Enviroment

Management Approach

Environmental protection is fundamental to the Company’s sustainability strategy. In view of challenges such as climate change, pollution and scarcity of resources, Atlas Honda aims to be the most resource-efficient mobility solution provider in Pakistan. The Company’s focus lies on increasing the energy and resource efficiency of its production processes and on reducing emissions and waste. These measures allow the Company to minimize impacts on the environment, make a contribution towards achievement of Honda’s Environmental Vision and reduce costs. Environment related issues arising from energy & resource consumption, emissions, effluents & waste and water are managed by the Company’s Production & HSE departments in coordination with other departments. Necessary procedures are defined and implemented to achieve targets. The Company has a continuously evolving Environmental Management System (EMS) in place which is supported by the Company’s Environmental Policy to ensure effectiveness of processes, monitoring and continual improvement in the Company’s environmental performance.

Green practices are being implemented at all locations of the Company and those of its business partners. Awareness is being raised by the Company through continuous training and development programs for its suppliers as well as employees. In recognition of its efforts for protection of environment, the Company has been presented with an Award by National Forum for Environment & Health (NFEH), for the year 2018, in the category of Environment & Waste Management.

Environmental Policy

The Company’s Environmental Policy covers every aspect of the Company’s operations, whether they are directly or indirectly related to design, engineering, manufacture, distribution and service:

Environment Management System

EMS is intended to formalize procedures for managing and reducing environmental footprint. It helps the Company organize and analyze, in a timely manner, the environmental impacts that result from its business operations. It also helps the Company in developing solutions to address those impacts.

The Company’s EMS is based on relevant legislation such as the Pakistan Environmental Protection Law, international standards and Honda’s guidelines, as well as best practices. The management system is certified in accordance with ISO 14001:2015, an international certification for EMS.

The Company conducts internal and external audits of its EMS and strives for further improvement. During the year, the Company identified tasks as a result of in-house reviews and made improvements accordingly. Periodic visits by representatives from Environmental Protection Agency (EPA) are also facilitated to ensure compliance with regulatory requirements.

No non-compliances have been reported during the year. Further, no environment-related complaints were received through the Company’s formal grievance mechanism during the reporting period.

Life Cycle Assessment

The Company’s applies a product lifecycle approach for management of environmental impacts, which considers the entire lifecycle – from product development to purchasing, manufacturing, sales & service, use, recycling and administration. This approach makes it easier to identify opportunities, minimize or enhance impacts and understand boundaries in every aspect of the Company’s business. It also helps the Company understand how its actions and impacts are interrelated. The Company also applies the precautionary principle, whereby it acts responsibly despite not having the full scientific knowledge of negative impacts, to ensure the Company stays ahead of potential risks.

Energy Consumption and Emissions

The Company monitors energy consumption and emissions on regular basis to identify and incorporate best practices and to improve the Company’s energy management. Both the Company’s manufacturing plants are located away from protected areas to minimize the effects of CO2 and other greenhouse gases on such areas. The Company’s primary sources of energy are grid based electricity, natural gas and diesel. Other sources include solar energy. However, currently only a small part of the total energy is being derived from solar panels. The Company is making efforts to increase the share of renewable sources of energy.

Accurate data on energy consumption and emissions is obtained from management systems. The conversion factors are sourced from U.S. Energy Information Administration. The Company uses previous year as base year to measure energy consumption and emissions. This enables the Company to address irregularities and implement necessary measures to ensure the Company’s performance is on track. Collecting comprehensive data helps in understanding not only the energy savings, but also the economic benefits that can be achieved through specific measures. This year, an energy audit was also conducted by an independent third party licensed by Association of Energy Engineers, USA. The objective of the audit was to understand the energy flows within the Company’s plant and to identify opportunities to reduce the amount of energy consumption.

The energy consumption during the year was 495,525 GJ. Compared to 2018, the total energy consumption during the year under review increased by 6.6% on account of higher production level. However, the energy consumption per motorcycle remained constant at 435 KJ/Motorcycle despite rise in energy prices.

The Company’s products are in compliance with Pakistan Standards for Quality Control (PSQC) in respect of CO2 emissions, noise levels and smoke. Further, all products of the Company comply with EURO II standards of carbon emission. The emissions during the year were 28,985 tons mainly comprising of CO2 . Emissions per bike remained constant at 23 kg/motorcycle.

