English Biscuit Manufacturers Sustainability Report 2008

A Vision for aBrighter Future

Social Sustainability Report 2007-08

EBM Sustainability Expenditure 2007-08

PKR 8.6 million20%

Healthy Bodies - Healthy Eating

Healthy Bodies - Healthcare Support

Healthy Bodies - Sports and Leisure

Healthy Minds

Involvement in the Wider Community

PKR 11.39 million20%PKR 8.0 million

19%

PKR 9.0 million21%

PKR 5.1 million12%

EBM Sustainability Expenditure 2006-2009

Healthy Bodies - HealthyEating

Healthy Bodies - HealthcareSupport

Healthy Bodies - Sports andLeisure

Healthy Minds

Involvement in the WiderCommunity

02006-07 2007-08 2008-09

BudgetActuals Actuals

PKR

(M

illio

n)

10

20

30

40

50

Welcome to the English Biscuit Manufacturers(Private) Limited 2007-08 SustainabilityReport. This year’s report, “a vision for aBrighter Future”, builds on our continuingfocus for healthy bodies, healthy minds, anda healthy environment. This focus hascharacterised our investments andinvolvement in sustainability and socialresponsibility for many years. Ourprogrammes and this report look toinvestments in these areas that are buildinga platform for a brighter future for us and forour children.

Despite increased pressure on our profitmargins due to significantly increased rawmaterial costs, EBM increased its overallinvestment in sustainability and socialresponsibility by 12% to over Rs. 42 million,exceeding our previously stated commitmentto spend Rs. 40 million.

In this year’s report we highlight significantprojects in the theme of healthy bodies,including Rs. 8.6 million on healthy eatingprojects as diverse as the national Safe Foodconference and our various productstewardship activities. We describe how ourinvestment of over Rs.11 million in healthcaresupport is providing health facilities to thosewho cannot afford it and encouraging children

to engage with and support healthcareprovision for the poor. And, we pick up onsome of the Rs. 8 million we spent on sportsand fitness sponsorships, aiming to broadeninvolvement in exercise and sports activities,including Swimming Championships andBlind Cricket.

We also describe our investments in the themeof healthy minds, in particular highlightingthe Rs. 9 million we’ve invested in education,providing school places for over 1,100 pupils,and spurring young leaders on with the YoungLeaders’ leadership development conference.We also highlight our commitment to BestPractice, not just within our company, butencouraging other companies and individualson to being the very best that they can be.

Presenting our commitment to a healthyenvironment through our own initiatives, tomanage the impact of our activities and byencouraging that commitment in others.

EBM has a vision for a brighter future andwe believe that this report demonstrates ourcommitment to realising that future, throughour investments, through our actions, throughour own plans for the future, and througheverything that we are.

Executive Summary

Dear stakeholder,

There can be little doubt that in the globalsocio – economic environment today, it is thefirm responsibility of ethical companies toplay a key role in enhancing and shaping theeconomic and social progress of the countriesthey are operating in. It must be understoodthat all this makes good business sense, asthe sustainable development of a company’sbusiness is today inextricably linked to thesustainable growth of society itself. And thiscan only be done by inculcating and practicingcore values and best practices that contributeto the prosperity of companies and hencepositively impact the growth of a country.

Just as globalisation is a reality today whetherone is a proponent or an opponent of it, so isthe need to incorporate sustainable businesspractice.

In time to come only the best will survive:whether it is in the manufacturing or the

services sector. The best will be those whostrategically pursue the triple bottom lineapproach to business – that is a businessgrowth model based on the welfare andgrowth of society at large (people), thepreservation of the environment and preciousnatural resources (planet) and the pursuit ofprofitability (profits) in an ethical way.

Three years ago, we published our firstCorporate Social Responsibility (CSR) Reportin which we enunciated our vision as acorporate citizen. Our CSR performance andits impact has improved dramatically since.

This year’s CSR Report provides anassessment of EBM’s business, social andenvironmental performance in 2007 – 08wherein the Company’s central theme wasset-around:

n Healthy Mindsn Healthy Bodies andn Healthy Environment

It is a fair statement to make that our faith inCSR has become much stronger today thanever before and hence the title: “A Vision fora Brighter Future”.

On behalf of everyone at EBM, we are happyto update you on our progress.

Khawar M. ButtManaging Director

Message from theManaging Director

Investing for a Brighter Future

Building a Healthier Future

Learning for a Better Future

Caring for a Greener Future

Contributing towards a Fairer Future

Looking Forward to a Brighter Future

GRI References

* This report is for the EBM Fiscal Year July 2007 to June 2008 and covers all of EBM’s divisions and units(although not suppliers or subsidiaries). The Report for 2006-07 was published in December 2007.

The report covers all aspects of EBM’s sustainability activities and defines where the company (or its employees with thecompany’s explicit support) is engaged in environmental or social sustainability activities, prioritising those that EBM believeshave had the most significant impact. Data management techniques have been described (where appropriate) in the body of thisreport. Environmental data has been analysed (where possible) by independent laboratories, and EBM intends to have a fullindependent audit of its sustainability report for the year 2008-09.

English Biscuit Manufacturers (Private)Limited has been passionate aboutsustainability and social responsibility for 40years. Our desire to be sustainable in oursocial and environmental impact has beendemonstrated through our environmentalrecord, our social and community programmeswithin the Healthy Bodies, Healthy Mindstheme, our care for our employees, and ourpassion for delivering high quality productsto our customers.

