31st August 2022

To our stakeholders:

I am pleased to confirm that Rajby Industries reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Mudassir Nafees
Chief Executive Officer

Rajby Industries’ primary objective is to create environment where all employees have the freedom to enjoy equally all their human rights so as to reach their full potential and live in dignity. It helps advance and protect human rights by supporting individuals striving to realize the civil, political, economic, social, and cultural rights and responsibilities.

We support Human rights framework declared under “Universal Declaration of Human Rights” through implementation of policies & Procedures aligned.

Collaboration with our stakeholder to promote Human Rights principles by Global Compact within our supply chain through our own Code of conduct which is regularly communicated and reviewed with stakeholders and interested parties.

Rajby Industries believes in following and promoting ethical business practices in the organization and respect dignity of human by following below practices;

• We support and promote gender equality and diversified work force without any form of discrimination.
• We have developed Coherent pay system without any discrimination.
• We practice and promote different CSR activities which evolve around Children's Rights, differently abled persons within organization and with our stakeholders.
• We have a concrete policy and procedure based on international standard to manage migrant employees.

We are an equal opportunity employer by providing employment opportunities to employees and applicants without regard to race, color, religion, sex, sexual orientation, gender identity or expression, pregnancy, age, national origin, disability status, genetic information, protected veteran status, or any other characteristic protected by law. Rajby Industries conforms to the spirit as well as to the letter of all applicable laws and regulations.

Training employees on Labour Migration, Exploitation & Ethical Recruitment by International Organization for Migration (IOM) Geneva.

We have a well-developed grievance mechanisms and Suggestion boxes at facility in which all complaints are regularly monitored, reviewed by the committee and resolved. With it, Rajby has its own code of conduct covering all aspects of Human rights and regularly reviewed with stakeholders and interested parties.

Rajby Industries is certified on numerous international social standards which demands high implementation of standards in Labour, health & Safety & Sustainability i.e. Social Accountability 8000, Business Social Compliance Initiative, Worldwide Responsible Accredited Production and Facility Social and Labour Module – HIGG by internationally acclaimed & accredited certification bodies.

The risks related to human rights are identified measured and controlled through Risk assessment process and that specific document is constantly updated. Throughout the product life cycle, Rajby Industries takes measures to eliminate such risk that could cause damage or threaten human life and health.

We encourage to freely speak up about their grievances through functional worker council committees, complain boxes and hotlines and ensure all complaints are logged, discussed and responded as per developed procedure.
Rajby Industries’ regularly trains its staff on the policies and procedures to create awareness on Human rights, responsibilities through TNA based training plans covering all workplace safeties, anti-harassment, compensation, working condition, health & safety awareness sessions.

Implementation of Internationally acclaimed & accredited Social standards i.e. SA 8000, SEDEX, BSCI and FSLM through Implementation plans. To verify the compliance effectiveness, Internal audits, 2nd & 3rd party audits are conducted by International renowned fashions brands and accredited certification bodies.

We have defined responsibilities for the protection of Human Rights within the company at every level of hierarchy.

We have improved the effectiveness of Social dialogue by continually reviewing performance of Worker council, Health and Safety and Anti-harassment committees.
We regularly review the effectiveness of internal audits to ensure all actions are regularly measured, monitored periodically and corrective actions are defined. We conduct annual review of our entire system in which performance is reviewed to identify areas for improvement and set line of action for the following year in context of Human rights.

Rajby Industries is certified on Environmental and social Management System i.e Higg-FEM where the risks and opportunities of EMS are identified and controlled in accordance with the requirements of this standard (policy, procedures, work instructions, objectives, monitoring, audits, supplier control, periodic reviews, etc.)
We are regularly audited on all mentioned social standards which are primarily based on Human rights, there is no such Human rights violation reported and the performance in this context is quit positive.

We are aiming to improve Grievances Management system to the next level along with improvement in Gender gap.

