Tana netting sustainability report 2017

Page 1

FOLLOWING OUR PROGRESS

SUSTAINABILITY REPORT 2016 - 2017


Gross profit

Data entries were made for LLIN quality inspection and management

Close to 180 tons of packaging, shipping and in-house items from recycled materials

Energy-intensive process successfully eliminated from supply-chain ‘DawaPlus: Made in Africa’

+28% LLINs production

project launched in Nigeria, receiving ‘Local Development and Empowerment’ award

-3% Water consumption

Senior management 500 tons of plastic sheets,

in Pakistan and Nigeria

packaging and bags are

are from local communities

made from recycled material

2016 2017 HIGHLIGHTS


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

Table of contents Page 4

01

Foreword

04

Page 6

02

About this report

Page 12

Page 23

Page 39

What matters most

Our environmental impact

External initiatives

»» Stakeholder engagement »» Materiality assessment

Page 17

05

Our governance and values

03

»» Products »» Operations and markets served »» TANA Netting at a glance »» Quality first

Page 21

06

09

Page 32

Page 8 TANA Netting structure

07

»» Materials management »» Recycling »» Energy management »» Water management »» Emissions »» Waste

Our finances

08

Our social assets »» Staff overview »» New hires and employee turnover »» Parental leave »» Training and assessment »» Injuries and absences

»» Female unit »» Localized production in Africa »» Bilqees Sarwar Foundation »» Corporate sustainability frameworks

Page 43

10

GRI content index

Page 51

11

Annexes

3


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

01

Foreword The reference number for the GRI disclosures and topics are highlighted in green at the beginning of each chapter.

GRI Disclosures 102-14

4


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

We are proud to present the second edition of the TANA Netting Sustainability Report, based on the Global Reporting Initiative (GRI) Standards. Since our first report last year, TANA Netting has distributed 60 million long-lasting insecticidal nets (LLINs), adding to the impressive 1.6 billon LLINs distributed worldwide since 2004.*

T

he impact of this effort in terms of disease reduction and improvement of lives of, particularly, women and children can hardly be overstated.

Another perspective that rarely comes to light is the manufacturing and distribution side of malaria prevention efforts. The 1.6 billion nets equal more than 1 billion kilograms of insecticide treated plastic materials, which together with more than 50 million kilograms of packaging materials have been sent thousands of kilometers in containers to the intended beneficiaries. Tens of thousands of people have been employed in this effort and many petajoules of energy from coal, oil and gas sources have been spent on processing polyester and polyethylene in supply chains. Two years ago, we decided to start reporting systematically on our economic, environmental and social impact to create greater transparency on critical sustainability issues in our own activities. Additionally, we aim to create reference points and methods to generate insights on sustainability issues for the industry in general. Only if this practice becomes the new standard, the very concentrated pool of LLIN buyers and the international procurement agencies, can commence applying criteria for sustainability in their procurement processes.

Since the last report, the output from our factory has grown by 28%, measured in number of LLINs. The process towards bringing energy intensive processes in-house and away from our suppliers, has been completed during this reporting cycle. This development allows us to innovate where there is the greatest potential to create efficiencies, reduce energy consumption and improve our competitiveness. While this has improved the position of our supply chain relative to the competition, as evidenced in our growing market share and stability of profits, this also means the energy and greenhouse gas footprints from our own factory have increased. This year, we have improved the reliability of our data by capturing input and consumption data directly at the relevant process points, while relying less on interpolation of averages and overall outputs. This strengthening of our methods for data capture is likely one cause of the unexpected volatility in some of our numbers, such as greater than expected reduction in water consumption and less than expected reduction of electricity. LLIN production is labor intensive and one of our biggest challenges is talent and skills retention to ensure high efficiency and quality output. Within the last year, we have installed better temperature control systems and redesigned material flow

processes to improve factory working conditions, especially during the hot summer months. Efficiencies have improved since the last reporting cycle largely due to investments in automation, whereas output per worker in highly manpowerintensive processes, like sewing, remain unchanged. Capital investment into automation will continue to drive up efficiencies measured in output per employee, which, supported by organizational redesigns, should see gains in the range of 3 – 8%. Going forward, we expect the market to shift to some degree to new types of LLINs, which require different materials and machinery. The ability to capture relevant data and apply the insights dynamically to drive efficiency gains is increasingly becoming a core competency for TANA Netting, and this is expected to help position us as the market leader for these products as well. This year we hope to engage in deeper discussions on sustainability in the LLIN supply chains and share our insights with our partners to help avail sustainability inputs to decision makers in this global distribution network.

Rune Bosselmann Director TANA Netting

*Net Mapping Project, from The Alliance for Malaria Prevention

5


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

02

About this report GRI Disclosures 102-45, 102-48, 102-49, 102-50, 102-51, 10252, 102-53, 102-54, 102-56

6


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

T

ANA Netting’s Sustainability Report 20162017 is part of our commitment to improve our social, environmental and financial performance continuously. We will use it as a tool to track our own development, to better engage with our stakeholders and to encourage the malaria community to mandate improved processes and reporting from the private sector. This is the second consecutive year TANA Netting has used the Global Reporting Initiative (GRI) Standards for Sustainability Reporting as a guideline for this annual publication. The reporting period for the information provided is from 1 July 2016 to 30 June 2017, unless made clear when there is an exception. Our financial statements and social information include TANA Netting operations in Dubai, UAE, our

Our finances

Our environmental impact

Our social assets

manufacturing facility H. Sheikh Noor-ud-Din & Sons (HSNDS) in Lahore, Pakistan, and Rosie’s Textiles in Aba, Nigeria. The environmental impact information is almost in its entirety from the HSNDS facility, given that our Aba facility had not been operative for more than three months in this reporting cycle. The creation of our Sustainability Report was slightly delayed due to staff changes; the previous year it was published in March whereas this year (’16-’17) it is issued in June. GRI Reporting Principles for defining content and quality have been consistently applied to this publication. Several data collection methods and reporting methodologies have changed from the previous year. This will be indicated in every case when it occurs to facilitate comparability and clarity. Our materiality assessment is based on extensive stakeholder engagement and applying the GRI

External initiatives

GRI content index

Annexes

materiality principle to identify the material topics to be included. This is a GRI-referenced publication which uses GRI Standards 2016 as guideline. At this time, we have not sought external assurance for our Sustainability Report 2016-2017. However, we intend to do so in our next reporting cycle. Please note that our financial statements are externally assured by Horwath Mak, a chartered accountancy firm in Dubai. Our GRI Content Index can be found on page 43. For any queries regarding this report please contact Natalia Freitas, our Sustainability Executive for NRS International, at

natalia.freitas@nrsinternational-fzco.com

7


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

03

TANA Netting structure GRI Disclosures 102-1, 102-2, 102-3, 102-4, 102-5, 102-6, 102-7, 102-8, 102-9, 102-10, 308-1, 414-1, 416-1

8


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

60 108

Who we are TANA Netting is a leading supplier of long-lasting insecticidal nets (LLINs) that contribute to the global fight to eradicate malaria, a preventable disease that causes almost half a million deaths annually.

million nets sold in 2016-2017

In the reporting year 2016-2017 we sold 60 million treated nets, which are used on average by 1.8 persons, therefore impacting 108 million people who are facing the deadly threat of malaria. TANA Netting is a subsidiary of NRS International, a family-owned company that manufactures and develops products for the humanitarian, public health and development sectors for over 40 years.

