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REACH ISSUE 1 2009 ISSUE 1 2009 From the Brandix CSR Centre I t is with pleasure that we launch our first issue of REACH for 2009- a review of the first six months of the year. 2009 has been a year of change and new beginnings. Sri Lanka saw the end of a 30 year civil war and the beginning of a humanitarian effort never seen before. The response of our associates to help these victims of war has been overwhelming and encouraging to say the least. In our small way, Brandix has helped and will continue to help. We also established our presence in the East by being the first apparel sector company to open a factory in Punani—Batticaloa. Keeping in line with our theme “Water is Life”—Brandix has also initiated long term projects benefitting not only the internally displaced persons but other vulnerable communities as well. Our key community outreach project “Care for our Own”—a project that mainly benefits our own associates–is in its 3rd year and has been a resounding success. We look forward to exciting months of community development and hope you will be inspired to join our cause. A wise man once said, every society is judged by how it treats it’s least fortunate amongst them. “Water is life–Make every drop count” TO LEAD Our Mission in being responsible corporate citizens. Not because we are convinced that it is a good way of doing business, but because we believe it is the right way of doing business. TO STRIVE to make a meaningful difference everywhere we do business. TO LISTEN and RESPOND to environment challenges that affect our society and our planet. TO INSPIRE people to work towards protecting and improving water access and availability in our communities. INSIDE 2 P-02 Message from the centre P-03 Brandix at EDEX 2009 P-04 Brandix achieves world first in eco-friendly manufacture P-05 Brandix achieves world first in eco-friendly manufacture - Cont... P-06 Brandix honoured with Energy Globe Award P-07 Schools P-08 Brandix India P-09 Mark & Start P-10 Brandix East - Punani P-11 Corporate Accountability P-12 Brandix–UNHCR partnership P-13 Brandix visits IDP camps P-14 Community/Hospitals P-15 Care for our own ISSUE 1 2009 Message from Mr Amin Awad — UNHCR Representative in Sri Lanka O n behalf of the UN Refugee Agency (UNHCR), I am pleased to contribute this message to this issue of REACH – the newsletter outlining Corporate Social Responsibility activities carried out by Brandix Lanka Ltd. As the designated lead agency for internally displaced persons (IDPs), UNHCR aims to provide protection, emergency shelter, non-food items and camp management as well as seek durable solutions to their displacement, be it return, relocation or reintegration. The agency also provides assistance and international protection to hundreds of refugees and asylum seekers in the country. UNHCR is supporting the Government of Sri Lanka with the daunting task of taking care of some 600,000 persons who were uprooted from their homes during the last 25 years of conflict. This includes hundreds of thousands who were displaced during the last several months alone and are currently accommodated in 34 sites in the country’s north. With the conflict now at an end, we believe the focus should turn to stabilizing this vulnerable population, most of who have been in displacement for many years, by ensuring that the necessary facilities are in place for these people to return home in safety and dignity. As in the east, where UNHCR assisted the government with the voluntary return of some 220,000 persons, we are ready to support government with a similar process in the north. Together with the humanitarian community, Sri Lanka’s private sector too has a significant role to play, not only with providing much-needed relief but also through assisting the Government in key sectors such as infrastructure development and uplifting livelihoods in return areas. Brandix is a shining example of how the Sri Lankan private sector can support the Government with providing assistance to its citizens in need. Green is the colour of life at Brandix From reducing canteen waste to investing in sophisticated air-conditioning, Sri Lanka’s leading apparel exporter is living its mission to be eco friendly, stated Mr Nigel Forbes— Brandix’ Chief People Officer at the 2009 EDEX press conference. ‘G oing Green’ is a corporate buzzword that is often an inspiration for catchy slogans and little else, but not at Brandix Lanka Limited, one of Sri Lanka’s best examples for enduring commitment to eco-friendly manufacture. While the showpiece Brandix Eco Centre, the highest-rated Green apparel manufacturing facility in the world, is the pride of the 25,000-employee Group, on-going initiatives at many manufacturing locations bear out the fact that best practices in environment-friendly operations have come to stay across all business units of the country’s largest apparel exporter. Last year, Brandix joined forces with UNHCR to improve