This sustainability report for the financialyear 2007-08* is a core part of our annualsustainability reporting process providingemployees, suppliers, customers and the localcommunity an understanding of oursustainability vision, and how we invest fora brighter future for them and their children.

EBM has presented those projects andinitiatives that are of most significance to ourstakeholders, in terms of scale, relevance andimpact. If you would like to find out moreabout any of the programmes in this report,or about how EBM’s sustainabilitycommitments, please contact:

Ms Saadia NaveedDeputy Managing DirectorP. O Box 5536Plot 1-4, Sector 23Korangi Industrial AreaKarachi 74900Pakistan

Introduction

Head Office and manufacturing site, Karachi

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EBM is Pakistan’s leading biscuit companywith heart and soul. This description reflectshow sustainability and social responsibilitylie at the heart of our identity and our purposeas a company. This description shows thatwe are a company with a vision for investingfor a brighter future, not just for ourselvesand our business model, but for ouremployees, our customers, our suppliers, ourlocal communities, and for the nation.

Understanding that this vision has to startwith ourselves, we ensure that our productscomply with international standards and meetthe highest possible standards for hygieneand quality. We have also taken steps to ensureour distributors take their responsibility forquality seriously and that our consumer areas informed as possible regarding the benefitsand risks of food consumption.

For this reason, appreciating EBM as amanufacturer of biscuits, we recognise thenational challenges of poor hygiene, of lowfood standards and the poor health or ourpeople. And so we are responding to thatchallenge by investing for a brighter futurein healthy bodies, by which we mean foodsafety, health and fitness.

Building on our core vision statements,principles and values, we recognise the needto share the responsibility for the socialupliftment and development of Pakistan,improving the lives of the underprivileged.Looking at the needs of our nation, we believethat the most critical for a bright future forthe people of Pakistan is education, and sowe are investing for a brighter future in“healthy minds”, education for children, forour employees, and more widely in bestpractice and leadership within Pakistan.

We also understand our responsibility in ourprocesses, thus investing in a brighter futurefor a healthy environment, ensures ourprocesses are as clean and environmentallyfriendly as possible, and investing in the localand wider environment as opportunities arise.

This year, we have also focused on ensuringour investments have been applied efficientlyand effectively; concentrating on fewer morestrategic initiatives and projects, rather thanreactive donations.

EBM believes in a brighter future for thepeople of Pakistan. Investing in healthybodies, healthy minds and a healthyenvironment we are doing our part to makethat brighter future a reality.


Sustainability Vision

7

EBM is in the business of producing andmarketing trusted quality food products thatfit today’s changing lifestyles. As a PrivateLimited Company, operating in Pakistan since1967, we are Pakistan’s largest BiscuitManufacturer, maintaining over 40% marketshare in branded biscuit market. In the year2007-08, EBM produced over 63,000 tonnesof biscuits which corresponds to a turnoverin excess of Rs. 7.8 billion. In the same period,EBM contributed over Rs. 700 million intaxes to the national exchequer and overRs. 42 million towards its Corporate SocialResponsibility Programme.

With our main manufacturing facility basedin Korangi, Karachi, with a totalmanufacturing capacity of 80,000 tonnes perannum, EBM provides direct and indirectemployment to over 2,500 people at itsproduction site in Karachi, and its subsidiaryin Hattar.

EBM manufactures the country’s largest rangeof hygienic and healthy biscuits under itsfamous Peek Freans Pied Piper logo. Theseinclude well known brands like Sooper, Gluco,RIO, Original Lemon & Chocolate Sandwich,Peanut Pik, Peanut Pista, Party, Whole WheatSlices, Marie, Butter Puff, Saltish, PremiumClick, Zeera Gold, Marvell and Smile to nameonly a few.

Through our Vision, Core Values, Code ofConduct and Sustainability Strategy, EBMstrives to operate with integrity, trust and iscommitted to creating value for ourshareholders, customers, and team members.

With all of our locations fully integrateenvironmental management into theiroperational systems and procedures, the EBMmanagement reviews environmentalperformance and its policy annually.

EBM Background


Mill

ion

Rup

ees

8

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

2,648,465

3,936,545

5,607,532

7,467,493

7,859,720

03-04 04-05 05-06 06-07 07-08

Gross Sales Value

Being a valued and respected member ofsociety isn’t inherited, it’s earned. This meansthat, year in and year out, we must understandthe impact we have on the world, theenvironment, the economy and individuals.

We believe it’s important to make sustainablebusiness practice part of everyday life atEBM. To achieve this, EBM has a designatedfunction with the assigned responsibility formanaging Corporate Responsibility at everylevel of the business - from our Board rightdown to our management teams in our factory.

EBM’s Corporate Responsibility approach isdirectly linked to our Business Principles.These spell out the high standards of conductwe work to and are aligned to commonlyaccepted global standards, like the UniversalDec lara t ion o f Human Rights ,International Labour Organisationconventions and Millennium DevelopmentGoals, and EBM is a signatory of the UNGlobal Compact.

Sustainability ManagementApproach


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Everyone at EBM is expected to uphold theseprinciples. It’s the responsibility of all seniorexecutives and managers to make sure thatthey themselves, and their teams, workaccording to these principles and confirmtheir teams have been informed about thestandards of ethical conduct expected of them.