We are an ethically responsible company having stringent social management system based on ILO Core Conventions which regularly reviewed and monitored through verifications by the international certification bodies.
Rajby Industries continuously update itself and comply with local, national international laws and regulations, pertaining to workplace ethics, social laws, environmental regulations, customs and security provisions of international concerns and laws related to the:
1. Child Labour
2. Wages and Benefit
3. Working Hours
4. Forced Labor
5. Freedom of Association & Collective Bargaining
6. Minimum Ages for Employment and Related Restrictions
7. Health & Safety Standards
8. Anti-Harassment or Anti Abuse
9. Environmental Standards and Compliance
Rajby Industries recognize and respects the rights of employees to exercise their lawful rights of free association and collective bargaining. We do not discriminate against employees who choose not to join any association or bargain collectively.
Rajby Industries ensures that the grievances and suggestions from workers not limited to collective bargaining should be resolved on priority, which can be presented through multiple resources provided to the workers. Company encourages open communication between employees and management regarding their problems or concerns regarding their jobs.
Council is formed in Rajby Industries, member of Work Council was elected through secret balloting between Employee Representative and Company Management.
Rajby Industries do not allow employment of any person which is deemed to be child below the age of 14 years as per legal requirement in any of its departments/functions in any capacity
Rajby Industries does not continue business relations with such supplier who do not complying to our policy in terms of Child Labour.
Rajby Industries allow hiring of young, juvenile, adolescent workers as per the local law.
Rajby Industries discourage all kinds of forced or compulsory labor under any conditions, including bonded, forced and /or prison.
A full disclosure of terms and conditions of employment prior to workers’ recruitment is made to the employees.
We do not use involuntary or forced labor – indentured, bonded or otherwise nor does it support the use of forced or compulsory labor in any form including bonded, forced, and/or compulsory prison labor.
We prohibit all relevant individuals from coercing employees in any way or unnecessarily limiting employees’ freedom of movement.
Rajby Industries offers free employment to all employees and do not require employees to submit originals of documents at the time of employment or during the period a person is employed with the company.
Rajby Industries is an equal opportunity employer and believes in equal opportunity for all based on merit and ability to carry out the given responsibilities. It believes in pay system based on merit and provision of equal opportunity to all employees to enable them to grow with the Company
Rajby Industries do not discriminate against anyone when hiring, promoting, paying, selecting marital status, race, social origin, family responsibilities, national origin (including Migrant Workers), disability, HIV/AIDS test, gender, any conditions/association/organizations or political affiliation.
Rajby Industries do not carry out any mandatory pregnancy test at the time of hiring, Provide equal access to employment, Provide pay based on merit, Provide equal access to health care, Accommodate free exercise of religion by employees,
Rajby Industries is an equal opportunity employer. Employment decisions shall be based upon merit i.e. qualifications, competence, and ability to perform essential job functions. The Rajby Industries shall not discriminate against any employee or against any applicant for employment because of race, color, religion, sex, national origin, veteran status, age, disability or any other classification protected by law
Practice of working hours in accordance with the labor legislation in force, with overtime work performed voluntarily and not exceeding twelve hours per week per employee.
Right to fair remuneration (based on labor legislation and the agreement made with each employee, relating remuneration to the specific functions to be performed).
We collaborate with our stakeholder to promote Social standards within our supply chain through our own Code of conduct which is regularly communicated and reviewed with stakeholders and interested parties.

System Implementation of Child Labour, force Labour, Collective bargaining and freedom of association and ensure its effectiveness through internal and external social audits.
• Collaborating with customers and promoting Workplace dialogue / let’s talk program to straighten freedom of association.
• Implementation of Grievances management system covering all channels of complains i.e. Suggestion box, Hotlines and open-door policy.
• Continued awareness sessions for the employees on Compensation, Labour rights, Health and safety policies and its implementation.
• We have discrimination free compensation policies to create harmony within the organization in terms of compensation.
• We have defined responsibilities for the protection of Labour rights within the company at every level of hierarchy.
• All Human resource policies and procedures supports the international Labour principles.

