Engro’s social capital value creation model is driven by our approach of an inclusive and sustainable business model based on the concept of “shared value” between Engro and the communities its businesses operate in. Our social capital is monitored and managed by Engro Foundation, a body responsible for all community development initiatives. The inputs to this model are the financial contributions (1% of net profit before tax) from each Engro group company, together with financial contributions from external donors and volunteering time of Engro employees which are invested and mobilized by Engro Foundation in various social development projects. The key thematic areas Engro Foundation focuses on include: livelihood, skills development, education, health, and infrastructure and disaster relief.
inclusive business model
and our value chains
In pursuit of maximizing positive socio economic impact of our businesses, as a matter of strategy we have decided to shift from corporate philanthropy to inclusive business model. the purpose is to target ‘bottom of the pyramid’ communities around our business operations for raising their economic conditions, thereby making our value chains strong and sustainable. this will be achieved by providing low income communities with the opportunities of skills development and livelihood. the model will enable underprivileged members of our society to emerge as potential business partners and become vendors, customers and employees in our business value chains.
during the year we started our investment in business inclusive model with the value chain mapping of engro polymer and engro fertlizer. the purpose of this study was to identify the opportunities for community development projects where we can achieve maximum socio economic impact. our plan is to extend this study in other businesses as well and devise a comprehensive strategy for business inclusiveness.
we believe that in order to effectively manage the impacts of our businesses and have a better picture of the key hotspots, our value chains should be analyzed in depth. for this purpose, we began with analyzing the value chains of engro fertilizers and engro polymer and chemicals. the value chain of these two businesses were divided into various processes and each process was then analyzed for inputs, outputs, stakeholders involved in each process and key impacts as shown below:
value chain analysis
the benefits of value chain analysis are:
- Identification of key hotspots in
all sub-processes in the value
- Identification of opportunities along the
value chain where there is high social
return on investment.
- Identification of potential investment
opportunities along the value
education and skills
Pakistan has the 9th largest human resource in the world. unfortunately, majority of them are unskilled or semi-skilled. unless educated and equipped with adequate skills, our country’s biggest asset might turn into our greatest liability. engro believes in the development of competencies of people in the communities in which it operates by equipping them with the right set of skills, and with the ultimate aim of improving their livelihoods. we are helping families attain sustainable incomes through acquiring better skills from our training programs. in this area, we have made substantial investments which directly impact the income-generating capacity of our stakeholders.
engro reading project (ERP)
to improve reading skills in english, urdu and sindhi language, engro fertilizers embarked on a project, named erp, in district ghotki, focusing on students from grades i-v in 13 government primary schools.
the project started in november 2015 with its major donor being national rural support programme (nrsp), which contributed rs 21.3 million. erp aimed at creating a conducive environment in schools, characterized by setting up of language laboratories, provision of library corners and teaching aids, arrangement of summer and winter reading camps and holding of reading competitions.
to achieve this, engro worked to build a highly professional and reputable teaching faculty, which would work to foster community engagement in promoting reading habits among children by putting together a repository of local stories as narrated by community elders, and also by launching an adult literacy program.
in the pursuit of achieving the above objectives, engro has at present, spent over 8,160 hours for training of teachers at all adopted schools, conducted 26 inter-school reading and spelling bee competitions and distributed prizes amongst the winners and collected 65 stories in sindhi from across adopted school children communities.
- PKR. 22.9mtotal budget
- PKR. 21.3mdonated by NRSP
- 13computer labs established
- 52community sessions held
sustainable livelihoods and
coastal communities:a citizen based approach to saving pakistan’s
unique marine environment
Engro foundation with its partners, namely world wildlife fund (wwf) and international union for conservation of nature (iucn), is targeting three union councils [maripur (inclusive of kakapir village, having an estimated population of 74,000 people), ibrahim hyderi (fishing colony with an estimated population of 150,000 people), and rehri village (inclusive of lad basti, chashma goth and razaqabad settlements - fishing colony with an estimated population of 100,000 people)] in the fastest growing urban center in the world, i.e. karachi, with an aim to support and promote improved fisheries management, by working with fisher groups, fisheries department and private sector. this goal will be met by reforming governance and management to combat illegal fishing and reduce pressure on marine ecosystems through increased awareness.
the project aims to achieve sustainable livelihoods in rehri, ibrahim hyderi and kakapir through sustainable fishing, which focuses on combatting overfishing, by-catch mitigation, developing fishing practices and improving fishermen skills and fishing gear. other objectives of the project in the area include developing alternate and associated livelihoods through practices, such as crab fattening, fish drying cottage industry and padi programs. furthermore, the project plans to provide clean water and solar electricity to vulnerable fishing groups and to work on mangrove conservation, targeting 675 ha of mangroves forest and related coastal ecosystem in pqa.
the project also focuses on raising awareness amongst youth and fishing communities regarding sustainability of marine resources in pakistan. it further plans to work on development of schools in 3 union councils, conduct of 4 major events in schools and formation of 9 nature clubs. other plans encompass collecting essential data through tagging of 1,000 turtles, satellite tracking of 10 turtles, 5 acoustic monitoring stations to measure the impacts of large scale fishing and industrial activities on 2 flagship species – arabian sea humpback whales and marine sea turtles, in pakistani waters.
