Ceylon Tea Services Plc Sustainability Report 2014/15
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CEYLON TEA SERVICES PLC SUSTAINABILITY REPORT 2014/15 CEYLON TEA SERVICES PLC - SUSTAINABILITY REPORT 2014/15 SECTION 1 INTRODUCTION | 1 CEYLON TEA SERVICES PLC SUSTAINABILITY REPORT 2014/15 Our continued success is dependent on the health of the environment, the welfare of our people and the prosperity of the communities which support our activities. We have long recognized the importance of taking good care of our people and looking after our land; we understand that when our people and the communities in which we operate grow and prosper, so do we. This is now our second Annual Sustainability Report, and we make no apologies for any repetition. The quest for sustainability is never ending, and the same ground must be covered time and again. This report covers the consolidated activities of Ceylon Tea Services at Group level and follows the Global Reporting Initiative’s (GRI) Sustainability Reporting Guidelines at GRI Level C. As usual, we review progress against the sustainability targets we have set ourselves and set new targets that build on our achievements for future years. We continue to focus on the key areas of energy, water, waste, carbon emissions, biodiversity, product responsibility with society and our community engagement featuring prominently. 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 ............................................................................................................................................12 1.5 MANAGEMENT APPROACH TO SUSTAINABILITY .......................................................................................................12 1.6 DELIVERING A SUSTAINABLE FUTURE ......................................................................................................................13 SECTION 2 ABOUT DILMAH ............................................................................................................................................17 2.1 OUR CORPORATE PROFILE .......................................................................................................................................17 2.2 GROUP STRUCTURE .................................................................................................................................................18 SECTION 3 PERFORMANCE REVIEW 2014/15 ................................................................................................................21 3.1 ENVIRONMENT .........................................................................................................................................................21 3.2 ECONOMIC CONTRIBUTION (EC1, EC3, EC8) ............................................................................................................31 3.3 OUR PEOPLE ............................................................................................................................................................32 3.4 SOCIETY .................................................................................................................................................................35 3.5 PRODUCT RESPONSIBILITY (PR1, PR3, PR5) ...........................................................................................................44 SECTION 4 GOVERNANCE ..............................................................................................................................................47 4.1 THE BOARD OF DIRECTORS ......................................................................................................................................47 4.2 AUDIT REVIEW ..........................................................................................................................................................47 4.3 HUMAN RESOURCES REVIEW ...................................................................................................................................47 4.4 EXECUTIVE MANAGEMENT TEAM .............................................................................................................................47 4.5 SYSTEMS AND INTERNAL CONTROLS .......................................................................................................................47 4.6 ENGAGEMENT OF EMPLOYEES ................................................................................................................................47 4.7 SUSTAINABILITY COMMITTEES .................................................................................................................................48 4.8 STAKEHOLDER ENGAGEMENT ..................................................................................................................................48 ANNEX 1 - WASTE MANAGEMENT ...................................................................................................................................51 ANNEX 2 - COUNTRIES DILMAH IS AVAILABLE IN ...........................................................................................................52 CEYLON TEA SERVICES PLC - SUSTAINABILITY REPORT 2014/15 CONTENTS | 5 6 | SECTION 1 INTRODUCTION CEYLON TEA SERVICES PLC - SUSTAINABILITY REPORT 2014/15 SECTION 1 INTRODUCTION 1.1 MESSAGE FROM THE CHAIRMAN in the long term. In the last report we shared our business strategy of identifying opportunities for strategic Dear Stakeholders, innovation and market expansion, and the environmental and social considerations linked with the strategy. This It is our pleasure to present you with a review of the year we are happy to share the milestones of our journey sustainability performance of Ceylon Tea Services PLC across these as well as new issues that are now factored – the Dilmah Brand for the year that ended 31st March in the way we do our business. 2015. A climate change aligned business strategy is now a In Sri Lanka, tea is much more than just a beverage; it Group commitment, and at Dilmah we are beginning to is indeed a way of life. It is so deeply embedded in our understand complexity and address issues going forward. psyche, in our roots, that life cannot be imagined without To reduce the use of fossil fuels, a model bio-gasification a cup of hot tea. For generations, this has motivated plant using spent tea has been commissioned at our people to internalize the tea experience and externalize center at Moratuwa. We initiated mapping of our carbon their social awakening. footprint across our manufacturing facilities and shall evaluate recommendations as they emanate. Today, the world faces some fundamental challenges – a growing population, diminishing natural resources, The tea industry is going through a state of flux, and there threats to the environment from waste, climate change are several changes occurring across the industry. The and inequalities in health and wealth. Governments and globalization of the trade and increased opportunities individuals need to act now – and so do businesses like of global sourcing have rendered the tea industry highly ours. We are on a mission to make sure the products we competitive. Globalization has also led to strengthening of sell are good for consumers, good for the environment regulations and safety standards across the food industry. and good for the people in our global supply chains. The company recognizes that key success factor in the We are focusing on using our brand to make it easier changing scenario is keeping abreast with consumer for people to consume sustainably. We are using preferences especially youth, regularly meeting their sustainability challenges to drive innovation. We are expectations, increasing the reach of products, offering engaging with stakeholders to help them help us take innovative products across segments and markets, positive action, and we have created a culture that managing raw tea sourcing, leadership in thought, food encourages our employees to make responsible choices. regulation and policy formulation, and supply chain We are also providing funds and practical support for issues. communities touched by our business around the world, through corporate initiatives, brand campaigns and We hope that the information presented in the Report employee volunteering. and on our website provides a view of our commitment to the triple bottom line and enables you to track the Our core commitment to sustainability remains as deep progress of our business excellence journey. We look and unwavering as before. Throughout the year, our forward to your feedback on our initiatives and on this teams have led the growth agenda to enable Dilmah to report. In conclusion, I would like to convey my sincere emerge as a global beverage business. The teams have appreciation to the Board of Directors, corporate created several breakthrough programs and achieved management and the entire team of staff for their results in a holistic manner. A focus on innovation, dedication and commitment. I also extend my sincere climate