naturalcapital

year ended december 31, 2021

introduction

Engro Corporation has been a forerunner at valuing its Natural Capital through proactive environmental stewardship. Over the years, we have integrated environmental preservation at the heart of our business.

Our subsidiaries have developed an organizational culture that nurtures diligent thought process and are committed to preserving the natural environment for our future generations. Engro Corporation and its subsidiaries take utmost responsibility in defining and designating priority areas, and assigning aggressive targets for successful management of environmental effluents and resource conservation.

We treat our ecosystem management and resource utilization as our own natural capital, and continuously strive for its betterment. A key aspect of this ever-evolving process is our fundamental core value defined as, ‘an Engro employee cares deeply about environmental impact and for the safety of people’. Engro Corporation and its subsidiaries maintain a rigorous internal and external regimen on continuous learning and improvement from behavioral as well as technical interfaces, that enable us to control our environmental impacts.

our journey

timeline

Voluntary environment parameter monitoring

01

Regulatory environmental monitoring and reporting of parameters to Environmental Protection Agency (EPA)

02

Public disclosure of environmental parameters as required by GRI and UNGC frameworks

03

Value creation through integrated natural capital management and reporting

04
exxon transforms to engro chemical pakistan limited promulgation of the environmental protection act hazardous substance rules enacted engro chemical pakistan limited became the first company in pakistan to adopt the GRI framework for sustainability reporting engro corp becomes the first conglomerate of pakistan to publish integrated report 1991 1997 2005 2021 2003 2014

Compliance to Capital

At Engro, our approach towards natural capital management has always been that of a responsible stakeholder while delivering excellence in production operations. Our journey towards valuing our Natural Capital started in 1991, as part of the legacy we inherited from EXXON Chemicals, by then Engro had voluntarily developed its self-monitoring environmental metrics with a commitment to monitor its emissions and abide by a specified benchmark. In 1997, after the Pakistan Environmental Protection Act (PEPA) was passed and the National Environmental Quality Standards (NEQS) were introduced, we became one of the first commercial chemical manufacturing facilities to follow the mandatory standards.

We had already started categorizing and managing our hazardous wastes with our own set of disposal standards. In 2003, when the Hazardous Substance Rules were promulgated by the Government of Pakistan, Engro was already a forerunner with highly trained human and physical resources to cater to the ever-changing needs of the regulatory framework.

Adopting the ISO 14001 Environmental Management Framework in 2004, we became one of the pioneers in this standardization in Pakistan. In 2005, Engro took another leap by signing the charter of the United Nations Global Compact (UNGC), becoming the first company in Pakistan to officially disclose its environmental performance as per the Global Reporting Initiative (GRI) standards. From 2013 onwards, we have adopted the integrated reporting model keeping in view the diversification of our businesses and took the lead in publishing the annual Integrated Report, merging our environmental performance to resource efficiency, valuing it formally as our Natural Capital.

our strategy

valuing our natural capital

our commitments

  1. Adherence to local laws and global standards
  2. Positive environmental footprint
  3. Conversation of natural resources, preserving biodiversity and valuing our impacts

our impacts

  1. Global warming
  2. Loss of biodiversity, ecosystem degradation
  3. Other environmental impacts due to our operations

our operations

  1. Energy Production
  2. Chemicals and fertilizer production
  3. Resource extraction and processing
  4. Technology management & infrastructure
  5. Storage & Distribution

At Engro, we have consistently maintained a multi-layered approach for natural capital management that includes our operations, impact, and commitment. We face a multitude of challenges due to operating predominantly in the Fertilizer, Chemical, Energy and Agriculture businesses. Our proactive assessment of how our operations impact the environment requires an active commitment and governance structure at each tier of management. We are in the process of streamlining a well thought-out strategy with appropriate short term, medium term, and long-term transformation levers that will propel Engro Corporation and its subsidiaries to a future with the commitment of an overall net positive impact on the environment. This includes a structured approach on adherence to all local laws, application of best in class standards, classification and regular appraisal of our environmental footprints, and to continuously endeavor towards conservation of natural resources through investment in efficient technology and behavioral change.

