today has a production capacity of 21,576 TPA and 66,500 spindles with its own captive power plant of 24.8 MW.

In the previous reporting period , we had downsized by 16,000 spindles. In 2016-17 we took up the challenge to move from commodity to value added products (VAP), without any major CAPEX. Hence, we are in the process of reviving 50% of the downsized spindles.

Post conducting a deep study of market requirements and feasibility, we identified few products such as cotton blend melange yarn, dyed synthetic yarn and optical white blends.

IPT is a closely held, non-listed company. Reporting to the shareholders is done once a year at the Annual General Meeting. However, key shareholders are represented on the Board of Directors and are kept informed about business development. Regular interaction take place between our senior management and our shareholders, for insights and feedback on important business decisions, which has helped us gain the confidence of our shareholders.

The information includes overall performance results, targets, future plans collected from Indo Phil Textile Mills Inc. and its subsidiaries, Indo Phil Acrylic Manufacturing Corp. and Indo Phil Cotton Mills Inc., Marilao.

The annual turnover is US $46.21 million. The total capitalization is 35.32 million USD and D/E ratio is 52:48. The present capacity is 66,500 spindles, including 9,769 kg/day acrylic yarn dyeing capacity with an annual sales volume of 19,029 MT in 2016-17.

• Total Employee Strength: 1,182 (2016-17)• Net Sales: 46.21 Mn US$ (2016-17)• Quantity of Products Sold: 19,029 MT (2016-17)

Indo- Philippine Chamber of Commerce

Employers Confederation of

Philippines Product Portfolio

Philippine Chamber of Commerce

Employers Confederation of the Philippines

PHILIPPINES

Marilao, Philippines


We manufacture spun yarn in different counts for different end users. The product basket includes slub yarn, polyester cotton blended yarns, acrylic non bulk and high bulk dyed yarns.

During the reporting period, we have introduced the following products in our product range,

• Water repellent dyed acrylic yarns• Slub yarns in CVC 60/40 blends• Dope dyed Poly-Viscose• Dope dyed Polyester• Dope dyed Rayon

We are now looking at new markets for our:

• TC Cotton blend Melange yarns• Acrylic Cotton

ABY yarn is used by the knitting industry for manufacturing fabric, used for manufacturing garments including intimate apparel.

Product Portfolio:

INDO PHIL Group of Companies

Yarn Export Raw Material Import

Raw Material wise Imports

Mode of transport:Local - By TruckExport - By Sea

Total ImportAsiaNorth AmericaSouth America

ThailandUSAIndonesiaIndiaKoreaBrazilJapan

Total Import

PolysterCottonAcrylicSpecial FIber

GRAND TOTAL

REGION Qty_MT

Country Wise Qty_MT

REGION Qty_MT

April 2016-March 2017



21,73313,7007,833200

9,7217,8332,351856 74520027

21,733

10,2888,325 2,488692

21,733


SUSTAINABILITYMISSIONABG Sustainability framework drives us beyond being a responsible steward, to practicing future proofing of business through strategic stakeholder engagement. As a responsible steward we have identified ten material issues to focus on and have constituted mission champions to drive the pursuit of road map and targets.

ABG Sustainability Framework 10Ten “Missions” of Resource Stewardship 11Material Issues 13


ABG Sustainability Framework

Responsible StewardshipFocus on how we manage today and our goal is to build a framework of policies, technical and management standards aligned to international standards as defined by the IFC, OECD, UNGC, ISO and OHSAS. By introducing these standards into our systems we manage our operations in the most responsible manner.

Stakeholder EngagementTo understand the external changes that will inevitably impact our companies in the future and this step of the model is called “Stakeholder Engagement”. Our goal is to build strong relationships

with our stakeholders and key technical experts on climate change, water and waste management, developments in human rights legislation, safety standards, health impacts and the like. Future ProofingWe will embed sustainability trends into our strategic business plans to minimise the risks and find new opportunities that will be presented by the requirements of a sustainable planet and society by 2030 and 2050 and make our businesses sustainable.

RESPONSIBLE STEWARDSHIP

Create a framework to help us move to international

standards.

STAKEHOLDER ENGAGEMENT

Knowledge to think how fast things will

change & where disruptions will occur

FUTURE-PROOFING INCLUDING OUR SUPPLY CHAINA plan to create and share stakeholder value so we stay ahead of the Major Trend Curves - Roadmaps for Products, Energy, Water, Waste, Human Rights, H&S, Biodiversity, Suppliers, New business technologies, etc.

Legal Standards needed for a sustainable 2050

More demanding Legal Standards by 2030

International Standards Today

Bext Price TodayLegal Standards Today


Ten “Missions” of Resource Stewardship

Energy & Carbon Water & Effluent Waste Mgmt.Chemicals Mgmt.

Responsible Supply Chain

Compliance & Risk Management

Health & SafetySocial &

Labour

Stakeholder Engagement

Products Stewardship

-GHG Intensity -Water Consumption -Hazardous Waste-Compliance with REACH

-Recycled & Renewable input materials

-Compliance with applicable regulations along value chain

-Workplace hygiene -Diversity & Equal opportunity

-Dialogue with Internal & External Stakeholders

-Grievance mechanisms for: Impacts on society,

environment, labour, Human Rights

-Product Quality

-Customer Satisfaction-Packaging

-Customer Health & Safety-Safety

-Training & Retention-Occupational Health-Neighborhood Developement

-Energy Intensity -Water Risk -Non Hazardous Waste-Air Emissions -Waste Mgmt. -Waste Recycling-OEKOTEK

certification

-Procurement Practices

-Sustainability Risk Management

-Environmental, Labour, & Human Rights Assessment

-Delivering indirect economic benefits


Mission Champions:

Mr. P.K. Madhwar

1. ENERGY & CARBON 3. “WOW” - WEALTH OUT OF WASTE

8. CHEMICAL MANAGEMENT

4. SAFETY, HEALTH & ENVIRONMENT

9. SUPPLY CHAIN MANAGEMENT

5. SOCIAL & LABOUR

10. COMPLIANCE &RISK

6. STAKEHOLDER ENGAGEMENT7. PRODUCT STEWARDSHIP2. WATER & EFFLUENTS

Mr. Sekar Umapathy

Mr. Eric Camarao

Mr. Jaisingh Verma

Mr. P. K. Choudhury

Mr. William Agullana

Miss Mel David

Mr. G. Kasiraman


Material IssuesThrough many internal and external stakeholder engagements, the material issues were determined in 2014-15. This was further reviewed during 2016-17 through internal stakeholder meeting and strategic stakeholder engagement meetings.

Aspect Importance along the Value Chain:

-Supply chain; -Manufacturing; -Transport; -Customer

Policies, Standards & Code of ConductRegulations & Legal Compliance Grievance mechanisms(employee,Env, HR,society) Economic Performance Market Presence Indirect Economic Impact Renewable & non-renewable materials Responsible procurement Packaging Energy management Waste management and effluents Water stewardship GHG emissions and air pollution Compensation & benefits to employees Employee Recruitment & Retention Employee relations Employee health & safety Training and education Diversity and equal opportunity Collective bargaining Human rights assessment of operations Community Impact, Relations and Development Payments terms and negotiations with suppliers Supplier screening and Audits (Labour, HR, Community)Investments in developing local supplier network Customer health and safety Product and service labelling Marketing communications Customer satisfaction

0102030405060708091011121314151617181920212223242526272829

IMPO

RTA

NC

E TO

STA

KEHO

LDER

S

IMPORTANCE TO IPT

01

03

05

06

09

19

21

22

250708

10

14

11

15

12

16

18

20

2324

27

28

02

04 13

1729

26


GOVERNANCE& MANAGEMENTABG Values steer our conduct in dealings with all our external stakeholders along the value chain. Our board supervises adherence to ABG values at all times and guides the business to deliver sustainable value. Sustainability practices in the business is guided by the APEX committee and is executed by the ten Mission champions covering all material issues that our business is challenged with.

Our Values Steer Our Conduct 15The Board 16Steering Sustainability 17


151617

Our Values Steer our Conduct

INTEGRITY

COMMITMENT

SEAMLESSNESS

PASSION

SPEED

Acting and taking decisions in a manner that is fair and honest. Following the highest standards of professionalism and being recognised for doing so. Integrity for us means not only financial and intellectual integrity, but encompasses all other forms as are generally understood.

On the foundation of Integrity, doing all that is needed to deliver value to all stakeholders. In the process, being accountable for our own actions and decisions, those of our team and those in the part of the organisation for which we are responsible.

Thinking and working together across functional groups, hierarchies, businesses and geographies. Leveraging diverse competencies and perspectives to garner the benefits of synergy while promoting organisational unity through sharing and collaborative efforts.

An energetic, intuitive zeal that arises from emotional engagement with the organisation that makes work joyful and inspires each one to give his or her best. A voluntary, spontaneous and relentless pursuit of goals and objectives with the highest level of energy and enthusiasm.

Responding to internal and external customers with a sense of urgency. Continuously striving to finish before deadlines and choosing the best rhythm to optimise organisational efficiencies.

Code of Conduct:

Anti-Corruption:

RISK EVENT RISK DRIVER IMPACT MITIGATIONRISK MITIGATION MEASURE

“Integrity, trust, fairness and honesty are the basics that guide our strategies”

We voluntarily follow the Code of Conduct outlined by the ABG’s Code of Conduct, which incorporates the Business Principles. and our central guidance document for the norms of behaviour.

In order to create awareness, inspire confidence and improve governance, the Code of Conduct was sent to all employees in the reporting period. We believe that a better understanding of policies and governance structure would encourage employees to report any untoward incident occurring within the system. There was a workshop conducted on group values with new recruits as part of the orientation programme.

Risk Assessment process for corruption

Gratification from Vendor / Supplier

Mark up the Budget

Misuse of Corporate Assets

Code of Conduct, Values, SOP

Internal audit conducted bi-annually, Code of Conduct, ValuesAsset, Delegation manual procedures

Management, Asset Control / Audit, Code of Conduct, Values

Business Value Standards Committee is assigned responsibility to investigate complaints of value violation at workplace, if any, and to take appropriate action against the employee found guilty of such offence.

CommercialGratification

Authority, lack of monitoring,

Access, high value asset,


The Overseas Spinning business negotiates a common pricing for procurement from OEMs.

The unit head along with the Finance & Commercial (F&C) team negotiates high value items with third parties.

In case of low value items, as per the delegation manual, the approval limit is pre-fixed. This limit is in-built into the system, any deviations of which will need approval from appropriate authorities.

For majority of items where competing sources are available, a comparitive study is made before finalisation.

A waste and scrap committee formed in 2015-16, finalises the buyer and price for all related waste and scrap items including the old machinery. Security guards undertake physical checks at the time of loading and weighing. The board provides the oversight to environmental, social and economic

performance of the organisation, oversees upholding of a broad set of governance principles, and delegates management authority to the Chief Executive within defined limits.

The board reviews key risks including that arising from imperatives of sustainable development and how they are managed. The management exercises appropriate internal controls and periodically reports to the board.

Our Group Values document and Code of Conduct highlights how employees must conduct themselves both within the organisation and with external stakeholders.

All employees shall ensure that their personal conduct in a public place and with the public is dignified and reflective of Group Values. Every individual is evaluated not only against business performance but also against the values espoused in the Code., This is also highlighted in the KRA. All employees are encouraged to bring to the attention of management i.e. their seniors/ other senior representatives of the Group when they come across any violation of the Code of Conduct.

The BoardThe Board of Directors of Indo Phil Textile Mills Inc. for 2016-17:

Mr. K.M. Birla

Mrs. Rajshree Birla

Mr. Rajesh Gagoomal

Mr. Thomas Varghese

Mr. Elpidio C. Jamora Jr.

