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Ceylon Tea Services Plc Sustainability Report 2015/16

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Ceylon Tea Services Plc Sustainability Report 2015/16 CEYLON TEA SERVICES PLC SUSTAINABILITY REPORT 2015/16 CEYLON TEA SERVICES PLC - SUSTAINABILITY REPORT 2015/16 SECTION 1 INTRODUCTION | 1 CEYLON TEA SERVICES PLC SUSTAINABILITY REPORT 2015/16 Our Founder Merrill J. Fernando had a unique vision - he wanted to offer consumers the finest tea on earth and to do so with ethics and integrity. That pledge is fulfilled in our commitment to garden fresh, unblended tea of the finest quality. In making business a matter of human service, the natural goodness in every cup of Dilmah is extended by the positive humanitarian and environmental impact Dilmah has on communities and ecosystems. This is our third Annual Sustainability Report. This report covers the consolidated activities of Ceylon Tea Services at Group level. We have begun transitioning from the Global Reporting Initiative’s (GRI) G3.1 Sustainability Reporting Guidelines at level C to G4 Reporting Guidelines (GRI-G4 Guidelines – Core), and expect to have fully transitioned by the next reporting period. With a deep understanding of how our business is intimately linked to nature, sustainability is central to how we operate and what we do. business is a matter of human service. CONTENTS SECTION 1 INTRODUCTION .................................................................................................................................7 1.1 MESSAGE FROM THE CHAIRMAN ...............................................................................................................................7 1.2 OUR CORE COMMITMENT TO SUSTAINABILITY ...........................................................................................................8 1.3 KEY HIGHLIGHTS ........................................................................................................................................................9 1.4 SCOPE OF THE REPORT ............................................................................................................................................13 1.5 MANAGEMENT APPROACH TO SUSTAINABILITY .......................................................................................................14 1.6 DELIVERING A SUSTAINABLE FUTURE ......................................................................................................................14 SECTION 2 ABOUT DILMAH ............................................................................................................................................18 2.1 OUR CORPORATE PROFILE .......................................................................................................................................19 2.2 GROUP STRUCTURE .................................................................................................................................................20 2.3 GLOBAL NETWORK ...................................................................................................................................................20 SECTION 3 PERFORMANCE REVIEW 2015/16 ................................................................................................................22 3.1 ENVIRONMENT .........................................................................................................................................................23 3.2 ECONOMIC CONTRIBUTION (EC1, EC3, EC8) ............................................................................................................33 3.3 OUR PEOPLE (LA1; LA2; LA3; LA6; LA8: LA10, LA11, LA13, LA15) ............................................................................35 3.4 SOCIETY .................................................................................................................................................................37 3.5 PRODUCT RESPONSIBILITY (PR1, PR3, PR5) ...........................................................................................................46 SECTION 4 GOVERNANCE ..............................................................................................................................................48 4.1 THE BOARD OF DIRECTORS ......................................................................................................................................49 4.2 AUDIT REVIEW ..........................................................................................................................................................49 4.3 HUMAN RESOURCES REVIEW ...................................................................................................................................49 4.4 EXECUTIVE MANAGEMENT TEAM .............................................................................................................................49 4.5 SYSTEMS AND INTERNAL CONTROLS .......................................................................................................................49 4.6 ENGAGEMENT OF EMPLOYEES ................................................................................................................................49 4.7 SUSTAINABILITY COMMITTEES .................................................................................................................................50 4.8 STAKEHOLDER ENGAGEMENT ..................................................................................................................................50 CEYLON TEA SERVICES PLC - SUSTAINABILITY REPORT 2015/16 CONTENTS | 5 6 | SECTION 1 INTRODUCTION CEYLON TEA SERVICES PLC - SUSTAINABILITY REPORT 2015/16 SECTION 1 INTRODUCTION 1.1 MESSAGE FROM THE FOUNDER & Unlike other companies, our supply chains span every CHAIRMAN sector of the tea value chain. This is no easy task but it is what differentiates us from other companies and Dear Stakeholders, is what our customers increasingly value. Put simply, Dilmah brings the best from tea bush to cup. Because It is our pleasure to present you with a review of the we operate across the entire value chain, we are keenly sustainability performance of Ceylon Tea Services PLC – aware of the total environmental impact of our activities. the Dilmah Brand for the year ended 31st March 2016. As owners of tea estates, we also take a longer term view on our natural environment – with a deep understanding The story of Dilmah began in 1988. I was then a small tea of how our business is intimately linked to nature. For grower with big dreams, I wanted to bring my country’s example, we work on a number of forestry related tea – the finest in the world – garden fresh and ethically activities, because we understand how dependent tea produced, direct to tea lovers around the world. I had to cultivation is on the forests that surround us. Forests compete with giant multinational brands. Many said that help control micro-climates, provide water and protects mine was an impossible dream, but loyal tea drinkers biodiversity, helping to control pests and diseases. Sadly, around the world have made my dream a reality. Today, there are already many examples that surround us, where two and a half decades later, my sons Dilhan and Malik the importance of forests has been ignored – often too have joined me in my mission. My vision is to bring you late as visibly demonstrated by the natural disasters our tea of the highest quality - fresh, rich in flavor and natural country has faced during the recent past. We strive to goodness – and at the same time to give workers and my ensure that this is not the case where we operate. We country a fairer deal. I pledged to make my business a also take a long term view on developing best practices. matter of human service. We try where ever possible to look beyond certification. Dilmah owes its success to the quality of Ceylon Tea. We hope that the information presented in this report Our business was therefore founded on an enduring and on our website provides a view of our commitment connection to the land and the communities in which to the triple bottom line and enables you to track the we operate. From our inception, we have pioneered a progress of our business excellence journey. We look comprehensive commitment to minimizing our impact forward to your feedback on our initiatives and on this on the planet, fostering respect for the environment and report. In conclusion, I would like to convey my sincere ensuring its protection by encouraging a harmonious appreciation to the Board of Directors, corporate coexistence of man and nature. The environment is management and the entire team of staff for their central to Dilmah’s business and Dilmah Conservation dedication and commitment. I also extend my sincere was established as an affirmation of this core appreciation to all our stakeholders for the confidence commitment to environmental sustainability. As Dilmah placed in us as we look to the year ahead with renewed has grown, I have not forgotten my pledge, and revenue vigor and commitment. from the sales of Dilmah fund the work of the MJF Charitable Foundation. Our Foundation has changed We are continuously evolving and we take pride in the lives of thousands and its humanitarian services will what we do every day. Please join us in celebrating tea, continue to grow alongside Dilmah. nature’s gift of goodness, and in appreciating the special pleasure in a cup of fine tea! Dilmah has a unique and integrated global footprint in the beverage industry. We own and operate tea estates, extraction facilities for tea, packing facilities and research and development laboratories. We will continue to evolve, as we pursue the exciting opportunities
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