performance

our measured natural capital

We will term the reporting year of 2021 as the year of learning and impact assessment. Engro Corporation became Pakistan’s first conglomerate to be a signatory to the WEF stakeholder capitalism metrices and aims to manage our environmental footprint based on the requirements of these metrices in the short, medium and long term. We have already embarked on this strategic transformation, both at corporate and subsidiary level, to align with, and fulfill the requirements and recommendations that it entails. Also included in this year’s reporting are Engro Enfrashare and Engro Fertilizers’ organic fertilizer facility under the brand name Engro Zarkhez.

Our total energy consumption stood at approximately 95 million GJ with an adjustment of energy parameter’s calculation for lignite coal utilized by Engro Powergen Thar Limited. Our total GHG emissions have been summed up to approximately, 7.821 million tCO2e, a moderate increase of 3.2% or 0.242 million tons. However, we are committed to managing and reducing our GHG footprint as part of our long-term emission reduction strategy through technology upgrades, forestation, and renewable energy initiatives. We are also proud of the fact that Engro Enfrashare produced 3,310,000 of clean energy units by solarizing 40% of its operations. Our focus remains on reducing our total environmental footprint by enhancing our ecological impact through preservation of terrestrial and aquatic biodiversity.

key inputs

  1. Approximately 744.7 million PKR investment in the year 2021 in our natural capital throughout our subsidiaries.
  2. Investment and monitoring of Corporate and Subsidiary wise environmental footprint and its benchmarking with global industrial averages and necessary adjustments are planned and executed as a matter of routine.
  3. Resource Efficiency initiatives in materials, energy, water, and waste reduction throughout the subsidiaries.
  4. Investments in renewable technologies like Carbon Dioxide Capture and utilization, Hybrid Solarization, Hydrogen Venting, optimization of Diesel Genset operation, and other initiatives for efficiency and emissions reduction.
  5. Bio-diversity parks are initiated to protect endangered species.

key outputs

  1. Engro Enfrashare has produced 3,310,000 kWhr of clean energy units by solarizing more than 40% of the network.
  2. Engro was able to recover around 36% of H2SO4 from its operations and reduced approx. 4.7% GJ of energy compared with the base year (i.e., 2018) via Hydrogen Venting project.
  3. Engro Fertilizer (Daharki) recovered approximately 74,000 tCO2 and utilized it in urea production in 2021.
  4. More than 26,000 trees were planted by Engro subsidiaries in the year 2021.
  5. An estimated 27.59 million cubic meters of water meeting all regulatory specifications was safely disposed of through our state-of-the-art water treatment and safe, environmentally friendly disposal facilities and related infrastructure

fact sheet

energy (GJ)

total energy consumption

95.67 million

  • engro fertilizers (dhk)
  • engro fertilizers (zhk)
  • engro polymer & chemicals
  • engro corporation
  • engro energy
  • engro eximp & agriproduct
  • engro elengy
  • engro enfrashare
  • engro vopak terminal

Note: Fertilizer (DHK) Energy Consumption reflects, energy consumed as Fuel. Natural gas that is used as feedstock for Urea production is not included in the total energy consumption.

Subsidiary wise breakup

  • engro energy
  • engro corporation
  • engro fertilizers (dhk)
  • engro fertilizers (zhk)
  • engro polymer & chemicals
  • engro eximp & agriproduct
  • engro elengy
  • engro enfrashare
  • engro vopak terminal
Water (m3)

Water Consumption

28.58 million

  • engro fertilizers (DHK)
  • engro fertilizers (zhk)
  • engro polymer & chemicals
  • engro energy
  • engro eximp & agriproduct
  • engro elengy
  • engro vopak terminal

