Interloop Sustainability Report 2019 PDF

CONTENTS
03 04 09
Overview Key Performance About Interloop

Highlights
35 43 47
Sustainability Enhancing Economic Managing Environmental

Management Impacts Footprint
61 85 89
Unleashing Human The Way Forward Appendix

Capital
OVERVIEW
Key Performance Highlights 4
About the Report 5
Chairman’s Message 6
Sustainability Report 2019 3

KEY
PERFORMANCE HIGHLIGHTS ABOUT THE REPORT
This is Interloop’s second sustainability report. The report has been prepared in accordance with
Global Reporting Initiatives (GRI) Sustainability Reporting Standards at Core Level and Sustainability
Accounting Standards Board’s (SASB) Apparel, Accessories and Footwear Sustainability Accounting
Revenues
Standard to provide stakeholders a complete overview of Interloop’s sustainability impacts and its
Net Profit after Tax 37,524 contribution towards the goal of Sustainable Development. The report also covers how Interloop is
contributing towards United Nations’ Sustainable Development Goals through its operational activities
5,195 Million
and community development initiatives.
Million
Scope and Boundary Methodology and Data Assurance
The sustainability report covers the Quality The Sustainability Cell and the Board
activities and information about Committee review the report annually
Return on Equity The data included in the report has
Interloop Limited from July 01, 2018, to but it is not reviewed independently.
been recorded on actual basis.
29% June 30, 2019. The last sustainability
However, where data is not available,
However, Interloop is interested in
getting independent review of future
report covering the period January
estimation has been used. All such
01, 2017 to December 31, 2017, sustainability reports.
estimations have been clearly
was published in August 2018. The
mentioned at respective places. The GRI Index is available on page 90
information included in this report
The data related to environmental of this report. The report is available in
covers Interloop Limited’s business
impacts has been obtained from printed as well as PDF form. The PDF
units including Spinning, Yarn Dyeing,
the Sustainability Cell which is form is the most updated version which
Energy Consumption Hosiery, Seamless Active Wear
responsible for measuring and can be accessed at www.interloop-pk.
and also Denim which has been
1,329,172 operationalized this year. The report
monitoring environmental impact and
progress against the targets. The data
com. Your valuable input on the report
will be helpful to keep our reporting
does not cover the information on the
GJ measurement techniques have been relevant for our stakeholders’ decision-
impacts of its subsidiary companies.
upgraded as per the requirements of making needs. You can connect with
Moreover, the information on impacts
GRI Sustainability Reporting Standards. the sustainability team at the following
within the supply chain is also not
Moreover, the reporting period, scope address:
included due to the non-availability of
and boundary of the report has been
data.
redefined to align with the requirements
Emissions of the Standards. The sustainability
Report Content reporting period and targets which
68,579 The contents of the report including
were previously covering calendar Muhammad Fauz Ul Azeem
Mt year have been re-calculated to align Sr. Manager Sustainability & Business
material topics discussed in the report
with the new reporting period, i.e. July Strategy
have been derived by taking into
2018 - June 2019, to harmonize this
consideration the requirements of GRI Phone: +92-41 – 4360400
information with financial information,
Sustainability Reporting Standards, Email: sustainability@interloop.com.pk
Water Consumption for informed decision making by
impacts of our operations as well
stakeholders. The sustainability report
2,402,026 Community Investment
as our engagement with important
stakeholder groups. More details about
is part of the annual reporting process.
m
350
3
consultation and determination of
material topics are available on page
Million 18-19 of this report.
4 Interloop Limited Sustainability Report 2019 5

FROM THE CHAIRMAN
Climate change, increasing GHG Today, Interloop is considered a consumption, energy consumption,
emissions, non-availability of clean responsible partner by top brands GHG emissions and effluent waste.
water, lack of education, rising and retailors world-wise because Our next five year targets will cover
inequalities, poverty and hunger are our foremost priority since inception Inteloop’s all business functions,
severe challenges faced by humanity has been to support the society and demonstrating our commitment to
at present. Business operations the environment along with providing further reduce our environmental
worldwide are being reviewed in a quality products and service to footprint and play our part in preserving
wider context, driving the companies to our customers. Our sustainability a greener mother earth for future
follow sustainable practices, manage philosophy is practiced in all our generations.
their impacts and deliver solutions for business decisions and our people
global challenges. targets 2021 encompassing, building Despite unfavourable economic and
a diverse & empowered workforce, market conditions, primarily impacted
At Interloop, we believe that transforming lives, and improving by deteriorating macro-economic
Sustainability, being a key pillar of our well-being augment delivering a indicators, higher interest rates and
mission, is vital for effecting our role as positive impact on our people and increased inflationary pressures during
a leading player in hosiery business in communities. We have been able the year the company has been
We believe transparency is vital for on which the impacts of our initiatives
the global supply chain. Our mission to transform lives of thousands of able to achieve its financial targets.
winning the trust of our stakeholders. is being measured and reported,
“to be an agent of positive change for households and enabled many more Interloop Limited was listed on the
To further our commitment of pursuing based on our targets. This report also
the stakeholders and community by live more fulfilling and healthier lives by Pakistan Stock Exchange (PSX) in
sustainable business, we adopted the links our activities to these SDGs and
pursuing an ethical and sustainable investing PKR 1.08 billion in multiple April 2019 which was the largest IPO
world’s most widely used sustainability demonstrates our valuable contribution
business” drives our strategy to deliver social initiatives in education, health, by any private company in Pakistan’s
reporting standards this year, “GRI to the world.
shared value for our stakeholders. women empowerment, sports and history. Currently, Interloop is the
Standards” along with Sustainability
We are a purpose driven organization literary activities since 2016. largest listed textile company on PSX Your input is vital for our success and
Accounting Standards Board’s
pursuing ethical practices in our by market capitalization and the 6th guidance to deliver shared value to our
“Apparel, Accessories, Footwear
business activities and our relationships Managing environmental impact of our largest exporting firm of Pakistan. We all stakeholders.
Standard” for our Sustainability Report
with our stakeholders. business and preserving and improving continued to play an important part in
to better communicate our impacts
our communities form an important the economic growth of Pakistan by
Our reason for existence is to be an and contributions towards the goal of
part of our sustainability philosophy. providing employment opportunities,
Agent of Positive Change. To pursue sustainable development.
Interloop has defined environmental earning foreign exchange, paying all
this, we follow a Triple Bottom Line targets for its hosiery business and applicable taxes, engaging multiple Although we are impacting several of
Sustainability Philosophy, comprising performance against targets 2021 vendors for buying raw materials as the UNDP’s Sustainable Development
People, Planet & Prosperity, i.e., have resulted in efficient management well as other services, and by investing Goals, we have specified 9 SDGs either
expanding our business focus on the of resources and decreased in the community. Musadaq Zulqarnain
relevant to our business or high priority
financial bottom line as well as on the environmental impact over the year, by Chairman
areas for social and environmental uplift
social and environmental aspects. reducing the relative volume of water

ABOUT INTERLOOP
Our Journey 10
Our Footprint 14
Corporate Profile 16
Business Categories 17
Our Customers 24
Supply Chain 25
Commitments, Memberships and Awards 26
Stakeholders’ Engagement 30
Materiality Analysis 32

Established Yarn Dyeing Division at IIP,
Faisalabad with current dyeing capacity of
354,000 Kgs per month
OUR JOURNEY
Created business alliance with Euro

Established vertically integrated Sox Plus, Netherlands to provide sales, Established Hosiery Plant 3 at Lahore
Commencement of Interloop Hosiery Plant 1 at Faisalabad with Established vertically integrated Hosiery Plant marketing, market intelligence, design, through acquisition, with current
Operations at Faisalabad with current monthly production capacity 2 at IIP, Faisalabad with current monthly logistics, warehousing and distribution monthly production capacity of 13.7
10 Knitting Machines of 14.3 million pairs of socks production capacity of 17.9 million pairs of socks services to customers in Europe & UK million pairs of socks
1992 2000 2003 2005 2006 2007 2009 2010 2011 2012
2nd Unit with addition of 400 Established Spinning Unit - I at Established Interloop North Established IL Bangla Limited, Set up Interloop China Office to source
Knitting Machines Interloop Industrial Park (IIP), America; an affiliate and exclusive Bangladesh, a vertically integrated top quality yarns, dyes, chemicals &
Faisalabad comprising 20,400 spindles North American representative Hosiery Plant with current monthly other raw materials cost effectively and
of Interloop Limited to provide production of 2.5 million pairs of socks to ensure better lead time
trend analysis, design & product
development, sales, marketing,
warehousing & logistic services

Set-up a dedicated Tights & Leggings Production
Unit at Plant 1, Faisalabad with monthly Established IL Apparel (Pvt.) Limited; a subsidiary of
production capacity of 0.45 million pieces Interloop Limited, for manufacturing Knitwear Apparel
OUR JOURNEY
Established Hosiery Plant 5 pilot project with

Constructing LEED Platinum certified 94 modern Italian Knitting Machines currently
Interloop Denim Apparel manufacturing producing 900,000 pairs of socks per month.
Expanded Hosiery Manufacturing footprint to Interloop Limited was demerged in order to plant at Lahore. Operations will commence Planned to be scaled to a vertically integrated
As part of business diversification Inaugurated Interloop Spinning Sri Lanka through affiliation with Texlan Center separate non-textile business into a separate in Q4, 2019 with planned capacity of sustainable manufacturing facility with installed
strategy, established Interloop Unit - II at IIP, Faisalabad (Pvt.) Ltd. with current monthly production Holding company & Interloop Limited looking 500,000 garments per month, to be capacity of 1,280 knitting machines, producing
Dairies Limited comprising 26,304 spindles capacity of 3.25 million pairs of socks after the textile business, with approval of LHC enhanced to 1 million garments by 2021 17.28 million pairs of socks per month
2013 2014 2017 2018 2019
Set-up a dedicated Vertical Sampling Constructed the New Distribution Center Commissioned Region’s First LEED Held the largest private sector IPO in Installed 2.0 MW Grid Tied Solar
Facility at IIP, Faisalabad at IIP, Faisalabad with storage capacity of Gold Certified Socks manufacturing Pakistan’s history and listed at Pakistan Power Generation System at
around 26.4 million pairs of socks facility (Plant 4) at IIP, Faisalabad Stock Exchange (PSX) as the Largest Hosiery Plant 4 & Spinning, IIP; a
with installed capacity of 720 Textile Company by Market Capitalization renewable energy venture focused
Specialized Knitting Machines and at reducing around 1500 tons of
monthly production capacity of 5 Carbon Emissions annually
million pairs of socks
15.4 MW Interloop Power Plant based on Tri-Fuel

12 Interloop Limited
Engines was setup at IIP, Faisalabad to cater to energy
requirements of existing facilities and new extensions
OUR FOOTPRINT
Bangladesh
Netherlands
U.S.A
China
Pakistan
Japan
Associates & Subsidiaries

Subsidiary
• IL Apparel (Pvt.) Limited
Associated Companies
• Interloop Holdings (Private) Limited
• Interloop Dairies Limited
• Interloop Welfare Trust
• Momentum Logistics (Pvt.) Limited
• IL Bangla Limited - Bangladesh
• Texlan Center (Pvt.) Limited – Sri Lanka Sri Lanka
• Euro Sox Plus B.V. - Netherlands
• Global Veneer Trading Limited – Switzerland
Affiliate Companies Manufacturing

• ILNA Inc. - USA
• Interloop Japan Limited - Japan
Services

CORPORATE PROFILE BUSINESS CATEGORIES
Interloop Limited, launched with 10 materials and the capacity to produce Interloop sold 43 million dozens of
knitting machines in 1992, has grown 700 million pairs of Socks & Tights socks and tights, 26 million kg of yarn
into one of the world’s largest Hosiery annually, for top international brands and dyed 4 million kgs of yarn.
manufacturers. A complete vertically & retailers spread across Europe, Asia
integrated company with state of the and USA. With current annual turnover There were no major changes in
art Spinning, Yarn Dyeing, Knitting to the tune of USD 250 million, organizational structure except the
and Finishing facilities. Interloop is Interloop is expanding its Hosiery start of the new denim facility at
Pakistan’s 6th largest exporting firm and business and venturing into the Apparel Lahore and listing on the Pakistan
the Largest Listed Textile Company on segment including Denim, Knitwear & Stock Exchange during the year which
Pakistan Stock Exchange by Market Active wear. resulted in the offering of shares to
the institutional investors and general
Capitalization.
public. The details about the pattern 700 HOSIERY
The total revenue for the year ended
With over 5,000 latest Italian knitting on June 30, 2019, was PKR 37,524 of shareholding can be found on page Million Pairs of Socks and Tights production
machines, 17,000+ employees and million with a net profit of PKR 5,195 232 of the Annual Report 2019. There capacity annually
an organizational network spread million. The total operating cost for were no changes in the supply chain
across 3 continents, Interloop has materials and services for the year was during the year. 26 YARNS
the proficiency to work with different PKR 22,755 million. During the year, Million
kgs Yarn production capacity, 5 Million kgs Deying
capacity with 0.9 Million kgs Air Covering annually
12 DENIM
Million Garments planned capacity annually by 2021
KNITWEAR
6.5 Garments planned capacity annually by 2021
Million
6.5 SEAMLESS ACTIVE WEAR

