SUSTAINABILITY REPORT| 2019 22 Stakeholders Engagement ARL stakeholder’s engagement process comprises of identification of material issues relevant to the society, economy and environment and their analogous impacts on its partners & ARL’s business. Stakeholders having similar interests & needs are grouped together.

ARL strategy is always inclined towards its firm commitment for doing fair business followings its core values and involving its stakeholders at all forums. Through a cyclic feedback mechanism, ARL is providing equal growth opportunities to all. This approach helps in creating & promoting synerget- ic relationships with our valued stakeholders and to meet their expectations proficiently. Provide responses on key concerns

Determine materiality issues and correspond- Identify our Local Community ing aspects stakeholders

Suppliers Shareholders

Employees Customers

Society Government Agencies

Compile sustainability Investigate the stake- issues holder’s degree of concern and the impact on ARL’s Business

Stakeholder Engagement Cycle SUSTAINABILITY REPORT| 2019 23

Shareholders Expectations & Interests

Institutional Shareholders: Maximum throughput of refinery, Timely Banks, Financial Institutions, Non Banking payment of dividends & bonus shares, Financial Institutions, Insurance and Invest- Sharing of social, environmental and ment Companies, Joint Stock Companies, financial statements for Compliance to the Associate Companies etc. code of corporate governance and materiali- Private Shareholders: ty principles, Increasing value of market Private and small investors share, safe operations of the refinery, Value addition and Transparency.

Mode of Engagement Response

• Safe operations of the plant and value addition of Quarterly Board of Directors meetings and products is ensured by operations & Technical Service Shareholders general meetings, Refinery department. • Compliance to the code of corporate governance, Management Committees i.e. Risk manage- Materiality principle compliance, Coordination with third ment & Strategic Planning Committee, party auditors, Routine review and internal audits by Succession Planning and Career Manage- business review and assurance (BR&A) department. ment Committee Meetings, Reporting of • Transparency in dealing, Preparation of quarterly and annual financial reports, sharing of financial statements, Company's annual financial and sustainabil- Liaison with financial institutions for investments, Timely ity reports, periodic sharing of information payment of dividends and bonus shares to shareholders through electronic media by F&CA department. • Succession planning for key managerial positions & hiring of talented staff to keep operations smooth and trouble free by human resource and administration (HR&A) department. • Ensuring safe operations in compliance with environ- mental regulations and sharing social and e n v i r o n - mental performance of company by health, safety, environment and quality (HSEQ) department. • Arrangement of board and shareholders meetings by company secretary.

41st Annual General Meeting 2019 SUSTAINABILITY REPORT| 2019 24

Employees Expectations & Interests

Regular employees, Contract employees, Market competitive salaries, career growth, Employees Representative groups like training and development, safety and CBA's Third party contract employees. security of employees, conducive and Details are given in 2nd Chapter friendly working environment, sharing of information, residence, medical facilities, sports and recreational facilities.

Mode of Engagement Response

Human resource policies, Planning and • Training programs, employee meetings, annual and career management committee meeting, quarterly family festivals, conducting regular employee Annual appraisal, Organization Environ- satisfaction survey, Formal agreement of CBA's, Adminis- trative assistance, Residence and medical facilities, mental Survey, Employee engagement and employees engagement through training sessions, team team building seminars and activities, building activities and annual sports by human resource Conferences for human resource develop- and administration (HR&A) department ment and training need assessments • Safe and secure working environment, provision of sessions, training programs and career PPE's and handling of emergencies at the workplace is development sessions. being addressed by health, safety, environment and quality (HSEQ) department • Health facilities through AHL • Timely payment of salaries and bonuses by F&CA department

National level Conferences and glimpse of Medical facilities to Employees SUSTAINABILITY REPORT| 2019 25

Local Communities Expectations & Interests

Infrastructure development, Provision of Neighborhood, Local Schools, Masajids, facilities and funding to schools, Health Residential colonies, Neighboring organiza- facilities, Better living standards, Safety and tions & industry , union councils, employees security, Provision of utilities, sports and families, Community development organi- recreational facilities, clean environment, zations, Local municipal administration, employment, Community Awareness and visitors, transporters etc. Support, Policy Lobbying

Mode of Engagement Response

Meeting with nearby communities, Partici- • Financial and administrative support is being pation in school events, Sponsoring events offered through F&CA Department. • Health facilities are provided by Attock Hospital in schools, Joint celebrations of events, Limited (AHL). Community engagement and awareness • Safety seminars, environmental activities, seminars, Installation of clean drinking promotion of cleaner technologies by HSEQ water tanks, Participation in conferences department. and sports, Arranging Sports Events, • Recruitment with preference to local communi- Medical Camps, Annual Sports Competi- ties on merit basis by human resource & adminis- tions, Technical Meetings, providing tration (HR&A) department. training opportunities • Provision of free utilities and drinking water to neighborhood including masajids ,schools and awareness campaigns arranged by HR&A department. • Tree Plantation & provision of ARL’s play grounds for sports by HR&A

Engagement Activities with Local Community SUSTAINABILITY REPORT| 2019 26

Customers Expectations & Interests

Major Oil Marketing Companies (OMCs) Quality and quantity of product, Timely including State Oil, Attock Petrole- delivery, Technical assistance and financial um Limited, Total Parco Marketing Compa- compliance, After sales services, Customer ny Limited, Limited, Hascol satisfaction, Assets safety and security. Petroleum Limited, Puma Energy Pakistan Private Limited, Bakri Energy Private Limited, Byco Petroleum, Quality 1 Petrole- um Private Limited, Pakistan Air Force etc.