Mr. Shanti. L. Sipani

Mr. Pramod Choudhary

Ms. Evangelina C. Rivera

LEGENDNATIONALITY : INDIAN NATIONALITY : FILIPINOGENDER: MALE GENDER: FEMALEAGE: >50 AGE: <50

Non – executive

Non – executive

Independent

Independent

Executive

Executive

Executive

Executive


Overseas Spinning Sustainability Committee:

IPT has a sustainability sub-committee consisting of the following team members which works with the overseas spinning sustainability committee who in turn works with the apex sustainability council of textile, acrylic fibre and overseas spinning business:

Our sustainability governance organisation is :

Dr. Ancha Srinivasan

Mr. Joseph Scaria

Dr. Satish Wate

Dr. Ram Babu

Dr. Shirish Sangle

Mr. Dicky Hindarto

Asian Development Bank

Asia Pacific, Habitat for Humanity International

National Environmental Research Institute

Ex-M.D- PWC

NITIE (National Institute of Industrial Engineering)

Principal climate change specialist

Director- Development,

Ex- Director – NEERI

Managing Director - RSM GC Advisory

Professor of Sustainable Business

Head of Advisory Board of the Green Partner FoundationMember of the Expert Board of Indonesia Renewable Energy Society.

Indonesia Vice Regional Manager of the Climate Reality Project.

Member of the Advisory Board of the Indonesia Energy Efficiency Society

Sustainability Advisory CommitteeThis committee consists of 6 members, which focuses on the enhancement of the sustainability vision. There was one meeting conducted in this reporting period where the previous year reports were reviewed and feedbacks were discussed. Discussions regarding the future plans and targets for the improvisation and development of the units took place during the reporting period.

Mr. Yashpal Singh

Mr. KapilAgrawal

Mr. S LSipani

Mr. Kapil KAgrawal

Mr. C PBansal

Unit Head Chairman, Manager

Member Member CFO

Business HeadDT, AF & OS(Chairs Apex Council)

CEO - Acrylic Fibre(Chairs theCommittee)

Sustainability Committee

-HR, EHS, Eng., Mfg., Finance- Sustainabilty Champion (Secretary)





CEO - Textiles(Chairs theCommittee)

CEO - Overseas Spinning(Chairs theCommittee)

Sustainability Advisory Council

10 Workgroups

Apex Sustainability Council- CEOs, CPOs, CFOs- Sustainability Champions- CSO & VP-BE Secretary

Meeting: Once/QuarterGREENTEAM

Teams are led by senior members and managed in apex council meeting by The Business Head

Supply ChainSustainability

Compliance & Risk

Energy & Carbon

Water & Effluents

ChemicalManagement

Social & Labouur

Waste Management

Health & Safety

StakeholdersEngagement

Product Stewardship

TEN WORKGROUPTEAMS


Sustainability Commitee:

Mr. S. L. Sipani

Mr. N.K.Mer

Mr. Jaisingh Verma

Mr. Pramod K. Choudhary

Ms. Mel David

Mr. U. Sekar

Mr. G. Kasiraman

Mr. William Agullana

Chairperson-Technical

Member-VP Works

Member-Engineering

Member-Finance & Commercial

Asst. General Manager-HR

Member-Production

General Manager-Marketing

-

This institutional mechanism is the main enabler for driving sustainability practices and performance within the group. Besides, we have deployed a comprehensive set of enablers that drive sustainability.

Sustainability Information ManagementSystem - powered by IT Platform

Policies & Management Framework:

Our IT platforms were further enriched through the deployment of the following projects:a. Implementation of the payroll system, which is under progress

b. Upgradation of the internet bandwidth, improvement through better online access and efficiency.

A Management information report is prepared from this system and reviewed by the top management.

Energy & Carbon

Safety

Health

Bio-Diversity

Water Stewardship

Quality

Human Rights


Supply Chain

Procurement

Transportation

Product Stewardship

Security

Supplier Code of Conduct

Anti Corruption

ISO 14001, Oeko-Tex, Higg Index

OHSAS 18001

OHSAS 18001, WASH Pledge

ISO 14001


ISO 9001, Oeko-Tex

UNGC, SA 8000

SA 8000, AA 1000

ISO 9001, 14001, OHSAS 18001

ISO 9001, 14001, OHSAS 18001

ISO 9001, 14001, OHSAS 18001

ISO 9001, ISO 14001, Oeko-Tex,

-

ISO 9001, ISO 14001, OHSAS 18001

Code Of Conduct


Higg Index

Environmental Policya.

b.

c.

d.

e.

f.

g.

h.

i.

j.

k.

l.

m.

n.

o.

p.


RESPONSIBLE STEWARDSHIPFocus on how we manage today. Our goal is to build a framework of policies, technical and management standards aligned to international standards as defined by the IFC, OECD, UNGC, ISO and OHSAS. By introducing these standards into our systems, we manage our operations in the most responsible manner.

Balancing Economic ValuesCompliance & Risk ManagementAligning manufacturing processes with our sustainability goals Energy & CarbonWater & EffluentsBiodiversityMaterials & WasteHealth & SafetyChemical ManagementCaring and ShariingSocial & LabourResponsibility to CustomerResponsible Supply ChainProduct StewardshipStakeholder Engagement

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Balancing Economic Values

Strong and sound financial management and risk mitigation are crucial for the sustainable performance of an organization. Accordingly, at Indo Phil Textiles, we have adopted some of the best practices in the industry.

We have invested in process efficiencies and modernization of the plant and added new products to our portfolio for the domestic and international markets.

This has helped IPT mitigate market risks and rise above our bottom line. This has been viewed positively by our stakeholders.

Meeting market needs, adding value through product innovation and process efficiency is an on-going activity at Indo Phil. Our performance targets challenge our employees to excel.

Guided by our business strategy and periodic updation of risk matrix, we identify critical areas for deploying improvement projects.. While selecting such projects, sustainability aspects are duly and diligently considered. Total compliance to the norms and regulations is a priority.

We pro-actively benchmark ourselves with group companies and South Asian spinning industries to understand and bridge the gaps in performance. The annual budget is prepared after many iterations of consultations with internal and external experts to arrive at challenging as well as achievable results.

Our accounts are audited annually by a certified financial auditor as required by the Philippine government regulations. Our stakeholders derive benefits through their long term association with our company. We constantly endeavour to deliver better value to all our stakeholders.

- Pramod ChoudharyHead Finance


Direct Economic Value Generated and Distributed (in USD Million)

Economic Value Generated

Economic Value Retained

Economic Value Distributed

11.70%10.53%

2015-16 2016-17

2015-16 2016-17

Over the last two years, we have focussed on domestic sales as price realisation has been difficult due to competitive pressures from neighbouring countries like Vietnam, Indonesia and Thailand.

In order to improve our revenues, we have introduced new dope dyed 100% polyester, 100% rayon and PV blended yarn.

In order to yield better margins we have increased the VAP (value added products) percentage to 15% of our product basket.

We have taken a target of 25% for 2017-18.

Operating cost 42.32 Employee wages and benefits 5.91 Finance costs 0.95

Local Employment

Environmental Expenditures

Indirect Economic Impacts

Environmental protection expenditures (in USD)

Percentage of Procurement Budget spent on procuring from local suppliers

167,956180,295

2015-16 2016-17

Filipinos constitute 85% of our total staff (local is taken as resident of Philippines). A leadership development program initiated in 2015, in which we are grooming locals by strategically giving more opportunities and experiences was also conducted within this reporting period

Environmental expenditure incurred has been towards:a. Emissions treatment and remediation costb. Waste management and ETP Operation expendituresc. Environmental audits including renewals for our ISO 14001, ISO 9000 and OHSAS 18001 certification in the reporting period.

We always prefer sourcing of materials and equipment locally, provided that desired technical specifications are met. Local purchase accounted for 10.53% of our total purchases in the reporting period.

55.6449.18

-1.26 -2.97

54.3846.21



Noted violations, fines (2016-17) : 0Target for 2017-18 : 0

0ENHESA Compliance Score : 87.54Target for 2017-18 : 100%

87.54Number of Whistles blown (2016-17): 0Target for 2017-18 : 0

0

We give utmost importance to total compliance and take steps pro-actively even if administration of a certain regulation is weak in a geography. We implemented IT enabled ENHESA regulation compliance module in order to evaluate our compliance performance. We have achieved 87.54 score on this module. Further, we plan to implement Regulatory Compliance and Management (RCM) module as a part of regulatory compliance tracker mechanism.

During the reporting period, we did not pay any fines or face any non-monetary sanctions. We also did not receive any or cases brought through dispute resolution mechanisms for non-compliance with environmental and social laws and regulations. Compliance Registers are maintained by departments. All upcoming regulations are reviewed annually and the compliance registers are updated, monitored and tracked.


Policies,Code of Conduct


Mission

IMS,ENHESA


Aligning manufacturing processes with our sustainability goals

The unit’s major products are commodity cotton blends. We receive stiff competition from neighbouring countries who enjoy significant advantage due to cost of production, especially due to low power tariffs and low manpower costs as we continue to face uncertainties in The Philiippines.

We have received fresh certifications for ISO 14001 and OHSAS 18001 in the reporting period. We renewed our ISO 9001 certification.

The DENR regulations have tightened its requirements with respect to emissions and energy consumption. Accordingly, in order to comply and reduce costs, we have undertaken a number of projects in operations and at our power plant. We have also installed a new dryer at our acrylic unit, with efficient drying.

Water is critical to our operations, hence we undertook a water audit by CII Triveni. We conducted a number of activities, including replacement of pipelines, which has helped improve water consumption.

In this reporting period, IPT re-organised machines and created different facilities for running high speed and low speed machines. It was decided to build capacity for cotton and textile yarns in one unit and separate facilities to manufacture dyed products.

We plan to focus on melange yarn production, which eliminates the dyeing process at the customer end, and provides more value.

Chemical management with traceability and transparency to meet expectations of direct customer, as well as customers and users in the downstream value chain, is very critical. We follow practices as required by REACH and standard operating practices delineated in our Integrated Management System.

We focussed on improving our WASH pledge scores, as well as safety measures by:


• Installation of a new centralised waste collection system in the cotton unit, which has helped reduce the dust emission in the unit.

• Renovated comfort rooms

On the safety front, we Implemented and received certification for OHSAS 18001.

Employees on the shop floor were engaged to help in the identification of safety and health hazards.

We will further improve our operational performance to make our workplace more equal, engaging, safe and healthy.

In the coming years:

1. We will promote more VAP using dope dyed fibre, 100% synthetic dyed yarn, cotton blended melange yarn and rayon melange yarns, which will help increase profitability.

2. We will improve /innovate our products to deliver better functional performance to our customers and final users during use and disposal.

We hope our initiatives will motivate stakeholders to drive change and create a better future.

- N.K.Mer,Head, Operations


Energy Consumption

Energy & Carbon

Energy Intensity (GJ/MT) 2016-17 : 32.04Target for 2017-18 (GJ/MT) : 24.36

32.04

GHG Intensity (tCO2/MT) 2016-17 : 2.04Target for 2017-18 (tCO2/MT) : 2

2.17

Energy & Carbon

Textile and apparel manufacturing as an industry is energy intensive. The Philippine textile and apparel industry faces several challenges, which include the increase in power tariffs, that is amongst the highest within Asia.

Energy amounts to 15.92% of the product cost. It is the second highest cost component after raw materials viz. 66% of the product cost.

Guided by the overall vision of providing “Energy Access for More, the 2012-2030 Philippine Energy Plan (PEP) seeks to mainstream the access of the larger populace to reliable and affordable energy services.

The PEP includes the National Energy Efficiency and Conservation Program (NEECP) as one of the centre piece strategies in pursuing energy security of the country and looks into it as a major solution to the energy challenges of the future.

The PEP encourages the development of energy efficient technologies and provides incentives for effective promotion of efficiency initiatives in the energy market sector.

Access to energy is vital in achieving the government’s goal of spurring economic activity to create livelihood and employment for 913 million Filipinos, 26.5% of whom are currently living below the poverty threshold (National Statistics Office, 2012). The demand for energy is expected to increase even further, in light of the country’s growing population, currently pegged at 1.9% per year (NSO, 2012)

The government addresses this situation in two ways:

• By ensuring adequate supply of energy through vigorous development of indigenous energy resources and promoting investments in the power sector, and

• Managing domestic energy consumption.

