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Stakeholders Engagement

ARL stakeholder’s engagement process comprises of identification of material issues in the society, economy and environment and their corresponding impacts on its partners & ARL’s business. Stakeholders having similar inter- ests & needs are grouped together while defining stakeholders.

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 oppor- tunities to all. This approach helps in creating & promoting synergetic relationships with our valued stakeholders and to meet their expectations proficiently.

Shareholders

Enhance ECONOMIC Suppliers Local Community

Through Employees SUSTAINABLE Customers SOCIAL GROWTH ENVIRONMENTAL Society STRATEGY Government Agencies

Investigate the ARL stakeholder’s degree of concern and the impact on ARL’s Business Determine materiality issues and corresponding Compile sustainability aspects issues 03 02 04 Identify our Provide responses on stakeholders key concerns 01 05

Stakeholder Engagement Cycle

Leveraging HR to Achieve Excellence Sustainability Report 2018 23

Shareholders Expectations & Interests

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

Response

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

Employees Expectations & Interests

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

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

Leveraging HR to Achieve Excellence Sustainability Report 2018 24

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

Response

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

Customers Expectations & Interests

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

Response

• Timely delivery of products and quantity compli- Mode of Engagement ance, response to queries, administrative complaints being addressed by oil movement Customer site visits, exchange of section of Operations department information, joint testing of product quality, • Quality assurance and end user customer quarterly customers feedback, satisfaction, technical assistance in testing and technical awareness sessions, compliance of quality related matters are addressed by quality relevant financial regulations, Meetings with control lab section of HSEQ department. customers as & when required. • Timely billing, reconciling and financial coordina- 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 and

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Suppliers and Contractors Expectations & Interests

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

Response

• On time payment to crude oil suppliers by oil Mode of Engagement movement section of Operations department • Crude oil analysis, personnel and assets safety, Joint testing of crude oil, direct coordination with technical assistance by HSEQ department WAPDA, SNGPL, PTCL and general order suppliers, visit • Payments to contractors by F&CA Department. to contractors and suppliers sites as & when required, • Facilitation to contractors by HR&A and operation Periodic meetings of procurement office with general department. order suppliers, meetings with contractors, Trainings, • Evaluation of crude and other raw materials/services Communication of relevant policies to contractors and by HSEQ, technical services, C&MM and other relevant suppliers departments

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

Response

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

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Civil Society Expectations & Interests

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

Response

Mode of Engagement • Inernships programs , Liaison with educational institutes regarding research facilitation in order Organizing Conferences & Seminars, Celebration to create shared values by human resource and of Events, Coordination with universities administration department ,Arranging Free Medical Camps, Reporting of • Sharing technical information and research environmental, social and economic concerns, assistance is provided by different concerned Participation in meetings, industrial visits, departments mentoring research projects, ARL website, • Resource provision and sponsoring of events Apprenticeship & senior management trainee by HR&A and finance department 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

Leveraging HR to Achieve Excellence Sustainability Report 2018