Engro Corporation

ContentsHistory2Engro Vision3Engro Business3Engro Fertilizer Limited3Engro Food Limited4Engro Polymer and Chemicals Limited4Engro EXIMP Private Limited4Engro Powergen Limited5Elengy Terminal Pakistan Limited (ETPL)5Engro Vopak Terminal Limited5Sindh Engro Coal Mining Company (SECMC)6Engro Foundation6Engro Sustainability6Education Programs7Livelihood8Health & Safety9Physical Infrastructure11Disaster Management11Ittehad Model Village12Environmental Performance13Engro Corporate Social Responsibilities Awards14I am the Change16Conclusion17

Engro Corporation LimitedEngro Corporation Limited is one of Pakistans largest conglomerates with the companys portfolio spanning across sectors ranging from fertilizer to power station with an ambition to become the premier Pakistani enterprise with a global reach. The management team at Engro is responsible for conceptualizing and articulating goals that bring people together to achieve their organizational objectives. Engro Journey to become a profitable growth oriented and sustainable company with structured management that has evolved to create a more transparent and accessible organization. Besides providing the long term vision for the company and overseeing performance of the subsidiaries and affiliates, Engro Corporation Limited is also responsible for allocation of capital, management of talent, leadership development, HR guiding policies, leadership role in public relations and CSR activities, control structures, legal and IT support. History

Engro is defined by its history which reflects a rich legacy of innovation and growth. The seeds for the company were sown following the discovery of the Mari gas field by Esso/ Mobil in 1957. Esso proposed the establishment of a urea plant in that area which led to a fertilizer plant agreement signed in 1964. In the subsequent year, Esso Pakistan Fertilizer Company Limited was incorporated, with 75% of the shares owned by Esso and 25% by the general public. As the nations first fertilizer brand, Engro (then Esso) helped modernize traditional farming practices to boost farm yields, directly impacting the quality of life not only for farmers and their families, but for the nation at large.In 1978, Esso was renamed Exxon globally, and the company become Exxon Chemical Pakistan Limited. The business continued to prosper as it relentlessly pursued productivity gains and strived to attain professional excellence. In 2002, the renowned Dawood Group became the patron shareholder of Engro Chemical Pakistan Limited. Soon thereafter, the Company started a journey of venturing into other sectors including foods, energy, industrial control and automation, PVC resin manufacturing and marketing, and chemical terminal and storage. From its inception as Esso Pakistan Fertilizer Limited in 1965 to Engro Corporation Limited in 2010, Engro has come a long way and will continue working towards its vision of becoming a premier Pakistani company with a global reach. Engro Corporation will maintain a lean structure with a focused scope, allowing maximum empowerment to the subsidiaries and affiliates to drive the operations of their respective organizations. Engro VisionTo be the premier Pakistani enterprise with a global reach passionately pursuing value creation for all stakeholders. Engro Business

18 | Page

Engro Fertilizer Limited Engro Fertilizers Limited, an Engro Corporation subsidiary, is one of the leading fertilizer manufacturing and marketing companies in the country with annual urea production capacity of 2.3 Mn tons. It is primarily engaged in the manufacturing and marketing of urea and NPK fertilizers. In addition, the company also markets and distributes phosphate and zinc based fertilizers, which are imported by Engro EXIMP. The business markets a wide variety of fertilizer brands besides Engro Urea, which include some of the most trusted brand names by Pakistani farmers including Engro Zarkhez, Zingro and Engro DAP.

Engro Food Limited Engro Foods Limited is an 87% owned subsidiary engaged in the manufacturing, processing and marketing of dairy products, ice cream and fruit juices. The business owns two milk processing plants in Sukkur & Sahiwal and operates a dairy farm in Nara. In its continued pursuit for excellence, the business has established several brands that have already become household names in Pakistan such as Olpers (milk), Omore (ice cream), Olpers Lite (low fat milk), Dairy Omung (UHT dairy liquid), Tarang (tea whitener), Omung Lassi, Omung Dobala, Olpers Tarka (Desi Ghee) and Olpers Cream. The business also manages and operates Al Safa Halal, a meat processing and marketing company based in Canada.

Engro Polymer and Chemicals LimitedEngro Polymer & Chemicals Limited is a 56% owned subsidiary of the group and the only manufacturer of polyvinyl chloride (PVC) in the country. It also manufactures and markets caustic soda, sodium hypochlorite and hydrogen gas. The company has an annual production capacity of 156kt of PVC and 106kt of caustic soda. The Companys vinyl chloride monomer (VCM) plant began production in the first quarter of 2010 successfully making the plant the only fully integrated Chemical Complex in Pakistan. The firm markets its products under the name of SABZ.

