Environmental matters of Premier Cement

Use of latest technology To increase the production capacity the company installing and
commissioning the most environmental friendly and cost effective & latest technology-VRM.
After the completion of the project another 9,200 MT per day will be added to the Company’s
total production capacity.

Mission Statement:

Integrity

We take pride in being a highly ethical company that respects relationships and the dignity of the
individual. We obey the laws, produce environmentally safe products, protect the environment
and practice equal employment and adopt fair labor practices. We are dedicated to the protection
and preservation of our environment, animals and community.

Organization and Management Structure:

Environmental and Social Responsible Committee:

1. M. Mahfuzur Rahman, Chairman

2. Mohammed Amirul Haque, Member

3. Mohammad Mustafa Haider, Member

4. Md. Jahangir Alam, Member

5. Md. Alamgir Kabir, Member

6. Mohammed Ershadul Hoque, Member

7. Asif Moinuddin, Member

8. Kazi Md. Shafiqur Rahman, Member Secretary

Our Challenge Although Bangladesh is self-sufficient in cement production, Bangladesh needs to

import almost all raw materials used in cement manufacturing have to be imported. As per
existing provision on raw material import, the cement companies pay 3.0 percent Advance
Income Tax(AIT) at the import stage and 3.0 ~ 4.0 percent as tax deduction as sources (TDS) at
the supply stage. The tax imposed in both the areas is non-adjustable as per the section 82(c) of
the income tax ordinance, 1984 (ITO-1984).

On the other hand price of all raw materials such as clinker, slag, flay ash, gypsum & limestone
increased significantly in last couple of years 90% of the clinker, the main raw material of
cement, is imported from Vietnam. Chinese government started to discourage clinker production
from integrated plant having wet kilns to reduce environmental damage. Later Chinese
manufactures started importing from its nearest source- Vietnam. Now clinker is being imported
at around $40-$45 per ton. Besides, due to the outbreak of Covid-19 pandemic the country has
been on general holiday from the 26 th of March to 30th May 2020 and this has affected the
cement supply chain and continue to disrupt the implementation of large projects including the
Padma Bridge, Rooppur Nuclear Power Plant, Matarbari Power Plant, Karnaphuli river tunnel
and Dhaka Metro Rail. As a result the companies were able to restore only 40 per cent
production in last three month (April-June 2020). The companies are bearing the costs of
productions and wages of employees through great hardship. However we are optimistic that
considering the current situation the government will reconsider the adverse taxation policy to
this rising sector.

Code of Conduct and Ethical Standards:

Health, safety & environment Company must comply with all the relevant environmental, safety
and health laws and regulations. They must run the operations in an environment-friendly
manner and provide a safe and healthy working environment for all of its employees.

Report of Risk Management Committee

Potential or Existing Government Regulations

The Company operates under Companies Act, Income Tax Ordinance, Income Tax Rules, The
Custom Act, Value Added Tax (VAT) Act, Value Added Tax (VAT) Rules. In addition to that,
Company operates its activities in compliance with various environmental rules and regulations.
Stricter laws and regulations or stricter interpretation of existing laws and regulations may
impose new liabilities, which could adversely affect its business, financial condition or results of
operation.

Management Policy

Unless there is any drastic change in policy that may bring any adverse effect in the industry the
business of the company is expected not to be affected significantly. As a developing country,
economy of Bangladesh is growing consistently over the period and demand of cement is also
increasing to meet the rising infrastructure development. Cement being the most important
ingredient for the infrastructure development; it is unlikely that the government will initiate any
fiscal measure having adverse effect on the growth of the industry.

Asset Care

The asset care team ensures that equipment is kept in good and functional condition that
contributes to safe working conditions and prevents environmental damage. Our dedicated asset
care team is focused on furthering the:

1. Development and implementation of asset risk management policies and governance

2. Development and implementation of centralized work planning and control

3. Development and implementation of improved material management systems, our reliance on

manufactured capital and our approach to the management thereof allowed us to extract the
benefits and value of our assets

Risks and Concerns:

