Location:
Sri Lanka
Investor:
Hayleys Fabric
Investment:
ESG measures including environmental measures such as ecosystem preservation, renewable energy, waste disposal, chemical management. Social measures such as hiring from the local community, health and safety measures, human rights adherence. Governance measures such as an annual report made accessible to all containing details of board composition, governance structure and policies.
Investment Size:
Just below 5 million USD
Impact:
Environmental impact includes improving biodiversity and restoring endangered plant species, 9,000 solar panels, generating 20% of Hayley’s energy and reducing Hayley’s carbon footprint by 15%. Social impact includes reduced health and safety injuries and zero work-related fatalities. Obtaining certifications such as ISO 50001 certification, and awards such as ‘Best SDG Impact Award’ at the esteemed ESG World Summit.
Hayleys Fabric PLC serves as an exemplary illustration of a business that has strategically prioritized sustainability within its operational framework and, consequently, reaped significant benefits from its steadfast efforts. Using the Sustainable Development Goals, they have developed their “life code”, where they demonstrate a holistic commitment to sustainable development, the environment and society.
Environmental
Hayley’s Fabric demonstrates a multifaceted commitment through an array of initiatives, policies, and projects tailored to address diverse aspects of environmental sustainability.
- Ecosystem Preservation: Hayley’s has established a green belt adjacent to their factory, fostering ecosystem preservation. Complementing this, a biodiversity wetland park serves not only as an environmental asset but also as an educational hub for local institutions, contributing to the restoration of endangered forest plants.
- Renewable Energy Leadership: Pioneering in the adoption of renewable energy, Hayley’s facility proudly hosts Sri Lanka’s largest single solar roof. This impactful initiative consists of 9,000 solar panels, contributing 6,241,500kWh to the national grid, generating 20% of Hayley’s energy and reducing Hayley’s carbon footprint by 15%. The transition from furnace oil to biomass as a fuel source further underscores their commitment to sustainable energy practices.
- Waste Reduction Strategies: Hayley's implements a suite of solutions to minimize waste generation. Their highly effective effluent treatment facility ensures that discharged water is environmentally benign. Additionally, solid waste, including yarn and fabric remnants, finds purpose through resale to local villagers at a nominal value.
- Circular Economy Innovations: Embracing the principles of the circular economy, Hayley's has developed sustainable products derived from waste materials. Examples include a mahogany dye sourced from furniture waste and a black dye derived from biomass waste. These innovative products not only enhance the sustainability of their offerings but also contribute to the broader circular economy initiative.
- Chemical Management Excellence: Proactively seeking alternatives to hazardous chemicals, Hayley's prioritizes the adoption of safer substitutes through rigorous research and implementation. Their participation in the Zero Discharge of Hazardous Chemicals (ZDHC) initiative exemplifies a collaborative commitment to eliminating the release of harmful substances across the entire textile, apparel, and footwear supply chain.
Social
Turning our attention to Hayley’s social initiatives, we observe a concerted effort to foster positive impacts in various dimensions.
- Community Engagement: Hayley's commitment to community empowerment is evident through strategic workforce planning. More than 75% of the workforce is sourced from villages within a 15-kilometer radius, fostering local economic development. In addition, Hayley's actively engages with local suppliers for services such as canteen provisions, cleaning services, and sourcing materials like sawdust. The company consistently contributes to impactful community projects, exemplified by initiatives like book donations and blood donation drives.
- Human Rights Adherence: Hayley's places a strong emphasis on upholding human rights standards. The company rigorously complies with the Ethical Trading Initiative (ETI) Base Code, domestic labor laws, and international human rights and labor laws. Furthermore, Hayley's is committed to cultivating a diverse and inclusive workforce, reflecting their dedication to workforce equity and equal opportunities.
- Some policy examples include their “recruitment policy” stating “Equal opportunity employer providing a workplace free from gender and racial discrimination”, their Anti Sexual Harassment Policy, their Remuneration Policy stating “employees doing similar jobs at the same level are paid equitably irrespective of gender” and their Grievance Handling Policy.
- Health, Safety, and Working Environment: Prioritizing the health and safety of their workforce, Hayley's has implemented robust measures. This includes ongoing training programs focusing on safety education, provision of appropriate safety equipment, and fostering an open communication channel between workers and management. The establishment of joint worker-management committees dedicated to Health and Safety exemplifies their commitment to maintaining a secure and conducive working environment.
Governance
- Corporate Governance Report: The board provides an annual account of its corporate governance endeavours and achievements through the 'Corporate Governance Report,' an integral component of Hayleys Fabric's Annual Report. The report is available publicly online, and it details Hayleys’ SDG alignment, the board composition, the governance structure, the relations with shareholders, and the appointment of directors.
Watch Hayleys Fabric Commitment to CEO Water Mandate on youtube.
What impact have implementing ESG policies, sustainable solutions and innovative technologies had?
Through a comprehensive and multifaceted approach to environmental and social responsibility, and an effective governance strategy with a high level of transparency, the company has garnered a plethora of certifications, awards, and affiliations with prominent sustainability alliances. This distinguished recognition not only enhances their competitive edge among fabric manufacturers in South Asia but also positions them as a standout choice for discerning clients. Consequently, their market reach has expanded, particularly within the realm of eco-conscious brands.
One notable achievement is the acquisition of the Global Organic Textile Standard (GOTS) certification. Recognized as a premier international standard for processing textiles derived from organic fibers, GOTS imposes rigorous criteria throughout the supply chain. This ensures that the textiles meet exacting standards in both environmental sustainability and social responsibility.
Leonie Vaas, Hayleys Fabric's Head of Sustainability & Sustainable Innovations, underscores the transformative impact of securing the GOTS certification, stating “This recognition has elevated our standing, drawn in environmentally conscious clientele, and emphasised our dedication to an eco-friendlier and more responsible textile sector”. This certification not only elevates Hayleys Fabric's standing in the industry but also reinforces their steadfast commitment to fostering a more responsible textile sector. More than a symbol of dedication to sustainability, GOTS certification serves as a catalyst for heightened market access and the attraction of new clients who prioritize environmental consciousness.
