SUSTAINABLE VALUE Compact yarn, Rayon/ Cotton Yarn, High Twist Yarn, Slub Yarn, and Rayon Silk Yarn

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Transcript of SUSTAINABLE VALUE Compact yarn, Rayon/ Cotton Yarn, High Twist Yarn, Slub Yarn, and Rayon Silk Yarn

  • SUSTAINABILITY

    P.T. INDO LIBERTY TEXTILES

    REPORT 2016-17

    SUSTAINABLE VALUE

  • CONTENTS The Context CEO’s Message Performance Snap Shots

    01 02 03

    69 71 73 78 79

    21 24

    25 28 31 32 34 37 39 47 49 50 54

    06

    10 11 13

    15 17 18

    CSO’s Epilogue Assurance GRI Index Contribution to UNSDG Definitions & Acronyms

    Strategic Stakeholder Engagement and Future Proofing

    Balancing Economic Values Aligning manufacturing processes with our sustainability goals Energy & Carbon Water & Effluents Biodiversity Materials & Waste Health & Safety Chemical Management Social & Labour Sustainability Sourcing Responsible to Customer Product Stewardship Stakeholder Engagement

    Operations and Products

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

    Our Values Steer Our Conduct The Board Steering Sustainability

    01 02 04

    72 80

    19 22 24

    05

    14 16

    Footprint

    Governance & Management

    Responsible Stewardship

    Strategic Focus

  • P.T. INDO LIBERTY TEXTILES SUSTAINABILITY REPORT 2017 | 1

    The Context Dear Reader,

    It brings me great pleasure to introduce to you our third sustainability report for PT Indo Liberty Textiles (ILT).

    The Overseas Spinning business has exceeded expectations, despite sluggish market conditions and steep cost increases in Indonesia. Viscose yarn margins have been under constant pressure throughout the year. We have been particularly hit by the ever decreasing Open End prices. However, the team at ILT have looked at diversifying their Open end product portfolio, in order to mitigate this trend. 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 Value Creation team has made inroads into the textiles value chain, and is delivering value to the business. The teams have looked at diversifying its portfolio of products, and has stepped into the global technical textiles space. The team has also benefitted from the implementation of the supply chain solution, with better transparency being brought in the system. The efforts put in by my colleagues have been recognized both within the Aditya Birla Group and outside as well. The Indonesian units received a commendation awarded by NCSR, Indonesia, for the sustainability reports.

    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

  • P.T. INDO LIBERTY TEXTILES SUSTAINABILITY REPORT 2017 | 2

    CEO’s Message It is my pleasure to introduce our third Sustainability report following GRI G4 Guidelines. The report covers the reporting period 01 April 2016 to 31 March 2017, disclosing performance on sustainability processes and material indicators. In line with Aditya Birla Group’s Sustainability Vision 2017, we continue to pursue- Responsible Stewardship, Stakeholder Engagement and Future Proofing. We are also presenting our performance on material aspects against targets taken for the year.

    In a very competitive market and tough global economic scenario, our revenue generation has increased slightly. We have scaled up new product development and efforts in value added products. Emphasis is also given on material efficiency, energy and waste reduction to optimise the production cost. Our marketing team is constantly in touch with customers and in coordination with the product development team, we are able to tap new markets.

    We are committed to contributing to UN Sustainable Development Goals and all our sustainability missions and programmes are tracked for contribution to the sustainability goals. We are committed to be climate steward; have assessed what should be our climate mitigation contribution to limit global temperature raise to 2oC and are exploring ways to meet such targets.

    We enjoy very cordial relation with all our employees and the unions. Our continued investment in employee engagement including skill development, health and safety and celebrating many festivities as a family bounds us together in a journey towards a sustainable organisation. We have initiated deployment of social accountability standards and wish to our make workplaces “Happy Work Places”. Our efforts in our sustainability journey were recognised and all three Indonesian units received ‘Commendation for First Year Reports’ by National Center for Sustainability Reporting (NCSR), Indonesia, for the sustainability reports.