Energy Conservation and Emission Reduction Initiatives

To reduce the Company’s energy consumption and emissions, primarily CO2 , investments have been made and energy efficiency measures have been implemented at the Company’s offices and production facilities. During the year, energy conservation of 1,656 GJ and emission reduction of 1,194 tons was achieved through following initiatives:

Solar Panels

The Company is determined to extend its use of renewable sources for energy. Installation of solar power systems is one of the major projects under the efforts in this area. This is aimed to derive clean & affordable energy to reduce greenhouse gas emissions and Atlas Honda’s dependence on fossil fuel or grid-based electricity. This year, the Company completed its project of installation of solar panels of 336.7 KW at Karachi plant. This initiative will reduce the CO2 emissions by 500 tons every year.

LED Lights

As part of the Company’s project of replacing fluorescent tube lights and mercury bulbs with LED lights, this year, lights at casting plant were replaced in addition to arrangements to use day light wherever possible. Further, lights at gas power house, security gates and walkways were also been changed. This has helped the Company in saving 730 GJ of energy and reducing 93.5 tons of CO2 in a year.

Installation of Light Dependent Resisters

To save energy, LDRs have been connected to lights at streets and boundary walls which regulate and automatically turn off the lights during daytime. This is helping the Company to save 203 GJ of energy and reduce 26.1 tons of CO2 per annum.

Waste Heat Recovery System

The Company continues to restructure and redesign its heat distribution plan on the basis of constant study and analysis to achieve better results from its Waste Heat Recovery System. This is helping the Company in reducing CO2 emissions by 481 tons per annum.

Installation of Inverters

Previously, at Paint Booth Area, motors of exhaust fan, circular pump & fresh air blower were running on full load frequency of 50 Hz. To reduce the consumption of energy, inverters have been installed which control the frequency of these motors according to the requirement i.e. within the range of 35 to 40 Hz. This initiative has resulted in saving of 723 GJ per year and reduction of 93 tons of CO2 per annum.

Plantation of Trees

In continuation of the Company’s project of plantation of trees, this year, 10,000 trees were donated to Government Degree College Sheikhupura in collaboration with the Environmental Protection Agency. Further, the Company was awarded 1st prize by Punjab Horticulture Society in Land Scaping, Grassy Lawn & Rose Garden category.

Material, Effluents & Waste

At Atlas Honda, environmentally friendly use of raw materials is taken into account as early as the development phase through life cycle engineering. The Company’s supply chain and material cycles have been shaped accordingly. Natural resources are being used in the most efficient manner with the objective to minimize depletion of the planet’s resources. The Company is working to replace artificial materials with
renewable materials wherever it makes technical, business and environmental sense and is socially viable. Consumption of raw materials, having substantial impact on the environment, is closely monitored and treated according to the Company’s environment policy. Following table shows the materials used:

Waste resulting from the Company’s production processes mainly includes waste water, metal, plastic & rubber scrap, packing, used oil. Waste water is treated through Waste Water Treatment Plant before it is released in sewerage drains. The remaining waste and effluents are discharged through incineration, recycling, landfill and disposal to legitimate contractors at certified waste disposal facilities. During the year, 10,665 tons of waste was released with the reduced intensity of 9% per motorcycle. There were no significant spills during the year.

Packing Wastage

The Company uses recycled packing material for parts to reduce waste and minimize impact on the environment. Use of returnable packaging whenever possible has reduced the Company’s packing waste by 3.5 ton per year.

Aluminum Wastage

In aluminum casting process, aluminum is obtained in raw shape initially. During the finishing process wasted aluminum is reused with new material at specific ratio leading to wastage reduction and efficient usage of non-renewable material. This year, this has helped reduce solid waste by 89.6 tons.

Incineration

Incineration is performed to treat solid hazardous waste with controlled combustion, reduce the release of greenhouse gases and save landfill space. Through this process, solid waste is collected, crushed and moved into a heating chamber. Ash generated by burning process is disposed, while gases produced are filtered and exhausted through a chimney. The Company has successfully incinerated 136 tons of hazardous waste this year, in coordination with EPA certified third party.

Reuse of Scrap Tools

Efforts have been made to identify tools used in one process can be reused in another process. This has enabled the Company to reuse tools obtained from engine machining area in production process of camshaft and crankshaft. This has resulted in reuse of tools weighing more than 1 ton per year.

Water

The Company seeks to reduce its water footprint by promoting water-saving practices amongst employees and adopting water-efficient technologies and equipment wherever possible.
The majority of the Company’s water use is attributable to its production processes, cooling and water consumed by employees. Main areas of action are thoughtful use and reuse of water and safe disposal of treated wastewater. Most of the water consumed is drawn from earth which is not designated as a protected area whereas the size or volume of the water body cannot be estimated reliably.