We have adopted a range of CSR policies,processes, systems, guidelines, and standardswhich has been developed with the input fromexternal stakeholders. EBM believes that itis important to engage a wide variety ofstakeholders as partners, both in delivery ofbusiness actions and also in the delivery ofsocial and environmental responsibilityactions.

In light of this, EBM seeks to engage withits stakeholders through:

n An annual supplier round-table to discusssocial and environmental sustainability concerns

n The provision of postal, website and (free-of-cost) telephone channels for customersto raise any concerns or questions

n Employee suggestion boxn Regular interactions with Civil Society and

Community Partners through conferences(e.g. Safe Food Conference, EnvironmentConference) and project dialogues



10

To date, because of EBM’s proactiveapproach, no significant environmental orsocial responsibility issues or concerns havebeen raised through its stakeholderengagement, beyond those actions that arealready being addressed.

EBM selects Civil Society and CommunityPartners that are well-established, have a goodreputation for effective and efficient serviceprovision, and are actively and positivelyinvolved in the local community. EBM workswith these partners to ensure that itsinterventions create sustainability within the

partner, rather than creating or encouraginga dependency culture.

In sustainability, as in all areas of ourbusinesses, we look to learn from and betterunderstand the world around us. We sharewhat we learn across our businesses and useit to inform our decision making. We look toour external environment as well,benchmarking ourselves against our peersand competitors and listening to the concernsof our stakeholders. We continue to embedthis learning in our plans, activities, businesssystems and processes.



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Build

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For 40 years, as an industry leader, EBM hasbeen committed to providing safe, qualityfood that people can trust. Our history ofdeveloping innovative and effective foodsafety systems has been recognised as goldstandards in the local industry and as state-of-the-art by academia and governmentregulators. These innovations are essential inmaintaining the confidence, customers andconsumers have in the EBM brand.

Our commitment to innovation helps ensurethat each product leaving the EBM plantseither meets or exceeds customers’ andconsumers’ expectations.

EBM participates in a number of nationalfood safety and quality programmes, as wellas its own Safe Food Conference. Safe Foodhas been running since 2002 and is aimed athelping educate food processors, customersand consumers on leading trends and practicesin food safety.

Investing in Food Safety


13

Saadia Naveed, Deputy Managing Director EBM, receiving ISO 22000 certificate from Raymond Ellard, Technical Director of theFood Standards Agency of Ireland

To build on our excellent record in food safety,we are progressively raising the quality ofour manufacturing to a standard more akinto the pharmaceutical industry. In the lastthree years, we invested Rs. 1.6 billion ofcapital investments as part of our facilityupgrade.

Our success in food safety is measured bythe reductions in product rejections whichhas gone down from 0.08% of total volumein 2006-07 to 0.06% in 2007-08.

Ensuring Safe and Quality Food at ourFacilities

From our factories and laboratories to ourproduct and process monitoring programmesto our Hazard Analysis and Critical ControlPoint (HACCP) verification processes, ourdedication to safe, quality food is evident inthe programmes and controls we have toprotect our products.

The safety of our products is closelymonitored by a Food Safety Team located ateach facility. These multi-departmental teamssystematically evaluate the key aspects of theproduction processes to prevent potential foodsafety issues. The Food Safety Team thenworks with the facility to develop, implementand monitor controls and procedures to drivecontinuous improvement.



Panel of Speakers at the Safe Food Conference 2008

Delegates at the Safe Food Conference 2008

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Food Safety Research

Our commitment to food safety is not a pointof competition between manufacturers. Weopenly share our food safety research andtechnologies with peers and colleagues.

To support Food Safety Research, EBMestablished the Center of Excellence in 2006to partner with the government, academia,

trade associations and other industry membersto sponsor cutting edge food safety research.

Internal and External Food Safety Auditsand Inspections

Our facilities receive routine internal qualityassurance and food safety assessments. Theseassessments are conducted by an audit team,independent of the location being inspected.

Audits focus on:n Critical food safety elementsn Sanitation performance

n Company policy adherencen Regulatory compliance

Each facility is audited in accordance withthe company’s Comprehensive Food SafetyManagement Programme based on theHACCP Principals and ISO 22000.

Our facilities also receive periodicindependent third-party audits of their foodsafety systems.

These reviews are performed by aninternationally recognised independentauditing firm, United Registrar of SystemsLimited. Government Food Safety Inspectorsalso provide independent inspection reviewsof our production facilities.

Safe Food

One of EBM’s highest priority CSRprogrammes is the annual Safe FoodConference. Safe Food 2008 - A Consumers’Perspective was held in Karachi, Pakistan,with over 500 delegates from the food industrywere present at the occasion. Speakers fromthe Irish Food Safety Authority, ConsumerProtection Council, Pakistan MedicalAssociation and Karachi University spoke atthe conference.

Since its inception in 2002, EBM’s Safe Foodinitiative has been attended by over 4,000people. It has also contributed to thepublication of over 30 papers regarding FoodSafety. This annual conference has motivatedover 20 companies to adopt and be certifiedby the ISO 22000/HACCP standards.



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Within the theme of “healthy bodies”, thehealth of people (and in particular those lessfortunate) is a main concern for our nation.As a result, EBM has consistently investedover Rs. 11 million in 2007-08 to thoseinstitutes providing healthcare, particularlyto the disadvantaged.