GRI content index

This year, we witnessed the launch of three new products. The new generation DawaPlus ® 3.0 and 4.0 nets contain, in addition to deltamethrin, a co-insecticide, PBO, to enhance their efficacy. These LLINs are specifically designed for regions where mosquitoes have developed a resistance to pyrethroid insecticides. Our 150D net is a high-strength and soft net, with a large mesh for a better airflow.

million

people protected by our nets

»» »» »» »» »» »» »»

Leading producer of Long-lasting insecticidal nets (LLINs)

DawaPlus® 2.0 DawaPlus® 2.0 150D DawaPlus® Curtain DawaPlus® Sandfly Net DawaPlus® 3.0 DawaPlus® 4.0 DawaPlus® Canopy Hammock

¹Global Health Observatory (GHO) data 2015

Net sales (USD)

Total capitilization

Quantity of products provided (LLINs)

59,978,010

123,059,272

38

3334

Dubai

15% leases

286

Lahore

107,660,000

Nigeria

Annexes

Product range

TANA Netting at a glance Total number of employees

External initiatives

2014-15

2015-16

118,323,023

2016-17

85% equity

37,464,937

2014-15

46,839,357

2015-16

2016-17

9


Foreword

About this report

TANA Netting structure

What matters most

Operations and markets served

Our governance & values

Our finances

Our environmental impact

Our social assets

445,000 malaria deaths in 2016

Global community response to fight malaria

CLIENTS UN agencies Governments NGOs

Our clients procure bed nets

HEAD QUARTERS

BENEFICIARIES 90% of nets delivered to Africa

We respond to client’s request and plan production

Remaining nets to Asia and Latin America

GRI content index

Annexes

Headquartered in Dubai, United Arab Emirates, the manufacturing of our products takes place at our manufacturing arm, H. Sheikh Noor-ud-Din & Sons (HSNDS) in Lahore, Pakistan. In May 2017 we inaugurated a cut-to-pack facility in Aba, Nigeria, part of our “DawaPlus: Made in Africa” project. You will find more information about this initiative to localize production in regions where the nets are actually deployed on page 41.

THE PROBLEM Every 2 minutes a child dies of malaria

External initiatives

LLINs are considered healthcare goods and are pre-qualified by the World Health Organization (WHO). We supply to national governments, primarily to Ministries of Health, UN agencies such as UNICEF and UNHCR, and non-profit organizations that run malaria programs. The beneficiaries of our LLINs are vulnerable populations living in malariainfested regions, dominated by countries on the African continent. We have seen smaller shipments to Latin America and Asian countries as well.

Countries served Nets shipped to clients

QUALITY CONTROL

SUPPLIERS Polyester from China Deltamethrin from France

Each production batch is audited in our ISO 17025 accredited lab

Nets shipped to clients

CUT-TO-PACK NIGERIA Nets finalized in facility Production capacity of 1 million nets

Treated netting material shipped

PRODUCTION IN PAKISTAN Production capacity of 7 million nets per month

Raw material shipped to factory

Raw materials procurement based on forecast

»» »» »» »» »» »» »» »» »» »» »» »» »» »» »» »» »» »» »» »»

Afghanistan Angola Benin Burundi Croatia Cuba DRC Ecuador Ghana Greece Guinea Honduras Ivory Coast Kenya Malawi Morroco Mozambique Myanmar Nepal Netherlands

»» »» »» »» »» »» »» »» »» »» »» »» »» »» »» »» »» »» »»

Niger Nigeria Pakistan Panama Peru Philippines Rwanda Senegal Somalia Sudan Syria Tanzania Thailand Togo Turkey UAE Uganda Vietnam Zambia

10


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

Quality first Vector control interventions to fight malaria, such as the mass distribution of LLINs, save lives every day. All products deployed for this purpose are audited in accordance with performance standards by the World Health Organization and stringent quality requirements. All our DawaPlusÂŽ LLINs are WHO PQ* listed, which means they meet standards for efficacy, safety and quality.

L

LINs are nets treated with insecticidal formulations for public health use and must be manufactured at ISO9001:2015 certified facilities. The Quality Control and Assurance personnel at TANA Netting accounts for almost 15% of the total number of employees and are organized in independent reporting lines that terminate at director level. Quality Control systems are deployed along all processes and control and register quality levels continuously. This includes the inspection of all incoming fabric and other materials, insecticide treatment and cut-to-pack processes where more than 20 million data entries are made every year. These data records are essential to our ongoing scale-up of activities without the loss of control of

quality, to continuously improve efficiency and also to help our suppliers to better assist us. We randomly screen 10% of the fabric received from our suppliers for visual defects. We provide feedback to our suppliers on the fabric performance based on quality parameters to help drive down defects and reduce waste. During 20162017, we have made seven screening visits to our fabric suppliers. Quality auditors inspect each production batch in our in-house independent ISO 17025 accredited lab before releasing the batch to a client. These audits serve to verify that quality control functions as intended. All suppliers must read, sign and comply with TANA Netting’s Code of Conduct before engaging in business with us. There

TANA Netting is currently ISO 9001:2015 certified, meeting the requirements for Quality management systems for manufacturing and export of LLINs. are clear directives on how we expect them to perform on social and environmental aspects. Should we find any supplier noncompliant on minor issues, these will be pointed out for correction. If the supplier is non-compliant on major issues, e.g. child labor, or environmental violations, the supplier relationship will be terminated immediately.

*World Health Organization Prequalified list under Vector Control products.

11


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

04

What matters most

GRI Disclosures 102-40, 102-42, 102-43, 102-44, 102-46, 102-47

12


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

Stakeholder engagement

Companies are faced with a wide range of topics which they could disclose in GRI-referenced reports. The materiality assessment defines what matters most to our stakeholders, what is relevant to the company and ensures we reflect on our company-specific economic, environmental and social impacts. We engaged our stakeholders to identify and prioritize topics for reporting.

