Environmental, Social and Governance

ESG Framework

The CIC Group ESG Framework is drawn from our broader ambition to align with the United Nations Sustainable Development Goals (SDG’s) that form the UN's global agenda to achieve sustainable development by the year 2030.

Sustainable development goals of CIC holdings

Work closely with global and local value chain partners to enhance sustainability

No Poverty sustainable development goal of CIC

Cluster-specific climate action themes to ensure sustained long term benefits for the environment

Zero Hunger sustainable development goal of CIC

ZERO Waste operations in the livestock business

Good Health and wellbeing sustainable development goal of CIC

Livelihood development of farmer-outgrower networks

Quality Education sustainable development goal of CIC

Empowerment of rural farming communities through the agri business farmer-outgrower networks

Gender Equality sustainable development goal of CIC

Integrated crop solutions to promote sustainable agriculture

Decent work and Economic growth sustainable development goal of CIC

Supporting equitable access to healthcare for all communities

Industry Innovation and Infrastructure sustainable development goal of CIC

Education support through the CIC Charitable and Educational Trust Fund

Reduced inequalities sustainable development goal of CIC

Promoting women in leadership roles

Responsible Consumption and production sustainable development goal of CIC

Creating employment opportunities across Sri Lanka

Climate Action sustainable development goal of CIC

Investment in R&D to drive innovation

Partnerships for the Goal sustainable development goal of CIC

Global Sustainability Challenges and Potential Impacts to Our Business

Global sustainability challenges, such as climate change, biodiversity loss, poverty, inequality, and conflict, pose serious threats to human rights and human dignity. They affect the availability and accessibility of natural resources, such as water, food, and energy, that are essential for human survival and well-being.

Handshaking with an overlay of few buildings

Acquisitions

Global sustainability challenges pose significant risks and opportunities for businesses. Acquisitions can be a strategic response to these challenges.

Shadows of people holding hands over planet earth

Human Rights

Human rights and global sustainability challenges are closely interconnected and interdependent and require integrated and holistic responses that address their root causes and consequences, and that respect, protect, and fulfill the human rights of all people and communities.

A man with protective equipment to protect from viruses

Health Crises

Health systems are overwhelmed or disrupted by the sudden or prolonged outbreaks or emergencies, resulting in high morbidity and mortality.

A little boy with an outfit with mud and a holding an earth globe like bowl

Poverty

When people do not have enough resources or capabilities to meet their basic needs and aspirations.,

Widing Inequalities

The world is facing unprecedented challenges and inequalities that pose serious threats to the sustainability of the planet and its people.

An Aerial view of a flooded area with houses drowned with water

Climate Change

Climate change is caused by the accumulation of greenhouse gases (GHGs) in the atmosphere, mainly due to the burning of fossil fuels, deforestation, and agriculture. Climate change has significant and diverse impacts on the natural and human systems.

Biodiversity Loss

Biodiversity loss is caused by the direct and indirect drivers of human activities. Biodiversity loss has significant and diverse impacts on the natural and human systems.

A land area with floor cracks dried without water

Water Scarcity

Lack of sufficient and accessible freshwater to meet human and environmental needs. Water scarcity has significant and diverse impacts on the natural and human systems.

Few people holding palms to collect grains

Food Insecurity

Situation when people do not have physical, social, and economic access to sufficient, safe, and nutritious food. Food insecurity has significant and diverse impacts on the natural and human systems.

ESG Approach of CIC Holdings

Environmental, social, and governance (ESG) factors are increasingly important for businesses to consider in their strategic planning and decision-making. ESG performance can affect the long-term value, reputation, and sustainability of a business, as well as its relationships with stakeholders such as customers, investors, employees, regulators, and communities. ESG performance can also create opportunities for innovation, differentiation, and competitive advantage in the market.

CIC Holdings, a diversified conglomerate with interests in agriculture, healthcare, consumer, livestock and industrial solutions is working closely with ESG Consultants to improve the groups ESG performance and reporting. Steps have already been taken to address ESG issues, such as conducting a materiality assessment, integrating ESG risks into risk management framework, investment in capacity building and training, and fostering a culture of innovation and continuous improvement.

Commitment From Leadership

Stakeholder Engagement

Materiality Assessment

Integrated Reporting

ESG Integration in Investment and Decision-Making Processes

Continuous Monitoring and Measurement

A female office worker taking notes on a table

ESG Performance Summary and Recommendations

Current Approach

Risk Management and Compliance

CIC Holdings has integrated ESG risks into their overall risk management frameworks, ensuring compliance with relevant ESG regulations, standards, and industry best practices. CIC Holdings has also proactively addressed ESG-related risks to protect their long-term value and reputation. For example, CIC Holdings has implemented measures to reduce their environmental impact through energy efficiency, efficient use of energy, water conservation, waste management, and carbon footprint reduction. CIC Holdings has also established policies and procedures to ensure ethical conduct, human rights protection, labor standards, health and safety, and anti-corruption practices.