Million Garments planned capacity annually
by 2021

BUSINESS CATEGORIES
Hosiery We Produce a Wide Range of Top
Quality Products for World’s Leading
Product Development
Headquartered in Pakistan, Hosiery Brands and Retailers A dedicated Vertical Sampling Facility
manufacturing & exports is the Flagship (VSF) at Interloop Industrial Park,
Our Product Range includes:
business category of Interloop Limited. Faisalabad comprising a Yarn Library,
• Socks (Performance, Athletic, dedicated Yarn Dyeing Machines,
Spread across South Asia, it comprises
Casual, Formal, Specialty) 100 Knitting Machines and Linking to
of 5 vertically integrated manufacturing
• Tights & Leggings Finishing capabilities develops premium
facilities in Pakistan, over 250 Acres
across 3 industrial zones, and 1 each We are focused on delivering: quality products for customers. The
in Bangladesh and in Sri Lanka through Product Development Lab houses
• Design & Fashion Trends
associated companies. This report a complete range of latest colour
• Premium Quality
only takes into account the impact development machines.
• Inventory Planning & Management
of local operations and does not • Lean Manufacturing Techniques
include overseas facilities as those are • Timely Delivery
separate entities. • Speed to Market
The vertically integrated production Currently housing 5,000+ knitting Quality Assurance
is equipped with the latest Italian machines, Interloop has the capacity
Knitting Machines, Spanish Processing to produce over 700 million pairs of The Quality Department looks after
Machines and Italian Dyeing Machines, socks and tights annually. We will Quality Assurance, Quality Control,
having quick changeover capability be expanding the hosiery business Quality Testing Labs & QMS. The
and highly skilled staff to produce by adding another 1,280 knitting Quality Policy refers the way our
high volumes of standard mix and machines in Plant 5, expanding our teams follow the working processes
low volumes of customized products. capacity to c.6,500 knitting machines to produce quality products and
Interloop Plant 4, located at Interloop with a production capacity of 900 deliver excellent services to our valued
Industrial Park, is Pakistan’s & million pairs annually. customers. With ISO / IEC 17025:2005
Region’s First LEED Gold Certified & ISO / IEC - 17043 accreditations,
Socks Production Facility, ensuring Interloop is the First Textile Company
26% Energy Savings, 51% Reduction in Pakistan to provide Local Proficiency
in Portable Water Usage & 25% Testing (PT).
Enhanced Fresh Air Intake.
Research & Innovation
A dedicated Research & Innovation

(R&I) Centre at Pakistan, equipped
with hi-tech knitting, processing and
finishing operations, a modern lab,
and an extremely competent team
has launched multiple commercial
concepts including innovative knitting
constructions, processing treatments,
specialty yarns and finishing
operations. Three Patents have already
been granted to Interloop and patents
for two products are in the application
process.

BUSINESS CATEGORIES
Denim
As part of business diversification,
Interloop is entering into the Denim
Apparel Segment and has envisioned
a production facility with minimal
environmental impact, prioritized
worker well-being and will maintain
high standards of operational and
cost efficiency, ensuring that Interloop
continues to serve its customers
effectively.
The production facility will be LEED

Platinum Certified and will be the
most technologically advanced and
The scope of operations includes to replace manual processes for
sustainable denim apparel production
Yarns Yarn Dyeing & Air Covering Viscose, Wool, Bamboo, Blended,
Microfibers and Recycled Yarns. facility in this part of the world. The
Cut & Sew, Laundry and Packing & minimizing impact on workers and
Accessories. Automated precision improving quality. Built-in quality
Spinning A state of the art Yarn Dyeing (YD) plant will go into production in Q4,
machines have been installed for measures have been put in place to
facility, equipped with highly automated Modern Italian Air Covering Machines 2019 with planned capacity of 500,000
better productivity. Overhead hanging minimize defects and rework.
Interloop produces over 26 million dyeing operations, automatic dyestuff, with annual production capacity of pcs per month, to be enhanced to 1
systems have been put in place to
Kgs of top quality Yarn for a range chemical dispensing system, etc., is 0.9 million Kgs are being used for million pcs per month in 2021. The The implementation of new and eco-
ensure a Lean manufacturing system.
of textile customers, following strict providing a wide variety of colors in covering all types of in-house dyed, plant has been designed in line with friendly technologies will have favorable
Eco-friendly technologies are being
testing standards, on Automated Spun and Filament Yarns. With annual dope dyed and raw white yarns with Lean concepts, will promote gender impacts both on our people and our
used to replace aggressive processing
Spinning Plants, using latest European dyeing capacity of over 5 million Kgs. various brands of spandexes like Lycra diversity and is expected to achieve planet and will enhance worker safety,
agents and reduce water consumption.
machinery. Raw materials include: Interloop is providing a wide variety of and Creora, at different customized 50:50 male to female ratio. boost productivity and minimize risk
Latest machinery including Laser
colours in yarns including Polyester, percentages. of work-related accidents or long term
• Pakistani and Imported cotton machines have been commissioned
Nylon, Acrylic, Coolmax, Modal, Tencel, illness.
• Sustainable materials including
BCI and Organic cotton
• Synthetic fibers including Acrylic,
Viscose, Polyester, Pre-consumer
Waste Fibers
Multiple varieties of yarns produced

include: Plain, Slub, Multi Count, Slub
Lycra Core, Lycra Core, Polyamide
Core, Siro, etc. 40% yarn is consumed
in house with remaining serving world’s
renowned weavers, knitters, denim and
towel producers.

BUSINESS CATEGORIES
Seamless Active Wear
Interloop has set up a Seamless
Active-wear vertical Pilot Plant at the
Interloop Industrial Park. With current
production capacity of 90,000 pcs
per month, the ramp up plan includes
increasing the production capacity to
270,000 pcs per month with installation
of 50 knitting machines during 2020,
and to 540,000 pcs per month by
installing 100 machines by 2021.
Latest Japanese machines provide a

large variety of sewing capabilities as
well as a variety of styling from basic
to hi-tec. The Seamless garments offer
360 stretch for ease of movement.
Interloop offers special synthetic
material range in recycled as well as
biodegradable materials, combining Knitwear
durable performance with sustainability.
Expanding into the Apparel Segment,
Body mapping technology provides Interloop has established IL Apparel
required construction, meeting the (Private) Limited; a subsidiary of
needs of different body zones. The Interloop Limited which handles the
product range includes basic under Knitwear business category of the
garments to hi-tech active wear for company. The Knitwear Pilot Project;
men and women. a cut to pack garment manufacturing
facility has been operational since Jan
2019 and made its 1st export shipment
Xterity 3.0 in March 2019.
With the assistance of our US affiliate, A resourceful fabric sourcing team,

Interloop has developed and is selling having strong linkages with reliable
its own brand Xterity 3.0; performance spinners, knitters, dye houses
per month. This includes a good to cut and sew) garment manufacturing
active wear, online at Amazon. Xterity and printers, sources best quality
combination of tee shirts, under wears, complex at Interloop’s second Industrial
3.0 is designed with body mapping fabric and embellishments, as per
polos, sweatshirts and fleece jackets. Park. This complex is expected to
intelligence to provide comfort where customer requirements. IL Apparel
With 540 hi-tech Japanese sewing house 175 knitting machines with
you need it most. has a dedicated Product Development
machines, IL Apparel is manufacturing 65 tons capacity per day, dyeing &
Center, with 40 sewing machines, for
Made for men and women both, Xterity all kinds of fashion diversity in cut to finishing set up with 70 tons capacity
quick turn sampling for its customers.
3.0 workout clothing is stylish and ultra- pack garments. per day and projected capacity of
functional, offering a seamless, smooth The stitching plant has the production producing 5.4 million garments per
IL Apparel plans to put up a complete month.
appearance and maximum stretch capacity of 1.2 million garments
vertically integrated (fabric production
for unlimited movement. Using quality
fabrics for a breathable fit, our apparel is
anything but basic.
OUR CUSTOMERS SUPPLY CHAIN
Interloop sells socks, tights & leggings to top brands and retailers across Europe, USA & Asia. Suppliers are vital partners in Our procurement strategy also takes • Equipments (Machines and Allied
meeting customers’ expectations into account the existence of policies Products)
Some of our top clients include: and delivering top quality products. and procedures at our suppliers’ end
Our primary objective while making for managing health and safety, labor Our supply chain consists of around
procurement decisions is to get the and human rights-related issues. 900 suppliers spanning more than 24
best combination of quality, economy, Our special consideration of the countries. The suppliers in Pakistan
efficiency and effectiveness while sustainability criteria while inducting (Yarn suppliers) are mainly labor-
keeping sustainability as priority. The suppliers, as well as approach for intensive while suppliers abroad (parts,
Procurement & Sourcing department carrying out periodic audits, help machines, and plants) are mainly
at Interloop is responsible for ensuring to ensure compliance and manage technology-intensive. We primarily
timely availability of materials as impacts in the supply chain. During the procure materials and services from
per requirements. Our procurement year, 90 new suppliers were screened local suppliers, in line with our strategy
management not only focuses on cost for impacts on the environment and the to encourage the development of local
effectiveness but also on bringing a society. supply chain, leading to economic
positive change for stakeholders by development within the country.
pursuing an ethical and sustainable We procure the following items from However, the equipment, materials
business. We have Green Purchasing our wide range of supplier base: and services which are not available
strategy in place to limit the negative in Pakistan or do not meet the end
• Hosiery Yarns (Cotton Yarns, Man- customer requirements are procured
impacts on the environment in our
made Yarns, Regenerated and from abroad. During the year, we
supply chain. The strategy clearly
Recycled Yarns) procured around PKR 20 billion worth
defines the desired course of action
and factors to be considered while • Dyes & Chemicals which meet material and services of which 60%
making procurement decisions. We Oeko-Tex requirements and other was from local and 40% from global
require our suppliers to be compliant International Certifications suppliers.
with international standards related • Services General (Repair &
to product specification and quality. Maintenance, Construction, etc.)

COMMITMENTS,
MEMBERSHIPS & AWARDS Awards
Interloop is a member of various Nations entity dedicated to gender
industry associations and also supports equality and the empowerment of
charters developed in the areas of women. We earnestly participate in the
economic, environment and social events managed by the organizations
impact management. We actively where we hold memberships but do
support the Sustainable Development not hold any management position.
Goals of UNDP and strive to align our We do not offer substantial funding
strategies to uphold the ones most to these organizations except
relevant to our operations. We also membership fees and sponsorships for
support UN Women which is the United events/seminars.
Memberships
adidas Performance Award

In 2018, adidas awarded Interloop for
Zero Waste Water discharge at its LEED
Gold Certified facility; 120kW solar
Pakistan Business Council All Pakistan Textile Mills Association Pakistan Hosiery Manufacturers and
Exporters Association (PHMEA) Energy Generation being enhanced to
2MW by Q3, 2019; significantly Reducing
the use of Plastic & commitment to Plant
73,000 trees by 2020
PUMA Sustainability Award EFP-OSH Award

PUMA Sustainability Award 2018 for Interloop was conferred the 14th EFP –
outstanding performance in Social OSH Award 2018 in Diamond Category
Better Cotton Initiative The Faisalabad Chamber of The Lahore Chamber of Commerce Compliance & Environmental Sustainability Jointly Organized by Employees
Commerce and Industry (FCCI) and Industry (LCCI) Federation of Pakistan (EFP) and ILO
in recognition of its Best Practices in
Safety, Health & Environment

COMMITMENTS,
MEMBERSHIPS & AWARDS
Sustainability Initiatives Supported
Interloop also supports multiple environmental and social initiatives to ensure sustainability in the supply chain and for
betterment of communities.
Environmental Certifications Social Certifications
Chemical Management Portals
Others

STAKEHOLDERS’ ENGAGEMENT
Engagement Topics Identified by
Stakeholders Engagement Method Our Response
Frequency Stakeholders
Stakeholders play an essential role from GRI Standard Foundation stakeholders are engaged throughout
• Economic returns Continuous focus on
in our success. Their input helps us 101:2016 was used during the the year by concerned departments
meet their expectations and augments process of stakeholder engagement. for discussing the issues relevant to • Management of innovation and business
AGM/EOGM/
shared value creation. We define Stakeholders were identified, mapped them and Interloop. However, during Shareholders/ environmental risks development, investment
Corporate Affairs Ongoing
stakeholders as individuals, entities and and prioritized for engagement on the year, we have carried out specific Investors in environmentally friendly
Department • Interventions for the
groups who have the potential to affect the basis of their relationship with engagement with selected stakeholder technologies and CSR
progress of local
our ambitions, targets and business Interloop, their ability to impact groups for defining material topics for program management
communities
objectives or who are affected by our or vulnerability due to Interloop’s our sustainability report.
Continuous investment
activities and operations. GRI reporting activities and operations, proximity
• Investments/Expansion in production capacity,
principle of stakeholder inclusiveness and willingness to engage. The Briefing, Reports,
Ongoing/ environmental policies and
Analysts Corporate Affairs • Environmental initiatives
Occasional monitoring of impacts and
Department • CSR actions CSR investment for local
community
• New Products/Designs Continuous innovation and

Customer Surveys, up-gradation for quality
• Quality
Customers Customer Feedback, Ongoing products, management of
Marketing Department • Impacts on the impacts on environment and
environment and society society through CSR policies
• Employee benefits Provision of market-

Annual Dinner, CBA
• Job-related training based benefits, on job
Meeting, Human
training to enhance their
Resource Department, • Health and safety of skill set and investment/
Employees Open House Sessions, Ongoing workers policies, procedures for the
Mission Awareness
• Training to security management of health and
Sessions, Employees
personnel on human safety of workers and training
Surveys
rights to security personnel
Business Development
• Business opportunities leading to increased
Supplier Surveys,
• Environmental friendly opportunities, exploring
Suppliers Code of
Suppliers Ongoing material and guidance environmental friendly
Conduct, Request for
on new material materials and training/
Quotations
requirements guidance to suppliers on new
requirements
Compliance with laws and

Regulators/ Reports, Consultative Ongoing/ Compliance with laws and
regulations in all business
Government Sessions Occasional regulations
activities
CSR program based

Intervention in the field
on community needs
of education especially
Local Meetings, Employee assessment and investment
Ongoing special children education,
Community Engagement in education, health, and
health, and infrastructure
sports for the improvement of
development.
local communities