Water consumption and discharge is recorded through flow meters installed at water tanks and treatment plant, respectively. During the year, 662,116 cubic meters of water was consumed with a reduced intensity of 2% per vehicle as compared to the last year. After proper treatment, water used in manufacturing process is released back to environment. Such treatment removes pollutants from the water and makes the same suitable for safe drainage. During the year, 98,832 cubic meters (9.5%) of the water was recycled.

Waste Water Treatment Plant

Water is used throughout the Company’s production processes which results in wastewater. To prevent the waste water from being discharged as produced, waste water from all over the plant is collected and treated to remove the harmful pollutants, at Waste Water Treatment Plant. The Company, as a responsible organization abides by the legal requirements of waste water treatment as well as meets “Punjab Environmental Quality Standards”. This year, around 569,284 cubic meter of water was treated and safely drained into the sewerage.

Reuse of Water

Water used in cooling of dies is collected in reservoirs, filtered and reused. This is helping save 58 liter per vehicle of water. Further, at pre-treatment line of paint shop, parts are treated by dipping into water tanks due to which water spills. A process has been developed through which spilled water is collected, filtered and reused. Through this, 1.26 liter per vehicle is being saved.

Visual Monitoring of Casting Machines

In casting area, water pipes have been redesigned to enable visual monitoring of consumption of water during the cooling process of dies. Around 7,109 cubic meters water has been saved through this initiative.

Management Approach

Environmental protection is fundamental to our sustainability strategy. In light of challenges such as climate change, pollution and scarcity of resources, Atlas Honda aims to be the most resource-efficient mobility solution provider in Pakistan. Our focus lies on increasing the energy and resource efficiency of our production processes and on reducing emissions and waste. These measures allow us to minimize our impact on the environment, make a contribution towards achievement of Honda’s Environmental Vision and reduce our costs. Environment related issues arising from energy & resource consumption, emissions, effluents & waste and water are managed by our Health, Safety & Environment department along with the management team, which defines and implements the necessary procedures to achieve targets. We have a continuously evolving Environmental Management System (EMS) in place which is supported by our Environmental Policy to ensure effectiveness of processes, monitoring and continual improvement in our environmental performance.

Green practices are being implemented at all our locations and those of our business partners. We are also raising awareness through continuous training and development programs for our suppliers as well as employees. In recognition of our efforts for protection of environment, we have been presented with an Award by National Forum for Environment & Health (NFEH), for the year 2017, in the category of Environment & Waste Management.

Environment Management System

EMS is intended to formalize procedures for managing and reducing environmental footprint. It helps us to organize and analyze, in a timely manner, the environmental impacts that result from our business operations. It also helps us in developing solutions to address those impacts.

Our EMS is based on relevant legislation such as the Pakistan Environmental Protection Law, International Standards and Honda’s guidelines, as well as best practices. The management system is certified in accordance with ISO 14001:2015, an International Certification for EMS.

We conduct internal and external audits of our EMS and strive to improve it further. During the year, we identified tasks as a result of the in-house reviews and made improvements accordingly. Periodic visits by representatives from Environmental Protection Agency (EPA) are also facilitated to ensure compliance with regulatory requirements. No non-compliances have been reported during the year. Further, no environment-related complaints were received through our formal grievance mechanism during the reporting period.

Environment Policy

The policy outlined below forms the basis for our environmental work across the business:

Life Cycle Assessment

We apply a product life cycle approach for management of environmental impacts, which considers the entire life cycle – from product development to purchasing, manufacturing, sales & service, use, recycling and administration. This approach makes it easier to identify opportunities, minimize or enhance impacts and understand boundaries in every aspect of our business. It also helps us to understand how our actions and impacts are interrelated. We also apply the precautionary principle, whereby we act responsibly despite not having the full scientific knowledge of negative impacts, to ensure we stay ahead of potential risks.

Energy Consumption & Emission

We monitor energy consumption and emission on regular basis to identify and incorporate best practices and to improve our energy management. Accurate data on energy consumption and emission is obtained from our management systems. This enables us to address irregularities and implement any necessary measures to ensure our performance is on track. Collecting comprehensive data helps us in understanding not only the energy savings, but also the economic benefits that can be achieved through specific measures.

The energy consumption during the year was 464,811 GJ. Compared to 2017, the total energy consumption during the year under review increased by 13.9%. This was due to higher production level. However, the energy consumption per motorcycle decreased by 1.8% from 443 to 435 KJ/Motorcycle.