I

n sustainability reporting, materiality is the principle that determines which relevant topics are sufficiently important that it is essential to report on them. The topics included reflect our significant economic, environmental and social impacts, or that substantively influences the assessments and decisions of our stakeholders. Stakeholder dialogue has been part of TANA Netting’s day-to-day way of working, maintaining open lines of communication to all those we interact with. This year, a more structured process was put in place to reach management, non-

managerial staff, clients, suppliers and members of the malaria control community. This process has been specifically designed in preparation of the GRI-referenced report and we intend to make it an annual interaction. Between February and March 2018, all directors and heads of departments from TANA Netting’s operations have participated in in-person or phone interviews. They were presented with 59 material topics from GRI Standards. Based on their materiality score (1 to 4), 30 topics were selected and presented to non-managerial staff and external stakeholders via an electronic

survey, with a response rate of 47% and 14%, respectively. Our aim was to reach close to 50% response rate for both, considering this was the first time this process was put in place. Hence, it must be noted we are disappointed by external stakeholders responsiveness, which is at odds with the pronounced commitment to sustainable and transparent sourcing by the institutional buyers and donor community. Nonetheless, this has been a learning experience and we aim to improve the stakeholder engagement process for next reporting cycles.

13


What matters most

Our governance & values

Our finances

Our environmental impact

81% 70%

67%

63%

60%

58%

66%

63%

Child labor

Discrimination

Salary ratio

Diversity

Training

Injuries

Parental leave

Employee turnover

Screening suppliers

Compliance

Waste

Reduce emissions

Emissions

Water

Reduce energy

Energy

Materials

Anti-corruption

Local suppliers

Governments

Climate change

Economic performance

Recycled water

Environment

46%

45%

42%

45%

61% 58%

55%

Economic

75%

84%

79%

Screening suppliers

64%

76%

84%

Compliance

79%

72%

58%

Annexes

Health & safety

78%

Community

79%

58%

GRI content index

Human rights

82%

63%

External initiatives

and external stakeholders’ personal opinions on the importance of GRI topics for TANA Netting, which were taken into consideration when moving forward with our materiality assessment process.

The materiality score from the electronic surveys per topic is below. Topics in grey were not deemed material, meaning not relevant and important enough at this stage. The results reflect our internal

63%

Our social assets

Forced labor

TANA Netting structure

Freedom of association

About this report

Foreword

Social

14


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

Materiality assessment The survey results presented us with 26 topics, as displayed in the materiality matrix on the following page. A materiality matrix enables us to decide which sustainability issues are most relevant and important to all stakeholders and guides us in decision making. To obtain clarity on what matters most, we apply the GRI Materiality Principle. This principle identifies material topics based on our social, economic and environmental impacts and how they influence the assessment and decisions of stakeholders. Social and environmental topics have received high materiality scores from over 50% of stakeholders,

especially issues concerning climate change and human rights violations. However, when GRI Materiality principles were applied, it came to light that several topics are not material to the reality of TANA Netting’s operations. For example, as a company we can safely state that the risk of forced/ child labor is nil, nor are our operations directly affected by climate change. These non-material topics were therefore excluded. A reverse example of considering topics to be included or not in the report, is the case of ‘New employee hires and employee turnover’ and ‘Injury rates’. These two topics did not receive a high

materiality score in the surveys but are found to be significant in terms of impact according to the management. We can conclude the following topics shown in the matrix, apart from the ones in grey, are deemed material and therefore included in our 2016-2017 GRI-referenced report. The matrix shows the two dimensions for assessing topic materiality and it reflects the correlation between stakeholder’s perception and significance of impact based on response rates and management evaluation.

15


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Materiality matrix

Our social assets

Social

External initiatives

Environmental

GRI content index

Economic

Annexes

Not deemed material

90 Assessment of health and safety impact of products for improvement

Compliance with laws and regulations in the social and economic area

85 Compliance with environmental laws

Screening suppliers on social criteria

Screening suppliers on environmental criteria

80

75

Human rights assessment and training

70

Anti-corruption assessments, training, policies and procedures Operations and suppliers at significant risk of child labor

65

Salary ration of women to men

60

55

Diversity, gender, age etc of governance bodies and employee

Local community engagement and impact

Employee training

Initiatives to reduce emissions in the atmosphere

Financial assistance from governments Emissions in the atmosphere

Parental Risks and opportunities due to climate change

Initiative to reduce energy consumption

Waste production and disposal

leave

Operations and suppliers at significant risk of forced labor

Economic performance

Operations and suppliers at significant risk of lack of freedom of association

Material used to manufacture TANA products

Energy consumption and its source

Reuse of recycled water consumed in production 50 Buying from local suppliers

Operations and suppliers at significant risk of discrimination

Water consumption and sources

45

40 0

10

Influence on stakeholder assessments and decisions

20

30

40

50

60

70

80

90

100

Significance of economic, environmental and social impacts

16


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

05

Our governance and values GRI Disclosures 102-18, 102-16, 205-2, 307-1, 407-1, 412-2, 419-1

17


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

Board of directors »» »» »» »»

Farhan Sarwar Farhaj Sarwar Ahmar Sarwar Furqan Sarwar

Director »» Rune Bosselmann

Management committee (Dubai) »» Rune Bosselmann »» Wieke de Vries »» Francesca Cocozza

Management committee (Pakistan)

Our governance

T

ANA Netting’s head office is located in Dubai, UAE, where sales, logistics and strategic processes are concentrated. Our manufacturing facility, H. Sheikh Noor-ud-

»» Muqeet Farhan »» Nabeel farhan

Din & Sons (HSNDS) in Lahore, Pakistan, coordinates with the Dubai office to ensure flawless production of the sales orders accepted by our Business Development & Sales team.

18


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

11

Ethical principles

1 Compliance and respect for the law

2 Responsibility and integrity

3 Competition

Our values NRS International is a family-run company that strongly values responsible and sound business practices. We are convinced responsible business makes smart business. Aligned with our parent company, TANA

4 Netting’s policies ensure that our business operates in line with high standards of integrity, transparency and legality. We ensure all staff has a thorough understanding of our Code of Conduct and its eleven

ethical principles, to which we adhere to at all times. These principles explicitly focus on anti-corruption, respect for the law, safeguarding human rights and labor standards and other relevant ethical principles.

Money laundering

5 Political contributions

19


Foreword

About this report

TANA Netting structure

We seek to work with those who share our approach and who operate their businesses on principles that align with ours. The principles of our the Code of Conduct are applied in all our dealings with joint venture partners, agents, contractors and

What matters most

Our governance & values

As a company, we will not supply goods or services if there is reason to believe that we face a substantial risk to be in violation of international treaties or conventions. TANA Netting is a paying member of the LLIN Integrity Pact (Basel

Our finances

Our environmental impact

Institute of Governance) and fully supports its aim to create a more transparent bidding and registration process industry wide. Furthermore, our standards do not permit us to deal with any entity which exercises child labor and/or forced labor, and we will

External initiatives

not deal with any organization that carries out discriminatory employment practices. No incidents of corruption or non-compliance with environmental, social or economic laws have occurred

GRI content index

Annexes

6 Corruption

7

To anchor these values in our daily business operations, TANA Netting commits to and promotes the UN Global Compact (UNGC) framework and adheres to the ten UNGC principles. These principles are fully embraced within the scope of TANA Netting’s Code of Conduct. To accelerate the UNGC goals to implement universal sustainability principles and to undertake partnerships in support of UN goals, we are an active member of the UNGC local network in the UAE. In this reporting cycle, our parent company NRS International held a UNCG Board position in support of the rapid expansion of the national network.

any other third parties with whom we have business relationships. Our business partners also receive and must observe our Code of Conduct just like our agent/ distributor agreements include a clause encouraging the support of the UN Global Compact.