MATERIALITY ASSESSMENT
Materiality assessment helps us to determine the most important issues relevant to our stakeholders and represent our major The boundaries of the material topics have been defined based on the actual occurrence of the impact i.e. within the
impacts on the economy, environment and the society. The issues identified from stakeholder engagement along with those organization, outside the organization or both within and outside of the organization.
pointed out through internal analysis and industry-specific issues were analyzed, prioritized and finalized using Reporting
Principles from GRI Foundation 10:2016. These principles have been applied throughout the materiality determination process Material Topic Impacts Making it Material Boundary
at various degrees to shortlist the issues which are of most interest to our stakeholders and which represent our significant Economic Important for business continuity, return to investors and contribution
Interloop
economic, environmental and social impacts. These issues have been analyzed by the sustainability cell which is responsible Performance to economy and society
for defining sustainability initiatives, targets and monitoring performance against these targets. Job creation for local communities resulting in economic
Market Presence Interloop
development around the plant site
Procurement Creation of business opportunities for local vendors, economic
Interloop
• Procurement Practices • Economic Performance Practices development, reliable supply chain
• Security Practices • Market Presence Materials Sourcing & Consumption of limited material resources, impacts in the supply
Interloop, Our Suppliers
Influence on Stakeholders’ Assessment and Decisions
• Materials Sourcing and Use Usage chain

• Emissions
Impact on climate change due to the consumption of fossil fuels and
• Water Energy Interloop, Our Suppliers
Highly
opportunities for energy production from non-renewable sources

• Energy
• Effluent and Waste Lead to climate change resulting in severe weather patterns and raw
Emissions Interloop, Our Suppliers
• Employment and Labor Practices material availability
• Anti-Corruption
Interloop, Our suppliers,
• Human Rights Water Affects the availability of freshwater leading to water scarcity
Our Customers
• Local Communities
Affect climate through air emissions, discharge of effluent and waste
Effluents & Waste Interloop, Our Suppliers
generation both hazardous and non-hazardous
• Indirect Economic Impacts • Health and Safety Employment & Labor Providing jobs for economic development, compliance with
Interloop
• Marketing and Labeling • Training and Education Practices applicable laws, customer charters and international conventions
• Supply Chain Impacts Affects competitiveness, leads to misuse of power resulting in
Anti-Corruption Interloop, Our Suppliers
• Compliance with Laws poverty. Compliance with laws and international charters
Moderately
Risks to reputation and license to operate in case of non-compliance

Human Rights of basic human rights defined in international charters and Interloop, Our Suppliers
conventions
Effects on local communities due to operations, the contribution for
Local Communities provision of education and health facilities and creation of livelihood Interloop
opportunities for economic development
Health and safety of employees impacting productivity, compliance
Health & Safety Interloop
with applicable laws as well as customers’ requirements
Training and Enhances the productive potential of the workforce, cost savings,
Interloop
Education and improvement of product and service quality
Moderately Highly Compliance with human rights laws and international charters and
Security Practices Interloop
Significance of Impacts on Enconomy, Environment and Society customers’ requirements
Compliance with Laws Compliance with applicable laws Interloop
The outcome of the materiality determination process has been summarized in the materiality matrix. The materiality matrix Negative supply chain impacts in the areas of environment, labor and
contains the issues which are highly important to stakeholders and Interloop and demonstrates significant impacts of issues Supply Chain Impacts Interloop, Our Suppliers
human rights
that are moderately important to Interloop and stakeholders. The scope and content of the report have been derived from the
materiality matrix. The analysis of the material topics also helps in devising and updating appropriate policies and procedures
for effective management of the impacts of our operations.

SUSTAINABILITY
MANAGEMENT
Mission, Vision 36
Core Values 37
Our Governance 38
Sustainability at Interloop 40

MISSION, VISION CORE VALUES
Integrity
Mission
Care
To be an agent of positive change for the stakeholders and
community by pursuing an ethical and sustainable business Act with Integrity
We act with integrity and are ethical
in our functions and dealings
Vision 2020 Accountability

Nurturing a Caring Culture
To double our turnover by 2020 through value addition, We promote a caring attitude
process improvement and nourishing talent towards our employees and the
community as a whole. We acquire,
nurture and reward talent
Respect
Accept Responsibility,
Be Accountable
We take decisions through collective
wisdom, accept responsibilities and
avoid undue financial risks
Excellence
Respect for Environment,
Respect for the People
We make efforts to preserve the
environment we live in and ensure
that self-respect of our workforce is
maintained. We are good team players
Achieving the Highest Standards

We believe in excellent customer service,
latest processes & technology, quality
product & services, personal growth &
development

OUR GOVERNANCE ORGANIZATIONAL STRUCTURE
Corporate governance principles Pakistan, placing Interloop amongst found at page 28 of the Annual Report
set the structure and processes the top 50 companies and the 2nd 2019.
for successful management of the Largest Textile Company listed on PSX, Board of Directors
organization and bring transparency by market capitalization. The Board has constituted different
in corporate actions. This year, we got Board committees, with proper
listed on Pakistan Stock Exchange The Board of Directors is the highest delegation as required under the
which has required us to follow the governing body at Interloop. The Board Code of Corporate Governance,
listing regulations as well as Code is elected every three years. The last for effective discharge of its duties.
of Corporate Governance for listed election of the Directors was held on These committees include the Audit
companies. We, at Interloop, commit October 22, 2017. The Directors elect Committee, HR and Remuneration Board Committees Company Secretary
to follow our internal code of conduct, one of the members to serve as the Committee and Nomination
Code of Corporate Governance Chairman of the Board. The positions Committee. The committees have
applicable on listed companies and the of Chairman and Chief Executive defined terms of reference with clear
best available practices in corporate Officer are held by different individuals. objectives and responsibilities.
governance to ensure continued The Chairman is responsible for Audit HR & Renumeration Nomination
overseeing performance of the Board Interloop is committed to act in an Committee Committee Committee
delivery of exceptional performance
while the Chief Executive Officer is ethical and sustainable way in all of
and meet the expectations of our
responsible for day to day activities of its activities. It has centralized the
stakeholders. The code of conduct
the Company in line with the mandate planning, execution and monitoring
guides on ethical business practices,
vested in him by the Board. of sustainability activities under Internal
relations with our business partners Audit
CEO
the CEO Secretariat in the form of
and the conduct required from our
The Board consists of seven Directors; dedicated Sustainability Cell. The
people. The code of conduct can be
two Executive & five Non-Executive Sustainability Cell is responsible for
accessed at page 8 of the Annual
Directors. Two among them are reviewing customer requirements on CFO
Report 2019.
Independent Directors and have no the sustainability front, developing new
Interloop Limited (ILP) was listed on monetary relationship with Interloop policies and actions, recommending CEO’s Office
Limited except directorship fee paid the best course of action, defining (Corp Coms, Sustainability Strategy
the Pakistan Stock Exchange (PSX) Office, Other Specialists)
on April 5, 2019 at PSX, Karachi. to them for attending Board meetings. targets and monitoring performance
Despite tough market conditions, the Of the seven Directors, six are male on sustainability. The sustainability
IPO was oversubscribed by 1.5 times and one is female. The Directors have performance is reviewed by the Chief
and Interloop was able to successfully diverse backgrounds in engineering, Executive Officer on a monthly basis
raise PKR 5.02 billion, the highest by finance and other related fields. The and deliberation is also carried out at President President / President / BU Head
VP Finance VP People CIO VP Sourcing
details about the Directors can be the Board meetings. Hosiery VP Yarns VP Denim Seamless
a private company in the history of
VP Sales &
Spinning Finance HR
Marketing
VP Hosiery Sales Yarn Sales Energy Interloop Way
Yarn Deying &

VP Hosiery OPS Lean
Covering
EHS

SUSTAINABILITY AT INTERLOOP
Interloop’s sustainability framework and build a diverse, empowered and is being measured and reported. Our Governance
is based on the Triple Bottom Line inclusive workforce while using our contribution towards SDGs can be
reporting comprising People, Planet resources ethically. It is part of our found in relevant sections of the report.
& Prosperity. Environment-Friendly DNA and is integrated into our thinking The KPIs against each SDG can be
Practices, Social Welfare Initiatives and ways, processes and policies. With FY referred from the SDGs Index available
Stable Economic Growth are our key 2016 as the baseline year, Interloop on page 96 of this report.
concerns to manage a Sustainable has set Sustainability Targets for FY
Business. 2021, for People, Planet & Prosperity,
which underscore long-term strategic People
Philosophy priorities of the company.
Interloop’s Sustainability Philosophy is Alignment with

driven by our Mission and focuses on
transforming the way we do business; UNDP Sustainable
from sourcing responsibly to reducing Development Goals
our carbon footprint, from supporting
labor rights to taking care of our (SDGs) Planet
communities, while continuously
Our Management Policies and Targets
growing our business. Our ambition is
support 9 SDGs against which the
to transform lives, improve wellbeing
progress of our sustainability initiatives
Prosperity

ENHANCING
ECONOMIC IMPACTS
Target 2021 44
Direct Economic Value Generated and
Distributed 44

TARGETS 2021
Target 2021
Direct economic value to be generated by 2021 Economic Value
Economic
Distributed Value
2019
Distributed 2019 Economic Value
Economic
Distributed Value
2018
Distributed 2018
(PKR in Millions) (PKR in Millions) (PKR in Millions) (PKR in Millions)
US$ 450 million (Rs. 65,000 million) 22,755 22,755
19,513 19,513
Performance till 2019

Direct economic value achieved in 2019 (Rs. 37,524 million)
Healthy and sustainable returns are targets may be annual, or, in the case We have zero tolerance for corruption
vital for pursuing sustainability and of expansions, acquisitions and new in our operations as well as in
creating shared value. Our economic business ventures, may be spread our relationship with our business 105 105
426 426
performance is guided by our mission, over a longer term. Currently, our partners. Our Code of Conduct clearly
350 350 1,428 1,428
vision and values, along with targets economic performance is guided by restrains our employees to engage 544 544
set by the management for delivering our vision: “To double our turnover by in any such practice. Additionally, 3,591 3,591
7,898 7,898
6,853 6,853
exceptional results with high quality 2020 through value addition, process our internal audit department carries Operating cost Operating cost Payment to governmentPayment to government Operating cost Operating cost Payment to governmentPayment to government
products, exceeding customer improvement and nourishing talent.” out audit of all activities and reports Employee wages and benefilts
Employee wages Community
and benefiltsInvestmentsCommunity Investments Employee wages Community
Employee wages and benefilts and benefiltsInvestmentsCommunity Investments
Payment to providers ofPayment
capital to providers of capital Payment to providers ofPayment
capital to providers of capital
expectations. Our operations have The Chief Executive Officer along with to the Board Audit Committee. The
both direct and indirect economic the management team is responsible Board Audit Committee reviews the
impacts in the form of return to for underlying activities to meet the report and corrective action is taken The economic performance is performance is available in financial of actuarial valuation. Interloop also
investors; payments to suppliers, targets. At Interloop, while pursuing the as per requirement. During the year, periodically reviewed against the set statement section of the Annual Report offers contributory benefit in form of
employees and the government; and targets, we have the policy to procure all operations were assessed for financial targets at Board meetings and 2019. provident fund to its employees. A
creation of livelihood opportunities maximum raw materials, process risks related to corruption and no corrective measures are taken through separate fund is maintained where
process improvement and cost savings Interloop offers market competitive Interloop contributes 7.5% while
in the supply chain, along with materials and other available products incidence of corruption was recorded
to meet the defined targets. salaries and benefits to its workforce employees contribute 7.5% to 12.5% of
socioeconomic development of the and services locally, to strengthen at Interloop.
and regularly monitors the remuneration basic salaries. The participation in the
surrounding communities. The Board local suppliers and create employment
The Company has shown marvelous for relevance and compliance. Apart contributory benefit plan is voluntary.
defines the targets for economic opportunities.
results in the current financial year by from salaries, Interloop offers defined The liability for defined benefit plan was
performance for the year. Goals and
reporting the revenue of PKR 37,524 benefit in the form of gratuity to its PKR 2,842.62 million in 2019 compared
million against revenue of PKR 31,169 employees where no contribution is to PKR 1,925.61 million in 2018.
DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED million in 2018 and securing net profit
of PKR 5,195 million against net
required from the employees. Interloop
does not maintain a separate fund
profit of PKR 3,886 million in 2018. for gratuity and the liability for defined
FY 2019 FY 2018 FY 2017 FY 2016 FY 2015
The detailed information on financial benefit plan is calculated on the basis
Rupees in million
Economic Value Generated 37,524 31,169 26,550 26,426 24,213
Revenues*
Economic Value Distributed
Operating Cost 22,755 19,513 16,851 16,585 16,218
Employee Wages and Benefits 7,898 6,853 5,778 5,016 4,225
Payment to Providers of Capital 3,591 1,428 1,377 1,045 1,703
Payment to Government 544 426 381 582 347
Community Investments 350 105 200 160 87
Economic Value Retained 2,386 2,844 1,963 3,038 1,633
Revenues as per the requirement of GRI Economic Performance 201:2016 disclosure 201-1 which requires inclusion of revenue from financial investments and
sales of assets.