the water facilities of Karambe hospital in Puttalam and further strengthened its partnership this year with a similar project in Batticaloa. We commend Brandix for its efforts and hope that many others will follow in their footsteps. Mr Nigel Forbes—Chief People Officer at the EDEX press conference 3 ISSUE 1 2009 Brandix achieves world first in eco-friendly manufacture Sri Lanka’s top apparel exporter’s Green Factory becomes first Platinum rated apparel manufacturing plant on the planet S ri Lanka’s apparel sector inspiration Brandix has achieved a world first across all sectors, with its Green Factory in Seeduwa becoming the first apparel manufacturing facility in the world to be rated Platinum under the Leadership in Energy and Environmental Design (LEED) Green Building Rating System of the US Green Building Council (USGBC). The 130,000 square-foot Brandix Eco Centre, Brandix Casualwear’s lead manufacturing plant for global giant Marks & Spencer, achieved a score of 76 on the 85-point LEED certification system, setting a global benchmark for low energy consumption, water conservation, solid waste management and low carbon emissions. It is the only converted Green Factory in the world to receive the Platinum rating, the highest standard in eco-friendly manufacture. Formally inaugurated on April 25 last year by the Marks & Spencer CEO Sir Stuart Rose, the plant converted into an Eco Centre at a cost of US $ 3 million has achieved a reduction of carbon emissions by 80 per cent, an energy saving of 46 per cent, a reduction of water consumption of 63 per cent and zero solid waste to landfill, eco-friendly indicators as yet unmatched by any re-designed Green Plant anywhere in the world. “This is possibly one of the most satisfying milestones achieved by Brandix in its short but meteoric history,” commented AJ Johnpillai, Director Brandix. “The fact that it is a global first for us, our country and the apparel industry worldwide, makes it all the more significant, and is a huge shot in the arm for our apparel sector in these challenging times.” He said the score of 76 achieved by Brandix, 12 points higher than the 64 required for Platinum status, demonstrated the degree to which the Brandix Eco Centre had exceeded the planet’s highest Green Factory rating. “This is also a tribute to the local engineering skills available and in particular to our consultants EnergySolve International, whose knowledge and commitment were invaluable.” The conversion of the 30 year old factory into a Green manufacturing location was made more challenging by the LEED requirement that at least 50 per cent of the occupants of the building had to remain in service inside the building during its conversion, and Brandix’s determination that the energy conservation ratings required would be Cont. 4 ISSUE 1 2009 Brandix achieves world first... achieved with air-conditioning, another requirement for Platinum status. Air-conditioning accounts for about 70 per cent of the energy consumed in a garment factory. To meet the requirements of LEED certification, Brandix invested in the latest screw-type chiller unit patented in the US to provide energyefficient air-conditioning for the entire factory, which comprises of three sewing plants. Square ducts were converted to round ducts to reduce distribution losses, and a 75mm insulation and heat-reflective panel was introduced into the roof. The windows were enlarged to provide more light and a better view out to workers, and the glass replaced with special glass with a high solar reflective index. Special prismatic material used for skylights in the roof allows only the passage of solar light without the accompanying heat. Sophisticated new light emitting diodes used as task lights provide light to the sewing machines, supplementing the natural light provided by the skylights. Bay lights are to be used only on cloudy or rainy days. Brandix has introduced facilities for direct and indirect rain water harvesting including the collection of water from down-pipes for reuse. A series of measures exist to reduce water consumption through recycling, whereby direct rainwater is initially recycled for all use except for drinking. Subsequently, a tertiary filtration system and a disinfection process allows the used water to be recycled again for toilet flushing and gardening. Brandix CEO Ashroff Omar presenting the President of Sri Lanka H. E. Mahinda Rajapakse with the plaque to mark the historic accomplishment at the Presidential Export Awards. The factory has also achieved zero solid waste disposal by recycling or reusing 100 per cent of the solid waste it produces. Even canteen waste is being composted and contributes to biogas generation. The green areas in the gardens have been increased substantially to provide all occupants with the stipulated view of green area, and two indoor green patches have been introduced to the plant with the largest floor area. Transportation within the premises is by electric car to eliminate