Celebrat oneness 4) ICI Pakistan Limited Sustainability Report 2009 ° AkzoNobelContents Overview Planet 02 Statement from our Chief Executive 15 Environment 03 Highlights 2000 17. Performance of our manufacturing sites 04 Sustainability at ICI Pakistan Polyester ‘Soda Ash Paints ‘Chemicals 23. Performance outside our fence Performance 09 Financial performance 10 Corporate governance 42 Risk management 13 Compliance People 25 People development 27 Workplace safety 28 Our community Product 37 Product stewardship 38 Adding value ‘About this publication This s the second Sustainability Report for ICI Pakistan Limited. Data in this report covers the period from January 1, 2008, through December 31, 2008, Financial information is given in Pak Rupees (PKA)Celebra oneness c ‘Our theme for this year's Sustainability Report was chosen in recognition of the Interdependencies that exist n our ves, and of their impact in the larger scheme of things We realize and embrace the significance of how everything around is connected ‘and how we are connected to everything around us: our connection with our parent company AkzoNobel; between us and our customers, our environment, ‘and our communities; the connections between our operations and our nation's ‘economy. For us at ICI Pakistan this symbiotic interdependence translates into a ‘sot of responsibiitios, which we actively Seok to fut In this report we aim to show you how we fulfil these responsibilities, and uphold ‘our place in the complex cycle of fe, by showing you how we work at promoting ‘and enhancing eustainablity n our operations, You wil eee how this year has bbeen about embracing the 4 Ps of sustainabilly: Performance, People, Planet and Product. The unity and cohesion of our operations stems from the integration Of these four segments into a unified whole. ‘Sustainability therefore, is one of the main guiding principles of how we do business at ICI Pakistan. By integrating sustainability in our businesses we hope 10 add greater value to the lives we touch averydey.Sustainability Report 2009, Statement from our Chief Executive Mor Deket Deer, ‘Sustainabilty is a concept we at IC! Pakistan hhave always boon deeply connected to; a all, as company we have been around for the last 60 years. With our diverse portfolio of products, we practically ouch every if in the country ‘some way or the other and this is a responsibility we take very seriously. ‘Sustainability is therefore woven into our ‘ouiture, practices, processes and the products we offer We approach this Sustainability Report with the same commitment as we approach all ‘our responsibiities, and through it we aim to show you a clear, transparent picture of what ‘we're doing as a company in the four areas Of sustainablity as defined by AkzoNobel; Performance, Planet, People and Product, ourd P's ‘As you read this report, | hope that you wil ‘come to understand how each one of the 4 P's holds special relevance to our ‘operations. ‘We published our frst Sustainability Report last year. In this year's report, we have attempted to show how deeply embedded sustainabilly is in every aspect of our ‘operations, and that we are geared towards setting ever higher sustainabilty targets for the future. ‘We hope to receive your feedback and views in order to help us build on our strengths today, and create 2 more sustainable ‘tomorrow for all. Mery HaHa is Wagar A. Malik‘Sustainability Report 2009 Highlights 2009 ‘© Overall reduction of 12% in energy usage per ton of production |© Despite increased production, CO2 emissions down by 23% (© Water usage, up by 1.696 par ton of production ‘© Total waste, sustained at 2008 lavel per ton of production (© Injury rate of employees and supervised contractors remained at < 0.5, ‘© Significant investment in channel modernization for Decorative Paints |® Sustainability framework in place and multi-disciptinary sustainably council established |® Completed comprehensive HSE&S audits for all manufacturing stes and corporate offices. ‘© Smooth transition and integration with the AkzoNobel HSE&S System |© Code of Conduct training completed by 1545 people across the company (© Management traning programs: 2306 man hours © Community expenditure of PKR 16.46 milionSustainability Report 2009 Sustainability at ICI Pakistan We're committed to delivering more sustainable products and solutions to our customers. But we can only do this if sustainability is at the heart of everything we do. That's why we've integrated sustainability into every area of our business — for the benefit of our customers, shareholders, employees and the world around us. org Perret Our products Our Sustainability Framework To realize greater business opportunities and higher stakeholder returns, this year we implemented a strategy built around the pilars of sustainable innovation, talent development, value creation and operational excellence, We set up a sustainability council with a mult- disciplinary team representing each segment of our ‘operations. Led by our General Manager, Technical, the following eight people are on the Council M Asif Malik Lead Nasir Jamal Finance Zeshan TKhar/Seemi Saad OSA. Rashid Kamal Manufacturing Raza M Zeici Manufacturing laza Azat/Zatar Farid HSE Fathema Zuber HR Rizwan Atzal Operations ‘Sabor Ahmed Supply Chain ur objective Isto include sustainability In all aspacts of four value chain; to develop and retain leadership, positions in all sustainability indicators as well as in tangiole business benefits from the sustainability agenda. We have set ourselves ambitious targets against each of our strategic objectives, focusing on: ‘© Continuously improving our safety performance ‘© Integrating sustainable value proposition forall stake holders including customers and suppliers (© Developing sustainable water management et all oursites. |® Reducing our carbon emissions {© Training and adherence to our Code of ConductSustainability Report 2009 About us We manufacture and trade ina diversiid range of products Inluaing Polyester Staple Flor, Soda Ach, Decorative, Refinish and Industral Paints and Speciaty Chemicals \We also market tol manutactured Pharmaceuticals and Animal Health products, along with a range of imported Industrial Chemicals and Seeds. In addition, our Paints portfolio also offers reputable brands such as Dulux, Sikkens and Paintex. Our status IC Pakstan Limited is @ separate legal entity, and our Late parent company is AkzoNobel NY, which makes Us a part ofthe AkzoNobel Group. We were formally ‘acquired by AkzoNobel NV on January 2, 2008. ICI Pakistan is a 75.81% owned subsidiary of IC Omicron BV, which was previously owned by ICI Plc, UK. ICI Pakistan PowerGen is a wholly owned subsidiary of ICI Pakistan Limited ————— Business units of ICI Pakistan Limited Our scale and presence Employing 1201 people, the company is headquartered in Karachi whereas operations ae spread across Pakistan, Wiha ota Capitalzation (equity on) of Rs 14. lion our net sales were Ris 28.4 bilion for 2008. jae resumes menacing ates e* (eRegionaoness Recognition of our efforts in 2009 \We take pride in sharing with you the awards we received during the year FBR Taxpayers Excellence Award Large Taxpayer Unit, Karachi, a division of the Federal Board of Revenue, awarded us with the FBR Taxpayers Excellence Award 2008, This award comes as an acknowledgement of our payment of government taxes and duties amounting to over PKR 33 billon since 1995, ICAP 2nd Best Report Award (ur Annual Report 2008 secured the second postion in the Chemicals and Fertlizers Category of the ICAP Bast Corporate Report Awards. MAP Excellence Award We were awarded the 26th Corporate Excellence Award in the Chemicals and Allied Sector by the Management Association of Pakistan (MAP). This is the second consecutive year that we have won this award. Environmental honor for 1Cl Pakistan Limited \We were among the winners of the 2008 Environment Excellence Awards organized by Pakistan's National Forum for Environment and Health (a non-profit affliated with the UN Environmental Program).