Providing healthcare to those who cannotafford it

EBM has proudly supported the Child Healthand Education Foundation (CHAEF) since2004, and has over that time has paid for theconstruction and running costs of a primaryhealthcare facility in one of the moreimpoverished areas of Karachi. EBM hasalso supported CHAEF with fund-raisingefforts to engage other sponsors and ensuretheir long-term sustainability. The clinic sawalmost 40,000 patients in 2007-08, andprovided treatment to cure patients sufferinga wide variety of conditions, includingTuberculosis, Hepatitis, various infections,and family planning. The effect of the clinichas been both on the health of local residents(incidents of common and seasonal diseaseshas been reduced) and on the health awarenessof patients through increased communitycontact and education.

Civi l Hospital School campaign

The majority of Pakistan’s population dependson the government for its healthcare needs,but unfortunately the magnitude and extentof these programmes are not enough tosupport the large and growing needs of our

nation, especially the impoverished areas. Inlight of this, EBM partnered with the CivilHospital Poor Patients’ Aid Society (PPAS)in 2007-08 to raise awareness and funds from52 schools and 40,000 children to supportthe largest hospital in Sindh to provide freecare for the poor and needy. EBM’sinvestment paid for the much neededequipment and for the schools’ programme,which in turn generated Rs. 400,000 of furtherinvestment for the Hospital.

We also continue to support long-term partnerswho believe in providing quality healthcareto those less fortunate. In 2007-08, EBMsupported the Marie Adelaide Leprosy Centre,the Aga Khan Hospital, the Sindh Instituteof Urology and Transplantation, Sahara forLife Hospital, Shaukat Khanum Hospital andmany others.

Investing in the Healthof the Nation


EBM’s CHAEF Welfare Centre.

16

A further theme of “healthy bodies” is thatof fitness. An area often overlooked withinPakistan, and an area that is significant forus as a food manufacturer looking to help ourconsumers maintain good health and fitness.EBM has long had an association withinvestment in sports and fitness, from initialsponsorship of sports activities since the 1970s

across a range of sports including football,boxing, cricket, blind cricket, hockey, tennis,golf, swimming, snooker and the paralympics.In 2007-08, EBM has invested over Rs. 8million across these, not just because ofsports’ ability to develop fitness and physicalhealth in those involved, but also becausesports help to instill a life of discipline,dedication, commitment, pride andachievement in its participants and supporters.

“Sports encourage us to achieve our goalsand objectives, and fuels our innate desire torise above mediocrity and achieve things for

ourselves, our communities, and our nation.This is a way of life that goes beyond sportsin anything and everything we do it thus goesbeyond the individual level and has long-term positive ramifications at a national andinternational level.”Saadia Naveed, Deputy Managing Director,EBM.

“Inspire and be inspired” – The 6thNational Blind Cricket Tournament

Recognising that the physically disadvantagedhave even more barriers to overcome thanmost in realising good physical fitness, EBMhas proudly supported the PakistanAssociation of the Blind (PAB)’s NationalBlind Cricket Tournament since 2004, bothto stimulate sports and fitness within the blindcommunity, but also as a motivation andinspiration for the sighted community toengage more in sports and fitness activities.

Investing in the Fitnessof the Nation


17

Okara, winning team at the sixth National Blind Cricket Tournament



In 2007 over 100 participants from an everincreasing number of teams from across allprovinces of Pakistan participated, and Okaradefeated Islamabad by 37 runs in a thrillingcompetition finale. EBM was proud of allparticipants and we recognise the power ofthese athletes to inspire us all to get moreinvolved in sports and fitness activities.

Special Olympics World Games

We proudly hosted a fund-raising gala for thePakistan Special Olympics team, an eventthat raised Rs.10 million to support ourexceptional special Olympians in enteringthe Special Olympics World Summer Gamesin Shangai, China.

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National Swimming Championships

EBM is an enthusiastic supporter ofswimming for its ability to involve people ofall ages, genders, backgrounds and abilities.Swimming does not require expensiveequipment, just time and water, and can be avital way to develop fitness and good health.By sponsoring many swimming eventsthrough the years, we hope to broaden theimpact and increase the awareness andbenefits of swimming throughout the nation.In 2007-08, EBM sponsored the 47th SindhOpen and Junior Swimming Championship,the largest open swimming event in Pakistan,drawing in over 200 participants from 24schools and clubs.

EBM knows that fitness is a key aspect of ahealthy body, and we are proud and passionateabout our involvement in and sponsorship ofsports and fitness activities.



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Lear

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One of the most pressing needs of our nationis quality education for our children. Illiteracyand poor standards of education are a plagueon our children, and it is impossible to imaginea brighter future for our nation withoutsignificant improvements in education,without “healthy minds”. EBM has alwayshad a passion for education, arising from ourconcern to share in the responsibility for theuplift and development of the people ofPakistan. With our contributions exceedingRs. 9 million in educational activities in2007-08, we continue to invest heavily in thisarea.