Energy Conservation and Renewable Energy

ISO 14001, Oeko-tex,Higg Index

Energy & Carbon Policy

Energy & Carbon Mission


We have undertaken a number of projects aimed at optimising energy consumption through the application of energy efficient technologies, upgradation of plant & machinery and adjusting process parameters.

The fuel efficiency in the base year (1994) was 3.69kWh/ ltr. We worked to improve efficiency by utilising blended fuels of high calorific value which increased the efficiency to 4.21kWh/litre in the first phase,and 4.30kWh/ litre in second phase.

Our energy intensity in 2016-17 was 32.04GJ/MT. There are a number of factors which directly or indirectly have a bearing on energy intensity and are intrinsic to the achievement of our targets which include.

• Production • Market demand • Quality• Efficiency

We plan to undertake the following projects in the power plant for the coming year. • Improve efficiency of the boiler through rehabilitation of exhaust gas in rice husk boiler • Replace SF6 circuit breaker • Replace skid pump of the Exhaust Gas • Explore sale of 5 MW of power

CASE STUDY- IMPROVING THE POWER PLANT FUEL EFFICIENCYAlthough the power plant is aged, our team strives for continuous improvements. After deliberations, the team accepted the challenge to improve the engine fuel efficiency. The team brainstormed the causes and represented it down through a fishbone diagram.


SAVINGS:

33,074 Units/year

Energy Savings

1. Pressure from the vapour absorption chiller was utilised through adjustments in the pipelines and valves of the air washer unit, resulting in stoppage of a 22 KW Evaporator pump in Cotton Mill 1.

4. Cotton -2 Link coner Winding Blowers were being operated continuously, since continuous was not required, we re-programmed the blower operations

2. Installed Auto control in Cooling Tower (IPT -1)

3. Reduced the blade Angle of Supply Air Fan of Air washer I & 2 in Cotton Mills

Action Plan: After checking we observed that pump running in power house for transfering the chilled water is sufficient up to air washer. We stopped the pump & after modification the system was working.

Action Plan: We optimized the speed of S.A. Fan in Blow room area.

Implementation Date: 5 December, 2016

Implementation Date: 1 February, 2017

Implementation Date: 3 Jamuary, 2017

SAVINGS:

74,352.41 Units/year

SAVINGS:

54,288 Units/year

P-M Analysis: Addressing Low Specific Fuel Oil ConsumptionThe contributing factors to low specific oil consumption were identified as follows :-

• Separators were malfunctioning as the Gaskets & O-rings were not changed during 4000 run hours. The water solenoid valve was malfunctioning while the separator operation was not optimized.

• Excessive fuel leakages due to damaged seals of injection pump and broken or loose pipes and fittings

• The pressure gauge was defective with incorrect calibrations• Dirty/clogged charge air coolers resulted in insufficient charge

air• Quality of bunker oil used was of low grade which resulted in

poor combustion and deposition of sludge

A stakeholder engagement was conducted with Shell, Petron and Wartsila which gave us insights and solutions, which were then shortlisted post undertaking a comparative study. . The following were our action points.

• Significant improvement in fuel efficiency was observed using Shell blended fuel (4.21 kWh /Ltr To 4.30 kWh/Ltr ).

• After consuming 360 KL of BFO from Petron we compared results.

• Shell Fuel Oil Plus had competitive advantage against Petron BFO with pCHEM additive in improving our fuel efficiency.


6. Chilled water was previously used in the compressor. Now we use normal water after making modifications to the compressor water pipeline.

5. 10 Winding machines was working at 60 HZ with Inverter drive. We by-passed the Inverter and saved losses upto 2%

Action Plan: We developed a process for checking (Once in a month)Implementation Date: 3 January, 2017

Implementation Date: 2 March, 2017

SAVINGS:

26,459 Units/year

SAVINGS:

320,578 Units/year

SAVINGS:

14,700 Units/year

7. Pressure from the chiller was utilised through adjustments in the pipelines and valves of the air washer unit, resulting in stoppage of a 18.5 KW Evaporator pump in Acrylic Mill.

Action Plan: .We installed soft water line from power plant to the cooling tower. ii. Replaced the Heat exchanger iii. Made sure that stand by compressor is in operation.

Implementation Date: 2 March, 2017


SAVINGS:

92,707 Units/year

8. Pneumafil discharge air was used in the air washers. We separated the pneumafil discharge from the air washers in Cotton Mill 1

9. Modified the winding air washer of textile unit, resulting in stoppage of treated air leakage

10. Replacement of low efficiency motors with high efficiency in humidification system

Action Plan: Reduced the blade angle of Main R.A. Fan of CVC 1.Implementation Date: 2 March, 2017


Implementation Date: 1 June, 2016

SAVINGS:

225,504 Units/year

SAVINGS:

146,995 Units/year

SAVINGS:

101,894 Units/year

TOTAL SAVINGS ACHIEVED:

988,657 Units/year

11. Replacement of low efficiency motors with high efficiency in humidification system


Renewable EnergyWith the global trend towards a clean energy future, and with the Renewable Energy Act passed in 2008 to fully harness the country’s renewable energy potential such as geothermal, hydro, wind, solar, biomass and the ocean, the future looks far more promising. The Philippine Energy Plan includes the targets set under the National Renewable Energy Plan (NREP) to strengthen its energy security plan. Specifically, the NREP seeks to increase the country’s renewable energy-based capacity by 2030.

We are now exploring the feasibility of installation of solar street lighting and procurement of electricity from renewable sources over the next two years. We have saved 4,115 GJ of energy during the reporting period.

Implementation Date: 1 July, 2016

SAVINGS:

52,618 Units/year

TOTAL SAVINGS ACHIEVED:

1,143,169 Units/year

Science Based TargetsAs a responsible corporate, IPT is in the process of conducting internal studies to set up Science Based Targets (SBT) for its GHG emission reduction target.In 2016-17, we have conducted background studies, like selection of a base year, deciding tenures for the short and long term targets, as well as activity data such as normalised production, GHG emissions and gross profits in the base year.

After completing these studies, we will establish and communicate the new targets for GHG emissions reduction, in line with the SBT, in the next report.


Legend: Legend:2015-16 2015-162016-17 2016-17

Total energy consumption (in GJ)

Energy Intensity (in GJ/MT)

548,

746

25.3

8593,

274

32.0

4

CarbonCognizant of the fact that the energy sector is the biggest contributor of greenhouse gas (GHG) emissions, accounting to about 49% of the world’s total emissions, we have undertaken several energy saving initiatives to improve our performance, thereby reducing our GHG footprint.

We have reduced our GHG emissions by 7.3% through our energy saving measures, however, our intensity per ton of product has increased by 6.37% due to lower production compared to last year.

Total Scope 3 Emissions (tCO2 )

GHG Intensity (tCO2 /MT)



26,5

8249

2.04

16,2

14

537

2.17

14,8

20

24,7

62

Savings due to energy efficiency projects (in MWh)

Savings due to energy efficiency projects (in GJ)

284

4,11

54,66

5

485

Energy consumption- non renewable (in GJ)

Energy consumption- Electricity (in GJ)

358,

803.

4

146,

221

131,9

31

306,

344


Air Emissions

Emission Air QualityIn order to reduce our Scope 3 emissions, we have undertaken the following initiatives in the reporting period:

• Utilisation of 40 ft. High Cube Containers• Car Pooling + Logistics • Loading - unloading of imported raw material by utilisation of dock levellers at godowns

We understand the need to improve the air quality conditions in the work place and in the surrounding region. In order to improve the in-plant air quality, we have modified the dust collection systems in the textile and cotton units in the reporting period. This has helped reduce the transmission of finer micron dust particles.

Since we operate a 24.8 MW FO fired power plant, we are required by the Department of Environment and Natural Resources (DENR) to install a continuous emission monitoring system that monitors SO2 SOx, CO and, NOx gases. The process of finalising the supplier to and installation of the same will be undertaken in FY 2017-18.

We monitor our stack emissions on an annual basis through a 3rd party accredited by the DENR. The report is then submitted to the Environmental Management Bureau (EMB).. We also monitor SOx, NOx and PM for emissions air quality. We will increase the frequency of stack maintenance in the coming year.

NOx

SOx

PM

651 2,000277

1,455 1,500969

49.0 150113

mg/Nm3

Pollutants in (mg/Nm3)* Limit as per DENR

*on instantaneous air sampling basis

mg/Nm3

mg/Nm3

2016-172015-16

2016-172015-16

2016-172015-16


Water & Effluents

% of Water recycled: 20%Target for 2017-18 : 22%

20%Water Intensity (2016-17) (m3/MT) : 33.27 Target for 2017-18 : 30 m3/MT

33.27

There are strong regulations in place, with the enforcement of the Philippines Clean Water Act 2004 on discharge water quality standards and its management. The discharged water quality and quantity is monitored on a half yearly basis by the government agency.

Due to rapid industrial development and increased demand, Manila Bay and other urban estuaries have been deemed eutrophic and unfit for human activity (Philippines Development Plan, 2011). Industries in the region contribute to air and water pollution, which “significantly contributes to episodic hypoxic conditions in bay waters, toxic algal blooms, and suspended materials in water columns (Jacinto, 2006).”

The Pasig River watershed, which divides the National Capital Region into Northern and Southern districts, is densely populated and highly polluted owing to the dumped wastewater from industries, households and slums. The cost of medical treatment and loss of income from water-borne diseases is approximately $141 million per year. Given the water stress due to limits on withdrawal, water resources management is equally important for us as an organisation.

In the reporting period, we operated 6 bore wells and received a fresh permit for a new deep well. We withdraw up to 52,000 m3/month from the bore-wells. In order to de-risk our water source, we have implemented rainwater harvesting systems for the company and housing premises.

IPT has its in-house dyeing and power generation facilities which, in itself,

Water & Effluents

Water & Effluents Mission

WaterStewardship & Environment

Policies

ISO 14001, Oeko-tex,Higg Index

Wash Pledge


consumes a larger quantity of water. We have taken a target to reduce water consumption to 1700 m3/day and this reporting period we have achieved a consumption of 1688 m3/day. We have achieved a water intensity (m3/MT) of 33.27 against a target of 30 towards the end of the reporting period., We have undertaken a water audit with the support of CII Triveni Water Institute and have implemented the following projects:

a. Water leakage was arrested through replacement of underground pipelines in Santa Rossa (workers housing colony), which resulted in water savings of 8m3 per day.

b. An underground water pipeline from the Canteen deep wells to dye house was replaced, resulting in water savings of 50 m3/day.

In the coming year we plan to undertake modifications in the water supply line to the housing.

Our water audit project was preceded by a day’s training on water conservation. We celebrated water saving month in March 2017. The following actions were undertaken during the reporting period:

• Best posters that celebrated water conservation• Water Saving Suggestions• Water Saving Slogan Competition• Spot the water wastage or leakage

IPT reuses the effluent (approx. 500 m3 /month) in the rice husk boiler (RHB) scrubber. This reused water is sprayed from the RHB stack to trap the remaining ash and reduce emissions.

IPT continues to recycle and reuse approximately 20% of its intake water. Backwash water is collected and reused for plant humidification and cleaning purposes.

Recycle and Reuse

Quantity of Water Withdrawn in consecutive years (m3) -

Total volume of water recycled and reused

1. Ground Water

2. Rainwater

TOTAL

%

723,961

0

716,246 614,452

164225.3

1,953 1,577

143,249 122,890

2014-15

23% 20% 20%

723,9612015-16 2016-17

2014-15

718,199 616,029

2015-16 2016-17


BOD mg/l

COD mg/l

pH

TSS mg/l

23.50 50 9

69-

50

29.50 70 58

2014-15

7.15

2015-16 2016-17

7.23 6.97

As an environmental steward, IPT is committed to treating waste water and maintaining the quality within prescribed limits.