Note: Last year i.e., 2020, total water withdrawal was assumed to be total water consumption in the year 2021, we are abiding by the new GRI guidelines on water reporting GRI 303-5 that total water consumption is calculated as (Total Water Consumption= Total water withdrawal – Total water discharged)

Subsidiary wise breakup (thousand)

  • engro fertilizers (DHK)
  • engro fertilizers (zhk)
  • engro polymer & chemicals
  • engro energy
  • engro eximp & agriproduct
  • engro elengy
  • engro vopak terminal

Water withdrawal

56.15 million

  • engro fertilizers (DHK)
  • engro fertilizers (zhk)
  • engro polymer & chemicals
  • engro energy
  • engro eximp & agriproduct
  • engro elengy
  • engro vopak terminal

Note: Engro Energy depicts combined figures of EPQL, EPTL and SECMC

Subsidiary Wise (thousand)

  • engro elengy
  • engro vopak terminal
  • engro fertilizers (DHK)
  • engro fertilizers (zhk)
  • engro polymer & chemicals
  • engro eximp & agriproduct
  • Energy

Water Discharge

27.58 million

  • engro fertilizers (DHK)
  • engro polymer & chemicals
  • engro energy
  • engro eximp & agriproduct

Note: EVTL & EETL are considered as zero discharge facilities.

Subsidiary Wise (thousand )

  • engro fertilizers (DHK)
  • engro polymer & chemicals
  • engro eximp & agriproduct
  • engro energy

Note: Note: EVTL, EETL, are considered as zero discharge facilities.

gaseous emissions (TCO2e)

Total GHG Emissions

7.821 million

  • engro fertilizers (dhk)
  • engro fertilizers (zhk)
  • engro polymer & chemicals
  • engro energy
  • engro eximp & agriproduct
  • engro elengy
  • engro enfrashare
  • engro vopak terminal

Total GHG Emissions comparison (TCOe)

Direct GHG Emissions Comparison

Indirect GHG Emissions Comparison

subsidiary wise breakup (TCO2e)

Direct Emissions

  • engro corporation
  • engro energy
  • engro fertilizers (DHK)
  • engro fertilizers (zhk)
  • engro polymer & chemicals
  • engro eximp & agriproduct
  • engro elengy
  • engro enfrashare
  • engro vopak terminal

Note: Note: engro corporation are considered as zero discharge facilities.

Indirect Emissions

  • engro corporation
  • engro energy
  • engro fertilizers (DHK)
  • engro fertilizers (zhk)
  • engro polymer & chemicals
  • engro eximp & agriproduct
  • engro elengy
  • engro enfrashare
  • engro vopak terminal

total ghg Emissions subsidiary

  • engro corporation
  • engro energy
  • engro fertilizers (DHK)
  • engro fertilizers (zhk)
  • engro polymer & chemicals
  • engro eximp & agriproduct
  • engro elengy
  • engro enfrashare
  • engro vopak terminal
other air emission (nox, sox) (Tons)

NOx Emissions 2021

  • engro elengy
  • engro vopak terminal
  • engro fertilizers (DHK)
  • engro fertilizers (zhk)
  • engro polymer & chemicals
  • engro energy
  • engro eximp & agriproduct

sOx Emissions 2021

  • engro elengy
  • engro vopak terminal
  • engro energy

Comparison

  • 2021
  • 2022
waste (Tons)

Total Waste

4,745

  • engro fertilizers (DHK)
  • engro fertilizers (zhk)
  • engro polymer & chemicals
  • engro energy
  • engro eximp & agriproduct
  • engro elengy
  • engro vopak terminal

Hazardous Waste

  • engro energy
  • engro elengy
  • engro fertilizers (DHK)
  • engro fertilizers (zhk)
  • engro polymer & chemicals
  • engro vopak terminal
  • engro eximp & agriproduct

Non-Hazardous Waste

  • engro polymer & chemicals
  • engro energy
  • engro fertilizers (DHK)
  • engro fertilizers (zhk)
  • engro elengy
  • engro vopak terminal
  • engro eximp & agriproduct