MANAGING
ENVIRONMENTAL
FOOTPRINT
Targets 2021 48
Using Resources Efficiently
and Responsibly 50
Reducing Emissions and Wastes 55

MANAGING
TARGETS 2021 ENVIRONMENTAL FOOTPRINT
(Baseline Year 2016) Consumption of materials, energy
use and wet processing in textile
out for executive & non-executive
employees in all manufacturing
treatment and remediation while PKR
5.3 million was spent on prevention
Our sustainability targets FY 2016 – 2021 cover only Hosiery business being the main operational activity of Interloop. industries are rapidly depleting natural facilities. Interloop has devised and management costs.
However, due to expanding business functions, we have planned to set next 5 years’ targets for important environmental resources while discharge of effluents, internal training modules on different
emissions and wastes are adversely environmental, health and safety issues Interloop has in place an environmental
impact areas at organizational level, in order to effectively manage and reduce the environmental load of our operations.
affecting the environment. These to equip the line staff with the latest grievances management mechanism
activities are not only causing climate knowledge and skills. where complaints about environmental
Water Greenhouse change but also increasing the cost of issues can be filed by the affected
(Litres/kg of socks)
Gas Emissions doing business. In-line with Article 15 Interloop is part of the global supply parties. During our regular training
15% (kg CO 2e/Dozen of socks)
of Rio Declaration, our environmental chain and realizes its responsibility to and awareness sessions, employees
15% management approach at Interloop have in place policies, management are encouraged to share ideas and
is proactive; focusing on early impact systems and targets for managing its suggestions about environmental
identification of environmental issues environmental impact and reporting the concerns, as we believe that these
and taking appropriate measures to performance considering our ethical inputs play an integral role for continual
Energy Environmental Sustainable timely manage them. Irrespective of commitments and global requirements. improvement in the systems. Various
(kWh/Dozen of socks) Interloop has defined environmental platforms like Worker Management
Impact Areas Material the costs involved, we are continuously
15% (% of total yarn) investing in new technologies for targets for its Hosiery business which Council (WMC), EHS Committee,
have resulted in reducing the relative Focus Group Meetings, etc. are
25% operational excellence and reduced
volume of water consumption, energy available to discuss and generate
environmental impacts.
usage, air emissions, and effluent solutions for any upcoming issues.
Our environmental policy serves as a waste. Our manufacturing facilities are Additionally, the grievances can also
guiding document for all business units certified against various management be channelized through dedicated
Renewable Energy Sustainability Specific to manage the environmental impact systems viz. ISO 9001:2015, ISO Management Representative (MR)
(MWp)
deputed at each plant and through
4 MWp Certifications of company’s operations and helps 14001:2015, OHSAS-18001:2015,
in complying with our commitments, ISO-50001, SA 8000, ISO-17025 and suggestion boxes installed at
Installed Solar Capacity
applicable laws and customers’ Code ISO-17043 helping in identification prominent locations at each facility. The
of Conduct. A dedicated corporate of opportunities & risks and devising Manager Health & Safety is responsible
Sustainability Cell is responsible for necessary measures for capitalization for dealing with such complaints. The
Waste Water evaluating environmental sustainability and management, respectively. The complaints requiring new policies,
ZDHC Compliance initiatives, tracking impacts and performance is regularly monitored procedures and investments are
setting targets. EHS representative at through internal checks against targets forwarded to Corporate EHS for review
each plant is responsible for ensuring and appropriate measures are taken & appropriate actions. As a result
Performance Till FY 2019
compliance for employees’ health & if and where required. During the of strong management systems, no
UOM FY 2019 FY 2018 FY 2017 FY 2016
safety, applicable local & international reporting year, PKR 29.17 million was non-compliance with the environmental
Water Litres/kg of socks 151 137 153 168 laws and customer requirements, spent for environmental protection, laws, regulations and customers’
Energy kWh/Dozen of socks 5.06 4.70 4.75 4.71 overseen by Corporate EHS. Regular out of which PKR 23.86 million was requirements occurred during the year.
Greenhouse Gas Emissions* kg CO2e/Dozen of socks 1.88 1.95 1.69 1.89 internal & external trainings are carried spent on waste disposal, emissions
Sustainable Material % of total yarn 40.85 34.66 32.82 25.35
Renewable Energy** MWp 0.13 0.12 0.12 0.12
Wastewater ZDHC foundational level compliance
Sustainability Specific 2019: Cradle to Cradle (Gold) Certified Socks
Certifications 2018: LEED GOLD Certified facility (Hosiery Plant - 4)
ISO-50001 (Energy Management System certification for Hosiery Plant - 2 & 4)
*Greenhouse Gas Emission values include scope I & scope II emissions

**2.0 MWp Solar project is operational since August 2019 I PARK

USING RESOURCES
EFFICIENTLY AND RESPONSIBLY
Material Sourcing and Raw Material Consumption
Consumption Material Unit FY 2019 FY 2018 FY 2017

Raw Material - Yarn kg 19,309,318 20,315,384 18,390,254
Interloop Limited is a vertically Raw Material - Dyes and Chemicals kg 9,810,602 13,520,679 14,610,396
integrated setup. Considering yarns
Packaging Material kg 3,829,999 4,380,589 -
as priority raw material which is
being produced by using natural and
Of the total raw material at Interloop during FY 2019, 48.09% was renewable while 51.91% was non-renewable. The total raw
synthetic fibers, we produce as well
material comprises Yarns, Dyes & Chemicals and Packaging materials.
as procure cotton yarns, synthetic
yarns and regenerated & recycled
Recycled Input Material FY 2019 FY 2018 FY 2017
yarns which are processed using dyes
and chemicals to produce socks and Percentage of recycled input
4.52% 5.56% 5.62%
tights. At Interloop, we are focused on materials used
increasing the quantity of sustainable scarcity, depletion of soil in cotton are based and also encourage them to
and certified materials (BCI Cotton, The recycled material consists of Recycled Nylon, Polyester and Regenerated Cotton.
growing areas, waste management, engage in social activities.
Organic Cotton and Recycled Yarns) to labor practices and human rights
reduce the environmental load of our compliance. In order to effectively Interloop sources 100% raw materials
products. The priority raw materials manage the risks in the supply chain, from suppliers who are third-party
are determined by dividing the quantity we source from certified suppliers certified for an environmental or social
of each material by total raw material and compliance is ensured through sustainability standard which may
consumed (yarns & chemicals) during rigorous supplier evaluation processes. include but is not limited to Oeko-
the year and are sourced from Oeko- Moreover, we are supporting many Tex Standard 100, BCI, GOTS and
Tex 100 certified suppliers. The major social initiatives in health, education, GRS, directly supporting SDG 12;
environmental and social risks in the sports, literary & cultural activities within Responsible Consumption and
supply chain are climate change, water Pakistan where our major suppliers Production.
Raw materials third party certified to an environmental or social standards, by standard

Standard / Program Material UOM* FY 2019 FY 2018 FY 2017
Oeko-Tex - % 100 100 100
BCI BCI Cotton % 33.49 26.80 25.30
GOTS Organic Cotton % 2.37 2.80 1.82
GRS Recycled Cotton % 4.44 5.45 5.38
Recycled Nylon % 0.02 0.11 0.24
Recycled Polyester % 0.06 0.001 0. 004
Sustainable Cotton Program** - % 0.50 - -
*Percentage of total yarn consumed

**Primark sustainable cotton program

USING RESOURCES
EFFICIENTLY AND RESPONSIBLY
Energy Usage and reducing the energy consumption for
its operations through modern energy
2 MWp solar installation was initiated
in FY 2019 and has been completed
Energy Savings efficient technologies and efficient successfully. The reduced energy
operations management. consumption initiatives include
At Interloop, we mainly require energy
installation of Waste Heat Recovery
in the form of electricity, steam and During the year, significant steps were System, Inverters on Cooling Towers,
natural gas. We use natural gas, diesel, taken to increase the use of renewable Fan Motor and Air Handling Units
furnace oil and coal for electricity and energy resulting in higher percentage of (AHU), Upgradation of steam blowers
steam generation. We also purchase clean energy supporting and Installation of Energy Efficient lights
electricity from Lahore & Faisalabad SDG 7; Affordable and Clean Energy. at finishing floors.
Electric Supply Companies. Interloop To achieve the target of 4MWp installed
is continuously working towards solar capacity by FY 2021, a project of
Unit FY 2019 FY 2018 FY 2017

Energy used within
GJ 1,329,172 1,516,146 1,362,073
Operations Solar Energy
The fuel consumption figures are derived from log record and converted from their respective measuring units to energy in Solar energy is abundantly available,
GJ’s using factors from the Engineering toolbox. free of cost and the cleanest energy
source in terms of GHG emissions.
Unit FY 2019 FY 2018 FY 2017 Our currently installed solar capacity
Savings by Energy of 120kWp has already made a
GJ 11,079 10,335 7,621
Conservation Initiatives positive impact by generating 483,447
kWh and reducing 268 tons of CO2e
emissions. The solar project of 2.0
Energy Management MWp has been fully operational since
August 2019 and is expected to further
Initiatives - ISO 50001 reduce 1500 tons of CO2e emission per
Interloop Limited is the 1st Textile Energy Consumption Savings by Energy Conservation Initiatives annum. We have planned to increase
(GJ) (GJ)
Company and 4th among all other the renewable energy production to
industries in Pakistan to achieve 10,335
11,079
4MWp installed solar capacity by 2021.
ISO - 50001 Certification for Energy
7,621 Biomass Boiler
Management System (EnMS). The 1,362,073
1,516,146
1,329,172
certification provides guidelines for Biomass fuel has very small
applying EnMS to existing monitoring contribution to GHG emissions
and measurement system along with compared to coal and furnace oil for
streamlined documentation. Currently, steam generation. Interloop fulfills some
the scope of this certification includes FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019 portion of its energy demand by using
(Years) (Years)
Plant 2, Plant 4, Vertical Sampling bio-waste (corncob, rice husk) as fuel.
Facility and Distribution Centre at The total reduction from this initiative in
for FY 2021 in Hosiery business. The
the Interloop Industrial Park. EnMS FY 2019 was 1,779 tons of CO2e.
entire standard revolves around the
is helping in considerably improving
PDCA (Plan-Do-Check-Act) cycle that
energy efficiency at Interloop Limited
endorses a continual improvement
and is assisting in achieving its
process.
Environmental Sustainability Targets

USING RESOURCES REDUCING
EFFICIENTLY AND RESPONSIBLY EMISSIONS AND WASTES
Water Usage investing in initiatives for recycling and
reuse of processing water.
During the year, different initiatives were
taken for efficient utilization of water in
GHG Emissions and continuous upgradation of
operations. These emissions are
greenhouse gas emissions at our
production units to ensure compliance
Water is an important resource for the the production facilities and reduction Greenhouse gas emissions are the result of multiple operational with control limits as well as meeting
Interloop withdraws ground water for of fresh water intake, supporting processes and subject to limits set by the targets set in these areas as part of
textile industry. It is extensively used in major cause of climate change and
consumption in its operations. The SDG 6; Clean Water and Sanitation. Environmental Protection Agency (EPA) our five-year plan.
textile processing operations including cannot be completely avoided.
area has been declared as high risk The initiatives include water reuse in under Punjab Environmental Quality
dyeing, resizing, scouring, bleaching However, measures can be taken to
according to WRI aqua duct tool. As socks processing, installation of water Standards (PEQs). We regularly monitor
and mercerizing. Interloop uses water reduce the GHG emissions through
water table is shallow, hence, mineral efficient Nano bubble technology in
in hosiery as well as yarn dyeing apart introduction of cleaner technologies
contamination is more in the area. wash process, water saving taps in
from producing steam. We are focused
However, the size of the water source canteen areas and re-utilization of
on reducing water consumption in Unit FY 2019 FY 2018 FY 2017
is not known. The water source is not ablution water in the mosques.
our operations by using dyes which
declared as protected area, however, GHG Emissions Mt 68,579 123,196 78,447
require less water, and installation of
it is significantly important for the
water efficient equipment. We are also CO2, CH4, N2O gases are included in the calculation of CO2e emissions. No biogenic emissions occur at Interloop. The source
community dependent on this source.
of emission factors were derived from IPCC’s 5th assessment report.
Water withdrawal by source Unit FY 2019 FY 2018 FY 2017 Unit FY 2019 FY 2018 FY 2017
Ground water m 3
2,667,672 2,971,045 3,283,288 Reduction in GHG Emissions
Mt 9,090 16,181 8,687
through multiple initiatives
The water withdrawal is measured through flow meters.
Only scope - I emissions resulting from CO2, CH4, N2O gases are included in the calculation.
Initiatives for Efficient
Water Management GHG Emissions Reduction in GHG Emissions
(Mt) (Mt)
Nano-Bubble Technology Water Withdrawal 16,181
3 123,196
(m )
An important initiative is installation 3,283,288

2,971,045
of Nano-Bubble Technology for wash 2,667,672 78,447
9,090
process. It reduces water consumption 68,579 8,687
by 95%, chemical consumption by

71% and energy consumption by 50%,
with zero liquid discharge. So far, 18
washing machines have been installed FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019
in different processing units across the (Years) (Years)
FY 2017 FY 2018 FY 2019
company. (Years)
Comparative Reduction in Water Usage by adopting Nano-Bubble Technology

Consumption (per kg comparison)
Process Classical Technology Nano Bubble Technology % Reduction
Water (liters) 20 1.0 95
Chemical (g) 57 16.5 71
Electricity (Wh) 200 103.0 50
Wastewater (liters) 18 0.0 100

REDUCING
EMISSIONS AND WASTES
Emission Reduction Effluent and Waste per policy. Centralized waste storage
facilities are established and operational
Wastewater
(m3)
Initiatives Interloop has in place a well-defined at all manufacturing plants where all
2,884,143
environmental policy highlighting collected waste is temporarily stored 2,203,464