Improved satisfaction & loyalty of customers and other stakeholders.
Improved compliance with Social standards results particularly in Worker involvement, worker treatment working conditions and improved audit outcomes.
We are regularly audited on all mentioned social standards which are primarily based Global Compact Labour Principle, there is no such Labour rights violation reported in the said period neither we were involved in any investigations, legal cases, rulings, fines and other relevant events related to the Global Compact Labour principles.
Periodic review of social performance is made by the top leadership in which results and forthcoming activities are discussed in detail.
We aim to improve Hygiene conditions, food, better transportation and other workplace safety practices.

In this modern age new techniques and technologies are developing day by day, which is making life easier, but it is imposing adverse impact on air, water, land and ultimately on living beings of earth.
These modern problems require modern solutions to cater environmental challenges and sustain our earth for future generations. Since Rajby is committed to conserve the environment as much as possible, we have multiple management system certifications for environment on which we work on continual improvement process on regular basis. The organization have its own EHS team to look after all matters of environmental conservation, betterment to make earth a better place.
Rajby has implemented and certified an Environmental Management System since 2005 according to the ISO 14001 standard. Thus, all environmental risks and opportunities are identified and controlled in accordance with the requirements of this standard (policy, procedures, work instructions, monitoring, audits, supplier control, periodic reviews, etc.).
The environmental policy is included in the Rajby Integrated Management System, as follows:
• The company's activities should not alter the natural environment and follow the 3R sustainability rule to control pollution;
• Provide all available resources, extended support & preference to environmental protection activities and sustainable solutions for its business, workforce and community.
• Compliance with applicable legal requirements and standards of environment and health safety.
• Continual improvement in environmental management system & its significant environmental aspects through PDCA cycle
• Employee awareness trainings on job safety, pollution control, handling & environmental emergency response.
• Manage & measure natural resources consumption, air emissions, wastewater discharge & solid waste generation which occurred during processing & manufacturing operations and committed to make information available to community.
• Search for technology advancement and choose best available option to reduce environment impact from air water, wastewater & solid waste.
The monitoring of the effectiveness of the established policy is carried out based on the management review meetings which is conducted on bi-annual basis.
Rajby has several goals to overcome environmental challenges:
• Installation of RO plant at ETP discharge which will recycle upto 70% of wastewater by June, 2024.
• Increase Solar PV generation upto 1.5 MW by installing more panels by Dec, 2023.
• Reduce fossil fuel consumption in boilers by replacing through biomass boiler by June, 2023.
• Reduce the use of paper upto 10% by 2022.

All employees are trained with required information that they have to be known for participation in environmental betterment program.
There are work instructions for reducing consumption (water, energy, raw material, etc.), waste segregation, chemical spill control, chemical management & implementing ZDHC to follow the policy.
Motion sensor lights have been installed at staircase to reduce energy consumption. Throughout the office, several waste separation points were defined.
Throughout the life cycle of the product, environmentally sustainable solutions are included in the projects.
Rajby has an EHS department, where it employs several Environmental professionals and under their responsibility, environmental work is carried out, namely Environmental Impact Assessments, Waste Management Plans, Risk assessment, Energy Management, Chemical Management, Wastewater Management, environmental monitoring, monitoring of ecological flows and fauna and flora, definition of compensatory environmental measures and environmental infrastructure projects such as the project of mangrove plantation.
Rajby’s suppliers are evaluated in relation to their environmental performance and are informed of their requirements through a document that is sent to them “Supplier Evaluation Form” which, in addition to the Rajby’s Policy, leads them to commit to the environment with the following principles:
“The Supplier undertakes to:
• Use natural resources in a regulated and rational manner.
• Place the waste in the places intended for this purpose, in recycling bins, according to the existing signage or in containers made available for this purpose.
• Avoid leaks or spills of any kind of substance.
• Do not discharge any chemical products into the soil, water or industrial or rainwater drains.
There is an incident recording procedure, in which environmental incidents that may arise are identified, after which an analysis of causes, associated risks and definition of corrections and corrective actions are carried out to prevent them to recurrence.
Annually, environmental objectives are defined for the company and associated with these goals, actions to achieve them, the respective responsible, necessary resources and deadlines for execution.