Our social assets

UAE % of have 0 0 1 es loye on emp trained n o n i bee orrupt ts c h i i t r an n g uma s. h d ie an polic

during this reporting cycle. No operations or suppliers were deemed to be at significant risk of child or forced labor, human rights violations and lack of freedom of association.

Conflicts of interest

8 Labor standards

9 Human rights and religion

10 Health, safety and protection of the environment

11 Implementation of the code

20


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

06

Our finances GRI Disclosures 201-1, 201-4

21


About this report

Foreword

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

TANA Netting exclusively manufactures and sells long-lasting insecticidal nets (LLINs); WHO-assessed and recommended bed nets to prevent malaria and other vector-borne diseases.

Around 98% of the LLINs are procured through tenders and long-term agreements. The demand is largely determined by the need for LLINs indicated by governing health bodies, and the available funding from donor countries. Innovation has been instrumental to grow market share and to remain competitive, both on price as well as the introduction of new products.

Revenue

Operating cost

Expenses (USD) Gross profit

Employee wages and benefits

116,396,519 123,059,272

118,323,023

107,660,000

13,757,393

7,857,806 110,465,217

109,886,875

6,662,753

Payments to government

Community investments

1,729,145

11,483,869

1,503,920

1,354,947

9,318,586

2,567,368 2,833,929

-2,226,875

2014-2015

2015-2016

2016-2017

Annexes

Total monetary value of financial assistance received from governments (USD) - Pakistan only

For the past two years we have maintained steady financial growth largely due to a competitive operating cost level and aggressive pursuit of market share. Over this period our profit per unit has remained stable, as our price levels have dropped on the back of decreasing costs of key inputs. In the last financial year, favorable exchange rate developments also contributed positively to the operational profitability.

Financial data (USD)

GRI content index

2,294,504

• Operating costs includes all costs of manufacturing – material, labor and factory overheads – marketing and selling costs. • Employee wages and benefits data do not include our operations in Nigeria. • Payments to government refer to sales and income tax and is only pertained to Pakistan. TANA Netting is formally tax exempt due to its registration at International Humanitarian City, Dubai, UAE, which is a tax exempted free zone. • Community investment numbers represent NRS International’s group wide total expenditure through its philanthropic arm, the Bilqees Sarwar Foundation.

1,169,601 Efficiency expressed as return on investment into labor has increased over the period, which can be explained to a large extent by a return on capex, especially process automation, and to a lesser extent by favorable currency exchange rate developments. Profitability has increased significantly over the period in a market characterized as highly competitive and extremely commoditized. This is due to the introduction of more efficient production processes and, again, the favorable currency exchange rate events. The goal for the next financial year will be to maintain our profitability, aiming to further optimize our production processes, reaching even higher levels of efficiency.

22


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

07

Our environmental impact GRI Disclosures 301-1, 301-2, 302-1, 302-2, 302-3, 303-1, 305-1, 305-2, 305-3, 306-1, 306-2

23


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

The global effort to eradicate malaria has been effective and this success is largely based on the use of insecticide treated nets. Since the beginning of the current campaign in the early 2000s, millions of lives have been saved and approximately 1.6 billion LLINs have been distributed. These LLINs are made using around one million metric tons of oil-based polymers laced with insecticide, which have been manufactured using a tremendous amount of both manpower and energy.

Our social assets

External initiatives

At TANA Netting, we recognize that these numbers require scrutiny and we undertake initiatives to promote greater environmental responsibility. We promote the development

GRI content index

Annexes

and use of environment-friendly technologies as much as technically possible as a precautionary approach to environmental challenges.

Materials management TANA Netting has witnessed a substantial growth in LLIN production in the last year, namely 28% compared to the previous year. A total of 60 million LIINs were manufactured during the 2016-2017 reporting cycle. In terms of material management, our DawaPlusÂŽ 2.0 nets have fixed specifications, which means the ratio of

polyester and deltamethrin in production is constant. This year we report for the first time on actual consumed packaging, accessories, shipment and other minor materials used in the net production. Previous years were calculated retroactively based on total number of nets produced.

Total LLINs shipped

2014-2015

37,464,937

2015-2016

46,839,357

2016-2017

59,978,010

24


Foreword

About this report

TANA Netting structure

TANA Netting main materials

What matters most

2014-2015

2015-2016

Deltamethrin SC50 (L) Long-lasting insecticidal nets

Our governance & values

22,479

1,124,145

LDPE bags (t) 558

Our environmental impact

Our social assets

28,104

LDPE Oxo bags (t)

112

Labels and stickers (t)

47

Ink for labels (t) 69

111

87

38

HDPE accessory bag (t)

HDPE Liner sheet (t)

61

88

356

49

Annexes

34,139

70

Accessories

GRI content index

Represents items produced completely or partially from recycled material.

446

Packaging

External initiatives

2016-2017

Polyester (t)

1,548,696

899,159

Our finances

79

Iron hooks and rings (t) 319

62

50

HDPE Bale master bag (t)

516

Polyester rope (t) 214

399

121

Packing strap (t)

319 268

98

Bags used in-house (t)

49

Shipment and other

25


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

Recycling There is no place for unnecessary waste in our modern and lean manufacturing facility in Lahore, Pakistan. Over 250 tons of inhouse recycled plastic granules were used to make bags and other packing material within this reporting cycle. It should be noted that amounts are most likely bigger in reality, since data collection on these items can only be backtracked to November 2016. Recycled raw materials come from two production units, TANA Netting and NRS Relief (our neighboring sister manufacturing facility). We are currently working on tracking the exact amounts

of recycled plastic granules from both sites. Our liner sheets for shipping and our accessory bags are made from 100% in-house recycled high-density polyethylene (HDPE) granules. That alone represents 9% of our combined packaging, accessories and shipment and other materials in ‘16-‘17. We estimate close to 500 tons of plastic sheets, packaging and bags for internal use to be made from recycled materials within the TANA Netting factory annually, some of which are used within NRS Relief production as well.