The water discharged from the dye house goes to Effluent Treatment Plant(ETP), where chemical and physical treatment methods are applied to ensure the quality of water discharged is as per the norms. All water discharged from the equaliser tank to the clarifier no.1 is measured. 10% of the waste water, after treatment, is reused for scrubbing purposes at the rice husk boiler, and 40% of the treated water is reused for gardening purposes.

We have initiated piping design to separate storm water and process and domestic waste water and will implement monitoring system for the discharge water. A water meter for discharge point will be installed by end of 2017. (new para)

Discharge water amounts to 15.38% of the total intake water. This water is largely from the air-washer unit and the blow down from the cooling tower.

Waste Water Waste Water Quality:


BiodiversityWe have prepared Integrated Biodiversity Assessment Tool (IBAT) point-based intersection report, that identifies the Legally Protected Areas, Internationally Recognized Areas and Priority Sites for Biodiversity that are located within 1 km, 10 km and 50 km of the location. We also provide an indication of the potential biodiversity-related features

The following are the threatened species that are potentially found within 50 kilometres:

Taxonomic group: Invertebrates NT species- 148DD species- 100VU species-166EN species- 12

Taxonomic group: Mammals NT species- 02DD species- 02VU species- 02

Taxonomic group: Fishes NT species- 23DD species- 44VU species- 26

Taxonomic group: Birds NT species- 25VU species-19EN species- 01DD species- 02CR species- 03

Features Priority Sites for Biodiversity(Key Biodiversity Area)

Within 1 Km

Within 10 Km

Within 50 Km

1,30,465 ha

no features

6,600 ha

32,000 ha

50,000 ha

Manila BayTriggers: CR/EN, VU, migratory birds/congregations

no features

Angat Watershed Forest ReserveTriggers: CR/EN, VU, endemic

Candaba swampTriggers: CR/EN, VU, migratory birds/congregations

Mounts Irid-Angilo and BinuangTriggers: CR/EN, VU, endemic

166

44

25

19

148

0302

1

100

12

2

22

26

23

Taxonomic group: Amphibians NT species-01

Taxonomic group: Reptiles NT species- 03DD species – 08VU species- 05EN Species- 01

8

1

1

53

IUCN Red List Categories: EX – ExtinctEW - Extinct in the WildCR - Critically EndangeredEN – EndangeredVU – VulnerableNT - Near ThreatenedLC - Least ConcernDD - Data Deficient


Waste Management

Process & Packaging waste for recycle and reuse(MT) (2016-17): 3,162Target for 2017-18 : 2,800

3,162Waste Intensity(2016-17): 0.25 MT waste/ MT productTarget for 2017-18 : 0.2

0.25% of Recycled/Renewable Material in Packaging (2016-17): 95.5%Target for 2017-18 : 98 %

95.5%Quantity of Hazardous Waste (Bunker oil and lube oil) Generated(litres) (2016-17): 67,308Target for 2017-18 : 94,000

67,308

We take our waste management very seriously and aim to reduce the waste produced from our unit through re-use and recyce.

Our material management policy ensures resource conservation through the use of renewable, recovered and recycled materials. There is also a focus on increasing Value Added Products year on year. We strive hard and put our best efforts to improve our material use efficiency. Our primary raw materials continue to be polyester staple fibre, acrylic and cotton fibres. We are planning to utilise dope dyed fibres for the VAP basket.

Materials & Waste

Environment &Product

Stewardship Policies

ISO 14000, Oekotex,

Higg Index

Waste Management

Mission

During the reporting period we have undertaken the following actions:-:• Emphasis was placed on periodic maintenance schedules

and daily cleaning of cotton lines.• Strengthening the filter system by adding new equipment

in the process.• Combing process has been strengthened by machine

additions for better quality• Replacing the old final winding machines in our acrylic unit.• Strengthening the humidification system in our cotton unit• Quality parameters are monitored to ensure consistency of

input raw materials


Sweeping waste was reduced by 11% (91 MT to 82 MT) in the reporting period, owing to lower production compared to last year.

Further, our supply chain engagement and intervention in the reporting period has yielded results. We have worked with Toyoda, Rieter, Bracker and, Trutzschler for reduction of waste and improving efficiencies. In the upcoming year we endeavor to improve our resource use efficiency through traceability study of the value chain of the input materials, we utilize in our process and packaging. This will help us to differentiate the type of input material we intend to consume and thereby allowing us to take an informed decision on becoming a resource steward.

Waste reduction targets are set annually at our budget conference.

We are working with local suppliers to use recycled plastic for developing cones. All waste generated on the production line is being packed and used as raw material bale covers.

Process MaterialWe currently utilize no recycled process raw material, however we endeavor to do so in the future.

Renewable and Recycled Packaging Material

Non- renewable Materials (MT)

RecycledMaterials (MT)

41.11

859.

58

831.9

5

38.8

4

Legend: 2015-16 2016-17


Solid Waste Management

Our waste management policy provides directions to our efforts. We strive to improve our material resource efficiency and reduce the waste sent to landfill.

Waste such as roving, flat strips, and filters are collected and stored in the waste godown.

Hazardous waste at IPT is restricted to ETP sludge generation. All non-hazardous wastes which are generated during the process, along with the spares are segregated separately and sold to waste buyers who have the licence to reuse, recycle or dispose off the same.

Wherever hazardous waste is handed over to authorised waste handlers, we ensure that the certificate and evidence for treatment and disposal is provided. This also enables us to track, monitor and manage waste.

There were no significant spills during the reporting period.

Total waste generated (MT)

Non Hazardous Waste generated (Reused) (MT)

Scrap (MT)

Non Hazardous Waste generated (Recycled) (MT)

4,31

2

2,48

2

189

1,830

458.

45

1,839

4,54

3

2,70

4

Legend: 2015-16 2016-17


Executive Order 307, establishing the Occupational Safety and Health Center in the Employees’ Compensation Commission attached to the Department of Labour and Employment, reinforces the commitment of the Philippines government and its executive in preventing and reducing work-related injuries, illnesses and deaths, and implementing occupational health and safety programs effectively to promote the health, efficiency and general well-being of the Filipino workers.

In order to ensure adherence to continual improvement and total employee involvement in addressing the challenge of safety and occupational health, we have implemented the Occupational Health and Safety management system, OHSAS 18001:2007.

We have undergone hazards identification and risk assessments (HIRA) and have developed our emergency preparedness and response plan, as a result of which we have conducted aspect and impact evaluations.

Our commitment to the WASH pledge and periodic internal audits continue to be the main levers for improving health and hygiene in the work place. Our score was 1.4 / 2 in 2016-17. Numberous actions were undertaken in the reporting period in order to improve the score.

• Renovation of toilets viz. repairing doors and damaged flooring in lavatories, repairing / replacing defective faucets and toilet bowls.

• Trash bins/ receptor cans in toilets• Replacing all hand-washing instructions and signages • Training of janitors

Health & Safety

Injury Rate (2016-17): 14.88Target for 2017-18 : 0

14.88WASH Pledge Score (2016-17) : 70%Target for 2017-18 : 100%

70%Higg Index Score Env : 94%Target for 2017-18 : 98%

94%

Health & Safety

Health & SafetyPolicies

OSHAS 18001, Oeko-Tex,

Higg Index, Wash Pledge

Health & Safety

Mission


• Liquid soaps dispensers have been placed in all washroomsOur commitment to health extends to customers and end users of our products. We renew our Oeko Tex certification for our fibre and yarn annually. We have also been audited with regards to our performance on environmental and social indicators in the Higg Index.

Environmental module score

94%Social and Labour module

72%Currently we are assessing our large suppliers for compliance against various sustainability criteria. We will be able to improve our Social and Labour module score when we are able to deepen our engagement with the supply chain,which is determined by the resources and feasibility. We can then begin physical audits and assessments of the value chain.

We have taken a zero injury target for FY 2017-18. The action plan to achieve this target is detailed below:

a. Road Safety signs posted all across the plantb. Review of maintenance schedule of critical equipment.c. Technical and behavioural safety training for operators including familiarisation of SOPs and SOMP (systematic operation maintenance plan) , where due diligence is to be followed. d. Analysis of injuries body part wise and accident cause analysis that help us understandleading factors and identify injuries that are repetitive in nature.e. Ensuring that all contract and temporary workers use the PPE provided.f. Monthly inspection of the fire hydrant systems, and fire extinguishers. g. Replacement of old fire hydrant pipelines.h. Regular check of fire control equipment

We believe, that these pro-active efforts will result in better assimilation of procedures and result in greater awareness resulting in lower lost time due to injuries sustained in the workplace.

Safety committee members consist of representatives from different functions. The safety committee meets on a monthly basis. At IPT, we have formed three Health & Safety committees with 100% of our workforce represented in formal joint management-worker health and safety committees.

The following Health and Safety programmes were conducted at IPT in 2016-17:-

- Forklift safety- Safety awareness (safety poster making for employees children)- Safety awareness to drivers and truck operators- First aid and fire training conducted by the Marilao Fire Brigade- First Aid training for the first aider conducted by the Philippine Red Cross.- Re-training of operators who have injured themselves on safety issues in their respective work areas.

Heath awareness programs were conducted by the company doctor to all employees. Topics included seasonal diseases, HIV aids, Tuberculosis and Dengue.

In 2016-17, we provided a total of 2912.84 hrs hours of training on occupational health & safety, for a total of 2194 number of employees/per month.

LTI Cases by Gender (2016-17)

10 30Male Female


We have conducted an audit during the reporting period to assess the work areas that have high occupational health risk and found no such area in our manufacturing operations. We have included occupational health and safety guidelines in our agreements with the worker unions.

Absentee rate

Types of injury encountered

92

122

5.43

30

11.2

64

104

1.02

40

14.88

129

148

18

11.19

First Aid Cases

Number of Injuries

Absentee Rate

Medical Treatment

LTIFR Frequency Rate

Legend:

Legend:

2016-17

2016-17

2014 2015-16

2015-16


Chemical Management

COD of Effluent (2016-17): 50 mg/lTarget for 2017-18 : 50 mg/ltr

50 mg/ltrCompliance with IFC & regulatory standards of Effluent (2015-16) : 100%Target for 2017-18 : 100%

100%

Chemical management is an important aspect for safe operations, maintaining quality of effluent and most importantly customer health and safety. At IPT, we manage chemicals through our Integrated Management System following REACH requirements. We avoid known/identified toxic, harmful and bio accumulative chemicals and substances.

During the reporting period, there were no significant spills in our operations. Our diligent chemical use is monitored by analyzing the concentration of COD in our effluents.

Chemical Management

Chemicals Management

Mission

Environment, Health,Safety and Product Stewardship

Policies

SA 8000, Oekotek

Legend: 2016-172014 2015-16

18950

220

COD (mg/l)


Caring and Sharing Our Human Capital in IPT is the most precious asset, which is working seamlessly for the turnaround of Indo Phil Textiles, inspite of several challenges faced by us, such as breakdown, cost pressures and a volatile market. The management continues to invest in people development, robustness of HR processes, and building a positive work culture, where transparency and freedom of expression becomes the life-line of our day to day operations.

Harmonious industrial relations, and a stable and matured union act as a catalyst for our organization and enable us to channelize our energy for a brighter tomorrow. The amicable closures on agreements, partnerships on employee welfare and a collaborative approach on discipline and productivity has crossed various milestones over the past years.

The safety, health and well-being of our employees and their family members remain our priority. This year we have rehabilitated our basket ball court in housing colony. We organise zumba classes for all employees every Tuesday. As part of our investments for the sustainable well-being of for our employees, we have also begun organising entrepreneurial workshops, where the topics are decided by popular request. Availability of trainers serve as testimony of our efforts and gives us a direction for a brighter tomorrow.

We have increased our human resources capability by multi skilling of our technical and operational staff.

We interacted with local community leaders to improve the response to our recruitment drives, so that we could hire more from the local communities in our workforce thus building greater community bonds and deepening our engagement with our stakeholders.