The environmental objectives and respective actions are measured and monitored periodically, and corrective actions defined when necessary.
In addition to internal audits, external audits are carried out annually by an independent entity, which determine whether the system is being followed or not.
An annual review of the entire system is carried out, in which environmental performance is analyzed and new objectives are defined for the following year.

Water Scarcity:
The organization has SCADA system for online monitoring of water management. Water efficient taps and flush tanks also installed which can again serve 16700 capita/year for drinking purpose. The factory has sustainable washers to reduce water extraction, the water which is saved from these washers can again wash 14,500,00 pieces/year.
Climate Change (Global Warming from Fossil Fuels, melting ice caps):
The organization has SCADA system for online monitoring of energy management. The organization has 325 KW Solar PV, 11 Ton Waste Recovery Boilers, 0.5 Ton Biomass Boiler & Air-drying conveyer which in total reduce the GHG emission load upto 1557 Tonnes/Year which is reducing 10% GHG from overall GHG emission.
Air Pollution:
To reduce the impact of fossil fuel burning on air, we installed wet scrubber at boilers.
Water Pollution:
The facility is using 100% ZDHC compliant chemicals to reduce the impact of contaminants on fauna flora of sea and also the groundwater contamination. At industrial discharge, facility is treating the wastewater and fulfilling ZDHC progressive limits.

Soil Erosion & Deforestation:
We have planted 1000 Neem tree & Mulberries near Thaddo dam by the collaboration with Sindh Forest Department. This plant when become mature can absorb 21.7 Tonnes GHG/Year. This activity also reduces the phenomena of soil erosion at given location.

As a responsible company, our believe is to operate business with the core social values as a part of our heritage having implemented Anti-corruption policy which based on the Global Compact anti-corruption principle.
Rajby Industries encourage good conduct of business ethics with customers and suppliers, to commit highest standards of ethical conduct and integrity in business activities, to set out our business practice and approach for countering bribery to comply with all anti-bribery and corruption laws and regulations of the country and the valued customers. Company Employees and Associated Persons may not, directly or indirectly,
(i) offer, (ii) promise, (iii) agree to pay, (iv) authorize payment of, (v) pay, (vi) give, (vii) accept, or (viii) solicit Anything of Value to or from any third party in order to secure or reward an improper benefit or improper performance of a function or activity.

“Anything of Value” means bribes, kickbacks, a financial advantage, or any other benefit, whether in cash or in kind, tangible or intangible. Examples include gifts, meals, entertainment, airline tickets or discounts, travel vouchers, offers of employment, charitable contributions, extortions or any unlawful advantages are treated on ZERO tolerance.

Assessment of risk of corruption and bribery in the company’s industry and country(ies) of operation
We collaborate with our stakeholder to promote and enforcement of Anti-corruption policies within our supply chain through our own Code of conduct which is regularly communicated and reviewed with stakeholders and interested parties.

Continued training of staff on Anti-corruption policies and Disciplinary action policy and procedure of the organization.
Implementation of system and its effectiveness of complain channels covering all channels of complains i.e. Suggestion box, Hotlines and open door policy and use of other communication channels.
Representatives of Rajby Industries regularly participates in the tripartite conferences organized in the industry to discuss the collective actions on anti-corruption.
We have defined responsibilities to ensure enforcement anti-corruption policy within the company at every level of hierarchy.

The outcomes are reviewed and discussed along with the results against the tripartite conferences organized in the said period.
We regularly conduct internal audits and customer and 3rd party audits within the organization to ensure our consistent commitment with anti-corruption policy which directly monitored by the top leadership of Rajby Industry.
As a core value of Rajby Industry any violation of Anti-corruption policy is considered to be a Zero Tolerance that has helped us keeping this policy fully implemented without any violation in the said period.