Lahore, Pakistan 500 tons

TANA Netting Plastic waste

of plastic sheets, packaging and bags are made from recycled material

250 tons

of in-house recycled plastic granules made

NRS Relief

26


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Energy management The methodology for calculating energy consumption has changed from the previous years. We have revised and aligned our reporting standards in terms of conversion factors and method of data capture. Our focus on reporting is still our manufacturing facility in

Lahore, Pakistan. This is where most of our activities take place and where our environmental impact is the most significant. This year we also report on the Dubai headquarters’ greenhouse gases (GHG) emissions, energy and water consumption (see box on page 31).

Energy consumption in Pakistan Fuel (TJ)

Other (kWh)

Diesel

Electricity (kWh) 18,857,168 16

12

6,208,086

11

Coal

11,022,716

363

75

113

158

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

‘16 energy intensity at our factory was up 49%, meanwhile production increased 25%. In the latest reporting cycle, we recorded a 42% energy intensity increase in ‘16-17, along with a 28% increase in production in terms of units produced during the same period.

At TANA Netting our main effort on reducing environmental impact is focused on innovation and investment for efficiency in our processes. So far, this has gone hand in hand with a continued expansion in output as well as with bringing more production processes in-house. That means our energy consumption must be considered against this growth in both scope and level of activity and also the challenges it brings in terms of control and data analysis for this report.

The increase in energy consumption at our factory is explained by changes in production methods and the mentioned concentration of energy intensive processes in-house. The result is reduced emission of greenhouse gases globally, thanks to the cancellation of energy intensive processes upstream the supply chain. See the Global impact on CO2 emissions box for more information. From this point forward, the aim is to decrease the use of energy in the processes now consolidated in our own factory.

Energy intensity calculations are a strong tool to keep the sustainability of our production in check, both in environmental and financial terms. These are measures in which types of units of consumption are divided by a nominator of choice, here expressed as energy intensity per nets produced and per USD of revenue. In ‘15-

Energy intensity in megajoules Per LLIN produced

Total (TJ) 283

Our finances

3.0

6.0 4.5

Per USD of revenue

1.7

3.1

1.0

210

Global impact on CO2 emissions 2014-2015

2015-2016

2016-2017

TANA Netting has brought energy intensive processes to our own factory, which were previously conducted by our suppliers in China. This is part of our effort to make our production more efficient and sustainable. The transformation commenced in the middle of the previous reporting cycle and, as a result, we have eliminated some of the most energy

intensive processes upstream our supply chain. A natural outcome has been an increase in the use of coal at our manufacturing facilities as well as added equipment. However, when considering the global scope of energy consumption and CO2 emissions from our supply chain and our economic performance, this development is already yielding a significant return on investment.

27


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

Water management These numbers are calculated based on the water requirement for LLIN production. Flowmeters are currently being installed to increase the data accuracy for future reporting. That said, water consumption has remained stable at all manufacturing stages, while LLIN production is up by 28%.

Our efforts to advance process efficiency were fruitful in terms of water consumption in ’16-‘17. After a 23% increase during the previous reporting period, TANA Netting’s total water withdrawal has dropped 3% this year, despite a significant production growth.

Water withdrawal in Pakistan (L) Production

26,769,600

General use

Total

8,509,091

27,000,000

21,600,000

35,509,091 34,597,964

7,200,000

2014-2015

7,828,364

2015-2016

28,800,000

2016-2017

28


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

Emissions factors used in this report can be found in Annexes 1, on page 51.

As previously mentioned, we are working to align our conversion factors for energy and emissions globally. Due to absence of national guidance in Pakistan, the conversion factors used in this document belong to the Hong Kong and United Kingdom guidelines for quantification and reporting of greenhouse gas emissions and removals. A table with the conversion

This year we recalculated direct (Scope 1) and indirect (Scope 2) emissions from previous reporting cycles in CO2 equivalent, which is the measure used to compare the emissions from various types

Direct GHG emissions in CO ² equivalent in Pakistan (tons) Diesel

66.72

0.70

831

Electricity

8,863

26,069

25,160

0.19 882

Indirect GHG Emissions in CO equivalent in Pakistan (tons)² Final

Coal

of greenhouse gas (GHG) based on their global warming potential (GWP). Gases included in our calculations were carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). Following the GRI Standards, we used the GWP rates from the IPCC – Intergovernmental Panel on Climate Change assessment reports based on a 100-year timeframe.

9.67 0.74

0.20 5.39 0.98

1,161 0.27

CO2

CH4

14,037 37.22 6,619

N2O

5,181

14,963

CO2

17.55

CH4

2.54

2,918

7,801

N2O

2014-2015

2015-2016

2016-2017

29


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

It is unclear whether changes in calculations have affected GHG emissions. However, similarly to the energy consumption trend, a drop in its annual increase has reached 14% in ’16-17. That cannot be said about Scope 2 emissions, representing electricity consumption where we witnessed an annual increase ranging between 7080%, with a 6% difference between ‘15’16 and ‘16-‘17 data only.

External initiatives

GRI content index

Annexes

Another new inclusion is Scope 3 emissions – indirect emissions outside TANA Netting – in the form of business travels. Due to conflicting reporting mechanisms, the Pakistan numbers were collected and reported from May-16 to May-17, instead of the fiscal year. We will rectify the discrepancy in future reports, although we are confident that the used data provides a reliable picture, spanning nearly the same reporting period.

Indirect emissions outside TANA Netting CO equivalent (tons) ² July 2016 - July 2017

Business travel

May 2016 - May 2017

51.5

34.6

Dubai

Pakistan

30


Foreword

About this report

Waste

TANA Netting structure

2014-2015

What matters most

2015-2016

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

2016-2017

As part of our objective to present more comprehensive reporting, we have added two waste items to the ’16-‘17 report: empty plastic cones and carton

waste. These items do not represent the main materials used in production but are significant in terms of volume. The information on these waste items was

not available retroactively and we will continue to report it from now onwards.

Waste by type in Pakistan (KG) Hazardous waste Polyester waste

Non-hazardous 2,680,275

1,632,015

Deltamethrin SC50 drums 4,996

7,549

Empty plastic cones

N/A

Product changes have resulted in an increase of polyester waste compared to the last reporting cycle. Last year, the strings to suspend the mosquito nets

Total

2,774,590

1,637,011

6,246

1,459,860

Dubai, UAE

Cartons waste

N/A

N/A

17,371

from the ceiling were made of excess netting material, however this method has changed to the use of polyester yarns loops. This particular change was

N/A

69,395

1,466,106

implemented due to inadequate amount of excess material to meet our increased production yet keeping a standardized product.

CO2 emissions

Electricity consumption

0.51 TJ 140,340 kWh

65.9598 tons Water consumption

1,647,108 L 31


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

08

Our social assets GRI Disclosures 102-8, 202-2, 401-1, 401-3, 403-2, 404-1, 404-3, 405-1

32


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

Male

Female

3348

310

Employees

T

ANA Netting ensures a safe and dignified work environment for the entire workforce. Our manufacturing facilities, H. Sheikh Noor-ud-Din & Sons (HSNDS) in Pakistan and Rosies’ Textiles in Nigeria, have independent staff management systems to monitor our human resources activities. We welcome and encourage regular audits by our most prominent clients on social aspects.