Heat Recovery System at
handling and discharge of effluents and placed before discharge or sale 1,772,530
Filament Yarn Dyeing Facility
and solid wastes (hazardous as well or treatment. A dedicated workforce is
Interloop has a state of the art Filament as non-hazardous). The company is deputed for waste collection, handling
Yarn Dye House equipped with the committed to work out the options for and discharge.
latest & highly specialized machines. zero discharge of effluents. Moreover,
target for 100% compliance of ZDHC
Wastewater
The Heat Recovery System provides FY 2017 FY 2018 FY 2019
(Years)
the added advantage of economizing foundational level by FY 2021 is also Water pollution is a big hazard to
its operations to a significant extent. in place. Based on the environmental water resources and the problem is limits. Interloop has biological effluent
High temperature waste liquor passes policy, Interloop is also proactively worsening with industrial expansion. treatment plants at all manufacturing
through heat exchanger to raise the working on minimizing of solid wastes,
facilities, treating effluent 24/7/365.
temperature of fresh water. Heated both hazardous and non-hazardous. Large quantity of water consumed
The treated water is discharged into
water is used in subsequent dyeing The Section Head and Area In-charges in textile production gets polluted by
The technology of Bi-Generation Preference to R-407 & R-410 at each plant are responsible for various chemicals used in the process.
industrial drains and the quantity of
processes with no fuel input, which system along with electricity produces Refrigerant careful segregation of waste, which Consequently, it needs to be treated
water discharged is measured though
reduces 140 tons of CO2e emissions around 20% of the total steam with flow meters installed at all effluent
per annum. Keeping aligned with international is collected by waste stores through by reducing the pollutants to an
significant reduction in GHG emissions. treatment plants.
standards, we prefer to use R-407 & defined safe handling and disposal acceptable range as per applicable
WHRS has reduced 5,530 tons of
Waste Heat Recovery System procedures, to ensure compliance as local laws and ZDHC foundational
CO2e in FY 2019. R-410 refrigerants, gradually eliminating
(WHRS)
the usage of R-12 & R-22 refrigerants,
We are harnessing free steam from which have been banned globally Unit FY 2019 FY 2018 FY 2017
Waste Heat Recovery (WHR) Boilers. due to their harmful impacts on the Wastewater * m3 1,772,530 2,203,464 2,884,143
environment.
*Values for hosiery and yarn dyeing business

REDUCING
EMISSIONS AND WASTES
Waste by Type and Disposal Method Coal Ash Brick Plant
Method Unit FY 2019 FY 2018 FY 2017 We have taken the initiative of making
Hazardous Material bricks from Coal Ash; a waste
Reuse (Chemical Drums) number 11,353 13,305 - produced from the coal boiler during
Incineration kg 14,003 12,166 - steam generation. Rather than just
Non-Hazardous Material dumping the ash that destroys water
Other – Sold* kg 5,297,142 4,861,470 - quality and land fertility, the ash is being
used to produce bricks via an eco-
* The non-hazardous waste sold to third parties most of which is used as recycled or renewed material. friendly method, involving no burning of
fossil fuel and using sunlight for brick
Interloop does not transport hazardous
waste internationally. The hazardous
Initiatives to manage treatment plants run 24/7/365 and
are meeting not only the Punjab
curing. The Brick plant has the capacity
to produce 7,000 bricks per day.
waste produced as a result of Wastewater and Waste Environmental Quality Standards These bricks have been used in the
operational activities is disposed off (PEQS) but also fulfilling the stringent construction of Denim Plant at Lahore,
Effluent Treatment Plants
through approved contractors. During international guidelines of Zero mosque floor & walking track of I-Park
the year, 11,353 chemical drums were Interloop understands its responsibility Discharge of Hazardous Chemicals at Interloop Industrial Park, Socks &
sent back to suppliers for reuse while towards ecological conservation and (foundational limits). The largest Socks warehouse, automation unit
14,003 kg waste was incinerated by always takes measures to reduce any treatment plant has the capacity at Plant 1 and are also being sold to
the contractors. The disposal methods negative impact on the resources. As of treating 180m3 of effluent per various top civil companies of Pakistan.
for hazardous waste were confirmed the effluent from wet processing is a hour. Interloop has a dedicated QC
by the contactors. Standard Operating laboratory at each ETP to closely Circularity
potential environmental contaminant,
Procedures for disposal of hazardous Interloop Limited has set-up state- monitor the parameters and ensure
Cradle to Cradle Certification is a
waste provide guidelines regarding of-the-art effluent treatment plants that the effluent discharged into the
globally recognized measure of safer,
handling, transportation, storage and at all hosiery manufacturing facilities environment is within safe limits.
more sustainable products made
disposal of hazardous waste generated to effectively manage treatment for the circular economy. Being
at all Interloop plants are followed requirements. This biological effluent ethically responsible and aligned with
throughout the process.
International trends, Interloop has

made a completely biodegradable
Cradle-to-Cradle (Gold) certified
product. The product is designed
on the principle of circular economy
and is fulfilling all five sustainability
areas of C2C (material health, material
reuse, renewable energy and carbon
management, water stewardship and
social fairness). Non-biodegradable
materials like Polyester, Nylon and
Spandex have been substituted with
sustainable materials and further
processed by C2C certified dyes &
chemicals to make the product 100%
biodegradable.

UNLEASHING
HUMAN CAPITAL
Targets 2021 62
Nourishing Workforce 63
Interloop Way 74
Health and Safety 75
Community Development 77

TARGETS 2021 NOURISHING WORKFORCE
Goals Our motivated, talented and committed
People are one of the key elements
contributing to our success over the
Build a Diverse and
Transform Lives Improve Well-being last 27 years. We consider our People
Empowered Workforce
as our strategic asset and believe
Build a diverse, inclusive, and that their personal and professional
By 2020, we will help transform Enable 15,000 people live
empowered workforce that growth is essential for the growth of
lives of 5000 households, helping more fulfilling and healthier lives
becomes agent of positive the company. Our People Management
break the socioeconomic divide through, participation in sports
change and drives sustainable approach is based on two key
through provision of affordable, and literature, and access to
economic growth for Pakistan principles:
quality education free quality health services
• Respect for People
• Continuous Improvement
Targets These key principles guide our
common and shared values, i.e.,
I-Care: Integrity, Care, Accountability,
Respect and Excellence, shape our
• Expand representation of women • Provide affordable, equitable and • Promote local sporting talent
organizational culture and define the
across all levels of our workforce quality education to 4000 children by enabling 3000 people to
essence of our company.
to 10% by sponsoring 25 TCF schools in participate in sporting events at
under-privileged communities local and national level across
• Support new mothers by multiple sports
HR Policies & SOPs
improving maternity benefits • Provide 500 young women and
We have in place well-defined HR
and providing quality early year men access to technical and • Promote sports for differently
policies and SOPs, in line with
education across all our childcare higher education by granting abled people by sponsoring local
international best practices, to
centres annual scholarships and international sports events
manage our people. Since inception,
• Provide decent work and • Provide equal access to education • Improve well-being of 4000 the company has been focused on
employment opportunities to for 300 children with disabilities people in our community through investing in people and processes. We
20,000 people, supporting promoting reading, literature and work towards continuously improving
livelihoods of more than 120,000 • Provide quality early childhood associated festivals our management processes including
people development and pre-primary
education to at least 200 children • Reduce epidemics of tuberculosis organizational structure, HR planning
• Empower our team members by at Interloop’s childcare centres and water-borne diseases, as well and performance management as well
adopting true Lean philosophy and as other acute health issues by as spending time, effort and money
deploying Lean tools and trainings sponsoring treatments for 8000 in developing our employees. Our HR
to over 2000 people patients policies are focused on grooming our
present employees as well as bringing
• Improve talent management by • Promote mental health and
onboard highly talented professionals
encouraging cross-functional wellbeing by funding research and
from the industry, nourishing them
careers, rewarding high diagnostics for Alzheimer’s disease
through internal and external trainings,
performance and living by
honing their skills through on job
organizational values
training, providing them a productive
and enabling workplace to show their
talent and becoming valuable resource
for themselves and for the organization.

NOURISHING WORKFORCE
Performance based career growth
Hiring and Attrition
opportunities and job rotation options
make Interloop a much sought after Hiring by Age-Group Hiring by Gender Hiring by Location
employer for aspiring professionals.
<30 2,590 78% Male 2,856 86% Faisalabad 2,208 67%
HR Department’s 30-50 706 21% Female 447 14% Lahore 1,095 33%
>50 7 1% Total 3,303 100% Total 3,303 100%
Hierarchy Total 3,303 100%
HR Managers at each plant are
responsible for the implementation of
Attrition by Age-Group Attrition by Gender Attrition by Location
HR policies. The most senior officer <30 1,216 65% Male 1,672 90% Faisalabad 1,298 70%
responsible for human resource related
30-50 624 34% Femlae 184 10% Lahore 558 30%
practices is the General Manager
>50 16 1% Total 1,856 100% Total 1,856 100%
Human Resource & Administration.
All human resource related aspects
reviews the human resource practices major variation in the workforce during
i.e. employment practices, diversity,
and recommends the suitable course the financial year 2019. At the end
Interloop’s Human Resource
Management approach ensures
Employee Engagement Compensation &
training, etc. are monitored at the plant
level and reported at the corporate
of action to the Board. A substantial of the year, Interloop enrolled 16,775 retaining top talent which leads to Survey Benefits
portion of the work is performed by employees. sustainable performance and cost
level. The Human Resource & For better understanding of employee Interloop offers market based
full-time employees. There was no effectiveness. The hiring and attrition
Remuneration Committee of the Board perspectives regarding various aspects remuneration to all employees based
rates during FY 2019 were 20%
of their employment with the company, on their skills and according to their
and 11%. The senior management
HR department conducts Employee performance. Workers at all locations
Details of Workforce i.e. Deputy General Manager and
Engagement Survey of executive are paid more than the minimum
16,775 above are hired based on relevant
2019 employees through the internationally wages prescribed by the government.
experience, skills, education and
15,353 acclaimed Mercer’s Employee We ensure that the contractors’
2018 suitability for the position. Although,
Engagement Model. The results are employees working within factory
15,331 there is no restriction for geographical
2017 shared with all functional and business premises are paid the minimum wages
background, a significant proportion
Heads and plans are put in action to and all employees are paid salaries
of senior management has been hired
improve Employee Engagement Index. directly through their bank accounts.
or belongs to the local community.
Workforce by Employment Type Workforce by Employment Contract Workforce by Employment Contract The last survey was conducted in All male and female employees hired
Moreover, while hiring workers,
broken by Gender broken by Gender broken by Region 2018. for similar positions receive similar
preference is given to people from
remuneration and benefits basis.
16000 15,602 16000 15,555 16000 the local community. During the year,
92.76% of workers were covered under Female workers are eligible for
13,015
12800 12800 12800 collective bargaining agreements. maternity leaves. During FY 2019,
1288 female workers were eligible for
9600 9600 9600
HR Dimensions maternity leaves, however, only 14
79%
Leadership & Direction workers took maternity leave and all
6400 6400 6400
75% returned to work during the year. Only
Worklife Balance
4 remained employed for more than 12
3,698 80%
Teamwork & Cooperation months. 7 out of 8 female workers who
3200 3200 3200
81% took maternity leaves in FY 2018
1,173 1,158 Ethics & Integrity
0 0 47 15 43 19
returned to work and remained
0 0 0 83%
Full Time Part Time Permanent Temporary Permanent Temporary Overall Satisfaction employed for more than 12 months.
(Contractual) (Contractual)
Male Female Male Female Faisalabad Lahore Favorable Response Percentage The return to work and retention rate
is 86%.

The company spends considerable
percentage of its profit to provide all
Benefits* Executive Non-executive Employee Stock Option
basic facilities to its people including
Life Insurance Yes Yes
Scheme
Health Care Yes Yes
EOBI contributions & social security.
Disability / Invalidity Coverage Yes Yes The company introduced “Interloop
Multiple employee welfare schemes
Parental Leave Only females Only females Limited Employees Stock Option
including gratuity, provident fund,
Retirement Provision No Yes Scheme, 2016 (ESOS)” to offer
health care including health insurance,
Company Shares to its eligible
group life insurance offering death, Stock Ownership Yes No
Executive Employees, pursuant to
accidental & disability benefits, Residence Yes No
the Public Companies (Employees
scholarships for employees’ children, Company Vehicle Yes (E5 & above) No
Stock Option Scheme) Rules, 2001,
special welfare assistance for non- Subsidized Meals Yes Yes transforming them from Stakeholders
executives, free pick & drop, subsidized
Pick & Drop Yes (E1-E4) Yes to Shareholders. These shares qualify
meals, etc. are in place.
*Benefits for full time employees including executives & non-executives. Not applicable to
for bonus shares, dividend or similar
corporate benefits announced by
Special Welfare Fund
contractual employees
the Company from time to time. The
for Non-Executives scheme is flexible, voluntary and
focused on long term growth and
Interloop has set-up an additional
prosperity of the employees. 356
welfare fund for non-executive
executives have already become
employees and is supporting them
shareholders. It is, however, pertinent
for marriages, children scholarships,
to mention here that the scheme is
critical illness or death and any other
not in operation since listing of the
sudden needs.
Company on PSX, primarily due to
the fact that the terms of the scheme
Residential Facilities require to be consistent with the
increased legal compliance for a
To facilitate non-resident male & female
listed entity. The proposal for subject
executives, Interloop provides top-
updation in the existing scheme is
class residential facilities including
under review and pending approval
hostels and upscale apartments within
from shareholders of the Company and
company premises, as per space
SECP respectively.
availability.
Leave Fare Assistance Management Trainee

& Anniversary Day Off Officers Program
Every year, Interloop inducts fresh
To promote work life balance, Interloop
graduates, 50% females, across
provides annual Leave Fare Assistance
various functions through the
(LFA) to executive employees for
Management Trainee Officers Program.
vacation with family. It also presents
The one year working contract exposes
them a day off on their wedding
MTOs to a variety of operational and
anniversaries with paid dinner to enjoy
strategic roles. After final evaluation,
the memorable occasion with their
successful MTOs are offered
spouses.
permanent jobs.