The emissions during the year were 23,879 tons of CO2, which was 1,765 tons less than previous year. Further, CO2 emissions per bike reduced from 28 to 23 kg/motorcycle. In addition to being in compliance with Pakistan Standards for Quality Control (PSQC) in respect of CO2 emissions, noise levels and smoke, all our products comply with EURO II standards of carbon emission.

Energy Conservation & Emission Reduction Initiatives

In order to reduce our energy consumption and emissions, primarily CO2 we continue to invest and implement energy efficiency measures in our offices and production processes. During the year, energy conservation of 7,808 GJ and emission reduction of 1,765 tons was achieved through following initiatives:

Solar Panels

We are determined to extend our use of renewable sources for energy. Installation of solar power systems is being undertaken as an effort to derive clean and affordable energy. This is helping us combat greenhouse gas emissions and reduce our dependence on fossil fuel or grid-based electricity. We completed our second project of installation of solar panels of 360 KW this year. This initiative will reduce the CO2 emissions by 512 tons every year.

LED Lights

At our assembly plant, previously fluorescent tube lights and mercury bulbs were used for lighting. In 2017, 50% of such lights and bulbs were replaced by energy efficient LED tube rods and high-bay lights. This year, the ratio has improved to 70%. Whereas, at engine machining plant, 100% lighting is being done through LED tube rods and high-bay lights. Further, arrangements have been made to use day light when possible. This has helped us to save 2,598 GJ a year, whilst 331 tons of CO2 emissions are reduced.

Energy Air Compressor

Previously, separate air headers were installed for 5 bars and 7 bars air pressure, which had improved the energy efficiency. Under this, 5 bars air pressure was supplied to four areas at Sheikhupura (SKP) plant. This year, 5 bars air pressure is supplied to 7 areas at SKP plant which has improved the energy efficiency by 354 GJ per year and reduced CO2 emissions by 45.5 ton per year.

Synthetic Natural Gas (SNG)

We have enhanced the LPG efficiency by adding air at specific ratio to LPG which results in SNG. It results in reduction of LPG consumption by 21%.

Waste Heat Recovery System

For achieving optimal results, we keep restructuring and redesigning the heat distribution plan by continuous study and analysis. During the year, the excess steam generated from waste heat recovery boilers has been connected to pre-treatment line paint shop and is being used as a source of heat in place of fire boiler and burners. This measure has allowed us to reduce CO2 emissions by 481 tons in a year.

Material, Effluents & Waste

The environment friendly use of raw materials is taken into account as early as the development phase through life cycle engineering. We shape our supply chain and material cycles accordingly, allowing us to gradually increase the use of secondary raw materials in our production processes. Natural resources are being used in the most efficient manner with the objective to minimize depletion of the planet resources. We are working to replace artificial materials with renewable materials wherever it makes technical, business and environmental sense and is socially viable. We closely monitor the consumption of raw materials having substantial impact on the environment and treat them according to our environment policy.

Waste resulting from our production processes mainly includes waste water, metal, plastic, rubber scrap, packing and used oil. Waste water is treated through Waste Water Treatment Plant before it releases in sewerage drains. The remaining waste and effluents are discharged through incineration, recycling, landfill and disposal to legitimate contractors at certified waste disposal facilities. During the year, 10,357 tons
of waste was released with the reduced intensity of 10% per motorcycle. There were no significant spills during the year.

Minimizing packing waste

In our production processes, we use recycled packaging for parts to reduce waste and minimize our impact on the environment. The use of returnable packaging whenever possible has reduced our packaging waste by 3.5 tons per year.

Aluminum Wastage

In aluminum casting process, aluminum is obtained in raw shape initially, during the finishing process wasted aluminum is reused with new material at specific ratio leading to wastage reduction and efficient usage of non-renewable material. By this arrangement solid waste has been reduced by 85.3 tons in a year.

Incineration

Incineration is performed to treat solid hazardous waste with controlled combustion, reduce the release of greenhouse gases and reduce landfill space. In the process of incineration solid waste is collected, crushed and moved into heating chamber. Ash generated by burning process is disposed, while gases produced are filtered and exhausted through the chimney. We have successfully incinerated 130 tons of hazardous waste this year, in coordination with EPA certified third party.