Our employees are located in three different countries with significant cultural and labor legislation differences. Wherever TANA Netting operates, we respect the cultural and religious norms and embrace the diversity as a key strength of our organization. Next you will find an overview of our most valuable asset: our people, with regional variances explained. It is important to highlight that the female factory workers

data from Pakistan represents only three months within this reporting cycle, following a 21-month closure of the site for construction and relocation. The female unit, a factory unit fully staffed and managed by women offering them a safe working environment, has been operative non-stop since April 2017 though. Additionally, staff information from our Nigerian operations is still partial due to its recent opening.

Office

Factory

348

3310

Part time staff Male

Dubai Nigeria

0 6

Female

2 11

33


Foreword

About this report

TANA Netting structure

What matters most

Office staff Below you will find the breakdown of indicators per workplace, e.g. office or factory, per location, e.g. Dubai, Pakistan and Nigeria. It shows the gender split, level of seniority and age brackets within seniority levels. Please use the color index for reference.

Our environmental impact

Our social assets

External initiatives

GRI content index

Pakistan

2%

1% 1%

1%

14%

13% 18% 2%

2%

2%

1%

14%

Annexes

Nigeria

.4% 4% 3%

7%

22% 9%

17% 9%

3% 12% 4%

26%

33%

31%

19%

35% 45%

Senior management Management Administrative

Below 30 years Between 30-50 years Above 50 years

Our finances

Dubai

Seniority level

Age

Our governance & values

55%

3%

71%

97%

39%

4%

9%

65%

4%

4% 11% 26% 2%

4%

38% 31% 2% 22% 4%

Pakistan

Nigeria

0.15% Below 30 years Above 50 years

0.3%

Between 30-50 years

9%

Below 30 years

13%

0.15% Between 30-50 years

33%

38%

38% 62%

53%

99.7%

50%

Below 30 years

Approximately one third of our factory labor force in Pakistan operates on ‘Per-Piece’ rates. This has become common practice in industries where production is not continuous but subject to order/tender demand. This custom is an ‘inheritance’ from the garment industry, traditionally found in Lahore where our factory is situated.

‘Per-piece’ rate

5% Between 30-50 years

Below 30 years Between 30-50 years

9% 4%

26%

2% 7%

Factory workers

13%

Male

902

Female

98 34


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

New hires and employee turnover Employee retention remains one of the key challenges for TANA Netting due to a variety of local reasons. Our head office is based in Dubai, UAE, a city where approximately 85% of the population are expatriates. All of our staff in Dubai is from abroad, from 19 different countries to be precise. The constant changing nature of local employment has brought our average time of service for our UAE workforce to three years, for both genders. Nonetheless, 15% of our colleagues have been with us for 5 to 9 years.

Turnover rates in our manufacturing facility in Lahore remain high for our factory workers. As mentioned previously, in Pakistan it is a challenge to offer competitive per-piece/daily wages to workers. Wages fluctuate among the garment industry players in the area, and workers are continuously in search of better rates. Knowledge retention is our primary goal and we are looking into different ways to keep the TANA Netting production site an attractive option for the local workforce.

2

Below 30 years

Female

In the Dubai office, 60% of senior management is represented by women.

5

Between 30-50 years

1

Below 30 years

1

Between 30-50 years

12%

33% Dubai

1350 380 Below 30 years

Between 30-50 years

nior % se 100 gement a man kistan in Pa igeria N and m local ro f e ity r a mun com

Employee turnover

Male

Female

45

Above 50 years

3

Below 30 years

5

Between 30-50 years

8%

54% Pakistan

Male

2

Between 30-50 years

Female

1

Below 30 years

10%

4

Between 30-50 years

35% Dubai

Male

1

Above 50 years

854 324 Below 30 years

Between 30-50 years

Annexes

We believe in inclusion and encourage talent acquisition from the communities we operate in. By sourcing senior managers locally, we aim to invest in economic development to build capacity locally. Considering that the UAE workforce predominantly comprises of expatriates who are significantly surpassing the number of UAE nationals, this is only applicable to TANA Netting’s facilities in Nigeria and Pakistan.

We offer equal pay to all our personnel, without exception. In response to the Pakistani cultural challenge where only 25% of women enter the labor market, we have created a unit for female stitchers only. Our female hiring and turnover numbers from Pakistan reflect the temporary closure of the female unit, as previously explained.

Employee hires Male

GRI content index

In D 60 ubai % o ma of s ffice nag eni or are e wo ment me n

Female

52

Above 50 years

1

Below 30 years

37%

2

Between 30-50 years

3% Pakistan

35


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

Parental leave TANA Netting is in compliance with local legislation in terms of parental leave, which widely varies from one country to another. In Pakistan and Nigeria all women are entitled to maternity leave, whereas in the Dubai office only women who are legally married enjoy

this benefit, as per the local Islamic Law. Even though not covered by local legislation, we offer paternity leave to new fathers in our Dubai and Lahore facilities. We will report that data more comprehensively from the next reporting cycle onwards.

Male

Dubai Pakistan Nigeria

Entitled

Consumed

18

2

3203

n/a

Female

Still employed after 12 months

2

Entitled

Consumed

9

2

113

n/a

164

7

Still employed after 12 months

2

36


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

Training and assessment NRS International, our parent company, invests in continuing education and training on an ongoing basis. Dubai employees have access to financial support and special payback programs for courses and academic training that would be relevant to their work. Training hours included in this report comprise both internal and external training information from Dubai and Lahore

External initiatives

GRI content index

Annexes

Training and assessment operations. The level of training at our facility in Aba, Nigeria, is exceptionally extensive within this reporting period considering that all 263 factory workers undertook three weeks of intensive training on cut-to-pack processes prior to becoming operational. This training was given by a technical team from our manufacturing facility in Lahore.

Senior Manager

Manager

0

15.2

32.25

20.4

4

4

0

12

Dubai

(Hours / employee)

Pakistan

(Hours / employee)

Male

Operation

Factory workers

24.05

N/A

25.29

N/A

8

24

16

24

Female

Performance development review Senior management

In addition to training, we have adopted an employee performance and development policy. This performance and development review framework was implemented in 2016 by an external consultant. We believe assessing staff performance on a regular basis as well as setting

clear objectives contributes to a high-performing team and to the development of human capital within TANA Netting. The percentages reported represent the share of each category, by gender, who have received performance reviews.