Engro EXIMP Private Limited Engro Eximp Private Limited is the group's commodity trading business that deals primarily in the import and trading of phosphate-based fertilizers for Engro Fertilizers Limited and also imports micronutrients like Zinc Sulphate, which it supplies as raw materials to Engro Fertilizer's Zarkhez plant for manufacturing blended fertilizers. Engro Eximp is also engaged in imports of food and energy commodities such as sugar, palm oil, wheat and coal. EXIMP owns 100% stake in Engro EXIMP Agriproducts Ltd. which is involved in procurement, processing and export of rice to markets in the Middle East and European Union. Engro Powergen LimitedEngro Powergen Limited owns and operates Engro Powergen Qadirpur Limited, a 220 megawatt power plant and the group's first initiative in the power sector of Pakistan, which is 10% directly owned by the holding company and 84% via Engro Powergen. The remainder is owned by the International Finance Corporation (IFC) and employees.A wholly owned subsidiary, Thar Power Company (THARCO) was incorporated with the objective of developing power plants based on Thar coal. Elengy Terminal Pakistan Limited (ETPL)Elengy Terminal Pakistan Limited is a 100% owned subsidiary of the company, which has been created to establish and operate a terminal for the handling, regasification, storage, treatment and processing of Liquefied Natural Gas (LNG) , Re-gasified Liquefied Natural Gas (RLNG), Liquid Petroleum Gas (LPG), Natural Gas Liquid (NGL) and all other related liquids, gases and chemical & petroleum products. Engro Vopak Terminal Limited Engro Corporation owns a 50% stake in Engro Vopak Terminal Limited, a joint venture with Royal Vopak of the Netherlands. The company is engaged in the handling and storage of a variety of imported chemicals including liquefied petroleum gas (LPG), Acetic Acid, Paraxylene, Mono Ethylene Glycol, Ethylene Dichloride, Ethylene and Phosphoric acid. The business has also launched Pakistan's first cryogenic import facility for ethylene.

Sindh Engro Coal Mining Company (SECMC)The Sindh Engro Coal Mining Company Limited is a joint venture between the Government of Sindh (GOS) and Engro Powergen Ltd. (a subsidiary of Engro Corporation Limited), established for the purpose of mining coal from Thar Block II in Tharparker District of Sindh. The Government of Sindh through the Mines and Minerals Department issued a 30 years lease for Thar Block II for Mine Construction & Operations in that area. The lease is extendable to another 30 years through mutual agreement. Thar Block II is an area covering 79.6 square kilometers, situated at Thar Coal Field, Tharparker district, Sindh Province.

Engro FoundationEngro Foundation is the singular front of the Engro Affiliates for community engagement and social investment. It was formed to harness the financial and managerial resources that Engro Corporation commands to create a lasting social impact in communities and people who we work with. At Engro Foundation, employees find an enabling environment to reach out to communities and devise strategies on social issues that concern us most.