-Vinod Kumar Singh Head, HR


Our hiring practices are fair, meritorious based and non-discriminatory.

We are an equal opportunity employer and do not tolerate child labour or forced and compulsory labour at the work place. We provide wages and benefits as stipulated by regulations. We have one differently-abled employee working on shop floor. Our permanent employees get the benefits such as basic salary, allowances, and annual leave. Our temporary and part time staff enjoy the benefits of dormitory services, night shift differentials, insurance and overtime pay.

Good relationships with our employees and workers is key to maintaining workplace harmony.

Out of the total workforce, 85% of our employees are unionised and are members of IPC PTGWO, IPT PTGWO, IPA PTGWO. No time has been lost due to any dispute during the reporting period.

If any dispute/grievance arises both management and the union proactively engage to arrive at a solution.

All efforts are made to consistently communicate and resolve labour disputes urgently. The Labour Management Council is composed of the management, union officers and selected workers. The Council addresses topics such as profitability, productivity, safety, quality, discipline, efficiency, improvement and absenteeism. Our Collective Bargaining Agreement is negotiated once every five years with each unit. We will renew our CLAs in 2020 for IPT Textiles, 2018 for IPT Acrylic and 2022 for IPT Cotton. We also observed higher attrition levels amongst apprentices. We plan to increase the allowance paid by 20%,

Social & Labour Fair Employment Practices

Labour management relations

Average Training Hours: 7.99Target for 2017-18 (hrs) : 8

7.99

Community Social Investment (2016-17): USD 709.95Target for 2017-18 : USD 10,000

709.95

Social & Labor

Mission

Social Accountability

Policy

SA 8000,Higg Index


and engage regularly with the apprentices. We believe this will help since these improvements are taking place as a result of interactions and feedback.

Our new hires include local Filipinos who apply willingfully for apprenticeship and skilled employment opportunities while expats apply for management positions coming from various destinations in Philippines. We hire on basis of requirements as per our company growth, replacement of retired employees and employees that volunteer for higher studies or would like to work abroad.

New employee hire and employee turn-over

New employees hired by age group:

Employee turnover by age group:

New employees hired by gender:

Employee Turnover by gender:

Philippines : 223 470

Philippines : 492 423

India : 05 01

India : 04 03

New employees hired by region:

Employee Turnover by region:

214

348

20

57

208

439

392

356

13

133

45

81

01

15

02

13

424

332

79

70

Under 30 Years

Under 30 Years

Male

Male

30-50 Years Old

30-50 Years Old

Female

Female

Above 50 Years

Above 50 Years

Legend:

Legend:

2016-17

2016-17

2015-16

2015-16


Regardless of gender, and all other parameters being equal, female employees are paid the same as men across different employee categories. The ratio of entry level wage offered to all employees is 1:1 and same is as per the government regulations. All employees gradually grow through a fair evaluation and promotion program at IPT.

Compensation and Benefits

Employee Diversity

We provide parental leave to all employees. Women are moved to a general shift when they inform us about their medical condition. Post return from maternity leave, they are reinstated to their original role, thus reducing any opportunity for dissatisfaction.

During the reporting period, 52 women employees and 13 men availed of parental leave. Out of the 53 women and 7 men who had taken parental leave in 2015-16, 37 women and all men returned to work and continued to stay for more than a year post the parental leave.

Women work to augment family income. Women post delivery are encouraged to continue to pursue a career within the organization.

Diversity is important to the organisation for cross cultural management, and engaging employees and workers to achieve business objectives and tweaking demographics to suit operational assignments. The Philippines has ratified the two core ILO conventions addressing discrimination in respect of employment and occupation. IPT recognizes that workforce diversity and inclusion are key drivers of innovation, and adaptability.

Every person at IPT is entitled to equal opportunity. We find that both men and women are disciplined, hence more and more promotions of locals to senior positions are taking place.

We provide training to talented individuals in their respective work areas based on their KRAs and performance, as well as their areas of interest.

We are open to hiring of disabled members in functions that do not impede performance whenever such vacancies arise.

Total number of employees that were entitled to parental leave

Total number of employees that took parental leave

Total number of employees who returned to work after parental leave ended

Total number of employees who returned to work after parental leave ended who were still employed twelve months after their return to work

850

53

53

53

267

7

7

7 7

274

11

11

894

50

49

37

Male

Male

Male

Male

Female

Female

Female

Female

Legend: 2016-172015-16


Employee Diversity

Composition of management committees

Human RightsThe Philippines is a signatory to the Universal Declaration of Human Rights drafted by the United Nations in 1948. The concept of “human rights,” in the context of The Philippines, pertains mainly (but is not limited) to the civil and political rights of a person living in The Philippines as per the 1987 Philippines Constitution. Hence, we have a responsibility to make sure that we are not complicit to human rights abuses.

International norms, such as the United Nations Guiding Principles on Business and Human Rights, recognize that companies should undertake “human rights due diligence” measures to ensure their operations respect human rights and do not contribute to human rights abuses.

ABG is a member of the United Nations Global Compact, an international forum that operates under the aegis of the United Nations and ascribes to the human rights policy of the United Nations Global Compact.

Our approach to human rights is aligned with the universally accepted human rights standards, and we support the human right issues included in the Universal Declaration of Human Rights. Our human rights policy addresses key aspects, such as non-discrimination, prohibition of child and forced labour, freedom of association and the right to engage in collective bargaining. The company provides equal opportunities to all workers irrespective of gender, religion and disability.

We have promoted human rights by creating awareness amongst all

Employee Classification by gender:

By gender:

267

7

857

2 2

891291

6

Male

Male

Female

Female

Legend: 2016-172015-16

Employee Classification by age group:

By age group:

361 707

04

709

06

56

05

77

02

396

Under 30 Years 30-50 Years Old

30-50 Years Old

Above 50 Years

Above 50 Years

Philippines : 1,110 1,168 India : 14 14Employee Classification by region:


employees through distribution of flyers which detail our human right policy.

We have also conducted a training programme on sustainability amongst our internal stakeholders which included promotion of human rights during the reporting period. We have not identified any violations during the reporting period.

Training of security personnel on the organization’s human rights policies and its relevance to themselves and to the right of others,will be undertaken in 2017-18

TRAINING & DEVELOPMENT – Nurturing Talent Empowering our Employees - Skills Management and Career Development

Talent management is a focus area at IPT. It is essential to train employees in order to enhance productivity, improve quality, upgrade skills and motivation.

External training is delivered by agencies organized by Business Human Resources (BHR).

Every year, all workers and staff are provided a training needs form, which helps update the skill matrix framework. The skill matrix framework helps identify competency levels, skills and qualities of employees vis-à-vis skills required to improve on-the-job performance. Based on such mapping, we annualy develop the training calendar for all employees.

Notice period regarding operational changes is 7 weeks.

Total number of agreements and contracts that contain clauses on human rights

Percentage of employees who received training on human rights policies or procedures

Total number of security personnel employed

Is the training also provided to third party organizations providing security personnel?

Total number of security personnel receiving formal training in the organization’s human rights policies or specific procedures and their application to security

Total number of hours devoted to employee training on human rights policies or procedures

Investments2016-17

Training

Security Practices

340

40.1%

200Yes

456


Men employed on the shop floor are skilled technicians. OEM representatives continuously provide on-the-job trainings on new technologies.

Target: Our short term target is to provide an average of 8 man hours per annum over the next two years. We plan to achieve increase in training man hours by expanding our training portfolio to include the following modules:

• Work place wellness• Quality• ABG Values• Safety• Leadership• SA 8000 requirements

Increase in the number of training hours was due to the increase in number of topics such as safety awareness, seasonal diseases, quality, packing, safety and logistics, management system procedures, workplace wellness and sustainability training including refresher trainings on policies such as anti-corruption, human rights, WCM, and basic condition evaluation (BCE).

Talent Segmentation

Talent Assessment

Talent Review

My Development Plan (MDP) -Implementation & Tracking

Legend: 2016-172015-16

9.29

22.48

26.87

4.55

20.67

25.88

Training (hours) - Male

Training (hours) - per Capita

Training (hours) - Female


Career DevelopmentManagement cadre and staff in JB 8-11, and staff employees occupying section head positions are assessed to understand their potential and develop individual MDPs in order to further their careers and growth within the organisation.

The 11 employees selected in 2015-16 continue to be mentored and trained for senior level positions in the reporting period.

Total number of employees who received regular performance and career development review by gender:

Total number of employees who received regular performance and career development review by category:

58 41 3955

Male Female

JB 4-11 : 36 35 Staff : 63 64

Legend: 2016-172015-16

Total number of training hours provided to employees

Total number of Employees who received training:

Total training hours per capita number of Employees

2,544

182

9.29

24,024

650

26.87

1,106

458

4.55

19,449

3,282

25.88

Training (hours) - Male

Male

Average Training (hours) - Male

Training (hours) - Female

Female

Average Training (hours) - Female


We have provided performance evaluation based on the Key Result Areas (KRAs) for our employees in the Job Bands 4-11 and all our staff. We have developed the evaluation formats and will extend performance evaluation as planned earlier for all maintenance, engineering and quality control in the coming year.


Responsibility to Customer

Our vision is “To be a globally recognized yarn manufacturer through excellence in quality, productivity, cost, service and management.” Our products consist of cotton based yarns and acrylic yarns. Our exports constitute 90% of acrylic yarns, while most cotton based yarns are marketed nationally. Exports have now begun for our VAP basket such as dyed yarns in PV, rayon and polyester. Our acrylic yarns are marketed internationally in 28 countries. We are appreciated for our service levels by our customers. We are accessible to our customers 24x7. Our ability to respond to customers in quick time have differentiated us both in the domestic as well as the international market.

Our customer centricity drives product development. Our product stewardship efforts are reflected in the VAP basket developed in 2016-17a. Water repellant acrylic yarnb. Dope Dyed yarns like TC and CVC melanges, 100% polyester, 100% rayon, c. PV dyed

Dope dyed yarns provide customers with shade consistency, and is environment friendly. We have renewed our Oeko Tex 100 Class I certification for our acrylic dyed yarns.

We have expanded our customer base both nationally and internationally.

We have strategically developed the capacity for delivering dyed yarn requirements of customers. We will continue to develop our VAP products and meet market requirements.

We have clear plans to achieve our targets and are moving forward towards achieving our goal.

- Mr. Kasiraman Head, Marketing

Supply Chain


Supply Chain

Percentage of Procurement Budget spent on procuring from local suppliers : 10.53%Target for 2017-18 : 12%

10.53%% paid as per contract on time (2016-17) : 100%Target for 2017-18 : 100%

100%% of new and existing suppliers (with >20,000 USD purchase) evaluated for Env & Soc aspects: 100%Target for 2017-18 : 100%

100%Number of Collaoborative projects concluded with Suppliers: 0Target for 2017-18 : 1

0


All our existing suppliers have complied with the VAT registrations and Bureau of Internal Revenue Registration, We also have company profiles of each of our suppliers. All raw material and packaging suppliers who undertake business at a minimum of $20,000 dollars with IPT were assessed in the reporting period for their compliance with quality, environment, labour and human rights aspects.

All the above suppliers comply with the minimum requirements and were asked to provide compliances, certificates or permits.

We have informed all other suppliers about our requirements and asked them to renew their compliances, failing which we will not continue to procure from them

We have managed to establish business relations with 25 new suppliers, and have evaluated all of them for any social or environmental impacts which accounts for approximately 8% of our total suppliers.

We look forward to collaborating with our suppliers to understand, share and imbibe sustainability learnings.


Mission

Supply Chain Policy,Supplier Code of Conduct, Procurement

Policy

ISO 14001, SA 8000,ISO 9001,

Higg Index


Customer centricity is the norm and an integral part of our business. We are in a business that is dynamic, supply of yarn is in excess of demand and newer products are coming up every day.