Water

We seek to reduce our water footprint by promoting water-saving practices among employees and adopting water-efficient technologies and equipment wherever possible. The majority of our water use can be attributed to our production processes, cooling, and water consumed by our employees. Our main areas of action are thoughtful use and reuse of water and safe disposal of treated waste water. Most of the water consumed is drawn from earth which is not designated as a protected area whereas the size or volume of the water body cannot be estimated reliably.

During the year, 645,006 cubic meters of water was consumed with a reduced intensity of 15% per vehicle as compared to the last year. After proper treatment, we release the water, used in manufacturing process, back to environment. Such treatment removes pollutants from the water and makes the same suitable for safe drainage. During the year, 90,300 cubic meters (14%) of the water was recycled. Water consumption and discharge is recorded through flow meters installed at water tanks and treatment plant, respectively.

Waste Water Treatment Plant

Water is used throughout our production processes which results in waste water. To prevent the waste water from being discharged as produced, waste water from all over the plant is collected and treated to remove the harmful pollutants, at Waste Water Treatment Plant. We, as a responsible organization abide by the legal requirements of waste water treatment as well as meet “Punjab Environmental Quality Standards”. In a year, around 554,705 cubic meter of water is treated and safely drained into the sewerage.

Reusing water

As part of various initiatives being undertaken to reduce water consumption, water used in cooling of dies is collected in reservoirs, filtered and reused. Through such measures, around 58 litres per vehicle of water is being saved every year.

Further, at pre-treatment line of paint shop, parts are treated by dipping into the water tanks. During this process, water spills when parts are dipped into the water tanks. We have developed a process through which spilled water is collected, filtered and reused. By reusing the spilled water, 1.26 litres per vehicle is being saved.

Biodiversity

We believe that minimizing the environmental impact resulting from our products and business activities represents the greatest contribution, we can make to biodiversity conservation. We recognize that emissions and other pollutants are two of the greatest impacts of business activities that threaten biodiversity. Consequently, we are working systematically to minimize both impacts.

Further, we have been putting a great deal of effort into activities that have led to the conservation of biodiversity. Over the years, we have been undertaking various initiatives such as tree-plantation and water-recycling. During the year, a project of plantation of 18,000 trees has
been initiated out of which 4,000 trees are already planted within the premises of Sheikhupura plant. Remaining trees are planned to be planted at Schools, Government Institutes and Reservoirs in collaboration with the Environmental Protection Agency. We will be responsible for plantation, protection and maintenance of the trees.

Both our manufacturing plants are located away from protected areas to minimize the effects of CO2 and other greenhouse gases on the protected areas.

Management Approach

The Company views environmental stewardship as a key social responsibility alongside product safety and quality. By setting clear objectives and advancing concrete environmental initiatives in line with our Environment Policy and Honda (Global) Environmental Vision, we follow the principles of reduce, reuse, recycle and responsible disposal. AHL pursues needed technologies and processes to help minimize the impact of its products on people and communities throughout their lifecycle while ensuring environment friendliness. Cutting-edge technologies and effective environmental management measures help us to minimize the negative effects of motorcycle production on the environment and on resources.

AHL is also implementing green policies at all its locations, including business partners and improving awareness for protecting the environment through continuous training and development programs.

In recognition of our healthy environment practices, we have been awarded with Corporate Social Responsibility Award for the year 2016 by National Forum for Environment & Health.

Environment Management System

AHL seeks to minimize the environmental impact of its business activities through product life cycle analysis via a comprehensive Environment Management System (EMS). The pursuit of these environmental sustainability goals is blazing a trail of ongoing improvement of environmental performance. EMS allows AHL to organize and analyze, in a timely manner, the impacts of various environmental issues on its business, particularly climate change and energy, and to develop and execute specific measures for addressing such issues.

Pursuing its vision of environment protection, AHL objectively assess its current environmental problems, analyze the kinds of risks and opportunities they represent, and respond in various ways. AHL is promoting environmental initiatives in both business activities and product development, as not only this helps mitigate risks to our business continuity, but also this present opportunity to create and expand new business opportunities.

Regulatory compliance is fundamental to the production and in-use performance of AHL products, and to the continuance of AHL’s operations. AHL has developed a comprehensive framework for identification and compliance of requirements of various local regulations (Pakistan Environment Protection Act 1997, Factories Act 1934 etc.) and international standards (ISO 14001: 2004, Honda Environment Performance Standards etc.)

AHL considers it essential to engage in such business activities and decide and execute specific measures, having sufficiently assessed these risks and opportunities.