Engro Foundation partners with government agencies, other industry players and not-for-profit entities who possess the will, field experience and the vision to enhance the scale of our investment and effort. By building infrastructure; promoting health and education; encouraging conservation; and providing livelihood for the industrious, Engro Foundation is helping whole communities thrive, sustain and build themselves, one village at a time. Engro Sustainability Over the years, Engro has evolved for community investments. From indulging into mere corporate philanthropy, where Engro Corporation invested in CSR to maintain their social license to operate, are now shifting their focus towards integration of CSR activities in to the respective value chains of our group companies. Engro Foundation aims to build sustainable and scalable projects by designing projects in view of specific needs and realities of the people in the region. Engro is committed to invest in host communities, as well as to mitigate their environmental footprint. As responsible corporate citizens, Engro continue to strive towards integrating sustainability into their business. For Engro Corporation, the major priorities in promoting sustainability are: Education Programs Livelihood Health & Safety Physical Infrastructure Disaster Management Environmental PerformanceEducation ProgramsEngro is committed to improving the quality of education available to Pakistans children, particularly primary education. Over the years, Engro has developed strong partnerships with expert organizations to both raise standards and make education more widely available. A large proportion of individuals living in remote marginalized communities in Pakistan cannot access or afford quality education. As a result, these individuals are unable to prosper and improve their economic conditions. Engro and The Citizen Foundations joined hands in 2001 to establish a large primary and secondary school in Daharki which is imparting quality education to over 4000+ students benefited now. TCF Engro Campus has set a benchmark in the area and invested Rs. 15.3 million and 30+ schools being supported in 2013.Engro partnered with Karachi Education Initiative (KEI) in establishing Karachi School for Business and Leadership an institution poised to become a world class business school capable of producing future business leaders for Pakistan. The school has collaboration with Judge Business School (JBS), Cambridge and has already rolled out its Executive Development Programs from 2010. Engro Foundation runs 11 primary schools in Katcha (riverine) belt of Ghotki district. It currently enrolls more than 900 students providing these students their only access to high quality educationEngro currently sponsors 10 schools with a combined enrollment of over 1,600 students in the Daharki and Qadirpur regions. Engro Foundation also sponsors Sahara Community School in Daharki which is run by NGO managed by Engro Fertilizer employees voluntarily. Sahara school is imparting quality education to 350 students from underprivileged neighborhood. Engro has sponsored a Training and Resource Centre (TARC) for teachers working at schools supported by our partner NGOs. Engro took the lead in the development of Technical Training College (TTC), the first degree-awarding institution in Daharki. Engro invested Rs.11 million in TTC and enrolled 206 students in 2013. LivelihoodLivelihood plays a crucial role in people live. A stable source of income keeps families financially secure, ultimately leading to health and happiness. Engro Corporation helping families attain sustainable incomes through acquiring better skills from training programs.Engro Foundation partnered with USAID to devise new initiative Women Empowerment through Livestock Development (WELD). An opportunity to capitalize on their participation in the dairy value chain, inclusive of creating entrepreneurial opportunities for women and communities by providing rural women associated with livestock management training. The project seeks to train a cadre of 300 Female Livestock Extension Workers (FLEW) and 300 Female Village Milk Collectors (FVMC) who would deliver services at doorstep to livestock owners for increasing production and linking their produce with relevant business providers.Engro partnering with technical institutes across the country, to provide short term technical training in construction, engineering and seafaring trades. Engro invested Rs 2.5 million in Engro Hunar Program across 4 districts in 2013 providing scholarship and international certification. The best and brightest of youth from rural areas around their plant sites are selected through a merit based system for their changing life and supporting their careers. Sahara Arts and Crafts Centre (SACC) allows a means to develop livelihoods for marketable products. It includes a stitching centre for women. All operational costs are borne by Sahara which in turn is fully funded by Engro affiliates around 260+ women acquired skills from SACC.Engro Foundation collaborated with USAID and started a program called the Khushaal Livestock Project which helped to restore the productivity of farm animals to pre-flood levels. The initiative provided health and nutritional supplements such as mineral mixtures, multi-cut grass seeds (jowar), oat seeds, as well as fertilizers and vaccinations for foot and mouth disease (FMD). Engro invested Rs 77.4 million for the project, which in turn helped 15,000 households and helped over 100,000 animals.