    I look forward to your support as we continue on this journey.

    Mr. Kapil Agarwal CEO, Overseas Spinning Business

    NCSR Award for the first time Sustainability Reporting

  • P.T. INDO LIBERTY TEXTILES SUSTAINABILITY REPORT 2017 | 3

    Environment Social

    Performance Snap Shots

    WASTE INTENSITY (in MT waste/MT

    raw materials)

    % RECYCLED & RENEWABLE MATERIAL IN PACKAGING

    GHG INTENSITY (in tCO2 eq/MT)

    ENERGY INTENSITY (in

    GJ/MT) LTI-FR, Female

    Local Employment

    (in %)

    Employee Diversity by Age Group ( 50)

    Employee Diversity (Male:

    Female)

    % RECYCLED & RENEWABLE MATERIAL

    IN PROCESS

    WATER INTENSITY (in

    m3/MT)

    Average Training Hours

    (in hrs)

    2.25%

    95.3

    2.47 11.87 0.59

    95.6%

    66:33:1

    27:73

    72.3

    9.06

    22.82

    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

    2.46%

    94.9

    2.58

    12.47 1.28

    94.6% 24:76

    70:29:1

    72.6

    5.86

    23.6

    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

    Legend

    Achievements No major changes Needs Improvements

  • P.T. INDO LIBERTY TEXTILES SUSTAINABILITY REPORT 2017 | 4

    Economic Non-GRI

    Performance Snap Shots

    Community Social Investments (in USD)

    PROPORTION OF PROCUREMENT

    BUDGET FOR LOCAL PURCHASE

    (in %)

    ECONOMIC VALUE GENERATED (in

    Mn USD) Supplier

    Satisfaction Level (%)

    Higg Index Environment

    Module Score (%)

    Community Satisfaction

    Level (%) Employee

    Satisfaction Level (%)

    Higg Index Social and Labour

    Module Score (%)

    ENVIRONMENTAL PROTECTION

    EXPENSES (in USD)

    ECONOMIC VALUE DISTRIBUTED (in

    Mn USD) WASH

    Pledge (%)

    24,297

    92

    122.3 95.57

    76

    93.2 96.17

    72.65

    27,154

    116.9 88

    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

    10,000

    89

    113.2 94

    72

    69

    0

    7370,911

    106.7

    88

    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

    Legend

    Achievements No major changes Needs Improvements

  • P.T. INDO LIBERTY TEXTILES SUSTAINABILITY REPORT 2017 | 5

    FOOTPRINT Our 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 & Products 06

  • P.T. INDO LIBERTY TEXTILES SUSTAINABILITY REPORT 2017 | 6

    Operations & Products Global Value Chain

    Associations:

    USA

    BRAZIL

    SWITZERLAND

    TURKEY EGYPT

    PAKISTAN SOUTH KOREA

    TAIWAN VIETNAM

    BANGLADESH

    INDONESIA

    PT. Indo Liberty Textiles (ILT) was incorporated in April 1995 with a modest capacity of 21,120 spindles in a total area of 20 hectares in an industrial town of Karawang, about 70 kilometres east of the capital city Jakarta, in the West Java province of Indonesia. ILT is a closely held, non-listed company. Reporting to shareholders is done once in a year at the Annual General Meeting. However, key shareholders are represented on the Board of Directors and are kept informed about business developments via quarterly board meetings.

    The annual turnover is US $122.3 million , the present capacity is 181,836 spindles including 4,440 open end rotors with annual sales volume 49,523 MT per annum in 2016-17. Our total market capitalization is 83.77 Mn USD with a debt to equity ratio of 68:32.

    • Total Employee Strength: 1,411 (2016-17) (Contract workers-392, Permanent workers-1019)

    • Net Sales: 122.3 Mn US$ (2016-17) • Quantity of Products Sold: 49,523 MT (2016