In order to ensure compliance with requirement of EMS, scheduled and surprise internal audits are conducted during the year. Moreover, annual environmental audit was also conducted by independent third party who revealed zero non-compliance with applicable regulations and standards. Further, no grievances about environmental impacts were filed through our formal grievance mechanisms during the reporting period.

To support effective operation of EMS, AHL has developed Environment Policy for the promotion of protection of environment as follows:

Environment Policy
Product Life Cycle Assessment

AHL procures various parts and materials through the manufacturing process, utilizes natural resources, including various raw materials, water, energy and chemical substances, among others, to provide products to its customers. Such business activities result in environmental impacts at each stage in the process. The Company continues to provide more highly value-added products and services while at the same time seeking to understand the environmental impacts resulting from its business activities and implementing measures to reduce such impacts.

Material, Effluents & Waste

AHL has incorporated sustainability criteria into its development, procurement of raw materials and development of new formulae and application. Materials having high impact on the environment are monitored in pursuance of the Company’s environmental policy.

The major raw materials used in vehicle manufacturing are steel, coils, ferrous and non-ferrous castings, paints and thinners. The Company sources a large number of finished components used in assembly operations from various suppliers. The Company strives for material optimization, efforts for which starts at product development stage. The material usage is periodically reviewed at the manufacturing stage and various initiatives are undertaken to further reduce material use through reuse and re-engineering. However, no recycled material was used for the production during the year.

Further, The Company waste includes waste water, scraps Iron, high BOD, COD, Chloride, oil & grease etc. The Company uses waste water treatment plants to control the water contamination as per “National Environmental Quality Standards” before releasing it into sewerage drains. The remaining waste and effluents are discharged through incineration, recycling, landfill and sale to legitimate contractors at certified waste disposal facilities. During the year, 9,908 tons of waste was released with the reduced intensity of 10% per motorcycle. There were no significant spills during the year.

Energy

The energy consumption during the year was 407,958 GJ. Energy consumption has increased due to increase in production. However, the energy consumption per motorcycle has decreased.

Energy Conservation Initiatives

The Company is taking various energy conservation measures in production processes, introducing highly efficient equipment and adopting energy saving lighting. Due to effective energy conservation measures, the energy consumption per motorcycle has been reduced by 7% from 476 KJ to 443 KJ per bike. During the year, total energy conservation was 5,359 GJ with the help of following initiatives:

Renewable Energy Source

Solar Panels have been installed which will generate 230KW of clean and renewable energy. This will reduce the use of conventional non-renewable energy sources due to which annual CO2 emission will reduce by 269 tons.

Fuel Efficient Diesel Generator

Installation of new fuel efficient diesel generator has resulted in 7% reduction in diesel consumption for power generation. The new diesel generator has fuel consumption of 0.280 L/KWH as compared to 0.302 L/KWH of previous generator. This will result in saving of 180 KL diesel per year, which will result in energy saving of 2510 GJ per annum and 172.45 ton/year of CO2.

Energy Efficient Air Compressor

An energy efficient air compressor has also been installed in the Sheikhupura Plant which would expectedly bring 898 GJ (9%) of saving in energy and 570 ton/year reduction in CO2 emission.

Another area which improved compressed air efficiency is the installation of separate air headers. Previously, common compressed air pressure was being supplied to all areas, whereas, different areas require different air pressures. For this purpose, separate air headers have been installed for 5 bar and 7 bar air pressures. This further reduced the CO2 emission by 110 ton/year.

Installation of LED Lights

In order to reduce the energy cost in assembly plant, LED lights have been installed. Previously, fluorescent tube lights and mercury bulbs were used for illumination which consumed more energy. 50% of old lights have been replaced with LED lights. Furthermore, arrangements have also been made to utilize sky light during daytime hours to reduce the usage of conventional lighting sources. These arrangements will reduce the energy consumption by 1951 GJ/year and CO2 emission by 251 ton/year.

Water

AHL is making progress in assessing and understanding its overall water footprint, which helps to identify impacts across the value chain. Being a leader in industry, the Company recognizes that efficiency is not the only relevant measure. Water quality, water security and access to water and sanitation also impact our supply chain and our business, affecting everything from the availability of raw materials to the health and well-being of workers and their communities. Most of the water consumed is drawn from earth which is not designated as a protected area whereas the size or volume of the water body cannot be estimated reliably. Additionally, there were no significant spills during the year.

During the year, 657,124 cubic meter water was consumed with a reduced intensity of 8% per motorcycle as compared to the last year. The Company returns water that it uses for manufacturing processes to the environment at a level that supports aquatic life and agriculture. The Company recycles waste water for garden and landscape irrigation. During the year, 52,560 cubic meters (8%) of the water was recycled.