Adopting Local Schools

One of the cornerstones of this investmenthas been (since 2006) our adoption of 5 localschools near our Karachi site, whichpreviously had inadequate and decayingbuildings and infrastructure, and insufficientmaterials to deliver the quality educationthose children needed to realise a brighterfuture. EBM has worked with the Pakistan

Centre for Philanthropy and the CityDistrict Government of Karachi to investRs.1 million this year, taking the totalinvestment to over Rs. 4 million over the last2 years. EBM has been involved in thecomplete renovation and repairing of these

schools as well as the provision of books andstationary and other equipment to enable theeducation of over 900 pupils. We have alsotaken an active role in School ManagementCommittees to ensure the ongoingdevelopment not just of the facilities, but alsoof the quality of education through teachertraining and other initiatives.

Investing in our Children’sEducation


City Nazim, Mustafa Kamal at the opening of the School Adoption Ceremony

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Providing education where there was none

EBM is always looking for innovative projectsthat provide services to those that need themmost, but that are also cost-effective andembody quality. The CHAEF combinedhealth-clinic and primary school fits thiscriteria, and EBM has been supporting thisfacility since 2004, providing education tomore than 200 children. The school providesuniforms, books, and access to computersand other services usually reserved for theschools of the wealthier and more advantagedsectors of society. Now, not only are thesechildren receiving a quality education, butthe cleanliness, hygiene and social behaviourof these children are improving as a result ofthe efforts of the school and its staff.

Bringing Leadership to Life

EBM has sponsored the Young Leaders’Conference for 5 years - a 6-day conferencefor around 240 young people in leadershipdevelopment and motivation - and isdetermined to help young people realise theirown potential, so that they in turn can helpPakistan reach for a brighter future.

“YLC helped me to develop a lot of confidencein myself, which will help me in my career inmy practical life” - Muneeba Hamdani

“YLC has been a life-changing experiencebuilding my leadership ability as the youthof Pakistan. It is a great contribution towardsupholding the brighter future of our nation”– Nida Mushtaq

EBM is passionate about education, aboutgiving children a chance, about investing inour young people for their future and for abrighter future for our nation. That is whyEBM sponsors schools, leadershipdevelopment, and a whole host of othereducation programmes from schools to jails.

Investing in our Children’sEducation


Participants at the Young Leaders Conference 2007

One of the schools adopted by EBM

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EBM believes that an aligned and motivatedworkforce is a prerequisite to achievingambitious business objectives. We exercisecare over the health and safety of ourpeople, and give special focus to personaland career development.

Employee Alignment

What is good for the company should begood for our people, and it is our aim to alignthe aspirations of our employees with thegoals of the business. EBM strives to shareits success with employees, not only in termsof reward, but also of personal goals andcareer development.

In 2006, EBM performed a managementsurvey to engage and align our managers andemployees. The survey was conducted by anindependent organisation from the UnitedKingdom - Investors in People. Thosesurveyed covered a substantial cross-sectionof all our employees, more than one in threeof our workforce.

The Investors in People (IIP) recognitionsurvey confirmed high levels of alignmentwhen compared to the Investors in Peoplebenchmark. EBM demonstrated good practiceagainst several key capabilities, including

the quality of its brand, the culture and theimage of the company, the quality of itsmanagement, and personal empowerment.

Our employees appreciate the strength of ourreputation as an employer, and as a dynamicindustry player, and employees liked our wayof working, which is result and output-driven.

Hiring the Best

Hiring the right people is a part of EBM’ssuccess. A robust hiring process helps ensurethat the skills and experiences of our TeamMembers are properly aligned with ourbusiness needs and that we have a talentpipeline for future leadership opportunities.

Investing in our people


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Improving Our Recruiting Process

Our HR department redesigned therecruitment process in 2007-08. By partneringwith our internal customers such as managers,we were able to develop proactive talentmanagement plans for each of our businessfunctions.

Paying a Competitive Wage

EBM offers its employees one of the bestbenefits packages in the industry. Our benefitsfocus on all aspects of lifestyle changes, goodhealth, disease prevention, and education.These programmes not only ensure ouremployees are properly compensated for theirworkplace contributions, but that they alsosupport the broad-ranged health and well-being needs of our employees.

Team Member Training & Development

The goal of EBM’s Leadership andProfessional Growth initiatives is to createan integrated talent-management process thatidentifies, develops, deploys and retainsleaders within the organisation. Our HRdepartment provides a variety of services andprogrammes to help prepare our employeesfor future leadership challenges.

Investing in our People


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Nationwide programme to bring Best Practice to the EBM sales team

EBM has always contributed to thedevelopment of the management of bestpractices in Pakistan, both by adopting thelatest management technique and practiceswithin EBM and via encouragingmanagement excellence amongst its peers.

Internally, EBM has adopted managementsystems and practices for Total Quality-ISO9001, Food Safety-HACCP & ISO 22000,Environmental Management-ISO 14001,Information Security & Business Continuity-ISO 27001 and People Development-Investorsin People. EBM also runs a company-wideEnterprise Resource Planning software basedon Oracle.

Externally, EBM has regularly sponsored andcontributed to the Best Practices Day eventsheld across the country. Here, leadingcorporations have shared their practices andmanagement learnings with the businesscommunity, with an aim to raise the level ofmanagement excellence in the country. Todate, EBM has committed over Rs. 6 millionto the promotion of Management BestPractices in Pakistan.


Investing in Best Practice

Panel of Speakers at the Best Practices Day 2007

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Investing in the Environment


EBM believes that companies must take stepsto manage their impact on the naturalenvironment. As a consequence, we arecommitted to conducting our business in amanner that is sensitive to the environmentalneeds of the communities within which weoperate. We aim to achieve this by upholdingdefined key environmental standards in allof our operations and we actively encourageour business partners to demonstrate similarlevels of commitment.