Response

Mode of Engagement Timely delivery of products and quantity compli- ance, response to queries, administrative Customer site visits, exchange of complaints being addressed by oil movement information, joint testing of product section of Operations department quality, quarterly customers feedback, • Quality assurance and end user customer technical awareness sessions, compli- satisfaction, technical assistance in testing and quality related matters are addressed by quality ance of relevant financial regulations, control lab section of HSEQ department. Meetings with customers as & when • Timely billing, reconciling and financial coordina- required tion is addressed by invoicing and receivables management section of F& CA department • Customer liaison & satisfaction, Compliance of sales agreements by sales section of C&MM department • Assets safety and security is ensured by HSEQ department and security section of HR&A depart- ment

Meeting of ARL’s Officials with Shell Pakistan Limited SUSTAINABILITY REPORT| 2019 27

Suppliers and Contractors Expectations & Interests

Timely bill payments, Prompt response to Pakistan Oilfields Limited, Pakistan Petrole- queries, safety and security of personnel um Limited, Ocean Pakistan Limited, MOL, and assets, conducive working environ- Oil and Gas �evelopment �ompany Limited, ment, facilitation, compliance of contract company limited, WAPDA, agreement, Technical assistance and SNGPL, and general order suppliers feedback, compliance to the code of corpo- Services and Human Resource Contractors rate governance.

Mode of Engagement Response

Joint testing of crude oil, direct coordina- • On time payment to crude oil suppliers by tion with WAPDA, SNGPL, PTCL and gener- oil movement section of Operations al order suppliers, visit to contractors and department suppliers sites as & when required, Period- • Crude oil analysis, personnel and assets ic meetings of procurement office with safety, technical assistance by HSEQ depart- general order suppliers, meetings with ment contractors, Trainings, Communication of • Payments to contractors by F&CA Depart- relevant policies to contractors and suppli- ment. ers • Facilitation to contractors by HR&A and operation department. • Evaluation of crude and other raw materi- als/services by HSEQ, technical services, C&MM and other relevant departments

Interactions with Suppliers and Contractors SUSTAINABILITY REPORT| 2019 28

Government Bodies Expectations & Interests

Ministry of Energy (Petroleum Division), Compliance to the code of corporate Pakistan Standards and Quality Control governance, Compliance of quality of Authority ( PSQCA), Directorate of Labor, products and services, Legal and PEQs Federal board of revenue (FBR), Securities and Compliance, Tax deduction and deposition, Exchange Commission of Pakistan (SECP), Development of policies framework, Pakistan Stock Exchange, EPA, Rescue 1122 Infrastructure development, safe proce- and other like organizations, National dures and workers welfare. Highway Authority, Directorate of Apprentic- es, EOBI, Ministry of Climate Change, NDMA, Civil aviation, Social welfare department, OGRA etc. Response

Mode of Engagement • Compliance to code of conduct by Business Review and assurance department Fortnightly product allocation meetings, • Coordination with Ministry of Energy for crude Sharing of daily sales figures to Ministry of pricing and discounts, Petroleum development Energy (Petroleum Division), Crude pricing levy, FBR for excise duty and sales tax by oil coordination with Ministry of Energy petrole- movement section, F&CA and C&MM department um division. Monthly and Annual coordina- • FBR for monthly/annual return of withholding, tion with FBR for taxation, Regular liaison with income and personal tax by payroll and employees fund section local government, invitations to government • Dealing with stock exchanges, SECP, financial officials, Information on website ,Involvement institutions by corporate affairs section of EPA in public hearing for new projects, Tree • Liaison with local government labor depart- plantation, Participation in meetings, Joint ments and EOBI by human resource department event celebrations etc. • Dealing with PSQCA, Civil aviation, EPA, Rescue 1122, OGRA, NDMA, District Disaster Manage- ment by HSEQ Department.

District Government Representatives and Environmental Agencies presenting in our Awareness Campaigns SUSTAINABILITY REPORT| 2019 29

Civil Society Expectations & Interests

Industrial academia relationship, Industrial Universities, Foundation, NGOs, Research tours, Research and development with Institutes, Technical Training Institutes, research institutes, Medical camps, Intern- Colleges, Students, etc. ship and Trainings, Joint celebrations with different institutes, Sharing of information and Technical support.

Mode of Engagement Response

Organizing Conferences & Seminars, • Inernships programs , Liaison with educational Celebration of Events, Coordination with institutes regarding research facilitation in order to create shared values by human resource and universities ,Arranging Free Medical administration department Camps, Reporting of environmental, social • Sharing technical information and research and economic performance, Participation assistance is provided by different concerned in meetings, industrial visits, mentoring departments research projects, ARL website, • Resource provision and sponsoring of events by Apprenticeship & senior management HR&A and finance department trainee programs etc. • Medical camping with NGOs' at different locations through Attock Hospital Limited • Providing safety training by HSEQ department • Sharing social and environmental performance by HSEQ department • Technical support is provided by operations, TS and HSEQ department

Pak Army Officials Technical Training and National day Celebration at ARL