In view of these conditions, apart from maintaining the best quality of our existing products which are well accepted in the market, we are also in a spree of developing new products, in order to stay ahead in the value game. However, the success factors for a specialty player are very different from that of commodity player. Therefore, this shift in business strategy will require a change in mind-set, value inculcation and working styles.

In the reporting period, we focussed on developing Value Added Products (VAP) to address customers’ niche requirements and leverage our brand value.

We are also focussing on commercialisation of the following products in the following year:

• Dyed Yarns• TC CVC Melanges• Rayon Dyed

IPT is improving its product mix and foraying into the fashion segment through the launch of its TC melange yarn, which would allow our customers to purchase pre dyed yarn which increases its acceptance in these markets.

We are constantly analysing our yarn performance, markets and benchmarking ourselves against industry players. Improvements are effected continuously.

Market dynamics


Product Stewardship

Higg Index Score % ABY Brand(Env.Module) (2016-17): 94%

% revenue from VAP (2016-17): 15%

Higg Index Score % ABY Brand (Social Module Score) (2016-17): 72%

% of products sold certified under Oeko Tex (2016-17): 20%

Target for 2017-18 : 98% Target for 2017-18 : 40% Target for 2017-18 : 100% Target for 2017-18 : 100%

94% 15% 72% 20%

Product Labelling

We provide information related to certifications, yarn count and blend percentage. Additionally, customers provide their labelling requirements on need basis.

In April 2016-17, there were no cases registered related to non-compliance concerning product information and labelling.

Research and development

Consumption of dyed yarn and TC / CVC melanges helps eliminate the fabric dyeing process thus reducing the overall water consumption.

Customer Health & Safety

All our acrylic yarn, raw white or dyed are Product Class 1, Oeko Tex certified.

Product Stewardship

Policy

ISO 9001, Oeko-Tex

Product Stewardship

Misssion


All our products including acrylic acid and polyester cotton blended yarns comply with product health and safety regulatory requirements in all countries of our exports, and showcase our global good practice of product stewardship. As per the requirement of the customer, we provide a self-declaration based on compliance certificates being provided by our suppliers.

We had no instance of non-compliance during the reporting period.

Product Health & Safety


IPT has joined with other ABY units in Indonesia and Thailand to conduct Life Cycle Assessment of acrylic fiber and rayon yarn. This assessment is based on ISO 14040/44 standard and is developed for communication to the stakeholders. One outcome of the study is the identification of hotspots along the value chain (raw materials, manufacturing, transport, packaging material, use stage impacts and end of life) across the various identified environmental impacts. For comparability purposes, we have chosen the functional unit as: • 1 kg of packed rayon yarn (Cradle to gate system boundary)• 25 times use of a garment (blouse) made from 70% viscose, 25%

nylon and 5% elastane (Cradle to grave life cycle).

We have also compared our performance across the life cycle with that of the Defra Study for 1 kg of viscose fabric manufacturing & Textile Exchange Study for 1 kg of viscose and the TENCEL fabric manufacturing (both undyed and unfinished fabric) and identified improvement areas in the manufacturing as also in other parts of supply chain. We, as a spinner in the value chain, cause a small fraction of the total environmental impact in the value chain and to reduce impacts along the life cycle of the products we have to make appropriate and pragmatic choices.

Environmental Impacts – Cradle to Grave – 25 times use of a garment made from 70% viscose, 25% nylon and 5% elastane

Managing Impacts in Life Cycle



No. of stakeholder meetings (2016-17): 656Target for 2017-18 : 200

656Grievances received & addressed: 125Target for 2017-18 : 3

125Satisfaction Levels (Supplier, Customer, Community, Employee): 86% | 75% | 90.25% | 87%Target for 2017-18 : 90% | 90% | 87% | 85%

86% | 75% | 90.25% | 87%

StakeholderEngagement

AA 1000 guidance

Stakeholder engagement

policy and other policies Stakeholder

EngagementMission


STAKEHOLDERS

Suppliers

Employees

Local Community

Banker

Government

Customers

Mode of communication and Concerns, Frequency of meeting

Frequency of Engagement: Regular Meetings

Frequency of Engagement: Monthly Meetings, Seminars, Web lectures, Communication meetings with Business Head

Frequency of Engagement: Twice a month Meetings, Messages

Frequency of Engagement: Two times a month Meetings, Mails

Frequency of Engagement: As per requirement to standards Meetings with Unit Head

Frequency of Engagement: Continuous Smart phone applications, phones, emails, fax, customer visits, external surveys.

Concerns : Payment terms, new business, market dynamics, forecasts

Concerns : Increments, promotions, amenities, safety, training

Concerns : Employment for locals, environmental impacts, and new projects.

Concerns : New loan off take, financing cost, market information, risk mitigation, business strategy, company performance

Concerns : Environmental concerns which includes emission testing, water testing, labour practices

Concerns : Timely delivery, product quality, value-added products, service quality

Employees are our resource, who need to be understood and nurtured in order to keep them motivated and deliver what is expected of them.

An engaged workforce is as important as business profitability. Employees who are engaged own the process, work diligently and effectively, has a huge opportunity to gain long term commitment. We engage with them by organising different programs and events such as:

a. Annual Sports event, inter-mill competitionsb. Sports Day with customers like Burlingtonc. Annual Christmas partiesd. Annual excursion / picnice. Blood camp donors are given a certificate and gift vouchersf. Performance recognitiong. Communication meetingsh. Involvement in action planning of key projectsi. Problem solving, cross functional meets.

Engaging Employees


Worker grievances are addressed through an established procedure that forms an integral part of the Collective Bargaining Agreement (CBA).

The mechanism details grievances and step by step process towards final resolution.

Grievances of staff can be sent to a separate grievance redressal mechanism for resolution. There was one grievance registered for the period under review, which was resolved.

Stakeholders can access us for redressal of their grievances or engage with us to contribute or collaborate on specific co-generation projects.

Employee Grievance Redressal Mechanisms At the Overseas Spinning Business, we do believe in “Customer is the focus of everything we do”. The attributes such as nearness to the markets, a long-term relationship with customers, unique customer technical support services, quick complaint resolution and strategy of product customization to improve customers’ productivity has helped us develop loyal and regular customers, who have given us a competitive advantage.

However, in order to support our long-term strategy of capacity growth, it is imperative to continually improve our VAP product mix through more detailed knowledge of customer and market requirements, and the expectation of our customers’ customers in the value chain. All these factors play an important role in increasing the brand image of our yarn. Our long term approach is oriented towards developing customers as business partners.

Our Customer Relationship Management is process driven and is focused at creating a higher value for our customer. Further, as a standard practice, we share market information that we have with our customers, including future market trends to enable customers to take timely business decisions and take maximum advantage of market situations. Our approach is collaborative, an example of which is a niche offering through the development of our water repellent yarn.

With a view of strengthening our customer engagement, we increased the frequency of our meetings with all the customers in the region during the reporting period. IPT also organises a friendly sports competition with its customers. This was attended by Burlington and Monaco in 2016-17. Long term customers were recognised for their association with IPT. Such interactions help strengthen our partnership with them.

Our quality personnel also visit customers with the purpose of understanding customer requirements and product performance as required. Our work head’s also meet customers regularly. The

Customer Engagement


We conduct customer satisfaction surveys annually. Key issues identified through the last survey include lack of product variants, increased requirement for 100% cotton yarns and Melange yarns.

For some of the issues identified, corrective measures have been undertaken to improve customer satisfaction as follows:

a. Standardising fiber for each unit to ensure uniformity of product quality and avoid change over losses.b. Added more combing capacity. c. Replacement of winding machines.d. Improvement in machine condition through replacement of critical components important for quality.

Our regular stakeholders’ meeting with our suppliers include discussions not only about price, but also about the general market environment, market forecast, general economic forecast, exchange rate fluctuations, oil price estimations, and other such critical aspects that could affect our performance and that of the value chain. This helps us predict and fine tune our budget numbers, and take necessary actions.

Customer Satisfaction

Supplier Engagement

Customer Grievance Mechanism

Regional Marketing Head schedules regular customer visits. The unit head and Business Head also meets selected customers periodically. As demonstrated, we are keen to continually collaborate with our customers in the value chain, which will enhance the production of value added products, and help us expand our product offering.

e. Increased interaction with customers at all levels. This has helped us improve our service perception. f. Introduced VAPs like slubs, Injected slubs Melanges and Dyed yarn, for enabling value addition, both at IPT and at the customer end.

The time taken from receipt of complaint, to acknowledgement andresolution is stated as 30 days:

Number of Customer grievances received were 124 in the reportingperiod, all were resolved during this time.

OSB Units have a structured process of Customer Complaint Handling. On receipt of complaints, the technical team visits the customer. assesses the issue. root cause analysis is undertaken in-house, and corrective action plan is implemented.

Approach & Deployment

Customer complaint reports are treated as learning and circulated across the units for further improvement and avoiding recurrence.

Assessment & Refinement

Customercomplaint reports

Evidence Available


Supplier Satisfaction IndexWe conduct an annual supplier satisfaction survey, whereby the supplier rates us on different parameters ranging from responsiveness, adherence to quality, delivery, compliance with environmental and social requirements. Suppliers gave a rating of 86% on satisfaction, which was a marginal improvement over the previous year.

Areas of improvement identified were in terms of payment and technical support to suppliers.

We have identified new local suppliers in 2016-17 and continue to procure from all new suppliers identified over the last two years.

We work with our suppliers to improve our efficiencies.

Input material projects:We are in discussions with our dope dyed fibre suppliers like Reliance and Grasim to develop dyed products that meet our customers expectations.

Chemical Suppliers:We worked with our chemical suppliers to develop our water repellant products in the reporting period.

Spare part suppliers:We have developed many local suppliers for some of our machines.

Supplier Grievance MechanismThe IPT supplier management team has not received any written grievance in 2016-17. The team always tries to resolve all differences amicably with the stakeholder. Our grievance mechanism will be adequately robust once our sustainability portal and grievance redressal is flagged off in the coming year.

IPT is committed to conducting business with integrity, operating responsibly and enriching lives within communities

Our efforts include:

• Blood donation camps that were conducted amongst employees in the reporting period for the Philippine Red Cross.

• Health and hygiene awareness programs were conducted. IPT provided garbage receptor cans in common areas within the community.

• IPT continue to manage Mahaveer Foundation and donation to the Foundation.

Community Engagement


Societal Grievance Mechanism We measure air, dust and noise levels in and around the plant, and also conduct water discharge quality checks quarterly as well as yearly and maintain records. We have ensured that all our company vehicles and delivery trucks have passed the emissions test by the land transportation office.

Rice husk ash is constantly sprinkled with water to ensure that it does not create any pollution while in stock and also during transportation for disposal.

We have not received any complaints from nearby communities on environmental parameters or any other issue in the reporting period.

Stakeholder EngagementOur sustainability portal http://oneabgtextiles-sustainability.com/ facilitates internal and external stakeholder engagement. On this portal, our stakeholders can record their grievances, queries and suggestions. Besides, the forum also has an option to include discussions amongst stakeholders, further leading to collaboration and co-creation projects.

Through this forum, our business will share sustainability success stories, advances, and performance. From now on, our sustainability report will be culmination of our continuous engagement and disclosures.


STRATEGIC STAKEHOLDER ENGAGEMENT & FUTURE PROOFING To understand the external changes that will inevitably impact our company in the future, we build strong relationships with our stakeholders and key technical experts on climate change, water and waste management, developments in human rights legislation, safety standards, health impacts and the like. We embed sustainability trends into our strategic business plans to minimise the risks and find new opportunities that will be presented by the requirements of a sustainable planet and society by 2030 and 2050 respectively and make our businesses sustainable.

DemographicsConsumer as Fashion EngineerClothing Care and Sustainable ConsumptionClimate ChangeFreshwater AvailabilityInformation TechnologyRegulatory EnvironmentFuture Proofing Responses

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As a part of Responsible Stewardship, all entities of ABG textiles, are engaging with stakeholders through different modes regularly. A stakeholder engagement platform is operational online to record stakeholder concerns and suggestions.