All our locations fully integrate environmentalmanagement into their operational systemsand procedures. The Board reviewsenvironmental performance and our policyannually.

Overview

Managing our impacts to produce a morepositive result is good for the environmentand also brings economic benefits to EBM.When reviewing our environmental footprint,it has always been EBM’s policy to focusparticularly on those impacts that have themost effect on the environment and overwhich we have direct control.

Our three most significant environmentalimpacts are, in order of magnitude, energyuse, water use and non-hazardous solid wasteproduction. Energy use is by far our mostsignificant impact and we therefore give itthe highest priority.

In 2007-08, EBM had undertaken thefollowing initiatives: timely tuning of gasgenerators, reduction in unnecessary lighting,utilisation of energy saving bulbs, installationof inverters at mixers creating high torques,and the insulation of hot water lines.

Management Systems

EBM has a comprehensive environmentalmanagement system based on ISO 14001.Environmental impacts have been assessed

and an improvement plan based on identifiedareas of priority has been implemented.

In addition, EBM has incident, emergencyand contingency plans that are regularlyupdated to meet new conditions andrequirements. We also maintain crisismanagement procedures to provide aneffective response in case of incident oremergency.

EBM Garden at the Factory Site

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Investing in the EnvironmentCustomers and Suppliers

EBM works closely with our suppliers toensure that our systems meet theirrequirements. EBM briefs and audits allcontractors on key environmental issues tomake sure that we, and they, are managingour environmental impact effectively.

Waste and Recycling

EBM is working hard to reduce waste andaspires to achieve zero waste throughinnovation and creative design. There are anumber of points where waste is generateddue to our operations – in each case, we striveto find ways to reduce, reuse and/orrecycle what is created.

In our factory, materials, new equipmentand ingredients are delivered to our sites insome form of packaging which is collectedseparately on site and sent away to be recycled.In cases where packaging materials cannotbe recycled they are sent for disposal.

As a principle we align our work with thewaste hierarchy: reducing waste creationfirst, then looking for ways to reuse or recyclethe waste material. If this is not possible, wetry to dispose of waste so that we can recoverand use the energy. Landfill is only used asa last resort.

Waste Water Treatment Plant

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Environmental data has been produced for the EBM production factory in Korangi (Karachi only). Wefocus our measurement and improvement efforts on the areas that have the most environmental andfinancial impact. Given below is our performance in areas of environmental significance:


Environmental Data

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Consumption of Energy

EBM has switched from consuming power from the grid to utilising its own gas - fired generator. Thisdecision was taken to help the energy shortage being faced by the country and to switch to a moreenvironmentally friendly gas based power source.

0

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40000

50000

60000

2008 Till Now

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2007 & 2008

500000

1000000

1500000

2000000

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Production 2006 to 2008

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1000000

2000000

3000000

4000000

5000000

6000000

7000000

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9000000

2007 2008

English Biscuits Manufacturers (PVT.) LTD. Power HouseTotal KWH Generation form Power House for the Year 2007-2008

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60

80

100

120

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180

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Gas (m3) Consumption per ton Production (plant)for the year 2007-2008

English Biscuits Manufacturers (PVT.) LTD.

Months

7,238,300

8,494,400

Yearly

kWH

Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08

tonnesmaster

2006 & 2007


Environmental Data

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0

0.01

0.02

0.03

0.04

0.05

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on

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CO

0.056

0

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0.0004

0.0006

0.0008

0.001

0.0012

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NOX

0.052

ENGLISH BISCUITS MANUFACTURERS (PVT.) LTD.Generator Exhaust: NOX Kg / Ton of Production

For the years of 2007-2008

0.00096

0.00077

ENGLISH BISCUITS MANUFACTURERS (PVT.) LTD.Generator Exhaust: CO Kg / Ton of Production

For the years of 2007-2008

Jul-Dec 2007 Jan-Jun 2008

Jul-Dec 2007 Jan-Jun 2008


Environmental Data

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0

0.001

0.002

0.003

0.004

0.005

0.006

0.007

0.008

0.009

0.01

0.011

0.012

0.013

0.014

M3

/ T

ON

2007

M3

28

36

0

0.1

0.2

0.3

M3

/ T

ON

2007 20082006

ENGLISH BISCUITS MANUFACTURERS (PVT.) LTD.Water (Gallon) Consumption Per Ton Production

For the year 2006-2008

ENGLISH BISCUITS MANUFACTURERS (PVT.) LTD.Total discharge M3 per ton production

For the year 2006 - 2008

ENGLISH BISCUITS MANUFACTURERS (PVT.) LTD.Waste water discharge COD/BOD per ton production

For the year 2007 - 2008

2006 2007 2008

0

10

20

30

40

50

60

70

80

90

100

2008

0.160.17

0.16

87

66

0.013

0.012

0.01

COD

BOD

Cont

ribu

ting

Tow

ards

a F

aire

rFu

ture

Investing in the WiderCommunity

Contributing Towards a Fairer Future

Although EBM is determined to focus itsactivities on its core themes to ensureefficiency and effectiveness of its socialinvestments, EBM does not want to restrictits social responsibility activities to just theseareas. We recognise its responsibility as aCaring Corporate Citizen to give back to thecommunity, and as such, have contributedover Rs. 5 million to other causes throughout

2007-08 to such worthy organisations as theKarachi Anti-Tuberculosis Society, theCitizen’s Police Liaison Committee and theHelpline Trust.