Health & SafetyEngro Corporation engage in health, safety and well-being of their employees and the communities and ensure to stay committed in their health programs which not only include basic health-care treatment facilities, but also they focus on creating awareness about prevention as well. In 2012, Engro spent total Rs. 14 million on healthcare initiatives, which encompassed primary care clinics in the shape of a mobile clinic and Clinics in Jung village in Sukkur. Engro has built an Eye Care Centre, a Dialysis Centre, and a Mother and Child Care Centre, in Taluka Hospital in Daharki. Engro supported to improve infrastructure of Basic Health Unit Engro has also built a Dialysis Centre in District Headquarter Hospital in Mirpur Mathelo, district Ghotki.Engro supports public health initiatives to cover the most common and risky diseases. These include coordinating Polio immunization drives, implementing Malaria control measures, running Hepatitis vaccination campaigns and participating in programs to combat preventable blindness. In collaboration with Al-Shifa, Engro set up medical camps to extend health care services, particularly eye related, to people who cannot access such facilities. Three camps organized with Al-Shifa in different parts of the country treated nearly 3000 patients. According to statistics, there were more than 29,000 beneficiaries who had taken advantage of Engro Health Initiatives which incurred Rs. 11 million in 2013.Engro facilitate the treating snake-bite victims which provided services to over 7,000 patients in 2013. Engro Blessing Foundation Clinic serves communities living below the poverty line close to Engro Foods Sukkur plant. Engro sponsored establishment of Thalassemia Centre in Sukkur with Sukkur Blood and Drugs Donating Society (SBDDS).Engro took initiative in Deaf Reaching Program that works to empower deaf children through education and training programs, and job placement assistance has benefitted over 5000 deaf students in Pakistan. ChildLife Foundation aims to provide quality healthcare free of cost to increasing number of children in Pakistan. Physical InfrastructureEngro has undertaken several investments in improving the quality of the physical infrastructure of the communities. With the collaboration of Pakistan Poverty Alleviation Fund and the Sindh Rural Support Organization and invested in building paved roads and infrastructure in several villages close to our manufacturing facilities in Daharki, Sukkur and Qadirpur. Disaster ManagementWhen nature calls, Engro responseEngro Foundation strives to improve the levels of emergency preparedness as well as providing effective rescue and relief in the aftermath of a disaster. Engro Foundation efforts were focused in Ghotki, Sukkur, Muzaffargarh and Layyah Districts in catastrophic flooding. Engro worked closely with strong partners in the field, distributing 2.5 million meals, 419,000 liters of milk, 16,000 liters of water, and medical treatment to nearly 5,000 people and 100,000 animals. Our army of volunteers was galvanized by our motivated employee force, distributing essential items of aid, hand pumps, hygiene kits, shelter tents, latrines, and medicines.Baluchistan suffered multiple earthquakes during the year, which resulted in the deaths of over 800 people and destruction of at least 21,000 houses and affecting over 300,000 people. At that cataclysmic time, Engro and its employees once again reiterating their commitment to the national issues of Pakistan came forward with various relief activities for those affected by the devastating earthquake. Rs 1 million (0.3 million from employees) contributed to Pakistan Poverty Alleviation Fund for Baluchistan Earthquake relief. In 2012, Engro spent 16% of social investment budget on relief and rehabilitation projects -- with the majority of the funding allocated towards village and livestock restocking benefitting 47 households.Ittehad Model VillageThe surging waters of the 2010 floods wiped out communities and all traces of life in the Muzaffargarh district, leaving thousands of villagers homeless. Engro Foundation as an eco-friendly model village with the aim to rehabilitate flood affected community of Muzaffargarh.Engro constructed 166 168 homes were built in six clusters with an average of 25 homes per cluster in village sprawling over 20 acres of land each house covers in 7 Marlas of space along with mosque, road networks, proper sanitation system the most extensively planned initiatives in history of Engro. Plan include Grey Water Harvesting Units which is non-refuse water from hand pumps and wash basins is collected through a constructed wetland which purifies the water through natural filtration process. IMV installed 170+ solar panel which provided free of cost solar electric systems for basic electrical requirements (lights, fans etc.) in the village. In efforts to rebuild Ehsanpur and mobilize the affected people to take ownership of their lives, community involvement and self-governance became an integral part of strategy and remained central to all areas of the Ittehad Model Village Project.

Environmental PerformanceEngro recognize the importance of protecting the environmentwhile conducting its business and believe that caring for the environment is not only an ethical and legal obligation but also a mechanism for success. Engro claimed that by focusing on eco-efficiency they are able to maintain their attention on business growth while also reducing their environmental impacts. The company monitors its greenhouse gas emissions and other substances in the atmosphere and several measures to reduce carbon footprint. Engro is ensuring to maximize the efficiency of resources from water to energy and raw materials, and minimize wastage, making facilities greener and more planet-friendly.Engro is committed to improve water efficiency across their manufacturing and non-manufacturing sites alike. Their manufacturing facilities at Daharki are equipped with a reverse osmosis plant that reduces the flow of unsafe effluents from our plant by up to 150 gallons per minute. The water is then recycled, complying with national regulatory standards on waste water treatment. Engro Foundation has install water filtration plants on targeted villages, Engro teams join in hands and visited the different sites of filtration plants to check which types of problem community is facing regarding water.Greenhouse gas emission remain a key challenges, to reduce the impact, on environment Engro invest in new technologies, in reducing emissions per ton of urea and per megawatt of power consumption. Engro taken the initiative of planting over 100,000 trees at both its production facilities at Sukkur and Sahiwal. Forestation drive was conducted to combat negative footprint of Greenhouse Gas (GHG) emissions. Engro Green Office Initiative in collaboration with World Wildlife Fund (WWF). Some salient efforts under Green office are: Turning off the lights around window panes where sunlight is available and appliances during lunch breaks which reduce electricity usage 27%. Change of hardware from energy saver to LED lights. 32% of reduction in paper usage. Use of recycling materials (like envelopes, carry bags, glass bottle instead of PET etc.), which reduce waste creation about 52.6 %.

