1. International Textile Ltd. 1 5 October 2010 14 September 2012 Corporate Social & Environmental Responsibility 1

2. Review Outline 2 1.Critical Environmental Issues 2.Corporate Social & Environmental Responsibility – CSER 3.CSER Approaches 4.Pakistan’s CSER Focus Areas 5.CSER Evaluation in Pakistan 6.ITL’s Commitment to CSER

3. Critical Environmental Issues – Pakistan 3  Major Challenges  Soil Erosion  Pesticide Misuse  Deforestation  Desertification  Urban Pollution  Water Logging  Salinity

4. 4  Population of 180M, seventh most populous country globally. Doubles in twenty years!  One of the highest population growth rates.  GDP growth rate to exceed 7% P.A to provide the economic sustainability. Last ten years not even 50% of this goal.  Limited indigenous energy sources. Fossil fuel reserves are low, and there is no great potential in biomass energy. Critical Environmental Issues

5. 5  Energy use is essentially inefficient. Pakistan’s GDP per unit energy used is 4.0, which ranks 69 th out of countries evaluated by UNDP.  On waste treatment, only 3 percent of all industrial plants meet international waste treatment standard.  Attempts to legislate environmental protection have fallen short, and regulations have not been enforced strongly. Critical Environmental Issues

6. 6  Those who are designing regulations are often disconnected from the real challenges of industry (space, limited capital, technology).  In order to make real progress, there has to be a lot more and real public private partnership (PPP).  Environment is a provincial matter. Build an outstanding PPP platform and draw from the ‘captains of industry’ to legislate, collaborate and implement effectively. Critical Environmental Issues

7. 7  In terms of the private sector, must focus on CSER, not as a fashionable thing to do, but a fundamental commitment to do the right thing for our country.  Three key dimensions:  How companies define corporate responsibility and corporate values.  The relationship of values to business performance.  Identify best practices for managing corporate values. Corporate Social & Environmental Responsibility -CSER

8. 8  Business Ethics  Cleaner Production  Environment  Fair Trade  Human Rights  Labor Practices  Workplace safety  Occupational Health  Quality Management  Supply Chain Integrity CSER Approaches

9. Pakistan’s CSER Focus Areas 9  Real and urgent need for CSER in Pakistan  CSER approaches still rudimentary  Barriers to implementing CSER outside MNCs  WTO requirements  Assessment of potential threats and opportunities  Need policy and regulatory measures to support CSER  Goals that can be set by industry to report CSER  Identify best practices  Strategy for effective implementation

10. 10 CSER Evaluation in Pakistan  1st Generation Pressure driven, engagement for pain alleviation with localized benefits.  2 nd Generation Systematic engagement for risk management and increased understanding of stakeholders.  3 rd Generation Integrated strategic engagement for sustainable competiveness.

11. 11 ITL’s Commitment to CSER  Making a large capital investing in an ETP as its tangible commitment to a cleaner environment.  Commissioning in December 2012.  Manufacturing discharges will be completely treated.  Adopted state of the art technology, based on the aeration process supported by chemicals. The net result will be to meet all international standards and NEQs.  Adult literacy program.  Employee wellness days.  Significant and a quiet contributor to community healthcare for the disprivileged.

12. Thank you ! 12