Management

Administrative

100

89.5%

80 60

67% 65% 60% 50%

40

33%

20 0

0% Dubai

8%

1% 0% Pakistan

1%

.5% Dubai

Male

Pakistan

Dubai

Pakistan

Female

37


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

Injuries and absences TANA Netting is in the process of restructuring our data collection systems on work-related injuries and employee absenteeism to better reflect the International Labor Organization (ILO) Codes of Practice recommendations for reporting. We expect to have a more comprehensive set of information on the next reporting cycle. That said, considering

no labor-intensive processes are carried out at our Dubai offices, it is no surprise that no work-related injuries have occurred during the past year. There were 46 employees on sick leave during the reporting period, with the average absent days due to illness reported by gender. As a responsible business, reporting on the number of injuries from

First aid injuries

Average sick leave absences

our manufacturing operations is imperative, even if the GRI principle of completeness is temporarily compromised. During the three months within this reporting cycle in which it has been operative, our factory in Nigeria recorded three minor injuries that required first-aid attention.

Male

Female

Dubai 2.97 days

6.41 days

Hospitalizations

In Pakistan, where our production takes place, first-aid injuries amounted to almost 9,000 cases on a 3310-staff workforce. Even though 75% of these incidents were treated with Band-Aids and other regular plasters and none of those required stitches, we are working on ways to decrease such occurrences. Our data

collection requires improvement as we are unsure if all first aid injuries are work-related. We have received information that workers request treatment at the workplace for injuries that were not caused at the factory, due to the limited access to health care facilities in Pakistan, which is still a developing country.

required hospital attention during the ‘16-‘17 reporting cycle. Even though we cannot be certain if causes were work-related, none of them resulted in lost days of work by the employees, with hospitalizations lasting only a few hours.

For this same reason, several of our workers seek medical assistance from our Health and Safety team for medical issues such as flu-related symptoms, stomach pain and other possible pre-existing conditions. Below we report in detail the cases that

First aid injuries in Pakistan

Hospitalizations in Pakistan

Plasters

Crepe bandage

Cotton bandage

Pressure bandage

Total

6,627

59

2,234

23

8,943

Fever

Minor cut

Blood pressure

Vomiting

Abdominal

19

35

10

4

15 100

6

3

8

0

0

Kidney

Stomach

Chest

Amputation

Fracture

Total

38


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

09

External initiatives GRI Disclosures 102-12, 102-13, 413-1

39


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

Local development at the heart of social issues

A

t TANA Netting we understand sustainable business practice as an ongoing commitment to the wellbeing of our employees and the communities where we work. We aim to create sustainable employment opportunities and align our business objectives with the Sustainable Development

Goals (SDGs). We focus on issues that cut deep into the societies in which we operate, such as gender issues in Pakistan and localized production in Africa. At the same time, we invest in healthcare and educational programs through our company’s charitable arm, the Bilqees Salwar Foundation.

Our female force TANA Netting’s female unit in Pakistan offers a dignified workplace for women who are, in many cases, the sole earners of income in their households. It is estimated that the labor force participation of women in Pakistan is only 25% and the country ranks second-last on the Gender Equality Index*, placing Pakistan 143rd out of 144 nations. This statistic highlights the importance of the initiative.

women, who all have received stitching training to become skilled operators. A safe, femalefriendly environment is created to encourage others to join this emancipation movement. Due to construction and relocation, the female unit was only operative for three months within this reporting period, but it has been relaunched in August 2017 and currently employs 131 women.

This TANA Netting production unit is managed and staffed by

40


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Localized production in Africa In January 2017 the “DawaPlus: Made in Africa” project was launched in Aba, Nigeria, as part of TANA Netting’s commitment to localize LLIN production in malaria-stricken areas. The manufacturing facility is established in partnership with our contracted manufacturer in Nigeria, Rosie’s Textiles Ltd. At the end of this reporting cycle we have delivered 250,000 LLINs to the local community, a number that has grown since. The aim of the project is to maximize the developmental potential of donor funds by creating immediate societal benefits, particularly, local employment. Secondly, local production means governments will invest locally rather than in imports when taking over a bigger chunk of the financial burden of malaria commodities procurement, investing not only in better health but also directly in their own economies. This will help ensure the sustainability of the malaria control campaign and manufacturing in accordance with local needs. The manufacturing facility in Aba currently employs 280 people, who are trained to complete the last

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

In April 2018, which falls outside the scope of this report, TANA Netting was awarded with the “Distinction in Local Development and Empowerment” for our “DawaPlus: Made in Africa” project by GBC Health‘s Corporate Alliance on Malaria in Africa (CAMA), as part of 2018 West Africa Regional Malaria Safe Awards.

production phase of WHO prequalified nets. The production covers the “cut-to-pack” stages of bed net making, since the chemical treatment process is retained in Pakistan. This allows us to maintain strict control over the critical chemical processes while placing most of the employment in Nigeria – over 85% of labor required to make LLINs is in the cutting, sewing and packing stages.

Annexes

contacts and coordination with national program and at the ministerial level. This support has only been in the form of technical assistance and has been particularly helpful in arranging a working supply chain for materials through the Nigeria customs system.

Our “DawaPlus: Made in Africa” project has not received funding from any third party and has been entirely financed by TANA Netting.

The Malaria Consortium Nigeria has been a key partner in midwifing the project by establishing

41


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

Investing in the local community As part of the family-managed NRS International, TANA Netting has inherited a strong family tradition of social stewardship. Driven by the belief that every business has the responsibility to invest in their community, the Bilqees Sarwar Foundation (BSF) was inaugurated in 2005. The charitable arm of the company has improved the lives of 150,000

underprivileged Pakistanis with USD 1.3 million invested primarily in healthcare and educational projects in this reporting cycle. We believe that ‘charity starts at home’ and therefore all initiatives are aimed at improving underprivileged communities in Lahore, where our factory is based. We operate a modern medical facility, treating up to 12,500 patients per month with free

or subsidized quality healthcare, including ophthalmology, general medicine, dental services, MRI and CT-scan facilities. Part of the hospital is the Razia Begum Dialysis Centre, the largest dialysis center in Punjab state, with a capacity of 50 dialysis chairs. For more information, please visit

www.bsfoundation.com

Following the global alignment on corporate sustainability TANA Netting is a signatory to the UN Global Compact (UNGC) since 2012 through our parent company NRS International. We adhere to the UNGC’s principles in the areas of human rights, labor, environment and anti-corruption, and take actions to embed them throughout our operations and supply chain. Our UNGC Communication on Progress 2016-2017 has been submitted and meets all requirements for Global Compact Active Level. It contains a section with a

detailed explanation on how our company’s activities and actions intend to advance the Sustainable Development Goals (SDGs), the largest sustainability movement adopted by the UN Member States in 2015. The 17 specified global goals provide an integrated framework for addressing the world’s most urgent sustainability challenges. TANA Netting is currently working on a principled approach to the SDGs and using the Global Reporting Initiative standards for sustainability

reporting is one of the steps towards that goal. The GRI and UNGC are working together to align their frameworks and support organizations in reporting their progress on the SDGs. Our goal for the next reporting cycle is to implement their aligned framework throughout our Sustainability Report 2018.