Providing hope to the most destitute

SOS Children’s Villages provide orphanedand abandoned children an environment thatis as close as possible to a natural home. Theyprovide a community for the children to findshelter and support in a family atmosphere,so that they can receive quality education andvalues that enable them to becomecontributing members of the society. EBMwas proud to help the Friends of SOSChildren’s Villages in sponsoring a majorfund-raising gala evening in December 2007,which raised Rs. 7.5 million (net of expenses)towards the construction of a new village inJamshoro, Sindh.

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SOS Children’s Villages and EBM, together,believe that these children have the right tobe loved, cared for and feel safe. We all havea responsibility to give them hope and dignityand EBM was proud to play its part.

Investing in Community Infrastructure

Realising that the local transport infrastructurewas insufficient for local residents, commerceand industry, EBM has invested Rs. 2.8million over the last three years to constructand improve a new road causeway in

conjunction with the Korangi Association ofTrade and Industry. This causeway reduces3 kilometres of travel and saves driversRs. 40 million annually in fuel and wear andtear of vehicles, not including the countlesshours saved from traffic jams, and the businessand society benefit that result from that. In2007-08 EBM invested over Rs. 800,000 inmuch needed repairs and maintenance toensure that this essential facility can continueto be used for the benefit of the people ofKarachi.


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Commitment to Human Rights

EBM is an enthusiastic supporter of the effortsof the Government of Pakistan to support therights and opportunities of disadvantagedgroups as enshrined in external regulationsand our own internal Code of Ethics, and isproud to count a significant proportion ofdisabled people in our workforce. EBMensures that all of its sites are compliant withsuch legislation so that women and disabledworkers can access work and associated

facilities, and has never been subject to anyaccusations of discrimination. EBM is a vocalopponent of child and forced labour, andchecks that none of its employees are withinthese categories through its application andselection process.

EBM passionately believes that we all havea responsibility to the people around us, andis proud to be involved in a diverse set ofprojects that are all investing in a brighterfuture for those that need it most.


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Look

ing

Forw

ard

to a

Bri

ghte

rFu

ture

Looking Forward to aBrighter Future


EBM is excited about its role of investing ina brighter future for all of us and our children,and is excited about new ways it can growand improve these investments. EBM iscommitted to year-on-year increases in itssocial and environmental investments.Promising to spend over Rs. 47 million in2008-09, a further increase of over 12% onthis year’s amount, and we are equallydedicated in continuing to increase the impactof this investment.

Continuing to refine and focus itsenvironmental and social interventions toincrease their alignment with our strategicobjectives and the particular challenges facedby us as we pursue sustainable development.EBM will keep on working with its variousstakeholders (employees, suppliers, consumergroups, local communities and civil society)to ensure that we are meeting theirexpectations. Also we will seek to act as acatalyst in our industry and more widely inthe nation to further grow our passion andcommitment for social and environmentalsustainability.

In particular, EBM is excited about plans tofurther grow its projects and programmes inthe area of food safety, sponsoring the SafeFood Conference for the 7th year, expandingschools work around teaching, encouragingthe production and consumption of safe food.EBM plans to significantly increase itsinvestments in this space from overRs.8 million in 2007-08 to Rs.15 million in2008-09.

EBM is also proud to continue with many ofthe strategic partnerships highlighted withinthis report, including CHAEF, Young Leaders’Conference, Best Practices Conference, andBlind Cricket Tournament. EBM believes that

only with long-term partnerships can we makea strategic and sustainable difference to thosethat need it most.

EBM is also looking at other ways it canleverage its assets to support the poor anddisadvantaged of our nation. We will continueto explore ways that we can use our Centreof Excellence as more than a research anddevelopment capability for EBM, but also asa facility to enhance the knowledge capitalof Pakistan in food technology and safety.We have already welcomed academics,students and researchers from outside of EBMto use our facilities, and will be exploringfurther opportunities to utilise this resource(and others) for the benefit of Pakistan andits people.

EBM has a vision for a brighter future - abrighter future for our children, for those thatare suffering, and for all the people ofPakistan. We believe that it can and shouldplay a part in shaping that brighter future,that’s why we’re investing heavily in all ofthe good causes and projects that are listedin this report.

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GRI references

The Global Reporting Initiative (GRI) Sustainability Reporting Framework is an internationally recognised frameworkfor the good governance and appropriate reporting of an organisations’s approach and interventions in environmentaland social sustainability. In common with all of its business activities, EBM seeks to adhere to the highest availablestandards and benchmarks, and as such as compiled this report in line with the GRI guidelines, version 3.0, at criterialevel A (the most stringent). For more information about the guidelines, please visit www.globalreporting.org. Thetable below outlines EBM’s disclosures against the relevant GRI references, or indicates within which section of thereport the disclosure has been made.