use of fossil fuel inside the plant. An advanced intelligent building management system controls relative humidity and carbon dioxide levels to improve comfort levels for workers. Tell me and I will forget, Show me and I may remember, Involve me and I will understand, Empower me and I will act” 5 ISSUE 1 2009 Brandix Green Factory honoured with Energy Globe Award Sri Lanka’s showpiece in eco-friendly manufacture was also nominated for world’s top environmental award in ‘Air’ category G lobal recognition has once again been bestowed on Sri Lanka’s Brandix Group in the form of an Energy Globe Award, the world’s most prominent and prestigious environmental prize, for its world-leading Green Factory at Seeduwa. The impressive environment-friendly indicators achieved by the Brandix Eco Centre resulted in the Group being adjudged the National Winner for Sri Lanka and being named one of three nominees for the Energy Globe World Award in the ‘Air’ category. The award presentation was held in April in Prague, Czech Republic, before a global television audience of three billion people. A total of 769 projects and initiatives in 111 countries were evaluated in the categories of Air, Earth, Fire, Water and Youth for this year’s awards, which took place as the opening event of the European Environmental Ministers Meeting in Prague on the 14th April. Nobel Prize winner Rajendra K. Pachauri and Martin Bursik, President of the EU Environmental Council were among the award presenters. “This recognition before a truly global audience is as important for Sri Lanka as it is for Brandix,” said Ashroff Omar, CEO of the Brandix Group. “It shows the world that tough economic conditions and the domestic conflict notwithstanding, there are manufacturers in Sri Lanka who remain committed to ideals and standards.” The Brandix Green Factory, which is the highest-rated Platinum-certified Green apparel manufacturing plant in the world under the Leadership in Energy and Environmental Design (LEED) system, has reduced Carbon Dioxide (CO2) emissions to the atmosphere by 80 per cent, Sulfur Dioxide (SO2) emissions by 71 per cent and Nitrogen Oxide (NO2) by 92 per cent; achieved an energy saving of 46 per cent, reduced potable water use by 63 per cent and documented that almost all of the site-generated solid waste is recycled. Cont. Iresha Somaratne—Head of Brandix Environmental Energy Management division receiving the award- Prague, Czech Republic. Among the treasures of our land is Water—fast becoming our most valuable, most prized, most critical resource” Dwight J. Eisenhower 6 ISSUE 1 2009 Brandix Green Factory... “These are indicators that match those of the best eco-friendly manufacturing operations anywhere in the world,” said Brandix Director AJ Johnpillai. “They represent a significant reduction in the factory’s impact on global temperature.” He disclosed that Brandix intends to replicate key learnings and achievements from this concept across the entire Group. Schools The World Energy Globe Awards for Sustainability were launched by Austrian energy pioneer and Energy Globe Foundation President Wolfgang Neumann in 1999. The ‘Air’ category, in which Brandix has been honoured, recognises measures that contribute to improving air quality, including avoidance of CO2 emissions, optimization of combustion processes, reduction of green house gases and improvements in indoor air quality. Last year’s Energy Globe Award winners were from Peru (Earth), Spain (Fire), Mozambique (Water), Austria (Air) and South Africa (Youth). Amarasinghe Maha Vidyalaya - Deraniyagala Ovitigama Maha Vidyalaya - Awissawella I am certain that after the dust of centuries has passed over our cities, we too, will be remembered not for our victories or defeats in battles or in politics, but for our contribution to the human spirit” John F. Kennedy Hewainna Maha Vidyalaya - Awissawella Hindu College- Ratmalana 7 ISSUE 1 2009 Brandix India Apparel City celebrates World Water Day WORLD ENVIRONMENT DAY 2009 Your planet needs YOU! “Unite to combat climate change” Brandix India Apparel City celebrates the World Environment Day D eclared by the UN General Assemble in 1972 United nations Environmental Protection (UNEP) promotes 5th of June as World Environmental Day, to be celebrated globally. BIAC honored World Environment Day by planting 75 trees in the park area. Commencement of the tree planting campaign Environmental Awareness programme 8 Z illa Parishad High School (ZPHS) is situated about 3km away from BIAC, in Pudimadaka, a fishing village, where the BIAC marine outfall meets the sea. ZPHS has a co-education system where 322 boys and 292 girls are being taught from grade 6 to grade 10. School records a pass rate of 70% at the 10th grade exam. The village Panchayath provides water to the school but the supply is sometimes irregular. Keeping the requirement of the school in mind and driving its CSR/ Business objectives forward, BIAC celebrated the World Water Day with Zilla Parishad High