to achieve these objectives, engro has intended to implement the following measures:
- Deploy voluntary crew-based observers in 3 union councils to safely release bycatch
- Mobilization and sensitization of targeted fishers and stakeholder
- Provision and support of alternate livelihoods for fisher communities in 3 coastal areas of Pakistan
- Transform unsustainable fishing practices from high ecosystem to low ecosystem impacts through gear transformation
- Enhance fisher skills and expertise for improved storage, handling and harvest of fish catch
- Develop and implement value addition plans for improved supply chain and harvest of non-commercial fisheries to markets
- Establish and implement an Eco-dive (initiative) for promotion of marine fisheries resources of Pakistan Improve electrification conditions through introduction of solar energy
- Raise awareness amongst youth and fishing communities regarding marine resources in Pakistan
- PKR. 54mtotal budget
- 06awards introduced as an incentive
- 20 fishergroups capacity improvement
inclusive business and
farmer connect program (FaCP)
The program aimed at enhancing farm productivity of small to medium - sized farmers in rice-wheat cropping systems of punjab and sindh through value-added farm advisory services. 158 villages were covered in the program that stretched across 39,269 acres of land, targeting 5,177 registered farmers and 23,000 companion farmers. the services included provision of crop literature, farmer-field school trainings on bcmps, innovative crop management techniques, soil testing and weather advisory with a field staff of almost 18 workers, consisting of 3 field officers, 12 field assistants, 1 master trainer, 1 social mobilizer & 1 women mobilizer.
some key highlights of the work done in phase 1 of the project (wheat crop) are as follows:
some key highlights of the work done in phase 2 of the project (rice) are as follows:
some of the field activities that were completed in phase 2 included:
- Direct seeding of rice: Comparable with ‘Sowing without plowing in wheat’ – Reduced cost of production and Improved yield owing to Optimized Plant Population Management (OPPM)
- Ensuring OPPM in transplanted fields using ropes and Sq Meter Frames
- Installation of AWD pipes in the field
- Trial generation on drum seeder and mechanized transplanting
- Advisory, Training and facilitation on fertilizer use, weed control, pest/disease control, harvest and post-harvest crop management
the significant achievements of phase 1 and 2 could be attributed to the following factors:
- Usage of certified/treated home-kept seeds;
- appropriate usage of fertilizer based on soil analysis;
- ensured OPP; and
- crop advisory in light of the weather forecast
- PKR. 49milliontotal budget
- 26%yield increase (phase 1)
- 37%profitability increase (phase 1)
- 43%yield increase (phase 2)
and dairy stakeholders network
engro foods started an innovative project in dairy value chain, for providing livelihoods and empowering women, whereby 50 women entrepreneurs are currently providing essential services of animal health care and milk aggregation to smallholder farmers. these women are being trained to enhance the impact of their micro-enterprises by use of technology, addition of more services and increasing their geographical coverage. this accelerator program also focuses on developing sustainable linkages for entrepreneurs with dairy stakeholders particularly medicines, feed, and seed suppliers and processing industry.
the project aims at improving the knowledge base of 50 entrepreneurs in the khairpur district of sindh who were trained during the weld project and develop sustainable linkages with dairy vendors. it also has an objective of training 7,000 livestock owners on better livestock management activities for improved milk production.
- 5,773beneficiaries trained
- PKR. 11,641average income
- 164trainings completed till dec 2016
envision - engro volunteers
in service of the nation
envision (engro volunteers in service of the nation) is a platform providing opportunity for the engro employees to make positive impact in the society through their competencies and skills. we fully support and encourage our employees to volunteer their work time for social causes. envision operates under the designated council which is further structured into seven chapters of engro employees located in sahiwal, sukkur, muridke, dharki, port qasim, karachi and lahore. this platform also provides our employees with an opportunity of getting exposure to new environments and experiences, leading to innovation, creativity and leadership whilst fostering team building and cross-company collaboration.
- 14,500+ hours2016
- 11,000+ hours2014
these volunteering hours are utilized in the following key activities and are monitored by engro foundation:
- Project management, technical advisory and strategic planning support for development sector organizations
- Fund raising activities and disaster relief campaigns
- Mentoring, delivering lectures, career counseling and events organization for school children
- Spending times with special children, patients, orphans, and residents of old age homes
- Blood donation drives
- Public awareness campaigns
- Tree plantation and other environmental conservation efforts
- Capacity building of farmers, milk collectors, vendors and others
engro has always been forerunner in bringing new opportunities in its business environment and this has resulted in tremendous responsibility to act as a sustainable organization. engro believes in the fact that issues of national importance can only be dealt when businesses collaborate with their governments at all levels and create business impacts that create value for all the stakeholders. our key programs and initiatives are its example; we strive to invest more in improving livelihoods, building sustainable infrastructure, improving health and capacity building. as a responsible contributor to pakistan’s growing economy, engro strives to increase impacts through private business partnerships and ensure its support to the government in achieving global goals.