GRI References


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GRI Section GRI Ref. Disclosure, or Relevant Sustainability Report Section

Profile Disclosures

1. Strategy and Analysis 1.1 See Message from the Managing Director1. Strategy and Analysis 1.2 See Sustainability Vision2. Organisational Profile 2.1 – 2.9 See EBM Background

Awards received 2.10 See Sustainability Vision3. Report Parameters 3.1, 3.6, 3.8, 3.9 See Introduction

Exceptions, inclusions 3.7, 3.10, 3.11 No exclusions, restatements have been required in previous reporting,and restatements and the scope of current and previous reporting has remained constant.Table of Contents 3.12 See GRI ReferencesExternal Assurance 3.13 No external assurance of this report has been provided4. Governance, Commitments 4.12 – 4.17 See Sustainability Management Approachand EngagementsGovernance of CSR 4.1,4.2, 4.9 The Annual Directors’ Report contains sustainability reporting which is

discussed at EBM’s Annual General Meeting. The chair of the AGM doesnot exercise daily executive responsibility

Mission and Values 4.8 See Sustainability Vision, See Sustainability Management ApproachGovernance Arrangements 4.3 - 4.7, 4.10 EBM is a privately held company, and as such, the detail of its internal

governance arrangements are not publicly availablePrecautionary Approach 4.11 EBM follows the Precautionary Approach (Article 15 of the Rio Principles),

and seeks to be proactive in its approach to risk management in operationalplanning, and implements the highest environmental standards at all stagesof processing and operations

Membership in Associations 4.13 The Korangi Industrial and Trade Estate, and the Employers’ Federation of Pakistan

Performance Indicator Disclosures

Environmental EN1-30 See Investing in the Environment% of materials that are recycled EN2 Data not currently availableIndirect energy consumption EN4,EN7 Data not currently availableBiodiversity EN11-15 EBM does not have any sites on or near protected areas, areas

of high biodiversity, or endangered species’ habitatWater Disposal EN10, 21, 25 Waste water is treated to meet NEQS levels, and 30% is recycled

onto the green spaces of EBM’s site. The remainder is discharged into the main drainage system, whereby no significant water bodies or habitats are significantly affected.

Significant Spills EN23 NoneRecycling of products EN27 It is not known what proportion of product and packaging sold is andpackaging sold recycledFines EN28 EBM received no monetary fines in 2007/08 (or in previous years)

related to its environmental or other activities.

GRI references


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Human Rights HR4, HR6, HR7 See Investing in the Wider communitySupplier Contracts HR1-2 EBM does not currently insert human rights clauses in its contracts

with suppliers or other investment agreements, but will be exploring with its suppliers ways in which to do so

Human Rights Training HR 3, HR8 EBM does not currently explicitly include human rights training for its security personnel or wider staff, due to the limited risk of human rights violations in its current processes and practices

Collective Bargaining HR5 No collective bargaining or union arrangements are in placeIndigenous People’s HR9 EBM does not currently operate in any locations where indigenousRights people’s rights are at risk of violationLabour Practices and Decent Note that this section applies to EBM employed staff, and does not includeWork staff employed by contractors to EBMEmployment Data LA1,LA2 See EBM Context and BackgroundCollective Bargaining LA4 No employees are covered by collective bargaining arrangementsWorkforce injuries LA7 A detailed log of employee accidents is maintained, and only 3

employees were injured in 2007-08, none of them seriouslyWorkforce education LA8 All EBM employees receive a personal hygiene training programme aboutdisease which includes aspects on minor and serious diseasesWorkforce training LA10 EBM employees received an average of 10 hours training in commitment 2007-08Workforce breakdown LA13 EBM employees are:

Male 218, Female 14Muslim 229, Christian 3Aged (20-29) 76, (30-39) 89, (40-49) 44, (50+) 23

Ration of basic salary men to women LA 14 There is no discrimination for male and female wagesSociety See Sustainability Management ApproachCommunity Assessment SO1 EBM follows the EPA guidelines for assessing local impact and

gathering stakeholder feedback when developing a new site, however,no new sites have been constructed during the time frame of this report

Corruption SO2-4 EBM takes a firm stand against corruption and corrupt practices, and assuch ensures that all employees read and sign the EBM code of ethics.Further, EBM requires all contracts that may include any familyconnection or other conflict of interest to be approved by the Board of Directors. As a result, EBM has never knowingly been involved in anact of corruption

Public Policy SO5 EBM does not undertake or get involved in lobbying or other political activity (and makes no financial or in-kind contributions to any politiciansor political parties)

Fines SO8 EBM received no monetary fines in 2007-08 (or in previous years) related to non-compliance

Product Responsibility PR1-3 See Investing in Food SafetyMarketing PR6 EBM adheres to all laws and codes relating to good marketing practiceCommunicationFines PR4, PR9 EBM received no monetary fines in 2007-08 (or in previous years)

related to non-complianceEconomic EC1 See EBM BackgroundClimate Change EC2 See Investing in the EnvironmentDefined benefit plan EC3 EBM pays 100% EOBI contributions for all employeesobligationsGovernment assistance EC4 EBM receives no direct government assistanceMinimum Wage EC5 EBM pays at minimum the Government-mandated minimum wage

to all of its entry-level employeesLocation-based EC6,EC7 EBM does not currently analyse or frame business decisions sourcing around the location of suppliers or employees, but rather seeks

the best available partners in terms of quality at the right priceWider social benefits EC8, EC9 All Sections

GRI Section GRI Ref. Disclosure, or Relevant Sustainability Report Section

English Biscuit Manufacturers Sustainability Report 2008

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