School – Pudimadaka. Prior to the event an art competition was conducted among students from grades 6 to 9 to educate them on the importance of water and its conservation. During the event BIAC made a commitment to facilitate water for the school. Mr. Vinu Sudan–BIAC, announcing the water sponsorship for ZPHS Ms. Ramadevi, a 9th grade student of ZPHS talking about the importance of water ISSUE 1 2009 Marks & Start Get together M arks & Spencer’s flagship project “Marks & Start”—which provides differently abled people employment through their suppliers, held an beneficiary get together in March 2009. The beneficiaries from different organizations under the Marks & Starts programme had a wonderful day, dancing and getting to know each other. The event was a resounding success. Brandix employees with the VIPs that attended the event (Back row Cricketers P. Maharoof, Dilhara Fernando and Lasith Malinga) Appreciation shown to the companies that support the Marks & Star programme 9 ISSUE 1 2009 Brandix East — Punani W ith the implementation of the “Nagenahira Navodaya” program by the Government of Sri Lanka, the business community was invited to invest in the Eastern Province in order to rehabilitate and reintegrate the civilians in the area and also to give former combatants and alternative way of life. With this in mind, the Board of Directors of Brandix Lanka Limited took a firm commitment to take bold action to generate gainful employment in the Eastern Province to enable a wider segment of the population to benefit from the growth of the Apparel Industry. Accordingly, the Company took a personal interest in order to help reduce the vast disparity in per capita in the East in comparison to the rest of the country. With this task in mind, the selected site in Punani was taken over by the management on the 5th of May 2008, after which the construction work began in October 2008. Simultaneously, an abandoned school located 6 km away from the Punani 10 site was taken over and refurbished in order to be used as the Training School for the factory. The training of Machine Operators began on the 1st of September 2008. The management moved into the facility and began operations in December 2008 and the first consignment was shipped to India on the 30th of December 2008. At present, there are 220 Associates employed at Brandix East, Punani. Back in November 2008, Brandix Lanka Limited and USAID made a partnership to provide training for 600 recruits in the Batticaloa District. Under the Apparel Sector Training Partnership, USAID has agreed to contribute generously towards the training and welfare of the Associates. On the 15th of May 2009,the graduation of the first batch of Associates who completed their first six months of training was held at Brandix East, Punani. ISSUE 1 2009 Brandix rated ‘Platinum’ for Corporate Accountability Top apparel exporter one of four highest-rated companies in Sri Lanka’s first ‘Report Card’ on accountability B randix Lanka Limited, Sri Lanka’s iconic apparel solutions company, has been accorded a Platinum rating in the country’s first ‘Report Card’ on Corporate Accountability. The globally-respected apparel exporter is one of four corporate entities to score more than the 90 per cent required for Platinum status in this inaugural benchmarking exercise undertaken by STING Consultants and presented by Lanka Monthly Digest (LMD) Sri Lanka’s leading business magazine. Defining Corporate Accountability as ‘the moral and legal obligations of companies to be accountable for their actions to all stakeholders,’ the assessment covered awareness of, the approach to and a preparedness to accept stakeholder responsibilities in seven areas: corporate values, identifying risks and opportunities, policy coverage, stakeholder engagement, management and measurement, workplace practices and public disclosure. In their remarks on Brandix the promoters of the Corporate Accountability Rating said: “The unrelenting international competition faced by Brandix in the apparel sector, and its dependence on a large workforce, has led it to focus on accountability with a human face. This is why it places great emphasis on social aspects such as gender equality, training, human rights, strong links with local communities and suppliers, and workplace quality. And of course, it continues to be a globally recognised, sustainable business entity.” Among the key areas of focus for Brandix in the sphere of corporate accountability are its internationallyrecognised dedication to eco-friendly manufacture and its consistent commitment to CSR projects aimed at facilitating access to safe water for needy rural communities. The bulk of the Group’s CSR initiatives are conducted under the theme ‘Water is Life.’ Over the past two years, Brandix has completed hundreds of micro water supply projects in Sri Lanka and donated to the government a Water Research and Training Centre purpose-built and equipped at a cost of Rs 25 million. Brandix is also at the forefront nationally and globally in efforts to adopt eco-friendly manufacturing. In April 2008, one of the Group’s manufacturing plants became the first Platinum rated Green Factory in the world under the LEED (Leadership in Energy and Environmental Design) of the US Green Building Council (USGBC). What lies behind us and what lies before us are small matters compared to what lies within us” Raplh Waldo Emerson 11 ISSUE 1 2009 UNHCR and Brandix join forces again to assist Sri Lanka’s vulnerable communities S ri Lanka’s largest apparel exporter, Brandix Lanka Limited, has strengthened its partnership with the UN Refugee Agency (UNHCR), in an effort to address some of the key humanitarian needs of the conflict displaced communities in the country. As part of its latest contribution, Brandix has once again stepped forward to support Quick Impact Projects (QIPs), an integral part of UNHCR’s operations in Sri Lanka, which sees the implementation of small-scale and short-term projects to support resettlement and have an immediate and long-term impact on returnee communities. These projects aim to promote return as well as facilitate stability. In addition, Brandix is reaching out to the most vulnerable population, by extending their support towards meeting the non-food needs of the internally displaced population in the country. Last year, UNHCR took its first steps towards forging strategic partnerships with Sri Lanka’s private sector, by tying up with Brandix to improve the water facilities and water management of the Karambe Hospital and its surrounding villages in Puttalam. The project has helped better the health and welfare of the Puttalam residents and internally displaced persons. This year, Brandix tied up UNHCR to provide water pumps and other equipment to 95 families as part of the UNHCR Livelihood Recovery Programme. On March 31, 2009, 250 families were resettled in Kudumbimalai after being displaced for three years. Kudumbimalai was considered one of the central places of the conflict. This project aims at providing 95 resettled families in the village of Meeranakkadavai with relevant livelihood equipments and required skills trainings to start a variety of livelihood activities based on their previous experience. Brandix’s Corporate Social Responsibility (CSR) efforts are driven by the central corporate theme ‘Water is Life’ and constitute a long-term commitment to improving the living conditions of people in need, including bringing safe drinking water to households in Sri Lanka. “Brandix is honored to support UNHCR in its initiative to help improve the lives of vulnerable Sri Lankans,” said the Brandix Group’s CEO Ashroff Omar. “Collaborating with UNHCR has ensured that our resources were utilized efficiently and effectively to construct such an essential project swiftly.” UNHCR’s Representative in Sri Lanka Amin Awad hailed Brandix’s commitment towards improving the lives of the displaced and return communities in the country. “Brandix is a shining example of how the private sector in Sri Lanka can step up to support the Government with providing assistance to those in need. We hope that many others will follow in their footsteps to demonstrate that corporate social responsibility edge.” Seated at the head table at the joint press conference, from Left to Right are Ajit Johnpillai – Director, Brandix Lanka Limited, Theodore Gunasekara – General Manager, Brandix East Project, Ms Anusha Alles – Head of CSR, Brandix Lanka Limited, Amin Awad – UNHCR Representative in Sri Lanka and Gary Firth from the UNHCR 12 ISSUE 1 2009 Emergency Relief Effort Menic Farm, Cheddikullam and Padaviya Hospital-Vavuniya T hanks to the efforts of our associates, Brandix was able to respond quickly to the needs of the IDPs in the North. We organised the distribution of relief items, such as food, clothing and water to these victims at Menic Farm and Padaviya Hospital in Vavuniya as part of our emergency relief programme. The Brandix Group, as an initial step to assist these civilians in need donated Rs 20 million worth of garments and 20,000 loaves of bread were distributed each day for 2 weeks through our partner bakery. A token presentation to His Excellency President Mahinda Rajapakse Collections from some of our associates Visit to the IDP camps 13 ISSUE 1 2009 Community Hospitals Renal Care and Research Centre- Anuradhapura Brandix funded a sophisticated filter system for the centre. This water treatment plant will benefit over a thousand patients and was officially opened on the 21st of March 2009. Kahawatte Water point Sanitation facilities for Differently abled children 14 ISSUE 1 2009 Care for our own A n initiative to ensure the provision of clean water supply systems to our associates who are in desperate need. This flagship project of Brandix CSR we hope will change the lives of our workers, their families and their entire village. 15 “Example is not the main thing in influencing others, it is the only thing” — Albert Schweitzer