Equality & Diversity Reconnect Program
Interloop is an equal opportunity Through the ‘Reconnect Program’,

employer and is committed to female staff members who have
promoting equality, diversity and fair completed 3 years’ service with the
treatment in all areas of employment. company and have to leave their
It provides an inclusive environment jobs due to family requirements can
where everyone feels valued and reconnect with their careers after
respected, irrespective of age, gender, having a break.
race, marital status, disability, religion
Extended Maternity Leaves
or belief, color and nationality. It’s a
17,000+ strong team with diverse In addition to the entitled leaves, if a
talent and over 15 nationalities across female employee requires further leave
various locations. due to her or her newborn’s health
issue, she can avail another 4 weeks
Interloop aims to provide all
leave at half pay.
employees a safe and supportive work Representatives have been created at Worker’s Management Council is
environment, free of discrimination and all plants who are always accessible actively working at all Interloop plants. Day Care Centers
harassment and equal opportunities to to every employee for handling any We also encourage our suppliers to
grow, learn and develop on merit. The grievance & directing their complaints respect the workers’ right to freedom To provide ease of mind to working
policies, procedures and practices of regarding work, working environment, of association as per applicable laws mothers regarding their young
the company have been formulated to welfare, discipline, etc. to CHC at each and conventions. During the year, children, world-class Day Care
inculcate the culture of encouraging plant. no supplier was identified where the Centers are in place at all Interloop
and supporting women, transgenders workers’ right to freedom of association Hosiery Plants where the executive
and differently abled employees. Workers’ Right to was at risk. and non-executive female employees
comfortably leave their children, while
Freedom of Association Women Empowerment
Grievance Handling at work. Experienced Nannies take
Interloop respects the workers’ good care of children according to
Standard Operating Procedures for Interloop truly believes that their play, rest and meal timings. The
right to freedom of association, and
Grievance Handling are in place and empowering women through international standard infrastructure
awareness sessions are carried out in
special positions of Management employment and skill enhancement
this reference as a general practice.
not only helps them achieve financial
stability for themselves and their includes study, play and rest areas, and
families but also makes them a trained teachers ensure quality pre-
productive member of the society. primary education and development
of these children through curricular
Enhancing Female and extracurricular activities. Company
Participation doctor performs periodic check-ups of
these children to warrant that they stay
To support women empowerment in good health.
and to improve gender parity within
the organization, Interloop has taken
a strategic decision to increase the
percentage of women in executive &
non-executive teams, in various grades
including managerial roles and working
cadres.

Interloop Joins Hands employees are trained in technical,
with IFC-PBC to Promote operational and leadership skills at the
Family-Friendly Practices at in-house Technical Training School
Workplace (TTS). In last 1 year, the company has
spent around PKR 8.8 million and
Interloop is among the 14 companies trained approximately 674 executive &
in Pakistan to participate in the first non - executive employees.
ever private sector peer-learning
collaboration, led by IFC & PBC, to
create better career opportunities by
providing a family-friendly workplace.
Under this initiative, IFC, PBC,
CatCo Kids, Ubuntu Care, National
Commission on the Status of Women,
UNICEF Pakistan & UN Women
Pakistan will provide advice on
60 females with STEM degrees • Membership of compliance
childcare needs assessment & conduct
a series of events to expand learning
are working at Interloop including committees such as Workers Training hours per Employee
31 textiles, electrical and industrial Management Committee,
& share knowledge on family-friendly
engineers. Several policies & practices Environment Health & Safety Training Hours per Employee Training Hours per Employee Training Hours per Employee
practices.
have been instituted to recruit and train Committee, etc. (by Gender) (by Employee Category)
4
Employing Females in Non – females in non-traditional jobs.
• Presence of Female Welfare 70000 60000
16,775
Traditional Areas Officers at all manufacturing plants
65,275 56,375
Other Initiatives for Female

to facilitate grievance management
As part of Interloop’s Vision 2020, Employees 56000 48000
of female employees
women are now represented in every
• Free & Safe pick and drop has
department and also in non-traditional
Talent Development
42000 36000
been expanded to more remote
roles including knitting planners,
areas
knitting operators and stitching Programs 28000 24000
machines operators, previously • Focused trainings and recreational 18,652
75,027 15,561
considered male-dominant areas. & sports activities Interloop truly believes in nurturing 15,602
14000 12000
9,752
its people. The Human Resource
No. of Employees
Department conducts regular Training 1,173 4 8 1,214 15 4
Training Hours 0 0
Need Analysis to identify development Average Hours of Training
No. of Man-hours Avg. Training No. of Man-hours Avg. Training
employees hours employees hours
needs of employees and prepares
Male Female Executive Non-Executive
comprehensive employee development
programs. The objective is to equip
During the year, Interloop devoted to 31.64% in 2018 were trained on
the people with knowledge & skills
8,633 hours compared to 4,683 hours, human rights policies. During the year,
for long term employability and
on human rights policies concerning 100% of security personnel were
career enhancement. For executive
human rights aspects related to trained on human rights policies and all
employees, well-designed customized
business, including non-discrimination, employees received performance and
and open enrolment training programs
diversity and equal opportunity, child career development reviews.
on technical, managerial and leadership
labor and forced and compulsory labor.
skills are conducted by Pakistani
51.69% of workers in 2019 compared
& Foreign Trainers. Non-executive

Companywide Sports
Activities
To promote physical and mental
wellbeing of our people through
competitiveness and healthy
entertainment, the company has
developed state of the art Sports
Infrastructure, including state of the art
executive club, table tennis, squash,
badminton and basketball courts,
football grounds and high energy
Corporate Social Events careers. The company offers 5 Talent
Scholarships every year to meritorious
team members including workers to
act empathetically and uphold the
fitness gyms and organizes various To enhance employee engagement children of its employees, for Bachelor rights of co-workers, communities and
traditional and non-traditional sports with the company and to recognize Degree Programs. other related parties. We believe in fair
tournaments, both for males and their services, Interloop organizes treatment to labor and do not have
females. various social events throughout the Respecting Human any kind of forced, compulsory or child
year. Worth mentioning amongst labor practices at our plants. Our top
Inter departmental Cricket Tournaments
others include the Annual Dinner;
Rights priority is to comply with applicable
are held at the start of fall season. employment and human rights related
organized in the foundation month Interloop places great emphasis on
The activity creates lot of enthusiasm laws and honor our commitment to
of the company, where executives respecting human rights, not only
amongst the employees who either international charters on human rights.
catch up with colleagues and enjoy an within its operations but also in its
play or witness the matches and cheer As a policy, we try to make sure that
exquisite evening full of Long Service sphere of influence. Our well-defined
their favorite teams. similar labor practices prevail at our
Awards, entertainment, food and policies on different aspects of human
music, Managers Dinner; hosted by the rights coupled with our commitment supplier organizations. The compliance
Football has emerged as the most
Chairman & CEO and their families, to and practice to abide by laws and is ensured through third-party audits
popular sport among the staff and
offer gratitude to the Managers for their international charters ensure that and any non-compliances identified
the tournament draws huge interest
hard work and dedication, especially human rights are well respected in all are discussed with suppliers, to rectify
and participation. The annual
to their spouses, acknowledging their of our activities. Our code of conduct these and to avoid such instances in
Badminton, Table Tennis and Chess
continuous support, International and shared values ‘I-Care’ require all future.
Championships enable all team
members to take a break from their Women’s Day; to promote equality
routine working schedules and refresh & diversity and to celebrate the
themselves, physically & mentally. organized for the male and female Lawn Bowl Championship for them as successes of women at Interloop, Long
workforce. To ensure equal opportunity well which boosts their self-confidence Service Awards for Non-Executives; to
Encouraging non-traditional sports, and to cheer its differently abled and gives them a sense of pride. recognize non-executive employees
Lawn Bowling Championship is employees, the company arranges completing 10 years’ service with the
company, Christmas; to display respect
for minorities and encourage diversity
in our company.
Talent Scholarship for

Employees’ Children
Interloop encourages its employees to
motivate their children acquire higher
education and flourish into promising

INTERLOOP WAY HEALTH AND SAFETY
Interloop was introduced to Lean by which worked towards building the & Toyota Management System (TMS) Health and safety are of utmost safety requirements, in line with their and further necessary actions as and
one of our customers, NIKE, and for the Lean Culture at the plant level and workshops with American Links & importance to Interloop. Our approach authorized limits. All major spendings where required. Based on the audit
last few years, we have been applying trained and implemented Lean tools at Toyota Engineering Corporation (TEC) towards health and safety is preventive including additional workers, material findings and urgency of action, regular
Lean for improving our manufacturing the shop floor. All Plant Managers were in Japan. Interloop fully understands in nature and focused on enhancing and monitory resources are being adjustment is practiced. Moreover,
processes and becoming robust in our trained at AITC, Sri Lanka. the significance of our ‘people the occupational health and safety forecasted and submitted to the Board the adjustments in the company’s
operations. The Lean journey started practices’ supporting deployment culture across the company, including of Directors for consideration and central EHS policies and procedures
in 2009 and one Plant Head was In 2014, Interloop engaged a group of Lean so that this develops on operational sites / manufacturing approvals. are carried out, subject to any changes
trained at NITC (Nike Innovation and of Former Toyota Executives who part of our culture. Consequently, in facilities. This health and safety in national & international laws and
Training Centre), in Vietnam. In 2010, are facilitating the implementation of 2017, the company started designing framework is designed for minimizing The safety scoreboards are set up at customers’ codes of conduct.
a centralized Lean Resource Group Toyota Production System (TPS) in ‘Interloop-Way’ comprising Lean & occupational incidents, illnesses Plant II and Plant III along with public
(LRG) department was established various companies, all over the world. People components. Interloop-Way will and major adverse happenings. A address systems at all facilities. Safety- Interloop operations are automated to
which created awareness about Lean Since 2015, 3 groups of Interloop’s improve our people practices, systems dedicated central EHS department related Days and Weeks are celebrated a large extent, however, workers get
Philosophy across the company senior and middle management from & processes and will help in achieving commands the teams at all plants. All for awareness of the workforce. interaction with machines and cotton
and implemented 5S. In 2011, Lean across the company have attended full engagement, for sustainable growth policy-making and communications Moreover, workers are regularly trained dust in the production areas where
implementation teams were established the Toyota Production System (TPS) and development. are done by the central department on health and safety-related topics to there are chances of work-related
while their execution and related day to update their knowledge and ensure a diseases. Moreover, the workers
day operational matters are dealt with safer and productive work environment. working in boiler areas are also
by teams at the plants. The operating The health and safety management exposed to work-related diseases. At
procedures based on national & system is practiced through health and Interloop, we are fully aware of these
international laws and customers’ code safety committees that are active at the risks and have defined safety rules in
of conduct, covering occupational plants and cover all workers. place which require workers in these
environment, safety and health, areas to use safety equipment and
The performance of the EHS follow the instructions to avoid the risk
are implemented and monitored.
framework is monitored through KPIs of any work-related diseases.
All workforce from top to bottom is
which are assessed regularly in the
responsible for the implementation of
form of internal and external audits, The EHS system is rich and flexible
the health and safety measures and
to ensure compliance with policy concerning employees. The employees
accountable for any non-compliance.
and to identify any gaps. Reports can highlight issues through different
Interloop has a dedicated budget at
of findings against KPIs are shared platforms like EHS Committee
floor line manager and plant head
with top management for their review Meetings, Focus Groups, etc.
levels to manage the health and
Uniform Behaviors
In 2019, under the guardianship of
Interloop-Way, we launched Uniform
Behaviors; a complete Manual about
how to conduct business across
the organization. It defines the set of
particular behaviors that need to be
demonstrated by every employee,
unanimously throughout the company
and will act as a sustainable roadmap
for closing development gaps and
providing our employees with a clear
direction for how to work for success in
their personal and professional lives.

COMMUNITY DEVELOPMENT
Additionally, the grievances can also be includes first aid injury and fatalities Interloop is a Business for Purpose. Community development initiatives Head of CSR reports to the Chairman
channelized through suggestion boxes in the injury rate. The lost day means Our Mission and reason for existence are planned based on the need & CEO of Interloop Limited. Another
installed at prominent locations in each scheduled workdays and lost day is to bring about a positive change in assessment of the communities. The important CSR function is Interloop
facility. During the year, no grievance count begins the day after the incident. the community and this reflects in all policy implementation is reviewed by Welfare Trust for engagement &
was filed. our decisions and business practices. Sustainability Cell which reports the betterment of the community. During
Our ambition is to Transform Lives and outcomes to the Chairman & CEO the year, PKR 350 million were spent
Interloop has defined procedures for Improve Whellbeing when it comes to for further deliberation at the Board on multiple community development
accident investigation and reporting. social responsibility. As per policy, we level. The evaluation is performed initiatives.
This includes the initial accident report have defined community development by comparing the outcomes with
followed by an accident investigation goals with clear objectives to deliver the planned results and adjustments
report and follow-ups. Interloop inclusive growth. To pursue this cause, are carried out where required. Our
Interloop has invested approximately Corporate Social Responsibility Cell is
PKR 1.01 billion in the community working on all community development
during the last decade. Our main activities throughout the country,
Rate of Injury by Region & Gender
areas of focus include EDUCATION, especially in our surrounding areas.
Organization Contractor SPORTS, LITERARY ACTIVITIES,
HEALTH CARE and DISASTER RELIEF.
Male Female Male Female The company has long term KPIs and
every year a CSR spending target is
Faisalabad Nil Nil Nil Nil
fixed and implemented through an
Lahore Nil Nil Nil Nil organized system.
Occupation Disease Rate by Region & Gender
Lahore Nil Nil Nil Nil
Lost Days Rate by Region & Gender
Absenteeism Rate by Region & Gender

Education
Primary & Secondary
Education
In order to bring a positive & lasting
change in the community by educating
the youth, especially underprivileged,
Interloop Welfare Trust, in May
2009 partnered with THE CITIZENS
FOUNDATION; the largest non-profit
organization in Pakistan, providing
quality education to the disadvantaged.
So far, Interloop has established 24
schools (14 primary, 9 secondary & 1
TCF Rahbar Program Scholarship Program for Endowment Fund at Lahore Scholarship & Internship
Cadet College, Hasan Abdal University of Management Program for Government
From 2012 onwards, executives from Sciences (LUMS) College Women University,
Interloop Limited regularly volunteer Cadet College Hasan Abdal (CCH) has Faisalabad
for the TCF Rahbar Program, twice a been a trendsetter for quality education Since May 2013, Interloop Limited,
year, to mentor class 8 and 9 students boarding schools for boys in Pakistan. through its Endowment Fund at the As part of its on-going endeavors
about developing a positive mind set in Interloop established a Scholarship Lahore University of Management for women empowerment, Interloop
life and making better career choices. Fund in April 2016 and is supporting Sciences, is providing 8 perpetual Limited, since May 2015, has instituted
Till now, 130 Interloop Executives have 5 financially challenged cadets, for scholarships to financially challenged 120 Scholarships for deserving
voluntarily mentored 580 students at complete 5 academic years. Bachelor Degree students, under the female Bachelor Degree students,
TCF-Interloop Schools to help them National Outreach Program. at the Government College Women
Higher Education
make confident decisions in life.
Interloop is pursuing its target of
providing 500 young men & women
access to technical and higher
education, by granting annual
higher secondary; separate campuses scholarships at various institutions,
for boys and girls) and is constructing including Government College
3 more, totaling to 27, in the rural University, Ripha International
areas around Faisalabad city. These University, National Textile University,
schools are managed by female staff University of Central Punjab, NUST
and provide quality formal education Pakistan, NFC University and University
to 3,400 less privileged children, of Sargodha, in Pakistan, and
50% girls, in an environment that University of Vaasa, Finland.
encourages intellectual, moral and
spiritual growth. Interloop has created
an endowment for supporting lifetime
operating cost of 16 schools and
also provides funds for managing
annual operational cost of remaining 8
schools.