Capacity Building and Training

Innovation and Continuous Improvement

Areas for Improvement

While CIC Holdings has demonstrated a commitment to ESG, there are areas which have been identified for improvements.

Strengthen ESG Strategy and Governance

Develop a clear and coherent ESG strategy that aligns with the vision, mission, and values, and supports business objectives and stakeholder interests. Enhance ESG governance structure, ensuring clear accountability, oversight, and integration of ESG issues at the board and senior management levels.

Expand ESG Reporting and Disclosure

Enhance ESG Value Creation and Innovation

ESG performance is a key factor for the success and sustainability of CIC Holdings, as well as their stakeholders. By implementing the recommendations outlined in this document, CIC Holdings can improve ESG performance and reporting, and enhance reputation, competitiveness, and value creation. ESG Consultants are ready to assist CIC Holdings in their ESG journey, providing them with the expertise, tools, and support they need to achieve their ESG goals and aspirations.

Regulatory Directives Applicable to the Group

The Group is committed to in maintaining high standards of corporate governance and complying with the relevant laws and regulations such as;

Code of Best practices on corporate governance issued in year 2017 by the ICASL

Directives/regulations of the Securities Exchange Commission of Sri Lanka

Companies Act No 07 of 2007

Continues Listing requirements of the Colombo Stocks Exchange

Global Sustainability Best Practices

Renewable Energy Transition

One of the key aspects of our sustainability strategy is to the transition to renewable energy sources and improve our energy efficiency. CIC has taken the following steps to achieve this goal

Investment in Renewable Sources

invested in solar power plants and rooftop solar panels to generate clean energy for operations and continue to enhance investments.

Energy Efficiency

implemented energy-efficient technologies and practices across production facilities, such as LED lighting, variable speed drives, and smart meters. We have also conducted energy audits and benchmarking to identify and address the areas of improvement. to be improved.

ESG Goals of the Group

Environmental Goals

Reducing greenhouse gas emissions

Increasing renewable energy use

Minimizing waste and water consumption

Ariel view of a forest in the middle white color letters symbolizing CO2

Employees of CIC Sustainability team in a group photograph

Social Goals

Enhancing employee well-being

Supporting local communities

Ensuring customer satisfaction

Environmental Goals

Ethical business practices

Board diversity

Compliance and risk management

Person holding a digital ESG concept with tree, balance scale, and financial charts, symbolizing sustainable governance

ESG Policies and Practices at CIC

Data Collection and Monitoring

CIC will establish a systematic process for collecting and analyzing relevant data and indicators related to its ESG performance. The company will use various sources and methods to gather data. The data will cover the environmental, social, and governance aspects of the company's operations, such as energy consumption, greenhouse gas emissions, waste management, employee engagement, diversity and inclusion, health and safety, ethics and compliance and stakeholder feedback.

Reporting and Communication

Awareness and Training Programs

ESG Performance Monitoring System

Environmental, social, and governance (ESG) factors are increasingly important for businesses to manage their risks, opportunities, and impacts on society and the environment. CIC, as a responsible corporate citizen, is committed to integrating ESG considerations into its strategy, operations, and decision-making processes. To ensure that the Group's ESG performance is aligned with its vision, values, and goals, CIC will establish a comprehensive ESG performance monitoring system that covers the following aspects:

Key Performance Indicators (KPIs)

Data Collection and Verification

Performance Tracking and Analysis

ESG Reporting

ESG Strategies for CIC

CIC is committed to integrating environmental, social, and governance (ESG) factors into its business strategy and operations. We believe that ESG performance is not only a matter of corporate responsibility, but also a source of competitive advantage and long-term value creation.

Establishing a Dedicated ESG Committee or Task Force

One of the key actions we propose is to establish a dedicated sustainability or ESG committee or task force that will be responsible for developing, implementing, and monitoring ESG goals and initiatives. The committee or task force will report to the board of directors and the senior management.

Implementing ESG Initiatives and Reporting ESG Performance

Another key action we propose is to implement ESG initiatives and report ESG performance in a transparent and consistent manner. We will adopt the following measures:

ESG Initiatives

We CIC will identify and prioritize the material ESG issues that affect our it’s business and stakeholders, and design and execute ESG initiatives that address them. We CIC will also allocate sufficient resources and incentives to support the implementation and evaluation of the ESG initiatives.

ESG Reporting

We CIC will disclose our ESG performance and progress on a regular basis, using recognized frameworks and standards, such as the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB). We CIC will also seek external assurance and feedback on our ESG reporting and use the results to improve our ESG practices and outcomes of the group.