Through the Earth Hour and other related events, Engro aims to play its role in creation of an environmentally aware society for a better and brighter tomorrow.

Engro Corporate Social Responsibilities Awards

2005Engro Polymer & Chemicals Limited wins the ACCA-WWF Pakistan Environmental Reporting Award for Best Environmental Report.

2006Engro Corporation Limited receives the Asian CSR award in the Concern for Health category for its telemedicine project- Project Hope.Engro Corporation Limited wins the ACCA-WWF Pakistan Environmental Reporting Award for Best Sustainability Report for the second consecutive time.Engro Polymer & Chemicals Limited wins the ACCA-WWF Pakistan Environmental Reporting Award for Best Environmental Report.

2007Engro Polymer & Chemicals Limited wins the ACCA-WWF Pakistan Environmental Reporting Award for Best Environmental Report for the third consecutive time.Engro Vopak Terminal Limited wins Best Practices- Occupational Health and Safety award by Employees Federation of Pakistan.

2008Engro Fertilizers Limited wins the National Forum for Environmental and Health Excellence award for the fifth time in a row.Engro Fertilizers Limited and Engro Foods Limited win the Helpline Trust award for contribution towards Corporate Social Responsibility in Pakistan.

2009Engro Polymer & Chemicals Limited wins the National Forum of Environment & Health annual environment excellence award for the fourth time.

2010Engro Corporation Limited is ranked as Pakistans leading company for Corporate Social Responsibility (CSR), in the first Asian Sustainability Rating (ASR). Engro is also the only Pakistani company included in ASRs top 50 Asian companies.

2013Engro Corporation & Engro Fertilizers were awarded Silver Award of Achievement by WWFPakistan for substantial reduction in carbon footprint during the year 2011 2012.Engro Corporation was awarded the Business Excellence Award in the CSR Excellence Awards organized by National Forum for Health & Environment. Engro Polymer & Chemicals Head Office received the Green Office certification by WWF.

I am the Change

Engro I Am the Change campaign seeks to recognize the inspiring efforts of passionate Pakistanis who have joined forces in a relentless pursuit of shaping a better tomorrow, as they strive for change through long-term investments in the key areas of education, livelihoods and health.Engro believes Real change begins when individuals join forces to take collective action Through this initiative, Engro endeavor to give due recognition to institutions and individuals who collectively show true testament to the spirit of philanthropy and economic stewardship in Pakistan, as they steer change in low income communities in dire need of our help and intervention.The first IATC campaign was launched in 2012 celebrated the efforts of four distinct individuals and institutions - The Garage School, Dream Foundation School, Patient Welfare Association and Karachi Vocational Training Centre - for their dedication to uplifting the living standards of marginalized sections of the society.Engro received more than 1300 entries in the fields of livelihoods, education and health. Out of these, Engro identified and honored Khwendo Kor - a non-profit, non-partisan organization from KPK in the field of Education, Akhuwat - a nonprofit organization from Lahore in Livelihood development and Child Aid Association of Karachi in Health, for their determination for creating positive change.Change Today for Tomorrow!

Conclusion

Engro Corporation is one of Pakistan's largest company's with largest business portfolio. Engro deploys the ability to improve lives, empower livelihoods and inspire meaningful change. Moreover, taken together with corporate values, and belive in thereselves to be a reliable, trustworthy patriot who is a force for good with the ability to enable excellence.Engro is committed to creating sustainable impact at every level of business. Engro engagement with stakeholders, communities, employees and the nation at large is an embodiment of this philosophy and continues to foster a culture of enabling Excellence for all those lives we continue to touch through our efforts. Whether its Responsibility, Integribility, Resourceability, Empowerability, or Sociability, Engros excellence manifests itself across transformative values that mark the future with our trademark ethic.Engro Corporation aims to build sustainable and scalable projects by designing projects in view of specific needs and realities of the people in the region. The assurance is cost-effective, simple solutions which are easy to adopt and at the same time deliver desired results. The vision for sustainable businesses in Pakistan remains at the heart of this impact and is a reiteration of our commitment to improve lives, empower livelihoods and inspire a meaningful change today and for coming generations.