University Faisalabad (GCWUF). It has Scholarship Grants at Entrepreneurship Training Sports
also structured an Internship Program National Textile University, Programs
to acquaint GCWUF students with Faisalabad We believe in nurturing talent by
professional work environment and Interloop collaborated with Institute promoting sports, competitiveness and
practices, as part of their degree In March 2019 Interloop Limited of Business Administration (IBA) healthy entertainment for the youth,
program requirements. established a Scholarship Grant at Karachi and GC Women University community and the society. For this
the National Textile University (NTU), Faisalabad to sponsor the Women purpose, Interloop has joined hands
Need Based Scholarships Faisalabad to encourage learning Entrepreneurship Program, to with sports organizations, especially
at University of Agriculture, and exposure of NTU students, by help females train and start and those representing blind, handicapped
Faisalabad sponsoring one academic semester grow successful business lines. 67 & women players, to sponsor multiple
at a good International University participants benefitted from Mar-Apr tournaments throughout the year.
25 full degree scholarships were
and is also sponsoring the Graduate 2019 session and Batch 2 is planned
introduced by Interloop at University of
Research Fellowship at NTU, to in Oct-Nov 2019. Previously, 283 Sponsoring Cricket for a
Agriculture, Faisalabad in September
encourage research in Textiles at MS aspiring male and female entrepreneurs Cause
2017, for Bachelor Degree Programs in
Level. benefitted from similar trainings at
Engineering, Textile & Dairy Sciences. To encourage young players from the
Hyderabad, Faisalabad & Gujranwala.
grassroots for National and A-Teams,
Interloop has been sponsoring cricket
joined hands with the Pakistan Wheel Supporting Young Talent
Chair Cricket Association to organize
tournaments including SAICA-Interloop Interloop is also providing financial
2nd Interloop Quaid-e-Azam Trophy
T-20 Cricket Championships (twice) support to Pakistan’s Fastest Youngest
2018, and sponsored the Pakistan
and Interloop Premier League T-20 Athlete; Sahab-e-Asra, for her future
Wheel Chair Cricket team for Wheel
Cricket Tournaments (annually), since Endeavors.
Chair Asia Cup 2019. We supported
2012.
Faisalabad Deaf Cricket Team in All
All Pakistan Open Golf
International & Domestic Pakistan Deaf Cricket Tournament
Tournament.
Blind Cricket 2018. Interloop sponsored the Tri-
Nation Disabled Cricket T-20 Series Interloop has been sponsoring the
Interloop has been sponsoring 2018 at Worcestershire, England All Pakistan Interloop Open Golf
International & Domestic Blind Cricket between Pakistan, Bangladesh & Championship annually since 2015,
since 2014. We were the Official England and sponsored the Pakistan organized by the Lyallpur Golf N’
Sponsor of Pakistan Cricket Team for Disabled Cricket Team for T-20 Cricket Country Club, Faisalabad.
the Blind Cricket World Cup 2014, World Series, in England in 2019. We
played in South Africa and the Blind also supported 3 Pakistani athletes at
Cricket World Cup 2018, played the Special Olympics 2019, in Dubai.
in Pakistan & UAE. Interloop also
promote female sports and supported Intervarsity-Interloop Sports
the Pakistan Women Blind Cricket Extravaganzas
Team Coaching Camp in 2018. We
To motivate youth towards healthy
sponsored world’s First International
activities, Interloop has been
Women Blind Cricket Series in 2019
sponsoring Intervarsity T-20 Cricket
between Nepal & Pakistan.
Championships and Sports Galas
Sports for the Differently annually since 2016, at the University
Abled of Agriculture, Faisalabad in which
top teams from various universities
To promote the rights and well-being participate.
of persons with disabilities, Interloop

Health Care Support for Differently Abled Alzheimer Socks
Children
Free Treatment for Poor Interloop teamed up with Euro Sox
Patients Interloop supports education, Plus B.V. Netherlands in 2015, 17 &
health and well- being of differently 18 and produced Alzheimer Socks; an
Another area of constant focus for abled children by supporting Syeda initiative to create awareness among
Interloop’s social responsibility is Khatoon-e-Jannat Trust Hospital & people about Alzheimer’s disease.
Heath Care. We have been providing Special Education Center, Faisalabad; Approximately €1.08 million have been
Literary Activities & National & International She Loves Tech Pakistan
free health care services to deserving a noble institution looking after the generated and donated to VUmc
Conferences
Conferences Interloop partnered with CIRCLE as the patients including 120 Corneal treatment and optimal development of Alzheimer Center, Amsterdam for
To promote innovation and intellectual Main Sponsor to support She Loves Transplants and 3000 Ophthalmic children with intellectual and physical research on diagnostics and treatment
Playing its role in creating learning development of Pakistani textile Tech Pakistan. She Loves Tech is a patients at Al-Shifa Trust Eye Hospital, disabilities. of Alzheimer’s disease
opportunities and developing the professionals and students, Interloop global contest to create opportunities Rawalpindi since 2009. Approximately
character of the society, Interloop has been sponsoring the All Pakistan for women-led/impact tech startups, to 4800 Dialysis Procedures have been Mobile Health Clinic
supports various cultural and literary DICE-Textile Innovation Event & level up the global stage. STEM women provided through Patients Welfare
events throughout the year. Interloop has partnered with Lok Sanjh
International Conference for last 4 from all over Pakistan participated in Society at Allied Hospital, Faisalabad
Foundation; implementing partner
years, consecutively. this competition and the finalist aspiring since 2012. 1600 Tuberculosis patients
of Better Cotton Initiative (BCI) in
female entrepreneur represented have been receiving treatment through
Pakistan to finance provision of Mobile
Pakistan at the global competition in Anti TB Association, Faisalabad
Health Services for marginalized Rural
China. since 2010. 800 patients have been
Communities in cotton growing areas
provided Hepatitis C treatment through
Lyallpur Picture Gallery of 3 Union Councils in District Toba Tek
Liver Foundation Trust, Civil Hospital,
Singh, Punjab. Since Feb. 2019, the
Faisalabad since 2010. Multiple
Interloop provides financial support Mobile Health Clinic is serving approx.
Blood Transfusion, Thalassemia
to Lyallpur Picture Gallery annually, 4,000 rural community members,
and Hemophilia patients have been
developed by the District Government, especially farmers, women workers
treated through Ali Zaib Foundation
Faisalabad. General public, especially and women cotton pickers working in
since 2016. 20 Spinal and Orthopedic
students, visit the gallery to learn about the cotton fields, on weekly basis.
patients have been treated at Ghurki
Faisalabad’s rich history, culture and
Hospital since 2017 and numerous
transformation into a textile industry
Cardiac Treatments have been
hub.
provided through Faisalabad Institute of
Cardiology since 2016.
Faisalabad Literary Festival
Since 2014, Interloop hosts the

Faisalabad Literary Festival every year,
as the main sponsor, where people
from all walks of life including families
and youth get the opportunity to
interact firsthand with eminent literati
from across the country, who gather to
inspire people with their popular works
of literature and performing arts.

THE WAY
FORWARD
The Way Forward 86

THE WAY FORWARD
Interloop is committed to continue existence and delivering shared value Sustainable production facility in the vertically integrated Knitwear garments recycling and less consumption of Transparency enhances trust among
working as a responsible corporate for all stakeholders. Pursuing our region. The current production capacity manufacturing plant at the new water in our operations, reduced stakeholders and helps to win the
citizen, creating shared value for all Vision 2020, “To double our turnover of 500,000 garments per month is Interloop Apparel Park, with production GHG emissions and sustainable confidence, critical for competitive
stakeholders, in line with our Mission, by 2020 through value addition, planned to be scaled up to 1,000,000 capacity of 5.4 million garments per procurements. advantage and success in the market
“To be an agent of positive change for process improvement and nourishing garments per month by 2021. It will month by 2021. The ramp up plan for place. We commit to engage our
the stakeholders and community by talent”, we are on a growth curve and be a LEED Platinum Certified plant Seamless Active wear production is Human capital is vital for realizing our stakeholders on regular basis and
pursuing an ethical and sustainable enhancing our capabilities. We aim to with the target to engage females as 540,000 garments per month by 2021. mission and vision. We continuously publish an annual sustainability report
business. We are focused on pursuing produce high quality environmental 50% of the total workforce, will have endeavor and are committed to to share our story with our stakeholders
sustainability in all spheres of our friendly products meeting customer in-house day care, at least 30% area We are well aware of upcoming providing a productive and safe and interested parties. Moreover, we
business activities and to practice requirements. Our newly established as green space, discharge ZERO Environmental sustainability challenges workplace to our people without are committed to continue supporting
it more effectively, we have defined Hosiery Plant 5 pilot project is hazardous material and waste, reduce on account of our operational any discrimination, nourishing their the Sustainable Development Goals
targets in material sustainability areas planned to be scaled up to a vertically carbon footprint by up to 50%, will activities as well as activities of our talent through on the job and external of United Nations Development
and are endeavouring to achieve integrated Sustainable manufacturing save approximately 35million liters of supply chain partners and are all trainings and rewarding them with Programme through our initiatives and
them. Our targets for the next five facility, with installed capacity of water per month and will focus on set to tackle them responsibly. We market based compensation and operations, for Building a Sustainable
years term, due to start in FY 2021 will 1280 knitting machines, producing maintaining & enhancing worker safety. will be introducing Environmental benefits. Community development has World.
enlighten the road map further towards approximately 17.28 million pairs of For the Knitwear Pilot Project; a Cut to targets for all businesses, aligned always been an important focus area
a sustainable business with inclusive socks per month. Pack garment manufacturing facility, with relevant UNDP Sustainable for Interloop Limited. Following our
growth. having current production capacity of Development Goals (SDGs). We mission of being an Agent of Positive
The newly set up Denim Apparel 1.2 million garments per month, plans aim to create positive environmental Change, we are committed to continue
Healthy and sustained economic Manufacturing Plant is the most are in place to put up a state of the art impact through effective strategies, making interventions in education,
returns are critical for business technologically advanced and investment in new technologies health, sports, women empowerment
having minimal impact, enhancement and literary activities for the under
in clean energy production, efficient privileged, developing prosperous and
energy management, increased water thriving communities.