Emission

Atlas Honda is actively committed to minimizing the impact of its manufacturing operations on the global environment, including waste generation, air and water pollutant releases, energy and natural resource consumption, and emissions of greenhouse gasses, primarily CO2. All products of the Company comply with EURO II standards of carbon emission, in addition to being in compliance with Pakistan Standards for Quality Control in respect of CO2 emission, noise levels and smoke. The emissions during the year were 25,644 tons of CO2, which was 8,597 tons less as compared to last year in terms of production.

Biodiversity

AHL pays close attention to biodiversity as an issue relating to environmental conservation, because its business activities can have an impact on vital natural resources. Resource exploitation, runaway development, pollution, climate change – these and many other impacts of human activities threaten biodiversity. As a manufacturer of personal mobility products, AHL see its business activities as being most closely associated with the growing environmental impacts resulting from emissions of greenhouse gases (GHGs) and various other pollutants. Minimizing the environmental impacts that result from its business activities and products represents the greatest contribution that AHL can make to preserve and promote biodiversity. This awareness challenges us to develop more environmentally responsible technologies and make continuous improvements to the environmental performance of our operations. Both of our manufacturing plants are located in industrial areas, away from the protected areas, with low biodiversity. Tree-planting and water-recycling initiatives at its plants and demonstrate the deep roots of our commitment to environmental conservation and living in harmony with local communities.

Stakeholders Engagement

Environmental Management Approach

The Company’s sustainability framework guides the management of environmental impacts of Company operations. A comprehensive Environment Management System (EMS) is in place that results in continuous collection of information and updating the Company’s understanding of environmental issues and the risks and opportunities they present. This system also helps to organize and analyze in a timely manner the impacts of these issues, particularly climate change and energy; and to develop and execute specific measures for addressing them in line with precautionary approach. The Company is focused to follow the principles of reduce, reuse, recycle and responsible disposal and strictly complies with environmental standards for reducing its carbon footprint and exhaust emissions from operations. In order to further its environmental management, the Company is implementing green policies at all its location, including business partners and improving awareness for protecting the environment through continuous training and development programs.

In order to ensure compliance with requirement of EMS framework, scheduled and surprise internal audits are conducted during the year. Moreover, annual environmental audits are also conducted by independent third parties to ensure non-compliance at zero level.

Environmental Policy

Business Activities and Environmental Impacts

AHL procures various parts and materials through the manufacturing process, utilizes natural resources, including various raw materials, water, energy and chemical substances, among others, to provide products to its customers. Such business activities result in environmental impacts at each stage in the process. The Company continues to provide more highly value-added products and services while at the same time seeking to understand the environmental impacts resulting from its business activities and implementing measures to reduce such impacts.

Material

The major raw materials used in vehicle manufacturing are steel, coils, ferrous and non-ferrous castings, paints and thinners. The Company sources a large number of finished components used in assembly operations from various suppliers. The Company strives for material optimization, efforts for which starts at product development stage. The material usage is periodically reviewed at the manufacturing stage and various initiatives are undertaken to further reduce material use through reuse and re-engineering.

Participation in 21st ASIA-OCEANIA Technology Exchange Forum

The Company participated in 21st ASIA-OCEANIA Technology Exchange forum organized by Honda Thailand in Thailand. The forum theme was discussion on ideas and technology for material efficiency. The participants coming from different countries also shared their views on technology up-gradation, skill enhancement and future plans.

Energy

The energy consumption during the year was 371,045 GJ. Energy consumption has increased due to increase in production. However, the energy consumption per motorcycle has decreased.

Energy Conservation Initiatives

The Company is taking various energy conservation measures in production processes, introducing highly efficient equipment and adopting energy saving lighting. Due to effective energy conservation measures, the energy consumption per motorcycle has been reduced by 14% from 545 KJ to 470 KJ per bike. During the year, total energy conservation was 1,672 GJ.

Emissions

Atlas Honda is actively committed to minimizing the impact of its manufacturing operations on the global environment, including waste generation, air and water pollutant releases, energy and natural resource consumption, and emissions of greenhouse gasses, primarily CO2. All products of Atlas Honda comply with EURO II standards of carbon emission, in addition to being in compliance with Pakistan Standards for Quality Control in respect of CO2 emission, noise levels and smoke. The emissions during the year were 29,030 ton of CO2, which was 422 tons less as compared to last year in terms of production.