42


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

10

GRI content index

43


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

GRI Content index GRI standard 2016

Disclosure

Page number(s) and/or URL(s)

102-1 Name of the organization

9

102-2 Activities, brands, products, and services

9

102-3 Location of headquarters

10

102-4 Location of operations

10

102-5 Ownership and legal form

10

102-6 Markets served

10

102-7 Scale of the organization

10

102-8 Information on employees and other workers

9, 33, 34

102-9 Supply chain

10

102-10 Significant changes to the organization and its supply chain

10

102-11 Precautionary Principle or approach

24

102-12 External initiatives

40-42

102-13 Membership of associations

42

102-14 Statement from senior decision-maker

5

102-16 Values, principles, standards, and norms of behavior

19

102-18 Governance structure

18

102-40 List of stakeholder groups

13

102-41 Collective bargaining agreements

33

102-42 Identifying and selecting stakeholders

13

Omission

GRI 101: Foundation 2016

General disclosure

GRI 102: General Disclosures 2016

44


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

GRI Content index GRI standard 2016

Disclosure

Page number(s) and/or URL(s)

102-43 Approach to stakeholder engagement

13

102-44 Key topics and concerns raised

14

102-45 Entities included in the consolidated financial statements

7

102-46 Defining report content and topic Boundaries

15

102-47 List of material topics

16

102-48 Restatements of information

7

102-49 Changes in reporting

7

102-50 Reporting period

7

102-51 Date of most recent report

7

102-52 Reporting cycle

7

102-53 Contact point for questions regarding the report

7

102-54 Claims of reporting in accordance with the GRI Standards

7

102-55 GRI content index

43

102-56 External assurance

7

Omission

General disclosure

GRI 102: General Disclosures 2016

45


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

GRI Content index GRI standard 2016

Disclosure

Page number(s) and/or URL(s)

Omission

Material topics

Economic performance GRI 103: Management Approach 2016 GRI 201: Economic Performance 2016

22 201-1 Direct economic value generated and distributed

22

201-4 Financial assistance received from government

22

Market presence GRI 103: Management Approach 2016 GRI 202: Market Presence 2016

35 202-2 Proportion of senior management hired from the local community

35

Anti-corruption GRI 103: Management Approach 2016 GRI 205: Anti-corruption 2016

20 205-2 Communication and training about anti-corruption policies and procedures

20

46


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

GRI Content index GRI standard 2016

Disclosure

Page number(s) and/or URL(s)

Omission

Material topics

Materials GRI 103: Management Approach 2016 GRI 301: Materials 2016

24 301-1 Materials used by weight or volume

24

301-2 Recycled input materials used

26

Energy GRI 103: Management Approach 2016 GRI 301: Energy 2016

27 302-1 Energy consumption within the organization

27, 31

302-3 Energy intensity

27

Water GRI 103: Management Approach 2016 GRI 303: Water 2016

28 303-1 Water withdrawal by source

28, 31

Emissions GRI 103: Management Approach 2016

GRI 305: Emissions 2016

29 305-1 Direct (Scope 1) GHG emissions

29

305-2 Energy indirect (Scope 2) GHG emissions

29

305-3 Other indirect (Scope 3) GHG emissions

30

47


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

GRI Content index GRI standard 2016

Disclosure

Page number(s) and/or URL(s)

Omission

Material topics

Effluents and waste GRI 103: Management Approach 2016 GRI 306: Effluents and waste 2016

31 306-2 Waste by type and disposal method

31

Environmental Compliance GRI 103: Management Approach 2016 GRI 307: Environmental Compliance 2016

20 307-1 Non-compliance with environmental laws and regulations

20

Supplier Environmental Assessment GRI 103: Management Approach 2016 GRI 308: Supplier Environmental Assessment 2016

11 308-1 New suppliers that were screened using environmental criteria

11

48


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

GRI Content index GRI standard 2016

Disclosure

Page number(s) and/or URL(s)

Omission

Employment GRI 103: Management Approach 2016 GRI 401: Employment 2016

35 401-1 New employee hires and employee turnover

35

401-3 Parental leave

36

Occupational Health and safety GRI 103: Management Approach 2016 GRI 403: Occupational Health and Safety 2016

38 403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities

38

Training and Education GRI 103: Management Approach 2016 GRI 404: Training and Education 2016

37 404-1 Average hours of training per year per employee

37

404-3 Percentage of employees receiving regular performance and career development reviews

37

Diversity and Equal Opportunity GRI 103: Management Approach 2016 GRI 405: Diversity and Equal Opportunity 2016

33, 34 405-1 Diversity of governance bodies and employees

33, 34

Freedom of Association and Collective Bargaining GRI 103: Management Approach 2016 GRI 407: Freedom of Association and Collective Bargaining 2016

20 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

20

49


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

GRI Content index GRI standard 2016

Disclosure

Page number(s) and/or URL(s)

Omission

Human Rights Assessment GRI 103: Management Approach 2016 GRI 412: Human Rights Assessment 2016

20 412-1 Operations that have been subject to human rights reviews or impact assessments

20

Local Communities GRI 103: Management Approach 2016 GRI 413: Local Communities 2016

40 413-1 Operations with local community engagement, impact assessments, and development programs

40-42

Supplier Social Assessment GRI 103: Management Approach 2016 GRI 414: Supplier Social Assessment 2016

11 414-1 New suppliers that were screened using social criteria

11

Customer Health and Safety GRI 103: Management Approach 2016 GRI 416: Customer Health and Safety 2016

11 416-1 Assessment of the health and safety impacts of product and service categories

11

Socioeconomic Compliance GRI 103: Management Approach 2016 GRI 419: Socioeconomic Compliance 2016

20 419-1 Non-compliance with laws and regulations in the social and economic area

20

50


Foreword

About this report

TANA Netting structure

What matters most

Our governance & values

Our finances

Our environmental impact

Our social assets

External initiatives

GRI content index

Annexes

Annexes Conversion factors used

Emission factors used CO2

CH4

N2O

GWP (100 years)

Diesel kg/liter

2.614

0.0000239

0.0000074

1

CO2

Coal kg/kg

2.602

0.000276

0.00004

25

CH4

289

N2O

Electricity kg/kWh

0.47

1 kg of coal 1 ltr of diesel-oil

8.1 kWh

29.3 MJ

10.0 kWh

35.9 MJ

51


TANA Netting FZ LLC International Humanitarian City PO Box 506036 Dubai, United Arab Emirates.

T +971 4 888 0125 F +971 4 888 0124 E info@tananetting.com W www.tananetting.com

SUSTAINABILITY REPORT 2016 - 2017


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