The purpose of strategic stakeholder engagement conducted for IPT during June 2016, was to feed into future proofing of the business. Strategic Stakeholder Engagement, the second component of ABG Sustainability Framework is defined as: ‘Horizontal scanning and megatrend analysis to gain knowledge of how, and how fast externalities will change usually by disruptions’. The goal of Stakeholder Engagement, as per the ABG framework, is to build strong relationships with our stakeholders and key technical experts on climate change, water and waste management, demographic changes, developments in human rights legislation, safety standards, health impacts, technology changes and the like. By doing so ABG expects to learn what trends will most likely affect ABG textile businesses in the future and how they are likely to change. This is the reason why ABG Textiles conducts strategic stakeholder engagement.

ABG engages with industry experts, regional and sectoral experts along with key players along the value chain who would deliberate on environmental, social, economic, technological, and business trends that would impact the business’ operations and products in the next 3-5 years, The invitees to the engagement will contribute to:

Horizontal scanning Understanding the megatrends that contribute to shaping national and global responses to these changes. Visualize future threats and opportunities to the business and develop strategies to gain an advantage.

Scenario Planning Taking inputs from the strategic stakeholder engagements, arrive at key

driving forces by understanding social, economic and environmental trends that are certain to occur and combine this with future proofing factors (uncertainties) such as unprecedented shift in regulations, changing needs of stakeholders and business environment, thus developing a possible scenarios and responses.

Methodology and Limitations1. Identify stakeholders as given in guidance notes circulated 2. Circulate a draft on megatrends and queries around it to stakeholders 3. Call a meeting of internal and external stakeholders for 6 hours 4. Conduct brainstorming to identify trends of some relevance and

attempt convergence around relevance and impact contour of such trends to business and possible responses

5. Summarise the outcome, if another round of (offline dialogue) is not required.

However, IPT felt that a meeting of strategic stakeholders at one venue or video conference call will not be practical. Hence individual meetings of external stakeholders along with relevant internal stakeholders were planned.

Strategic Stakeholder Engagement and Future Proofing


Demographics & Associated Changes(De) Population

Protectionism-Fragmentation of Global markets

1. Demographics of The Philippines (being younger) and increasing skill levels would result in better workforce (skilled) availability, but the nature of work and work environment has to be different

2. Urban growth around the manufacturing location is very likely3. Regulations, worker rights and safety will be more structured

and stricter4. Aging population in developed markets and in some markets,

a younger population. But fashion is becoming more uniform, and hence will not impact markets for yarn and fabrics

5. The Philippines is consumption driven economy, and economic growth has been and is likely to be good. Present developing countries in Asia and Africa will witness faster market growth for end products

6. Nature of markets will be driven by brands more than demographics

1. While some stakeholders felt growing fragmentation – reversal of globalization- is temporary, many felt that forms of protectionism in commerce, trade and migration would continue.

2. Regional groupings in trade will be a new form of globalization and The Phillippines will be an advocate of globalisation

3. It is not clear whether The Philippines would adopt certain protectionism to grow manufacturing, however, many felt that loopholes in implementation of import regulations will be addressed in the near future

4. Future markets will be facilitated by Asia, and further by the FTA

Labour

1. Labour unions will demand safety, health & a vibrant workplace

2. Equal Pay for Equal Work will be the norm3. Labour cost will rise

Structural Changes

1. The Philippines will witness higher rates of growth and could have a structural shift away from wealth being created from manufacturing and services

Consumer as fashion engineer

Clothing Care & Sustainable Consumption

1. Citizens are becoming ‘fashion engineers’ ,enabled by the web and open source platforms, and this trend is likely to increase.

2. Consumers can also purchase online”fashion kits” and use them to make outfits and accessories out of locally available materials.

3. Apparels could have embedded electronics

1. Customers, including those in The Philippines will prefer minimal clothing care, including cost for care, minimal care schedules, electricity, water etc.

2. Customers, including those in The Philippines, may also be happy if the cloth at the time of disposal does not harm the environment, is recyclable, is made out of renewable material or with least life cycle impacts


Will recycling apparels/fabrics and recovery of fibre/fabric be a significant economic activity in the next decade? Such signs are already seen by brands asking for supplies from recycled materials and technology for recycling has overcome many separation barriers.

Instances of Japanese customers enquiring for recyclability of products are reported

There will be reversal of “Use and Throw” and “Cheaper” fabrics and apparels

Climate ChangeGHG Mitigation & Energy Constraints

Adapting to Climate Change

1. Restrictions due to GHG mitigation related regulatory requirements addressing this sector is likely, voluntarily reducing emissions and disclosing the same will give first mover advantage

2. In The Philippines energy prices are not likely to decrease unless the electricity sector reforms encourage markets within the grids. Voluntarily adopting renewable energy and continued efforts in energy efficiency will have a reputational advantage. The Government in The Philippines is promoting energy efficiency.

3. Energy markets and Net metering will be implemented4. Consumer preferences, customers and regulations will require

GHG foot print information to a lesser extent in The Philippines market

1. Manufacturing locations face risk of more likely extreme weather events, especially flooding. Carrying capacity of drainage in the future may become restricted and increase flooding risk

2. Climate change impact on markets (risks and opportunities) could not be ascertained

Fresh Water AvailabilityWater Resource Risk

1. Water resource risk is significant considering the developments in the region

2. Water resource risk (fresh water availability and effluent discharge) is faced by customers and will become severe.

Information Technology & Smart/Functional FabricsInformation Management

1. Manufacturing, Inventory etc information management will become essential to address flexible demands of customers

2. Information management of products to demonstrate traceability to customers


Information Technology - Robotics

1. In the near future very few operations may be amenable for robotic handling

2. Automation may increase significantly in the face of labour shortages, demand for quality and smaller batch sizes

3. IT application in controls will increase4. Though regulators may not encourage robotics, application

of robotics in unsafe tasks and transportation within manufacturing will happen

Smart/Functional Fabrics

Information Technology - 3D Printing

1. Smart fabrics and their applications can rise in some specific segments, such as medical, sports etc.

2. Smart fabrics would require incorporation of smartness at the stage of spinning

3. More importantly, demand for functional/function enhancing fabrics, such as medical and sports, would grow

3D printing or any other similar technology will not eliminate spinning. Fiber to fabric applications will be limited to industrial applications

R&D and Innovation

R&D Innovation would be an absolute ingredient of business success in future

Regulatory EnvironmentShareholders

Environment

1. Shareholders expectation on disclosures is increasing 2. Companies will be expected to contribute to the local economy

1. Regulations related to work conditions and wages will be more stringent

2. Regulations on immigration /work visas etc. will be more stringent

3. Diversity related regulations for boards and executives will be stringent

4. Regulations related to employing/ non-discrimination of differently abled personnel will be stringent

1. Regulations will continuously increase in rigor, in The Philippines. Customers will face significant rigor in environmental regulations, for manufacturing in Philippines and for products - more if exporting to Japan or EU.

2. Regulations related to product responsibility & related disclosures will increase in both developed and developing countries.

3. Regulations on recyclability and textile (synthetic/non-renewable) waste disposal will become stringent in developed countries.

4. Climate mitigation regulations will be applicable for manufacturing but disclosures will be required in product declarations.

Labour & Immigration


Future Proofing ResponsesDEMOGRAPHICS

• Manufacturing location have to address EHS and logistics keeping in mind significant challenges in view of growing urbanisation around manufacturing sites

• Transition of a significant share of Filipinos in supervisory and managerial workforce

• Focus on The Philippine market, and planned business growth around The Philippines economic growth, especially employment generating manufacturing growth

• Asian markets – focus and observe FTA progress with detail • Account for rise in labour costs and create a vibrant workplace

suitable for educated work force• Workplace improvements to attract and retain talent

CONSUMER AS FASHION ENGINEER

• Be prepared for customization of larger machines, with flexibility for smaller batches and which are already a critical strength of IPT

CLOTHING CARE & SUSTAINABLE CONSUMPTION

• Product development suitable for being anti-bacterial, dust repelling, wrinkle free, requiring less chemicals and water in washing and durability.

• Product development suitable for recyclability, and improve share of products from recycled materials

• Prepare for product information management, disclosures and systems to demonstrate traceability to customers (e.g., to demonstrate source of viscose fibre from sustainably managed forests or carbon/energy/water footprint in a specific product)

• Explore the possibility of ABY becoming a top 10 brands for Yarn

made• • from recycled materialCLIMATE CHANGE

• Renewable or alternate energy sources for electricity supply will be a critical advantage for IPT

• Continue with efforts in GHG Mitigation, energy efficiency and Renewable Energy and its disclosure

• Continue GHG foot printing assessments and disclosures for select products

• Assess whether risk alleviation is adequate in the face of climate change at the manufacturing locations especially for flooding

FRESH WATER AVAILABILITY

• Continue with efforts in water conservation as the community faces fresh water availability risk

• Requirement of water resource allocation for all industries• Product innovation to alleviate customer risk in water resources and

effluents • Document information on assessments of customers that are likely to

face water resource risk

INFORMATION TECHNOLOGY & SMART/FUNCTIONAL FABRICS

• Integrated, (Supply Chain, Manufacturing, Customer) real-time information management

• Traceability through information management is to be managed • Continue focus on automation and explore robotic applications in

operations in areas where risk due to safety and occupational health is to be mitigated.

• Explore developing yarn products for Functional/Function enhancing fabrics in health care and sport applications


• Prudent, participatory and collaborative (along the value chain) investments into R&D

• Innovation across all functions and levels is to be promoted

REGULATORY ENVIRONMENT

• Disclosures to shareholders will be at par with listed entities• Improve efforts to contribute to local economy• Aggressive continuation of positive compliance to environmental

regulations, in manufacturing • Increase products under product stewardship performance and

disclosures • Identify and watch significant customers and suppliers with high

environmental compliance risk • Wage advantages are only short term. Prepare for improved

automation and productivity • Management composition to include a significant proportion of

Fillippinos


CSO’s EpilogueCommitment to results

Dear Stakeholders,

We have returned to you with a full account of our sustainability performance during the reporting period this year is 01st April 2016 to 31st March 2017. As you would appreciate, this is our third sustainability report following GRI G4 guidelines and there has been no significant change in the entity boundary. Our product portfolio varies and across reporting periods and accordingly, we have redefined our productivity measure to ensure comparability across the reporting periods. We continue with our commitment by contributing to UNGC and SDGs and have elaborated the same in this report.

As you have noticed, Sustainability Initiatives at IPT are guided by Sustainability Apex. Through Apex Council, entities belonging to Aditya Birla Group in Acrylic Fiber, Textiles and Yarn business work together, exchange experiences and traverse the sustainability path. We are also advised by an external advisory council, consists of experts in various sustainability areas from different countries of our operation.

Based on the foundation of ABG framework and our policies, technical and management standards aligned to international standards as defined by the IFC, OECD, UNGC, Oeko-Tex, REACH, ISO and OHSAS, we addressed the challenges of being responsible steward. Our Ten Mission teams having members from all three businesses address the challenges and it is used as a learning & sharing platform for sustainability across all our units. Our policies, management frameworks and performance is internally and externally audited at least once in two years.

As you have noticed, we have made significant strides in our performance and in many cases exceeded our targets for 2017. Much of it is made possible by our recent technological modernization, collective efforts (with other ABG companies) in R&D, product development, branding and marketing. Besides performance improvement in many sustainability KPIs, we note with pride that our approach and efforts in hygiene,


health and safety are yielding significant results. This year, we have assessed our product life cycle impacts and made efforts to determine science based GHG emission reduction targets. We have begun using recycled raw materials in some of our products, contributing to circular economy, in a modest way.

We have strengthened our stakeholder engagement with communities, regulators, suppliers, customers and employees. We have supplemented engagement media through our portal www.MyABGTextiles.com. We have targeted to achieve co-creation projects with suppliers, customers and communities by 2017.