APPENDIX
GRI Index 90
SDG Index 96
Glossary and Acronyms 98
Feedback Form 99

GRI INDEX
The GRI content index serves as a navigation tool to locate the content within the report. The GRI Standards together with the
GOVERNANCE
related disclosures are listed and each disclosure is referred to the relevant page in this Sustainability Report or other publicly
available source. 102-18 Governance structure 38
102-22 Composition of the highest governance body and its
Key committees
38
SR = 2019 Sustainability Report Fully disclosed STAKEHOLDER ENGAGEMENT
AR = Annual Report 2019 Partially disclosed 102-40 List of stakeholder groups 31
Not disclosed 102-41 Collective bargaining agreements 65
102-42 Identifying and selecting stakeholder 30

Page Omission
GRI Standard Disclosure 102-43 Approach to stakeholder engagement 31
No. (s) & Reason
GRI 101: FOUNDATION 2016 GRI 101 contains no disclosures. 102-44 Key topics and concerns raised 31
GENERAL DISCLOSURES REPORTING PRACTICE
GRI 102: GENERAL ORGANIZATIONAL PROFILE 102-45 Entities included in the consolidated financial statements 5
DISCLOSURES 2016
102-1 Name of the organization 16 102-46 Defining report content and topic boundaries 5, 32
102-2 Activities, brands, products, and services 18-23 102-47 List of material topics 33
102-3 Location of headquarters 16 102-48 Restatements of information 5
102-4 Location of operations 18-23 102-49 Changes in reporting 5
102-5 Ownership and legal form 16 102-50 Reporting period 5
102-6 Markets served 24 102-51 Date of most recent report 5
102-7 Scale of the organization 16 102-52 Reporting cycle 5
102-8 Information on employees and other workers 64 102-53 Contact point for questions regarding the report 5
102-9 Supply chain 25 102-54 Claims of reporting in accordance with the GRI Standards 5
102-10 Significant changes to the organization and its supply chain 16 102-55 GRI content index 90
102-11 Precautionary Principle or Approach 49 102-56 External assurance 5
102-12 External initiatives 26,28-29 MATERIAL TOPICS
102-13 Membership of associations 26 ECONOMIC PERFORMANCE

GRI 103: MANAGEMENT 103-1 Explanation of the material topic and its boundaries 33, 34
STRATEGY
APPROACH 2016
102-14 Statement from senior decision-maker 6-7 103-2 The management approach and its components 44
ETHICS AND INTEGRITY 103-3 Evaluation of the management approach 44
102-16 Values, principles, standards and norms of behavior 36-37

GRI INDEX
GRI 201: ECONOMIC 201-1 Direct economic value generated and distributed 44 MATERIALS
PERFORMANCE 2016
GRI 103: MANAGEMENT 103-1 Explanation of the material topic and its boundaries 33
201-3 Defined benefit plan obligations and other retirement plans 45
APPROACH 2016
MARKET PRESENCE 103-2 The management approach and its components 49
GRI 103: MANAGEMENT 103-1 Explanation of the material topic and its boundaries 33 103-3 Evaluation of the management approach 49
APPROACH 2016
GRI 301: MATERIALS 2016 301-1 Materials used by weight or volume 51
103-2 The management approach and its components 63, 65
301-2 Recycled input materials used 51
103-3 Evaluation of the management approach 63, 65
GRI 202: MARKET 202-1 Ratios of standard entry level wage by gender compared to ENERGY
65
PRESENCE 2016 local minimum wage GRI 103: MANAGEMENT 103-1 Explanation of the material topic and its boundaries 33
202-2 Proportion of senior management hired from the local APPROACH 2016
65
community 103-2 The management approach and its components 49
PROCUREMENT PRACTICES 103-3 Evaluation of the management approach 49

GRI 103: MANAGEMENT 103-1 Explanation of the material topic and its boundaries 33,25 GRI 302: ENERGY 2016 302-1 Energy consumption within the organization 52
APPROACH 2016
103-2 The management approach and its components 25,44 302-4 Reduction of energy consumption 52
103-3 Evaluation of the management approach 25,44 WATER
GRI 204: PROCUREMENT GRI 103: MANAGEMENT 103-1 Explanation of the material topic and its boundaries 33
204-1 Proportion of spending on local suppliers 25 APPROACH 2016
PRACTICES 2016
103-2 The management approach and its components 49
MATERIAL SOURCING AND USAGE
103-3 Evaluation of the management approach 49
GRI 103: MANAGEMENT 103-1 Explanation of the material topic and its boundaries 33,50
APPROACH 2016 GRI 303: WATER 2016 303-1 Water withdrawal by source 54
103-2 The management approach and its components 44,50
303-2 Water sources significantly affected by withdrawal of water 54
EMISSIONS
APPAREL, ACCESSORIES & CG-AA-440a.1. Description of environmental and social risks
50
FOOTWEAR: 2018 (SASB) associated with sourcing priority raw materials GRI 103: MANAGEMENT 103-1 Explanation of the material topic and its boundaries 33
CG-AA-440a.2. Percentage of raw materials third-party certified to APPROACH 2016
50 103-2 The management approach and its components 49
an environmental and/or social sustainability standard, by standard
ANTI-CORRUPTION 103-3 Evaluation of the management approach 49
GRI 103: MANAGEMENT 103-1 Explanation of the material topic and its boundaries 33 GRI 305: EMISSIONS 2016 305-1 Direct (Scope 1) GHG emissions 55
APPROACH 2016
103-2 The management approach and its components 44 305-5 Reduction of GHG emissions 55
103-3 Evaluation of the management approach 44 EFFLUENTS AND WASTE
GRI 205: ANTI- 205-1 Operations assessed for risks related to corruption 44 GRI 103: MANAGEMENT 103-1 Explanation of the material topic and its boundaries 33
CORRUPTION 2016 APPROACH 2016
205-2 Communication and training about anti-corruption policies 103-2 The management approach and its components 49
and procedures

GRI INDEX
GRI 306: EFFLUENTS AND 306-1 Water discharge by quality and destination 57 TRAINING AND EDUCATION
WASTE 2016
306-2 Waste by type and disposal method 58 GRI 103: MANAGEMENT 103-1 Explanation of the material topic and its boundaries 33
APPROACH 2016
306-4 Transport of hazardous waste 58 103-2 The management approach and its components 63, 64
SUPPLY CHAIN IMPACTS 103-3 Evaluation of the management approach 63, 64

GRI 103: MANAGEMENT 103-1 Explanation of the material topic and its boundaries 33 GRI 404: TRAINING AND 404-1 Average hours of training per year per employee 71
APPROACH 2016 EDUCATION 2016
103-2 The management approach and its components 25 404-3 Percentage of employees receiving regular performance and
71
career development reviews
HUMAN RIGHTS
GRI 308: SUPPLIER
308-1 New suppliers that were screened using environmental GRI 103: MANAGEMENT 103-1 Explanation of the material topic and its boundaries 33
ENVIRONMENTAL 25
criteria APPROACH 2016
ASSESSMENT 2016
GRI 414: SUPPLIER SOCIAL
414-1 New suppliers that were screened using social criteria 25
ASSESSMENT 2016 103-3 Evaluation of the management approach 73
EMPLOYMENT AND LABOR PRACTICES GRI 408: CHILD LABOR 408-1 Operations and suppliers at significant risk for incidents of
73
2016 child labor
GRI 409: FORCED OR
APPROACH 2016 409-1 Operations and suppliers at significant risk for incidents of
103-2 The management approach and its components 63, 64 COMPULSORY LABOR 73
forced or compulsory labor
2016
103-3 Evaluation of the management approach 63, 64
LOCAL COMMUNITIES
GRI 401: EMPLOYMENT 401-1 New employee hires and employee turnover 65 GRI 103: MANAGEMENT 103-1 Explanation of the material topic and its boundaries 33
2016
401-2 Benefits provided to full-time employees that are not APPROACH 2016
66 103-2 The management approach and its components 77
provided to temporary or part-time employees
GRI 406: NON- 103-3 Evaluation of the management approach 77
406-1 Incidents of discrimination and corrective actions taken 68
DISCRIMINATION 2016
GRI 413: LOCAL 413-1 Operations with local community engagement, impact
GRI 407: FREEDOM 78-83
COMMUNITIES 2016 assessments and development programs
OF ASSOCIATION AND 407-1 Operations and suppliers in which the right to freedom of
68
COLLECTIVE BARGAINING association and collective bargaining may be at risk COMPLIANCE WITH LAWS
2016 GRI 103: MANAGEMENT 103-1 Explanation of the material topic and its boundaries 33
HEALTH AND SAFETY APPROACH 2016
APPROACH 2016 103-3 Evaluation of the management approach 38
GRI 307: ENVIRONMENTAL
307-1 Non-compliance with environmental laws and regulations 49
103-3 Evaluation of the management approach 75 COMPLIANCE 2016
GRI 419: SOCIOECONOMIC 419-1 Non-compliance with laws and regulations in the social and
GRI 403: OCCUPATIONAL 403-1 Workers representation in formal joint management–worker 68, 73
75 COMPLIANCE 2016 economic area
HEALTH AND SAFETY 2016 health and safety committees
403-2 Types of injury and rates of injury, occupational diseases,
76
lost days, and absenteeism and number of work-related fatalities

SUSTAINABLE
DEVELOPMENT GOALS
PAGE 25, 51,
SDGs GRI STANDARDS DISCLOSURE Ensure sustainable consumption and 204-1, 301-1, 301-2, 302-1, 302-4, 305-1, 306-
NO. 52, 55,
production patterns 2, 306-4
58
65,
End poverty in all its forms everywhere 202-1, 413-1
78-83
Take urgent action to combat climate
52, 55 302-1, 302-4, 305-1
change and its impacts
End hunger, achieve food security and
44,
improved nutrition and promote sustainable 201-1, 413-1
78-83
agriculture Conserve and sustainably use the oceans,
55 305-1, 305-5
seas and marine resources
Ensure healthy lives and promote well-being 55,
305-1, 306-2, 306-4, 403-2
for all at all ages 58, 76 Sustainably manage forests, combat
desertification, halt and reverse land 55 305-1, 305-5
degradation, halt biodiversity loss
Ensure inclusive and quality education for all
71 404-1 25, 36-
and promote lifelong learning
Promote just, peaceful and inclusive 37, 38, 102-16, 102-22, 205-1, 307-1, 414-1, 406-1,
societies 44, 49, 408-1, 419-1
25, 38,
Achieve gender equality and empower all 102-22, 201-1, 202-1, 401-1, 404-1, 404-3, 68, 73,
44, 65,
women and girls 406-1, 414-1
68, 71
Ensure access to water and sanitation for all 54, 58 303-1, 303-2, 306-2
Ensure access to affordable, reliable,

44, 52 201-1, 302-1, 302-4
sustainable and modern energy for all
25, 44,
51, 52,
102-8, 102-41, 201-1, 202-1, 301-1, 301-2,
Promote inclusive and sustainable economic 64, 65,
302-1, 302-4, 401-1, 401-2, 403-1, 403-2, 404-
growth, employment and decent work for all 66, 68,
1, 404-3, 407-1, 408-1, 409-1, 414-1
71, 73,
75, 76
Build resilient infrastructure, promote

sustainable industrialization and foster 44 201-1
innovation
Reduce inequality within and among

78-83 413-1
countries

GLOSSARY AND ACRONYMS FEEDBACK FORM
BCI Better Cotton Initiative
Sustainability Report 2019
Information provided on material topics covered in the report.
CBA Collective Bargaining Agent
Comprehensive Adequate Inadequate
CFCs Chlorofluorocarbons
Clarity of the information provided in the report.
CSR Corporate Social Responsibility

High Medium Low
GHG Green House Gases

The quality of design and layout of the report.
GJ Giga Joule
Excellent Good Average
GOTS Global Organic Textile Standard Your comments for adding value to the report.
GRI Global Reporting Initiative
GRS Global Recycled Standard
HFCs Hydrofluorocarbons
Name :
HSE Health, Safety and Environment
Designation :
IFC International Finance Corporation Organization :
Contact Details :
ISO International Standards Organization
Tel :
MW Mega Watt
Please mail your feedback to:
Muhammad Fauz Ul Azeem
NGO Non-Governmental Organization
Sr. Manager Sustainability & Business Strategy
Interloop Limited
PBC Pakistan Business Council
1 – KM, Khurrianwala – Jaranwala Road,
Khurrianwala, Faisalabad, Pakistan.
SA 8000 Social Accountability 8000 Phone: +92-41 – 4360400
Email: sustainability@interloop.com.pk
SASB Sustainability Accounting Standard Board
ZDHC Zero Discharge of Hazardous Chemicals
CHC Complaint Handling Cell

Interloop Limited
Registered Office:
Al - Sadiq Plaza, P - 157,
Railway Road, Faisalabad, Pakistan
Corporate Office:
1 - Km Khurrianwala - Jaranwala Road,
Khurrianwala, Faisalabad - Pakistan
T: +92-41-4360400
F: +92-41-2428704

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CONTENTS

Overview Key Performance About Interloop

Sustainability Enhancing Economic Managing Environmental

Unleashing Human The Way Forward Appendix

About the Report 5

Sustainability Report 2019 3

4 Interloop Limited Sustainability Report 2019 5

6 Interloop Limited Sustainability Report 2019 7

Commitments, Memberships and Awards 26

Sustainability Report 2019 9

Created business alliance with Euro

10 Interloop Limited Sustainability Report 2019 11

Established Hosiery Plant 5 pilot project with

2013 2014 2017 2018 2019

15.4 MW Interloop Power Plant based on Tri-Fuel

Associates & Subsidiaries

Affiliate Companies Manufacturing

14 Interloop Limited Sustainability Report 2019 15

6.5 SEAMLESS ACTIVE WEAR

16 Interloop Limited Sustainability Report 2019 17

Research & Innovation

A dedicated Research & Innovation

18 Interloop Limited Sustainability Report 2019 19

The production facility will be LEED

Multiple varieties of yarns produced

20 Interloop Limited Sustainability Report 2019 21

Latest Japanese machines provide a

With the assistance of our US affiliate, A resourceful fabric sourcing team,

24 Interloop Limited Sustainability Report 2019 25

adidas Performance Award

PUMA Sustainability Award EFP-OSH Award

26 Interloop Limited Sustainability Report 2019 27

Environmental Certifications Social Certifications

Chemical Management Portals

28 Interloop Limited Sustainability Report 2019 29

• New Products/Designs Continuous innovation and

• Employee benefits Provision of market-

Compliance with laws and

CSR program based

30 Interloop Limited Sustainability Report 2019 31

• Materials Sourcing and Use Usage chain

opportunities for energy production from non-renewable sources

Risks to reputation and license to operate in case of non-compliance

32 Interloop Limited Sustainability Report 2019 33

Sustainability Report 2019 35

Vision 2020 Accountability

Achieving the Highest Standards

36 Interloop Limited Sustainability Report 2019 37

VP Hosiery Sales Yarn Sales Energy Interloop Way

Yarn Deying &

38 Interloop Limited Sustainability Report 2019 39

Interloop’s Sustainability Philosophy is Alignment with

40 Interloop Limited Sustainability Report 2019 41

Sustainability Report 2019 43

Performance till 2019

44 Interloop Limited Sustainability Report 2019 45

Reducing Emissions and Wastes 55

Sustainability Report 2019 47

*Greenhouse Gas Emission values include scope I & scope II emissions