Safety, Health and Environment Issues: Ensuring healthy and safe working conditions for
employees is one of the most important issues to consider for the cement industry. Premier
Cement takes all possible measures to ensure that all its employees as well as communities
within which it operates remain safe at all times. Company’s safety measures, continuous risk
assessment policy ensures a healthy and hazard free work environment for all employees in the
workplace. Moreover, we comply with zero tolerance policy in sacrificing our community’s
health issues as we firmly believe that we all are integral part of the society. Environment
preservation is therefore one of our top agendas. Premier Cement is a certified Company from
the Department of Environment, Government of People’s Republic of Bangladesh and has been
successfullyabiding by all the laws and regulations exerted by the above mentioned authority

Asset Management Strategy:

Operation task criticality:

To determine activities related to assets that can cause harm to people and the environment while
performing these activities

Asset Care The asset care team ensures that equipment is kept in good and functional condition
that contributes to safe working conditions and prevents environmental damage.

Our dedicated asset care team is focused on furthering the:

1. Development and implementation of asset risk management policies and governance

2. Development and implementation of centralized work planning and control

3. Development and implementation of improved material management systems, our reliance on

manufactured capital and our approach to the management thereof allowed us to extract the
benefits and value of our assets.

Material Aspects

1. Resource Utilization

2. Maintaining state-of-the-art work environment

3. Infrastructural resource maintenance and development

4. Ensuring optimum accessibility to clients

Challenges

1. Ensuring infrastructure sufficiency supports growth ambitions

2. Balancing costs and benefits of investments

3. Rapid changes in technology and the timing of investments Investing in Eco-friendly
workspace and policies We have taken initiatives to make our plant, warehouses and offices
more eco-friendly and reduce our carbon footprint. We invest in making our premise more
energy efficient. Enhancing our work environment

We provide state-of-the-art manufacturing and office environment that cater to employees in

terms of work space, facilities for extra-curricular activities and so on. These help create greater
attachment to the company and is in line with our philosophy that a good work-life balance
should start at the workplace. In order to help employees reach their potential, a good work
environment needs to be complemented with employee engagement initiatives, efforts towards
employee health and well-being and numerous other factors

Stakeholders

Environmental Group: Premier Cement always pays much importance on the environment
where it does business where protection of environment and its resources become vital.

objectives- conducting business without degradation of the environment. # addressing the issue-
ensuring pollution control through effective measure against mingling of dust, heat and fume in
the air, water and soil.

Community: Society has varying expectations to us as well as we are also committed to the
society. As a part of our commitment every year we conduct various CSR activity like providing
hand on training, ensure health & safety in workplace, to protect the environment regularly
conduct green beautification activities, provide relief, conduct blood donation program etc.

# objectives-causing no disruption and adding value to the society.

# addressing the issue-implementing program to help indigenous & underprivileged population

fulfilling their needs for food, sanitation, skill development, healthcare and overall poverty
alleviation

Natural Capital

Our Natural Capital encompasses the ecosystems and natural resources that are affected by our
business. We understand that we cannot escape from our responsibility towards the environment.
So in every step of our production process we closely monitor the environmental impact and
effectively mitigate any risks that arise thereon. CSR initiatives of the company are designed to
contribute to the economic, social and environmental sustainability that will convey a positive
benefit for the stakeholders of our business. Material Aspects The material aspects of our Natural
Capital are focusing on increasing environmental awareness so that we can contribute in making
a ‘Green Bangladesh’. In doing so we are also focusing on regular programs such as “Green
Awareness”, environmental initiatives, in-house environmental management and sustainable
business practices.

Highlights

 Installed environment friendly technology, VRM

 Planted 1 lack sapling across the country

 Installed new technology for dust collection

 Installed power saving light (LED Light) across whole factory

 Installed 2 units of solar home systems

 Using solar power.

 Providing training to educate employees regarding environmental issue.

 Promoting employee participation in the company’s CSR initiatives in Environment protection

and conservation.

 Installation of energy-control equipment to optimize energy utilization at head office and

factory.

Key Challenges

 We are faced with lack of awareness regarding benefits of green environment

 Establishing a resource optimization system to reduce energy and resources usage during
operations  We are operating a strict regulatory framework regarding environmental issue;
therefore, it is a big challenge for us to reach all of our stakeholders. Commitment Premier
Cement is committed to its shareholders and stakeholders to reduce the impact on environment
that arises from its operation.

The company has taken several initiatives to reduce energy, water and waste consumption while
at the same time taken appropriate measurements to ensure reduction in carbon emission from its
operation.