We have been successful in integrating, to a significant extent, sustainability in business decision making. We are sure that this will be reinforced through our focus on strategic stakeholder engagement and future proofing. We will continue to have strong focus on the stakeholder engagement along the value chain to deliver long term stakeholder value.

This report is a critical part of our accountability to stakeholders. We hope we have addressed your concerns and expectations. Requests for additional information and feedback on this Sustainability Report may be sent to me.

Dr. Jagadish BarikChief Sustainability Officer


Assurance



CEO Letter

Organization NamePrimary brands, products and servicesHeadquarters locationWhere the organization operatesNature of ownership and legal formMarkets servedScale of the organizationTotal number of employees by typeCollective bargaining agreementsSupply chain descriptionOrganizational changes during the reporting periodPrecautionary PrincipleExternal charters, principles or other initiativesMembership Associations

Entities included in financial statementsProcess for defining report boundaries and contentMaterial aspects included in the reportDescriptions of material aspect boundaries within the organizationDescriptions of material aspect boundaries outside the organizationRestatementsChanges from previous reports in terms of scope and/or boundaries

Stakeholder groups

GRI IndexGeneral Standard Disclosures

Strategy & Analysis

Organizational Profile

Identified Material Aspects & Boundaries


Fully

FullyFullyFullyFullyFullyFullyFullyFullyFullyFullyFullyFullyFullyFully

FullyFullyFullyNANAFullyFully

Fully

2

Cover Page8777887445317-1815-16187

771313131313

58

G4-1

G4-3G4-4G4-5G4-6G4-7G4-8G4-9G4-10G4-11G4-12G4-13G4-14G4-15G4-16

G4-17G4-18G4-19G4-20G4-21G4-22G4-23

G4-24

Disclosures Coverage Pg. No.


General Standard Disclosures


Report Profile

Governance

Ethics & Integrity

FullyFullyFully

FullyNAFullyFullyFullyFully

Fully

Fully

Fully

FullyFullyFullyFullyFullyFullyNAFullyFully

Fully

5959-6359-63

717171Back Cover7673-75

16-17

15

at each indicator

216746212121-2121

36

G4-25G4-26G4-27

G4-28G4-29G4-30G4-31G4-32G4-33

G4-34

G4-56

G4-DMA

G4-EC1G4-EC2 G4-EC3G4-EC4G4-EC5G4-EC6G4-EC7G4-EC8G4-EC9

G4-EN1


How stakeholders were identifiedApproach to stakeholder engagementTopics raised during stakeholder engagements

Reporting PeriodDate of most recent reportReporting CycleReport Conflict“In accordance” option, GRI Index and report assurancePolicy regarding report assurance

Governance structure of the organization

Code of Conduct

Disclosures on management approach(DMA)

Economic ValueClimate change risksBenefit plan coverageFinancial assistance from the governmentRatio of entry level wage to local minimum wageProportion of senior management hired from local communityInfrastructure investmentsIndirect economic impactsLocal suppliers

Materials by weight or volume

Economic

Environment



EnvironmentFullyFullyFullyFullyFullyNAFullyFullyFullyFullyNANAFullyFullyFullyFullyFullyFullyFullyFullyPartiallyFullyFullyNAPartiallyPartiallyNAFullyFully

FullyFullyFullyFully

G4-EN2G4-EN3G4-EN4G4-EN5G4-EN6G4-EN7G4-EN8G4-EN9G4-EN10G4-EN11G4-EN12G4-EN13G4-EN14G4-EN15G4-EN16G4-EN17G4-EN18G4-EN19G4-EN20G4-EN21G4-EN22G4-EN23G4-EN24G4-EN25G4-EN26G4-EN27G4-EN28G4-EN29G4-EN30

G4-EN31G4-EN32G4-EN33G4-EN34


Recycled input materialsEnergy consumption within organizationEnergy consumption outside organizationEnergy intensityEnergy reductionsEnergy reductions in products & servicesWater withdrawals by sourceWater sources affected by withdrawalsWater recycled and reusedFacilities in or near areas of high diversityImpacts on biodiversityHabitals protected or restoredIUCN Red list speciesGHG emissions(Scope1)GHG emissions(Scope 2)GHG emissions(Scope 3)GHG emissions intensityReduction of GHG emissionsOzone-depleting substances(ODS)Nox, SOx and other emissionsWater dischargeWaste by type and disposal methodSignificant spillsHazardous wasteBiodiversity affected by runoffMitigation of environment impacts of products and servicesProducts and packaging materials reclaimedEnvironmental fines and sanctionsEnvironmental impacts from product distribution and employee travelEnvironmental investmentsNew suppliers screened using environmental criteriaSupply chain environmental impactsEnvironmental grievances

35-3630302527-29

-333333-353535--303030303031343738383557362230

21525222



Social - Labour PracticesFullyFullyFullyFullyFullyFully

FullyFullyFullyFullyFullyFullyFullyFullyFullyFully

Fully

FullyFullyFullyFullyFully

FullyNAFullyFullyFullyFully

G4-LA1G4-LA2G4-LA3G4-LA4G4-LA5G4-LA6

G4-LA7G4-LA8G4-LA9G4-LA10G4-LA11G4-LA12G4-LA13 G4-LA14 G4-LA15G4-LA16

G4-HR1

G4-HR2 G4-HR3G4-HR4 G4-HR5 G4-HR6 G4-HR7 G4-HR8G4-HR9G4-HR10G4-HR11G4-HR12


Number and rate of new employee hires and turnoverBenefits provided to full time employeesReturn to work and retention rates after parental leaveNotice periods regarding operational changesWorkforce represented in health and safety committeesRates of injury, occupational disease, lost days, absenteeism and work related fatalitiesWorkers with high incidence risk of diseasesHealth and safety topics covered in agreements with trade unionsAverage hours of training for employeesPrograms for skills management managing career endingsEmployees receiving performance and career development reviewsComposition of governance bodies and employeesRatio of basic salary and remuneration of women to menNew suppliers that were screened using labor practices criteriaNegative impacts for labor practices in the supply chainGrievances about labor practices

Investment agreements and contracts that include human rights clauses or underwent screeningEmployee training on human rightsIncidents of discriminationSignificant risk of freedom of association in operations and suppliersSignificant risk of child labor in operations and suppliersSignificant risk of forced or compulsory labor in operations and suppliersSecurity personnel trained in the organization’s human rights policiesIncidents of violations involving rights of indigenous peopleOperations that have been subjected to human rights assessmentsNew suppliers screened for human rightsHuman rights impacts in the supply chainGrievances about human rights impacts

Social - Human Rights

4545-5046484041

-394950504746525244

48

4847474747

48-47524648



Social - SocietyFullyFullyFullyFullyFullyFullyFullyFullyFullyFullyFully

FullyFully

FullyFully

FullyNAFully

Fully

Fully

6262151515465822525264

5622

5823

58-22

61

22

G4-SO1G4-SO2G4-SO3G4-SO4G4-SO5G4-SO6G4-SO7G4-SO8G4-SO9G4-SO10G4-SO11

G4-PR1G4-PR2

G4-PR3 G4-PR4

G4-PR5 G4-PR6 G4-PR7 G4-PR8

G4-PR9


Local community engagement, impact assessmentsNegative impacts on local communitiesRisks related to corruptionCommunications and training on anti-corruptionConfirmed incidents of corruptionPolitical ContributionsAnti-competitive behaviorFines for non-compliance with lawsNew suppliers screened for impacts on societyNegative impacts on society in the supply chainGrievances about impacts on society

Health and safety impact assessments of products and servicesNon-compliance concerning the health and safety impacts of products and servicesProduct and service information required for labellingNon-compliance with regulations concerning product and service labelingSurveys measuring customer satisfactionSale of banned or disputed productsNon-compliance with regulations concerning marketing communicationsComplaints regarding breaches of customer privacy and losses of customer dataFines for non-compliance with laws and regulations concerning products and services

Social - Product Responsibility

UNGC* - Our performance as per the UN Global Compact’s ten principles


Contribution to UN SDG

3GOOD HEALTH AND WELL-BEING

6CLEAN

WATER ANDSANITATION

7AFFORDABLEAND CLEANENERGY 8

DECENT WORKAND ECONOMIC

GROWTH

9

INDUSTRY,INNOVATION AND

INFRASTRUCTURE

10

REDUCEDINEQUALITIES

12

RESPONSIBLECONSUMPTION

AND PRODUCTION

13

CLIMATEACTION

7.3ENER GYEFFICIENC Y

8.8

SAFE ANDHEALTHY

WORKSP ACE

9.2

INDUSTR YAND SUST AINABL E

INDUSTRIALISATION

9.4

CLIMATE CHANGEADAP TATION FOR

INDUSTRIALGROWTH

10.3

EQUAL OPPURTUNITY WITH APPROPRIATE REGULATION, LEGISLATION, POLICIES AND ACTION

12.2

EFFICIENTMATERIAL USE

12.4

HAZARDOUS WASTE GENERATION

12.5

MATERIAL

RATE

CLIMATECHANGE MITIGATION

3.9

POLLUTIONPREVENTIO N

6.3IMPROVED

WATER AVAILABILITY

6.4WATER USEEFFICIENCY

13.2

RECYCLING

PG 37

PG 37

PG 29

PG 48

PG 33-34

PG 35 PG 25

PG 40-41

PG 55

PG 47

PG 25

PG 36


Definitions & Acronyms• COD : Chemical Oxygen Demand • CBA : Collective Bargaining Agreement • CoE: Centre of Excellence• Compliance: It means conforming to a rule, such as a specification, policy,

standard or law.• CTS: Customer Satisfaction• CTS: Customer Technical Service• DENR: Department of Environment and Natural Resources• DfE: Design for Environment• EHS: Environment, Health and Safety• ETP: Effluent Treatment Plant• GHGs: Greenhouse Gases• GRI: Global Reporting Initiative• Higg Index: It is an apparel and footwear industry self-assessment standard

for assessing environmental and social sustainability throughout the supply chain.

• IFC : International Finance Corporation • KPIs: Key Performance Indicators• NCR: National Capital Region• ODS: Ozone Depleting Substances• OECD : Organization for Economic Co-operation and Development • OEKO-TEX: OEKO-TEX examines all stages of production and tests for

harmful substances used in production systems to ensure customer safety• OHSAS : Occupational Health, Safety Management System• OHS: Occupational, Health and Safety• OSB : Overseas Spinning Business• PTGWO: Philippine Trade & General Workers Union

• IPT: Indo Phil Textile• IBAT: Integrated Biodiversity Assessment Tool• QC: Quality Circles• REACH : Registration, Evaluation, Authorization and Restriction of Chemicals • SA 8000 : Social Accountability Standard • Scope 1 Emissions: These are direct GHG emissions from sources that are

owned or controlled by the entity• Scope 2 Emissions: Indirect GHG emissions from consumption of purchased

electricity, heat or steam• Scope 3 Emissions: Other indirect emissions, such as the extraction and

production of purchased materials and fuels, transport-related activities in vehicles not owned or controlled by the reporting entity, electricity-related activities (e.g. T&D losses) not covered in Scope 2, outsourced activities, waste disposal etc.

• Stakeholders: A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization’s actions, objectives and policies.

• Stewardship: It is an ethic that embodies the responsible planning and management of resources.

• Sustainability: Sustainability is meeting the needs of the present without compromising the ability of future generations to meet their own needs.

• UNGC : United Nations Global Compact • VAP : Value Added Products • Whistleblower: Anyone who has and reports insider knowledge of illegal

activities occurring in an organization• WASH : Water, Sanitation and Hygiene

SUSTAINABLEVALUE

We welcome your feedback on ourSustainability Report 2016-17.

For any additional information, or toprovide feedback on this report,

please write to:

[email protected] [email protected]

Documents

SUSTAINABLE VALUE - rsmgcblog.files.wordpress.com has also commissioned the dyed yarn project, ... The report will provide you with accounts of ... including 9,769 kg/day acrylic yarn