Emission Reduction Initiatives

In order to improve the energy efficiency of drying oven in Paint Shop, some modifications were made to the exhaust system. In order to increase heat transfer efficiency, exhaust gases of drying oven were re-circulated back into the oven which lowered its temperature from 350 – 370 °C to 230 – 250 °C. This modification yielded fuel efficiency of 10 to 15% approximately and reduced CO2 emission by 23.86 tons.

Furthermore, exhaust gases from diesel generators were re-circulated and utilized in the Paint Shop for heating. This reduced consumption of LPG gas resulting in annual saving of approximately 100 tons of CO2. Moreover, new burners are being installed in Paint Shop ovens to further improve gas consumption.

CO2 gas is used during the welding process. Previously, gas was provided to each work station through a separate cylinder, due to which a little quantity was left in cylinders at the end due to low pressure. To overcome this, supply of CO2 gas was centralized which reduced CO2 consumption by 4.45 metric ton. Pipe Fuel Cock welding process has been automated to reduce consumption of DA & Oxygen gases. An estimated 1,434 m3 of DA and 795m3 of O2 will be saved through this automation per annum.

Biodiversity

AHL recognizes the importance of conserving biodiversity in its operations. The Company believes that preserving biodiversity and ensuring the sustainable and fair use of biological resources is an important and shared responsibility. As a manufacturer of personal mobility products, its business activities results in emissions of greenhouse gases (GHGs) and various other pollutants. Therefore, in all its operations, the Company strives to conserve biodiversity by avoiding and reducing potential harm to habitats and ecosystems and develop more environmentally responsible technologies and operations. Both of the Company’s manufacturing plants are located in industrial areas, away from the protected areas, with low biodiversity. To improve biodiversity and offset the effects of CO2 emissions, tree-plantation and water-recycling initiatives have been undertaken.

Water

AHL is making progress in assessing and understanding its overall water footprint, which helps to identify impacts across the value chain. Being a leader in industry, the Company recognizes that efficiency is not the only relevant measure. Water quality, water security and access to water and sanitation also impact our supply chain and our business, affecting everything from the availability of raw materials to the health and well-being of workers and their communities.

During the year, 605,917 cubic meter water was consumed with a reduced intensity of 32% per motorcycle as compared to the last year. In addition, new RO plants, with improved efficiency and water flow, have been installed which will result in annual reduction of water wastage by 15,500 cubic meter per annum.

The Company returns water that it uses for manufacturing processes to the environment at a level that supports aquatic life and agriculture. During the year, 605,917 cubic meters of water withdrawn. The Company recycles waste water for garden and landscape irrigation. During the year, 7.5% of the water was recycled. A total of 37,800 cubic meters of treated wastewater is prevented from being discharged outside of Sheikhupura Plant.

Effluents and Waste

The Company waste includes waste water, scraps Iron, high BOD, COD, Chloride, oil & grease etc. The Company uses waste water treatment plants to control the water contamination as per “National Environmental Quality Standards” before releasing it into sewerage drains. The remaining waste and effluents are discharged through incineration, recycling, landfill and sale to legitimate contractors at certified waste disposal facilities. During the year, 9,305 tons of waste was released with the reduced intensity of 11% per motorcycle.

Green Initiatives

The Company carried out different activities under its green initiative program during the year. The details of activities are mentioned hereunder.

Emissions Reduction Caravan

From the year 2014, the Company undertook a supplier initiative in the area CO2 emissions reduction control, ‘Emissions Reduction Caravan’ at Atlas Honda Limited. The Company believes in The Three Realities Principle – of which the first step is “going to the actual place.” In this spirit, the Supply Chain engineers are working in close coordination with major vendors and suppliers to control their environmental footprint. The Company’s engineers provide technical guidance to suppliers for process improvements focusing on production efficiency, energy conservation, material recycling and reuse and reduction in CO2 emission.

In total 39 vendors from both plants, covering 77% of total purchasing amount participated in Emission Reduction Caravan. The target was to reduce 1% CO2 Emission by each vendor. Resultantly, the reduction has successfully been achieved in direct emission of burning of fossil fuels, indirect emission of purchased electricity, purchased goods and transportation respectively.

Environmental Impact Assessment Survey

The Company participated in environmental impact assessment survey developed by Honda Motors Japan. 39 vendors were surveyed for environmental assessment on following grounds and resultantly none of the selected vendors were identified as having significant actual and potential negative environmental impacts. The vendors were evaluated on the basis of following criteria: