Cargills Ceylon Sustainability 2020-21 Final

Cargills (Ceylon) PLC
Sustainability Report 2020 - 2021

Contents
About this Report 2
Financial Highlights 2
Non-Financial Highlights 4
Our Commitment to Sustainability 5
Stakeholder Engagement 8
The Six Capitals
Financial Capital 16
Human Capital 18
Social and Relationship Capital 23
Natural Capital 33
Manufactured Capital 36
Intellectual Capital 38
GRI Content Index Tool 42
Independent Auditor’s Report 46
Notes 52
Cargills (Ceylon) PLC Sustainability Report 2020 - 2021 1

Sustainability Report
About This Report

Our vision of being a “Global Role Model in community friendly National Development” is the foundation on which our business
and sustainability strategy are built. The non-financial corporation of the Group is presented in this report with the objective of
sharing with our stakeholders our role within society and our progress in working towards achieving our vision. We define non-
financial information as information pertaining to the non-financial elements emerging from our determination of materiality. The
Annual Report (https://www.cargillsceylon.com/investors/annual-report) is prepared based on the Integrated Reporting Framework
published by the International Integrated Reporting Council (IIRC) and based on a consolidated set of GRI standards. This is the 6th
report where we present information in accordance with the GRI Guidelines. Where applicable, we have compared performance
with our previous report published on 31st March 2020.
This report has been prepared in accordance with the GRI Standards: Core Option, and will complement the Group's Annual
Report. Independent assurance for this report has been obtained as shown in pages 46 to 48.
Financial Highlights
Group Company
2021 2020 Change 2021 2020 Change
Rs.000 Rs.000 % Rs.000 Rs.000 %
Operations
Continuing Operations
Revenue 112,607,061 107,051,866 5.19 78,935 96,461 (18.17)
Profit from operations 7,308,290 7,060,621 3.51 1,534,005 851,913 80.07
Profit before taxation 4,527,659 4,199,634 7.81 1,271,976 738,640 72.21
Profit after taxation 3,483,639 2,761,419 26.15 1,250,006 652,460 91.58
Financial Position
Non-current assets 59,468,926 49,375,858 20.44 16,727,901 15,100,249 10.78
Current assets 23,123,652 21,832,167 5.92 2,076,341 1,833,067 13.27
Current liabilities 38,945,230 39,556,049 1.54 4,997,815 4,155,153 20.28
Non - current liabilities 20,686,625 13,287,158 55.69 1,372,941 780,226 75.97
Capital and reserves,
Minority Interest and other equity 22,960,723 18,364,818 25.03 12,433,486 11,997,937 3.63
Per share data (Rs.)

Basic earnings per share 13.51 10.47 29.03 4.85 2.54 91.24
Dividends per share 5.10 6.00 (15.00) 5.10 6.00 (15.00)
Net assets per share 89.21 69.39 28.56 48.32 46.64 3.60
Market value per share 235.00 170.00 38.24 235.00 170.00 38.24
Cash Flow
Net cash generated from/ (used in)
- Operating activities 11,630,537 6,476,207 251,538 739,995
- Investing activities (10,010,054) (5,422,917) 132,440 228,699
- Financing activities 752,879 (3,389,641) (185,212) (1,762,163)
2 Cargills (Ceylon) PLC Sustainability Report 2020 - 2021

Sustainability
Revenue - Group Profit Before Taxation - Group Profit After Taxation - Group Total Assets - Group
(Rs. Bn) (Rs. Mn) (Rs. Mn) (Rs. Bn)
120 6,000 3,500 100
3,000
100 5,000
80
2,500
80 4,000
2,000 60
60 3,000
1,500
40
40 2,000
1,000
20
20 1,000
500
- - - -
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Revenue - Company Profit Before Taxation - Company Profit After Taxation - Company Total Assets - Company
(Rs. Mn) (Rs. Mn) (Rs. Mn) (Rs. Bn)
120 3,500 4000 20
100 3,000
3000 15
2,500
80
2,000
60 2000 10
1,500
40
1,000
1000 5
20 500
- - - -
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
LKR. 4,528
GROUP PROFIT BEFORE TAX
Mn LKR. 3,484 Mn
GROUP PROFIT AFTER TAX

Sustainability Non-Financial
Non-Financial Highlights
Human Capital
New Recruits Retained Permanent

as at 31 March 2021 Employees
3,791 9,875
Social and Relationship Capital
Educational Beneficiaries of Community Registered

Scholarships Development Projects Suppliers
187 597 602
Natural Capital
Energy Consumption Furnace Oil Water Consumption

Diesel/Petrol: 835,283 L 2,841,152 L 838,138,088 L
Electricity Renewable Energy
Gas: 644,793 Kg 114,370,313 Kw/h 3,444,000 Kw/h
Manufactured Capital
Food City Outlets Fruit and Vegetable Milk Chilling Centres Delivery Operation
454 Collection Centres 33 Hours
12 24x7
Food Processing Plants Fruit and Vegetables Litres of Milk Procured
8 Purchased 57,000 MTs
39,000 MTs
Intellectual Capital
New products No. of employees with more than 15 years of service

launched Over 600 Employees
44

Sustainability Non-Financial
Our Commitment to Sustainability Sustainability Strategy Our commitment to creating sustainable

Since 1844, we at Cargills have been Prioritizing social, environmental and value for all stakeholders requires an
committed to serving our nation. economic sustainability is an integral adaptable strategy that is capable
Reflecting on our journey of 177 years, part of our sustainability strategy. It of meeting rapidly evolving social,
we have evolved from a wholesale and is a reflective stance of the Group’s environmental, and economic needs.
retail business to being a pivotal player commitment to ensuring sustainability Therefore, our strategic approach
in multiple sectors within the food and in every aspect of our business. Our towards sustainable growth is regularly
beverage industry. Cargills has always commitment towards a better Sri monitored, reviewed, and strengthened
upheld an unwavering commitment to Lanka stems from our core values as under the direction of the Group
sustainable and responsible business a responsible food company which CEO and active involvement of the
operations which has not only accentuates our sentiment towards senior management. The inclusion
consolidated our position as a leader sustainability whilst attaining our vision of sustainability indicators in the
in corporate sustainability, but also to be a global corporate role model with measurement of business performance
deepened trust and respect for our a deep vested interest in community- supports such efforts and serves to
brands amongst diverse stakeholders. centric national development. In ensure that our business leaders are
As a business, we are committed to essence, our initiatives go beyond our regularly accountable for more than just
managing our environmental impact sustainability ethos by aspiring to reduce financial and operational performance.
whilst uplifting the communities the cost of living, enhance youth skills
around us. We strive to do this without and bridge regional disparities in our
compromising on economic success nation.
and sustainable growth. We are
committed to supporting and promoting The key features and objectives of
this sustainability-driven culture across Cargills sustainability strategy include:
the Group and its 9,875 employees. Our
success in achieving our sustainability • Creating truly sustainable value for
goals relies much on the efforts and every direct and indirect stakeholder
dedication of our team, working tirelessly • Assessing the impact of investments
to ensure that our investments are socially on social, environmental and economic
responsible, environmentally sustainable, sustainability
and economically meaningful.
• Monitoring and evaluating the
achievement of sustainability targets
and goals
• Improving business operations and
services to facilitate and enhance
sustainable growth
• Sharing best practices on sustainability
across diverse national and
international fora

Sustainability Our Impact
Our Impact
Having operationalized the strategy around sustainability, Cargills is a key player in the national development of Sri Lanka. Driving
an agenda that is primarily focused on creating sustainable value for the community, our positive impacts extend across the
marketplace, workplace, and environment. Whether it is through agriculture-centric regional growth, or an unwavering commitment
to serving safer and healthier food, our investments have supported the upliftment of communities and improved the lives and
livelihoods of people across Sri Lanka.
Vision
To be a
corporate role model in
community - friendly
national development
Values
Remain grounded in a
Mission
culture of trust and respect,
To serve the rural community,
integrity and accountability,
our customers and all other
serving consumers in a
stakeholders, through our
responsible way, reducing
core business 'Food with
environmental impact and
Love' - and other related
uplifting the
businesses
communities
Bridging Regional Disparity Enhancing Youth Skills Reducing the Cost of Living

Sustainability Our Impact
Sustainable Development Goals

Cargills recognizes that responsible business and investment is essential to achieving transformational change in Sri Lanka through
the Sustainable Development Goals (SDGs) as outlined by the United Nations. These goals are strongly aligned with the vision and
mission of Cargills, giving us an ideal position to contribute to the achievement of national and sustainable development in Sri Lanka.
Likewise, Cargills is a member of the United Nations Global Compact (UNGC); a global movement of sustainable companies taking
strategic action to advance societal goals and align operations with universal principles on human rights, labour, environment and
anti-corruption. In turn, the successful implementation of these development goals stands to strengthen the enabling environment
for doing business and create sustainable value for all stakeholders. Whether it is in engaging local communities, or supporting
skills development, the diverse efforts by Cargills to drive responsible and sustainable business operations directly, or indirectly,
contribute to each of the following SDGs;
It is in line with such commitments to our planet and people that Group-wide strategies, governance structures, corporate
policies, commitment statements, and codes of conduct are developed in a manner that helps embed sustainability and corporate
responsibility into our everyday operations.

Sustainability Sustainable Development Goals
Stakeholder Engagement
Every facet of our company and its operations has the potential to impact, or be impacted by a diverse group of internal and
external stakeholders. Stakeholder engagement provides opportunities to further align business practices with societal needs
and expectations, helping to drive long-term sustainability and shareholder value. The key stakeholders listed below comprise
individuals and groups who are affected by the decisions we make and can influence the implementation of our decisions.
We serve millions of customers through our extensive retail network, backed by a

Customers sustainable food value chain. Our customers are essential to our business, and we will
continue to innovate and offer them affordable products of the highest quality.
The Cargills team comprises 9,875 members spread across 25 districts and over
Employees 400 places of work. Training and development programs which extend across all our
business sectors are offered to our employees to further assist their career development.
1,968 shareholders continue to support the Cargills’ business model, which is pegged
Shareholders
on long term value and sustainable growth.
Over 20,000 agriculture and dairy farmers, and 602 suppliers are directly linked to
markets through the Cargills value chain. These partnerships play a crucial role in us
Farmers, SMEs and Traders
creating sustainable value for our customers. In the financial year 2020/21, the direct
revenue generated for our farmers was Rs. 9.3 Bn.
Cargills works closely with government and regulatory authorities towards creating value
Government and Regulatory
for our stakeholders. This includes sharing corporate insight, supporting community
Authorities
development and driving policy towards better health and nutrition.
On the journey to becoming the largest contributor to regional Sri Lanka, Cargills
believes in strengthening our nation through community development whilst investing
Local Community in the future by means of educating our youth and our next generation. Whether it is
through educational scholarships, or an increasing network of business touchpoints,
Cargills' reach continues to grow beyond urban Sri Lanka.
Stakeholder Engagement Process

To create sustainable value, collaborating with our stakeholders remains key. Effective stakeholder engagement helps translate their
needs into organizational goals and creates the basis of effective strategy development. We implement a structured stakeholder
engagement model which identifies our key stakeholders and routinely monitors the main performance indicators. This helps us
have greater clarity and a shared understanding amongst our key stakeholders, which is essential in building a cohesive vision for
the future.

Sustainability Sustainable Development Goals
How We Engage Our Stakeholders
Watch, Listen
and Review
Monitor
Identify and
and Control
Document
Plan Analyse
Approach
Develop
Strategies
Identifying Our Stakeholders

It is important that we identify our key stakeholders to facilitate effective engagement
and we do so based on 2 main criteria;
1. The stakeholder’s influence on the company

2. The impact of the company on the stakeholder
Taking these into account, we have identified customers, employees, shareholders,

farmers, SMEs and traders; government and regulatory authorities; and the local
community as our key stakeholders.

Sustainability Stakeholder Engagement Model
Engage Engage Directly

Level Impact
Customers Farmers, SMEs, Traders
Keep Informed Manage Closely
Employees Local Community
Shareholders Government / Regulators
Level of Influence
• Watch, Listen and Review: Continuous engagement with stakeholders to improve existing plans and identify new areas of
concern and engagement
• Identify and Document: Identify stakeholder groups and individual stakeholder representatives; develop a stakeholder prioritization
plan
• Analyse: High-level stakeholder assessment and mapping of priorities
• Plan Approach: Develop a plan to incorporate stakeholder concerns into the business agenda
• Monitor and Control: KPI-driven monitoring and control processes
Each step in this continuous process involves a series of actions and measures to ensure that current developments and changes
in the operating context are captured in a timely manner, accountability is assigned to heads of business and project teams, and
regular feedback is built in to facilitate monitoring and evaluation.
Stakeholder Priorities
Following the identification of key stakeholders, we focus on mapping out their concerns. Detailed below are the concerns of our
stakeholders based on iterative communication and diverse mechanisms of engagement.
Stakeholder Frequency Mechanisms of Engagement Priorities / Areas of Concern

Customers On-Going • Promotions • Cost of Living
• Social Media • Health and Nutrition
• Customer Service Hotline • Food Safety
• Field Visits • Sustainability

Sustainability Stakeholder Engagement Model
Stakeholder Frequency Mechanisms of Engagement Priorities / Areas of Concern

Monthly/ Quarterly • Internal and External • Product Range
Customers • Consumer Research • Service Standards
Annually • Trade Fairs and Events • Brand Recognition
Employees On-Going • Training & Mentoring • Career Development
• Orientation Programs • Goals for Reward and Recognition
• Daily Briefings
• Open Door Policies
Monthly/ Quarterly • Periodic Briefings by Senior Management • Corporate Information
• HR Engagements • Grievance Sharing
Annually • Regional Staff Conventions • Team Building and Interaction
Shareholders On-Going • Information on CSE • Business Development
• Media Reports • Sustainability
• Open Door Policy for Investor Inquiries
Monthly/ Quarterly • Quarterly Reports • Business Expansion Plans
• Investor Calls and Meetings • Risk Management
• Road Shows
Annually • Annual General Meetings • Financial Performance
• Annual Reports • Governance and Disclosure
Farmers, SMEs, On-Going • Daily Engagement • Enhanced Markets
and Traders • Monthly Meetings • Competitive Pricing
• Digital Engagement Platforms • Business Growth
• Field Visits
Monthly/ Quarterly • Partnership Meetings • Industry Developments
• Farmer Group Meetings
Government On-Going/ Monthly/ • Meetings with Government and Regulatory • Business Sustainability
and Regulatory Quarterly Authorities • Market and Community Impact
Authorities
• Graduate Unemployment
• Good Governance and Business
Practice
Local On-Going • Cargills Sarubima Activities • Community Development
Community • Cargills Foundation Activities • Youth Empowerment
Any concerns relating to our key stakeholders are moderated by the Group’s leadership, and where necessary, opinion and input
is provided by the Board of Directors and incorporated into the strategic planning processes of the company. Stakeholders often
remain interested in the outcome of engagement and are keen to see how their concerns feed into the business strategy.

Sustainability Stakeholder Priorities
Materiality
A matter would be considered material if it has the potential to substantially influence the Group, whether it be commercially or
socially, and cause an impact on relationships with our stakeholders. We engage with our stakeholders regularly to assess the
various aspects that are material to each of our business sectors. The degree to which a material issue impacts the Group and/or
stakeholder determines the extent to which it is reported.
Materiality and Reporting
Impact on Stakeholder
Not Reported Briefly Reported Reported in Detail
Impact on Group
The Group’s Enterprise Risk (ERM) framework encompasses practices related to the identification, analysis, evaluation, treatment,
mitigation, and monitoring of strategic, financial, external, and operational risks. This helps the company leverage market
opportunities effectively and enhance competitive advantage in the long run. Therefore, all risks, often emerging from the concerns
of key stakeholders, are mapped against Global Reporting Index (GRI) standards and included as material to the Group. Risks
pertaining to competition, reputation, business strategy, inventory and supply chain, IT systems and infrastructure, funding and
liquidity risk, market risk (interest rates, FOREX and commodity market fluctuations) and natural disasters emerge as aspects that
are evaluated but remain outside the scope of the GRI.

The material issues and the corresponding levels of materiality that impact the stakeholders and the Group and align with GRI
standards are detailed below.
No. Material Issue GRI Materiality

Standard To Group To Stakeholder
1. Corporate Governance Internal 102 High High
2. Reputation Internal 102 High Low
3. Risk Management Internal 102 High High
4. Economic Performance Internal 201 High High
5 Market Presence Internal 202 High High
6 Indirect Economic Impact External 203 High High
7 Anti-Corruption Internal 205 High High
8 Anti-Competitive Behaviour Internal 206 Low Low
9 Energy Consumption Internal 302 Moderate Moderate
10 Water Management Internal 303 Moderate Moderate
11 Waste Management Internal 306 Low Moderate
12 Environmental Protection Internal 307 Low Moderate
13 Labour Practices & Grievances Internal 402 Moderate High
14 Occupational Health and Safety Internal 403 Moderate Moderate
15 Employee Training & Development Internal 404 High High
16 Diversity and Equal Opportunity Internal 405 High High
17 Community Development External 413 Moderate Moderate
18 Customer Health and Safety External 416 Moderate High
19 Product Labelling External 417 Moderate High
20 Product Responsibility Internal 417 High High
21 Regulatory Compliance Internal 417 Moderate Moderate
22 Customer Privacy External 418 High High

Stakeholder Impact
Across 177 years, our customers, employees, farmers, and suppliers have been our heroes; sharing our vision and supporting our
commitment to creating long-term value and sustainable growth. We recognize that the continued success of Cargills rests in its
people, and we are dedicated to ensuring that every aspect of our business has a positive impact on their lives.
In order to facilitate this, our business strategies are based on the needs and aspirations of our stakeholders and are geared to
enhance the creation of sustainable value. Through regular engagement with internal and external stakeholders, we assess and
map aspects that are material to our business and, thereafter, align our strategies and processes to manage and respond to these
material issues.
Initiatives and measures that we have taken to address the identified priorities and concerns of our stakeholders include:
Customers
• Reaching millions of customers through 454 retail outlets and 43 restaurants spread across all 25 districts in Sri Lanka
• Sourcing fresh milk, fruit, vegetables, and other commodities directly from over 20,500 suppliers to be sold to customers at the
lowest possible prices across the network of retail outlets
• Promoting access to affordable nutrition through regular promotions and discounts on fresh milk, fruits, vegetables, and other
commodities
• Developing new products, and improving existing products, to increase product range and improve service standards
Employees
• Recruited and retained 3,791 new employees during 2020/21, bringing the total number of employees to 9,875 at the end of
the financial year
• Reflecting a commitment to youth development and fostering an inclusive workplace with 6,206 (63%) out of the total employees
being below the age of 30, and 4,749 (48%) being female
• AAPI partnering with internationally-renowned training institutions, such as the IGA Institute, to further support the continuous
training and development of staff
Shareholders
• Engaging directly with 1,968 shareholders, including the regular publication of reports, periodic consultations, and an open-door
policy for investor inquiries
Farmers, SMEs and Traders

• Working with 5,252 agriculture farmers and 17,959 dairy farmers to supply quality fresh produce and dairy, reduce the cost of
living, and create increased access to local and international markets
• Partnering with the Department of Agriculture to provide assurances of quality through the introduction of Sri Lanka Good
Agriculture Practice (SL-GAP) certification for eligible farmers across the Cargills ecosystem
• Providing guidance and technical support to 602 suppliers and traders to continually enhance quality standards
• Established our Village to Home initiative to empower our SMEs by giving them wider market access and support throughout
their supply chains

Government and Regulatory Authorities
• Leveraging corporate knowledge and insight to support wide scale rural community development, including the provision of
educational scholarships through Cargills Sarubima fund
• Contributing to government policy by setting benchmarks on health and nutrition for Sri Lankan consumers
Local Community
• Deepening engagement with local communities through an expanding business outreach and community development projects,
through Cargills Sarubima fund
• Through the Cargills Foundation, we strive to empower people for a better tomorrow and also invest in the future of our youth
and the next generations

Sustainability Financial Capital
Financial Capital 2020/21 2019/20

The entirety of our value chain entails Rs.'000 Rs.'000
the flow of monetized capital and the Value Created
consumption of goods and services. Each
Gross Revenue 117,781,115 115,770,372
component of value creation thus carries
a notable impact on the economy. To do (-) Cost of Goods and Services (97,684,384) (93,102,676)
business responsibly, the Group adopts Value added from operations 20,096,731 22,667,696
an integrated approach to manage its
financial capital and bring on a positive
Other Income 1,820,699 1,951,838
economic impact. All our decisions
taken consider market conditions, trends Finance Income 183,796 229,418
and constraints which also ensures Total Value Created 22,101,226 24,848,952
methodical resource allocation.
Value Distributed
Delivering Economic Value
Remuneration to the Employees 8,130,351 7,351,660
The Group takes a holistic approach to
increase focus on a broader group of Directors' Fees and Remuneration 445,862 509,145
stakeholders. This encompasses three Community Investments 16,307 47,722
key points: what value we create and Government Levies 5,174,054 8,718,506
distribute, how to evaluate the economic
Corporate Taxes 1,044,020 1,438,215
impact and how we reinvest the profits.
Interest Cost 2,721,110 2,857,039
The economic value statement presents Non Controlling Interest 2,648 69,327
information on the generation and Dividends 1,311,996 1,543,326
distribution of economic value for
Other Operating Costs -
stakeholders and provides a fundamental
view of the wealth created, retained Total Value Distributed 18,846,348 22,534,940
and distributed during 2020/21. The
statement includes revenue, operating Total Value Retained 3,254,878 2,314,012
costs, employee compensation,
payments to providers of capital and the
government, donations, and community Total Value Distributed and Retained 22,101,226 24,848,952
investments.
The direct economic value generated

and distributed by the Group in 2020/21
is Rs. 22.1 Bn compared to Rs. 24.9 Bn
in 2019/20.

Sustainability Financial Capital
Value to shareholders
Description 2020/21 2019/20
ROE % 15.18 15.47
Earning per share (Rs.) 13.51 10.47
Net assets per share (Rs.) 89.21 69.37
Share price (Closing) (Rs.) 235.00 170.00
Dividend per share (Rs.) 5.10 6.00
Dividend Yield % 2.17 3.53
Buying local
Being a company that primarily sources and manufactures locally, we emphasize
on the proportion we spend on local suppliers. This includes farmers, cottage-level
industries, SMEs and small businesses. The proportion of procurement expenditure
on local suppliers for the year amounted to 96%.
Proportion of Spending on
Local Suppliers (2020/2021)
4%
96%
Local Purchase
Foreign Purchase

Sustainability Human Capital
Human Capital
Workforce - By Age
Our true strength lies in our dynamic and energetic team. Their undeterred commitment (2020/2021)
and enthusiasm to serving our customers is the driving force of our business. Even 2%
during times of crisis our teams have worked together to manage the challenges in a 63%
positive way. 35%
We aim to foster a workplace culture of diversity and inclusion and to build our team’s
competencies to enable them to meet any challenges in today’s business world.
Key highlights 2020/21

• Despite the difficulties faced during the year due to the COVID-19 pandemic, the
management ensured that there were zero retrenchments, no pay cuts and no
furloughs
Under 30 years old
30-50 years old
Value delivered
Over 50 years old
No. of New Employees Recruited and Retained

Type of Employment
• 3,791 (2020/2021)
16%
Employee Engagement
84%
• Total no. of training hours: 30,154 hours

• Training programs with a total 11,303 participants
Diversity and Equal Opportunity

We reaffirm our commitment to providing an environment where diversity is celebrated,
and a culture that provides equal opportunity where everyone is valued for their work Non-Executives
ethic and respected for who they are. We are an equal opportunity employer and Executives
do not discriminate based on gender, ethnicity, age or any other form of diversity
when attracting, remunerating, or promoting employees. We believe in maintaining a
workplace which allows any team member to contribute to the collective success of HR Governance and Policies
our company. Our Human Resource governance
framework consists of resilient policies
As at end March 2021, our team comprises of 9,875 members, of which 1,590 are primarily centered on onboarding,
Executives and 8,285 are Non-Executives. Our team is also young and diverse, with developing, and retaining our employees
6,206 members being under the age of 30 and 4,749 members being female. with a key focus on building employee
interest. Further, it is designed to comply

with the human rights code, employment

standards, workplace and occupational
health and safety at local and international
industry standards. The Board and senior
management systematically reviews and
updates the policy framework and the
way forward.
Internal Engagement
The significance of employee
engagement cannot be overstated, and
it is key to our success as a company.
Engaging our team increases worker
satisfaction and boosts productivity
within the workplace as well. However, “Capture the Moment” internal competition
due to surge of the pandemic this past
year, it was imperative that the Group
reduce the number of activities to curtail
any large gatherings.
Grievance handling
We have a formal grievance handling
process across business sectors, which
includes a 24-hour hotline, location
visits, detailed recording of grievances
and follow-up processes. All team
members are encouraged to express
their grievances and all inquiries are then
directed to management for the required
action.
Cargills Food City Outlet opening
Performance Assessment
Our team members are systematically
Benefits include: Training and Development
reviewed on Key Performing Indicators
(KPIs) which include competencies • Medical In a fast-paced business world,
and work ethic. Team members are • Death benefit training and developing our team is an
recognized and rewarded solely based indispensable function. We facilitate
on performance and a good track record, • Gifts on birthday/wedding etc. training opportunities to our staff by
irrespective of other parameters. • Staff loans continuously assessing their training
needs including orientation, language
• Ex gratia payments
Remuneration and Benefits skills, professional skills development,
• Bonus and retention-oriented training.
Across all our business verticals, we
ensure zero discrepancies between the • Discounts for staff purchases at
Cargills Food City, KFC and TGIF Training is conducted through our
minimum wages paid by gender. We
inhouse training facility, The Albert A.
also offer our full-time staff perks and
Page Institute of Food Business where
benefits to inspire them and increase
external trainers and resource personnel
their workplace satisfaction.
are engaged when needed.

The Albert A. Page Institute (AAPI)

The Albert A. Page Institute (AAPI)
of Food Business was established in
2006 in response to the needs of the
youth in rural Sri Lanka. We realized
that there was a dire need to develop
professional skills as many of these
youth were either under-employed
or unemployed. Furthermore, Sri
Lanka is heavily dependent on foreign
remittances earned by the export of
unskilled labour, and hence there is a
An AAPI team briefing need for a paradigm shift in education
and skills development.
The AAPI has developed a series of

Certificates and Diploma programs
aimed at creating opportunities
for career advancement in the
Food and Manufacturing sectors.
The Certificate programs develop
the various basic skills required
to become effective and efficient
executives. The courses are designed
to cater to all aspects of Food
Marketing encompassing Operations,
Manufacturing, Support Services,
Sales and Distribution, Central
Online training being conducted by the AAPI team
Warehouse and Agri-Business. The
Advanced Certificate courses for
managerial skills development have
been designed considering all aspects
of organizational needs of technical,
human and conceptual skills which
are crucial elements of becoming
an effective and efficient executive
aligned with today’s competitive
and dynamic business environment.
Once students acquire the Advanced
Certificate, they have the option
of upgrading the certification to a
Diploma.
An AAPI team member conducting an online presentation

Independent Grocers Alliance

(IGA) Online Training Total training
The IGA Institute is a non-profit hours: 30,154 hours
educational foundation developed by
The Independent Grocers Alliance,
to provide online training material,
web-based job certification courses
and classroom training to support the
career development needs of its retail Avg training hours
per participant: Total training
food associated around the globe. conducted: 279
2.67 hours
The IGA Institute functions as the
Alliance’s Learning and Development
Department by bringing competitive
skills to the independent retailers
worldwide. The AAPI is currently
registered with the IGA Institute and Total
is able to offer these courses online. no. of participants:
Cargills utilizes these online learning 11,303
opportunities to empower youth in
rural areas using Information and
Communication Technology.
Employee Retention Occupational Health and Safety Response to COVID-19

Building a dynamic work environment To safeguard our team members’ health In light of the pandemic outbreak, the
where team members are constantly and safety, all manufacturing facilities management appointed a Health and
engaged has enabled us to recruit and have administered Environmental, Health, Safety Committee which included key
retain 3,791 employees in the period of and Safety Management Systems in line members across all the Group’s business
review. with ISO requirements. As always, we sectors. By identifying the potential risks
work towards achieving a zero-incident in the workplace, this committee updated
We also proactively ensure a frictionless rate in workplace accidents. In the past the policy and processes on health and
return-to-work schedule for team year, the recorded number of workplace safety accordingly. Further actions taken
members entitled for parental leave. injuries was 44, whereas there were 109 include,
reported during the preceding year.
2020/21 • Assigning Health & Safety
Number of injuries Representatives (HSRs) to each
Total number of employees 170
division
that took parental leave By Gender Male Female
• Adopting various safety control
Total number of employees 119 Number of injuries 37 7
measures, e.g., installing sanitisation
that returned to work at
chambers at the required locations,
the end of the period By Type Minor Major and routine procedures across all of
Return to work rate 70% Number of injuries 34 10 the Group’s operations and guiding the
employees on the necessary protocols

• Providing the necessary facilities to staff - provision of PPE gear to outlet and
distribution staff, providing accommodation and transport facilities etc.
• Evaluating the situation with the MOH and PHIs in order to reopen the outlets and
offices (disinfecting workspaces etc.)
Fully geared to serve the customer
Strictly adhering to health and safety protocol
Disinfecting before work

Sustainability Social and Relationship Capital
Social and Relationship Capital • Partnering with Skills for Inclusive

We actively explore new ways to deepen our engagement with our key stakeholders— Growth: Collaborated with Skills
the agricultural community, suppliers, customers and collaborative partners. In a for Inclusive Growth by providing
bid to continuously improve these relationships, we lead several initiatives to drive commercial space and food essentials
sustainable business and contribute to society in general. Through these initiatives, we to air their program “Supreme Chef
invest heavily in development, education, environmental sustainability, and the health 2” – a TV show which showcases
and wellbeing of communities. In doing so, we foster lasting relationships with our the potential of underemployed/
diverse stakeholders, which are integral to our business model. unemployed youth to be career
minded chefs in the top hotels around
Key Highlights of 2020/21 the country.
Launched the Village Agriculture

to Home initiative Modernisation Project Response to COVID-19
Meeting the needs of our customers
Extended to 332 additional
In response to the outbreak of the
farmers during the year,
pandemic, the Group took immediate
bringing the total farmer base
action to ensure our customers had
to 492 access to our services. In view of this,
the following steps were taken;

Early Childhood • The outlets established multiple
Scholarships
Education Programme
channels to facilitate door-to-door
Provided 187 children in 48 preschools in the Western deliveries – via phone calls and the
Cargills Rewards online platform
the farming community with Province onboard the
educational scholarships programme • Launched Asia’s first ever mobile
supermarket “Cargills 2 Home” to
reach shut-in customers
• Maintained a line of communication
Value Delivered • Affiliation with United Nations Global with our customers via our social
• Total income generated for farmers: Compact (UNGC): Through continued media channels about the operating
Rs. 9.3 Bn participation in the Global Compact, outlets, stock availability and new
Cargills commits to improving how delivery systems
• Total investment in community we assess, define, implement and
engagement projects: Rs. 6.3 Mn • We delivered on our low-price promise
communicate our sustainability
(especially on essential goods and
strategy.
fresh produce) understanding the
20,000 48
purchasing challenges customers had
stemming from job cuts etc.
Over Preschools • Stringent safety measures were taken
Farmers under Sarubima In the Early Childhood Education - surface/hand sanitizers at contact
(ECE) programme points, temperature checks, social
492
distanced queues at the checkout
counters)
Farmers
In Agriculture Modernisation Project

Meeting the needs of our farmers and

suppliers
• With farmers having no access to the
market during this time, we continued
to source fresh produce and dairy
without disruption
• We also expanded our purchasing
beyond our own farmer network and
bought their excess harvest to ensure
their livelihoods were sustained (which
was passed onto customers free of
charge)
• Since many of our SME partners had
Customers maintaining social distancing limited access to cash, we paid them
ahead of time than the agreed upon
credit period
• Directed majority of the suppliers to
distribute to the centralized warehouse
due to the travel restrictions
Supporting our Communities

Bridging rural disparity is deeply
embedded in our vision and the way
we conduct business. We also drive
progress on strenghthening our bond
with our nation, which also ensures we’re
operating our business in a sustainable
Cargills 2 Home - Sri Lanka's first mobile supermarket way. Through our collaborative work with
our communities, we are committed to
creating impactful change that leverages
our scale of operations and reach.
‘Village to Home’ Initiative

Organised with the intention of
strengthening the country’s budding
SME entrepreneurs, we invite SME
entrepreneurs and small businesses
as our partners at no cost to them and
offer them a platform to engage with a
wider audience. Each program features
a host of local boutique shops ranging
from handloom and handicraft products
Supporting farmers in times of distress

to ayurvedic cosmetics, with a variety

of regional dishes being served to
customers as well.
To further broaden the reach of our

local SMEs and give them opportunities
to enter new markets, we also look to
sharing our corporate insight in the fields
of packaging, marketing and quality
assurance – helping them to secure and
develop their own supply chains.
The Cargills Sarubima Fund

Established in 2008, the Sarubima fund
Village to Home at Cargills Food City Kandana
gives back 50 cents to the farming
community for every kilogram of fresh
produce, and every litre of fresh milk,
purchased from our farmers. Since then,
the fund has become its own entity
through which the Group engages and
seeks to uplift communities. This fund has
been mainly used to provide educational
scholarships for children, resources for
learning and professional advancement,
insurance for farmers, and investment in
local infrastructure.
Type of Value Beneficiaries

Disbursement
The hustle and bustle of Village to Home
Educational
1,041,000 187
Scholarships
Community
Development 6,373,237 597
Projects
Agriculture
Modernisation 8,892,435 77
Project
Community Development Projects

In previous years, community
development projects have included the
introduction of drinking water facilities
and infrastructure development in
schools and building playgrounds and
Food items on display

parks for children at several locations. We continue to engage local communities in Agriculture Modernisation Project
the following locations: The Agriculture Modernisation Project
was launched in 2019 with the objective
Badalgama Boralanda Hatton of enhancing farmer livelihoods through
Bandarawela Dambulla Hettipola improved productivity while adhering to
the international standards of product
Banduragoda Dayagama Jaffna
quality and safety. In collaboration with
Bogahawatta Galewela Kalugamuwa
JAIN Irrigation Systems India, we gave
Bogawanthalawa Hanguranketha Kilinochchi the opportunity to a selected group of
Lindula Norwood Ruwalwela farmers and extension officers to receive
Masskeliya Nuwara Eliya Thambuthegama first-hand exposure to Agronomy and
Micro Irrigation training via a visit to Indian
Meesalai Rambe Thanamalvila
high-tech farms and technical parks.
Narangoda Raththota Wattegama
Norochcholai Rikillagaskanda Yatawatte The Agriculture Modernization Project
essentially focuses on climate-smart,
Cargills Sarubima Credit Insurance Scheme sustainable agriculture. Reducing the
This is an innovative programme to encourage farmers to venture into agriculture cost of production and enhancing yield,
modernization. The Sarubima Fund provides financial assistance to the farmers to reducing agro-chemical usage through
repay the loans taken for capital expenditure in the event of a genuine crop failure fertigation, efficient water management
beyond their control. through drip irrigation, reducing soil
erosion, weed growth and preserving soil
Cargills has already arranged 100 loans from Cargills Bank at 6% interest under this moisture through polythene mulch are
scheme. some of the main features.
Sustainable and Environmentally Friendly Agriculture Over 490 farmers are engaged in this
project in 10 key locations where a
To improve farmer productivity, we initiated several projects centred on knowledge
diverse variety of crops are cultivated.
sharing and the provision of technical support and extension services. We also
consistently encourage our farmers to adopt Good Agricultural Practices (GAP) in
their production.
Save Our Soil Project

In 2014, in partnership with the Department of Agriculture, we launched the “Save Our
Soil” project to support the protection of soil and water resources through the prudent
use of agriculture inputs, while promoting agricultural productivity.

Healthy, Safe and Affordable Nutrition

As an essential service provider to the
nation, we strive to increase access to
safe and nutritious food for a growing
population, without compromising on
price.
Good Harvest: Sri Lanka’s first

branded GAP certified produce
Cargills has long promoted the adoption
of good agricultural practices (GAP) in
the production of fruit and vegetables.
GAP is the result of our commitment to
A farmer attending to his crops offering our consumers safe, fresh and
healthy produce. Partnering with the
Department of Agriculture, we led the
way in translating SL-GAP certification
into practice; leveraging our widespread
Food City network to offer customers
certified GAP produce, under our Good
Harvest brand.
At the ground level, crop record books

are maintained to monitor levels of input,
so that farmers can avoid the overuse
of agro-chemicals and fertilizers on their
crops. As a result of such measures,
our produce consistently falls within
globally accepted criteria pertaining to
Drip irrigation and fertigation
chemical residue on fruit and vegetables.
Furthermore, we ensure that our produce
can be traced back to the farmer. Each
product packaging contains information
on the farmer along with a distinctive QR
code, to establish traceability.
As we continue to encourage our

customers to consume local fruit and
Mechanized farming Plastic mulch
vegetables, we are confident that the
continued development of GAP certified
produce would help accelerate the trend
to produce safe fruits and vegetables in
Sri Lanka.

Agrochemical free farming
Good Harvest range
BeeSafe: Agrochemical Free Farming

Harvesting crops
BeeSafe farm
An underlying health problem in Sri Lanka project encompasses a wide variety of

is the number of people suffering from ecologically cultivated vegetables without
non-communicable diseases (NCDs). the use of harmful toxins and chemicals.
One of the main contributing factors By guaranteeing that the crops under our
to NCDs are our dietary habits which BeeSafe brand are cultivated in toxin-
includes the widespread consumption of free ecological zones, we ensure our
vegetables and fruits cultivated with the customers are provided with safe and
use of toxic chemicals. fresh produce completely free of agro-
chemicals.
To address this health issue, BeeSafe
was launched in 2019. The BeeSafe

Cargills Rice: Organic Traditional Rice Model Dairy Farms

Working closely with the Parabowa Farmers Association, a range of traditional rice During the period under review, Cargills
varieties was introduced to ensure better nutrition of the people in our nation. The partnered with the state authorities and
Ceylon Traditional Rice variants are found to be better than commonly available rice farmers to establish two model farms in
varieties due to the presence of higher antioxidant, fibre, iron and protein levels as well Hatton and Kurunegala.
as possessing a low glycemic index. Each of the 6 varieties provided have its own
unique health benefits. The selected farmers will be provided
with a wide range of extension services
Rice Variety Health Benefits including technical training and know
how, financing, feeding systems (grass
Suwandel Promotes healthy skin and hair, aids in digestion, and helps
and fodder cultivation), revamped
to control diabetes
cattle sheds and access to modern
Kuruluthuda Rich in protein and fibre and improves digestion and bladder
dairy farming techniques. Following the
function
development of these nucleus model
Pachchaperumal Rich in protein and nutrients and is considered ideal for farms, this project will be rolled out to
children and those with diabetes or cardiovascular ailments several affiliated farm units, which will
Ma-Wee- Provides a cooling effect on the body and is effective for a in turn, form a cluster based on the
Hangimuttan range of health issues, including tuberculosis, indigestion, corresponding milk chilling centre.
diabetes, and obesity
Kalu Heeneti Used in traditional medicine, it is considered an ideal
nutritional option for children, mothers, and babies aged
over 6 months
Traditional Rice Blend Being a blend of the Suwandel, Kalu Heeneti, Ma Wee-
Hangimuttan and Kuruluthuda rice variants, it possesses
a variety of medicinal/nutritional properties of all its
constituents
Model dairy farm
Range of Cargills Traditional Rice

Enriching our Products With Nutrition • Lite Yoghurts - contains 50% less sugar, a lower fat content and higher protein
As a leading food company in the country, levels when compared to the standard yoghurt
we have a long-term commitment to the • Lite Nectars – contains 43% less sugar in comparison to the standard nectar
health and nutrition of our customers. • Launched BeeSafe and Cargills Rice to ensure safe nutrition to our customers
We bear the responsibility of ensuring
our products are safe and of the highest Partnering With State Universities
quality. In view of this, we have provided
Sri Lanka’s state universities have a wealth of knowledge and talent from their expert
our product development team with a
professors to their aspiring students and are a paradigm of extensive research,
set specific nutrient criterion across all
technical expertise and innovation. To the industry and society at large, universities
food products. As in the past, we strive
offer a new perspective of fresh ideas.
to use fresh milk and natural fruits and
vegetables rich in vitamins, minerals and
Our collaboration with these universities provides the youth with opportunities to
fibre in our product range as much as
explore and experiment their ideas, as we have the resources and capacity to provide
possible.
them with access to both local and international markets. We also form partnerships
with foreign organisations and funding agencies which can open new channels to
• All our dairy products are manufactured
these universities. On the other hand, we gain greater access to cutting-edge research
using local fresh milk which is a rich
and exciting new products to offer our customers the best in terms of quality, nutrition
source of several essential nutrients,
and environmentally friendly packaging.
including protein, calcium, vitamin A
and vitamin D
Presently, we are partnering with several state universities on the following projects;
• Our products contain real fruits which
are rich in vitamins, minerals and fibre
University Collaboration
as key ingredients. Kotmale drinking
yoghurt is flavored with real fruits and Peradeniya New product development, research
we also carry a range of KIST brand Sabaragamuwa New product development
products made out of real fruits Ruhuna New product development
• Our KIST Knuckles spring water is Sri Jayawardenapura Research
bottled at source to retain all-natural
elements of the water from the pristine
Knuckles mountain range
• Our Kotmale set and drinking yoghurt
contains probiotics which helps
improve gut health
• Our Kotmale cheese contains high-
quality protein and amino acids which
provides the essential building blocks
for good body development
• Launched in 2018/19, our “Lite”
product range remains a fan-favorite
to our customers with an active and
healthy lifestyle. The range includes;
Team Cargills signing an MOU with the University of Sabaragamuwa

The Cargills Foundation

The Early Childhood Education (ECE)
programme
Classroom Based
The Cargills Foundation embarked on an
initiative to help transform early childhood
(preschool) education in Sri Lanka.
Through this initiative, Cargills aims to
provide children aged 3-5 an opportunity
to develop and enhance their knowledge
of the English language, through
exposure to basic concepts in the areas
of Science, Technology, Engineering, Children engaging in blended learning
Arts, and Mathematics (STEAM). The
programme is being implemented in 48
preschools in the Western Province with
plans to expand across the country in the
future.
Capacity Building of Preschool

Teachers
The Foundation is committed to train and
mentor the preschool teachers so that
they are equipped with the necessary
skills to implement the Cargills ECE
programme within their preschools. The
hands-on approach of mentoring that is
provided by the Cargills ECE team also Reading time
helps these teachers to uplift their own
professional profiles.
Home Learning
Plans are also underway to make available
to children aged 2-8 years the ‘Cargills
ESL’ digital learning application, which
is essentially a home learning solution,
with sales proceeds being re-invested
towards furthering the classroom-based
programme.
Sensory activities

Capacity building of preschool teachers
Microsoft Digital Skills Initiative

The Foundation’s efforts to uplift and strengthen communities will be the basis for the
introduction of the Digital Skills Initiative focused on the farming communities that we
engage with. These courses, provided via the Microsoft Community Training Portal will
enable the students to acquire digital skills which play a powerful role in helping people
connect, learn and create promising futures and improve livelihoods. This initiative is
set to launch in mid 2021.
"Mask To Go" Initiative

In the year 2021/22, the Cargills Foundation plans to launch "Mask to Go", a fully
automated self-service face mask vending machine, at its Rajagiriya 2 Food City outlet.
A pioneering initiative in Sri Lanka, the plan of action would be to roll out these
machines to other Cargills Food City outlets and strategic locations. Leveraging their
widespread retail location network spread across Colombo, these vending machines
would offer people the essentials to tackle the pandemic, including hand sanitizer
bottles in addition to KN95 face masks. Sale proceeds will be re-invested to further
the social initiatives undertaken by the Foundation.

Sustainability Natural Capital
Natural Capital our control framework for monitoring and reducing natural resources also includes
As an environment-friendly corporate ongoing measurement and tracking of energy consumption.
citizen, Cargills recognises the impacts
our business operations have on the Fuel Consumption
environment due to consumption of Energy Consumption (2020/21) Value Unit
resources such as water and other non-
Diesel 835,283 L
renewable energy and fuel sources. As
Gas 644,793 Kg
such, we adopt a strict policy of resource
utilization through efficient usage and the Furnace Oil 2,841,152 L
reduction of waste. Electricity Consumption 114,370,313 Kw/h
Energy and Fuel Management Renewable Energy

As with previous years, our primary Given the widespread presence of our operations, the Group took several measures
source of energy is the national grid, to reduce its carbon footprint and increase the reliance on renewable energy sources.
and the retail sector remains the highest Moreover, the solar energy generated at our manufacturing plants and Food City
consumer of such energy. Energy outlets is enough to power up 2,810 homes in a sustainable manner.
consumption is measured, consolidated,
and reported through a combined system Total renewable energy consumed in 2020/21 3,444,000 Kw/h
of logs maintained at each business unit,
Total investment made towards renewable energy systems Rs. 290 Mn
utility bills and ledger entries. Further,
Solar panel installation in Cargills Quality Dairies, Banduragoda

As a way forward, all new Food City outlets that are established will be powered by park that was constructed using waste
solar energy. plastic was the new Cargills Food City
in Walgama, where the equivalent
Water Management of approximately 200,000 waste
Water is sourced through a combination of the National Water Supply and Drainage polyethene bags were used to produce
Board and groundwater, based on the needs and requirements of our business units. PMAC. PMAC production process uses
waste plastics that completely melts in
the plant operating temperature, which
Water Withdrawal Value (L)
is maintained at the appropriate level,
Groundwater 79,756,930 and the highest standards of quality
Water Board 506,927,437 control are carried out throughout to
Approved Supplier 251,453,721 ensure complete melting, binding and
Total Water Withdrawal 838,138,088 absorption of melted plastic into the
cavities of the aggregate. The plastic
coated aggregate is covered by bitumen
In 2020/21, we recycled 46,608,000 litres of water, and the discharge of water has
film ensuring minimum exposure to the
reduced in line with a greater focus on efficient water management. The quality of water
environment.
discharge, as per GRI 303-4, is in line with the standards approved for agriculture
processes by the Central Environmental Authority.
Waste management
"Paving with Plastic": Sri Lanka's first plastic carpark
Bird's eye view of the Walgama carpark
Laying the PMAC

Cargills Food City, Walgama
Sustainable Disposal of Waste
The main objective of this initiative, "Paving with Plastics", is to re-purpose waste Cooking Oil at KFC
plastic released from our manufacturing plants, which are currently not recyclable. Partnering with engineering solutions
We took advantage of an innovative solution developed by the AGC Innovate (Pvt) company Novateq, we set up a
Ltd where non-recyclable waste plastic is converted to an industrial raw material sustainable system of disposal of the
to be used as an additive to conventional asphalt mix to produce an innovative waste cooking oil. Novateq facilitates
product “Plastic Modified Asphalt Concrete (PMAC)”. Therefore, the very first car the collection of all waste oil and once

collected, it will be sent through a filtration natural forest reserve lowers the possibility of future urbanization. The bottling facility
process where the oil will be treated to sources spring water from the top of a small mountain covered with natural forest
European Union waste oil collection and rich with biodiversity. The water is replenished entirely by rainfall, which falls at an
standards, converted to biodiesel and average of 3,000 mm/year and is supplemented by several streams originating at the
then shipped out of the country. top of the mountain range.
Plastic Recycling
In collaboration with Unilever Sri Lanka,
we have plans to launch a plastic waste
management mechanism to tackle the
growing concern of mismanaged plastic.
Utilising the diverse network of resources
and expertise of both companies,
this system will cover all bases from
collection and distribution to segregation
and recycling.
Plastic Reduction
By ditching non-recyclable packaging
and opting for more sustainable KIST Knuckles bottling facility
alternatives, our KFC team is working
towards fully eliminating the use of
Tree Planting Campaign
plastics in operations. To achieve this
milestone would position KFC Sri During the period under review, a large-scale tree planting campaign to mitigate the
Lanka as the first restaurant chain to be effects air pollution and climate change is being planned for the ongoing year.
entirely plastic-free. Our actions towards
reducing the use of plastic have led to
reduction of approximately 8 MT of
plastic per annum.
Biodiversity Conservation
The protection of biodiversity is important
for ensuring the survival of plant and
animal species, and endangered natural
ecosystems. The Group is committed to
conserving biodiversity in Sri Lanka and
enhancing it through adherence to local
laws and regulations.
The Knuckles Mountain Range, located

near our KIST Knuckles water bottling
facility at Katool Oya Estate, is an area
of high biodiversity value. Not highly
populated, the close proximity to a

Sustainability Manufactured Capital
Manufacturing Capital
Despite the challenging landscape brought on by the pandemic, the Group did not waver in investing in manufacturing equipment
and machinery thus maintaining the commitment to improving efficiency and competitive edge.
Key Highlights of 2020/21

• Sourced 39,133,248 kg of vegetables and fruits
• Sourced approximately 57,795,137 litres of fresh milk
• Opened a full-service dark store in parallel with the launch of Cargills Online
• Opened 44 new Cargills Food City outlets
Manufacturing Capabilities
3
CENTRAL PROCESSING
8
FOOD PRODUCTION
FACILITIES FACILITIES
OVER 20,000 STRONG
24x7
AGRICULTURE & DAIRY
FARMER NETWORK
DELIVERY OPERATION
20,000
956
FARMER SOCIETIES &
33
MILK CHILLING
COLLECTION POINTS CENTRES
454
CARGILLS FOOD CITY
43
RESTAURANTS
OUTLETS

Sustainability Manufactured Capital
Investments to enhance productivity

To ensure our that manufacturing infrastructure continues to add value to business
operations, the Group continuously invests in the upkeep of existing machinery and
production facilities. Furthermore, new investments are made as and when required
to optimize capacity utilization, improve process efficiencies, increase automation and
reduce production losses.
• Total PPE as at 31st March 2021: Rs. 36 Mn

• Total Capital Investments in 2020/21: Rs. 6.4 Mn
Value Delivered
Investments in manufactured capital have led to a corresponding increase in the
sustainable value created for our stakeholders, and we foresee further value creation
in the future pertaining to the following areas:
Supply chain
• Improved pricing strategies with farmers and suppliers

• Improved cold chain facilities to reduce post-harvest loss
• Procurement of fruit and vegetables; create export initiatives to enhance
market opportunities
Production
• Improved asset utilization

• Industry development, export opportunities and job creation
• Increased efficiencies in energy, water and waste management
• Increased capacity utilization
Commercial
• Enhanced local and international customer base

• Retention of existing customers
• Identified untapped markets
Responsible Production
All our products are manufactured in compliance with best practices for quality,
hygiene and food safety. Our manufacturing plants are ISO and SLS certified. Our
Quality Assurance and Control Technicians undertake comprehensive testing of our
products at all production stages.
Sustainability Intellectual Capital
Intellectual Capital
At Cargills, intellectual capital is an important and valuable asset that takes many forms and is a key differentiator. The value of our
brands is a vital source of competitive advantage, which results in value creation for the Group.
Brand stewardship
Cargills is home to many household brands which have gained recognition over many years. Illustrated below is the list of brands
under the Cargills banner:
retail fmcg restaurants trading & financial charitable

distribution services foundation

Brand Recognition
Cargills was recognized by several top corporate awarding bodies during the period
under review. These accolades reflect the unwavering commitment shown by our
teams and the trust our customers place in our brands.
Food City awarded the SLIM Nielson People’s FMCG Retail Brand of the Year
Cargills recognised as one of the Top 10 most admired Companies by the ICCSL, CIMA and
Daily FT
Cargills recognised at the SLIM Restart Resilience Awards

New product development

We maintain strong investments towards new product development to bring innovative products to the market. In the past year,
we have developed 44 new products, which are shown below;
Brand New products

• Heavenly Cappuccino cone (120ml)
• Captain cool-Mixed berry (70ml)
• Captain cool-Mango (70ml)
• Kotmale Mango lassi (180ml)
• Kotmale Jelly yoghurt (80g)
• Kotmale pasteurized milk -Vanilla, Chocolate, Strawberry
Flavoured (500ml)
• Milk with Oats (1L)
• Kotmale Fresh milk (500ml, 1L)
• Kotmale Chocolate cone (120ml)
• Kotmale Vanilla cone(120ml)
• Magic Cube (60g)
• Magic Coconut bar (50ml)
• Mini Majestic (47mlx4)
• Kotmale Vanilla and Chocolate Ice Cream (1L)
• Kotmale Vanilla and Chocolate Ice Cream (2L)
• Strawberry flavoured melon jam 2kg

• Fruit mocktail jam 200g
• Spicy jam 300g
• Fruit mocktail jam 300g
• Strawberry flavoured melon jam 350g
• Mixed fruit jam 350g
• Strawberry flavoured desserts jam 510g
• Fun b orange 180ml
• Ambarella chutney 250g

Brand New products

• Mango chutney 250g
• Kithul treacle 170ml
• Ginger beer 250ml
• Ride classic drink 250ml
• Prawn flavoured noodles 85g
• Family pack noodles 400g
• Fruit punch peach & pear 200ml
• Sam's corn dog 250g

• Sam's fish chinese roll 2.4 kg
• Sam's chicken chinese roll 2.4 kg
• Sam's chicken drumstick 1kg
• Sam's veg chinese roll 2.4 kg
• Sam's chicken fingers 1kg
• Sam's chicken mini drumstick 1kg
• Sam's fish chinese roll 1 kg
• Sam's fish chinese roll 500g
• Sam's chicken nugget 1 kg
• Sam's fish fingers 1 kg
• Sam's chicken chinese roll 1 kg
• Sam's vegetable chinese roll 1 kg
Ideas
Cargills strives to foster a culture of creativity and innovation and places a high value on our talented teams. By harnessing their
creativity and knowledge, we can reach better outcomes as a business. Pragmatic idea management also enables us to make full
use of our teams’ creative potential.

Sustainability
GRI Content Index Tool

GRI Standard Disclosure Page Number Omission SDG
GRI 101: Foundation
General Disclosures
GRI 102: General 102-1 Name of Organisation Annual Report
Disclosures (AR) p. 01
102-2 Activities, brands, products and services (AR) pp. 14-15
102-3 Location of headquarters (AR) IBC
102-4 Location of operations (AR) IBC
102-5 Ownership and legal form (AR) IBC
102-6 Markets served (AR) p. 22
102-7 Scale of the organisation (AR) pp. 11-13
102-8 Information on employees and other workers 18
102-9 Supply chain (AR) pp. 08 - 09
102-10 Significant changes to the organisation and supply chain (AR) pp. 08 -10
102-11 Precautionary Principle or approach (AR) p. 38
102-12 External initiatives (AR) pp. 22-23
102-14 Statement from senior decision-maker (AR) pp. 16-17
102-16 Values, principles, norms and standards of behaviour 06
102-18 Governance Structure (AR) p. 29
102-40 List of stakeholder groups 08 - 11
102-42 Identifying and selecting stakeholders 09
102-43 Approach to stakeholder engagement 09
102-44 Key topics and concerns raised 10-12
102-45 Entities included in the consolidated financial statements (AR) IBC
102-46 Defining report content and topic boundary 02
102-47 Material topics 12 - 13
102-48 Restatement of information (AR) p. 02
102-49 Changes in reporting (AR) p. 02
102-50 Reporting period (AR) p. 02
102-51 Date of most recent report (AR) p. 02
102-52 Reporting cycle (AR) p. 02
102-54 Claims of reporting in accordance with GRI Standards 02
102-55 GRI context index 42
102-56 External assurance 49 - 51

Sustainability

Material topics
Economic Performance
GRI 103: 103-1 Explanation of material topics and its boundaries 12 - 13
Management Approach 103-2 The Management Approach and its components 05
103-3 Evaluation of the Management Approach 14 - 15
GRI 201: Economic 201-1 Direct economic value generated and distributed 16
Performance
Market Presence
GRI 103: 103-1 Explanation of the material topic and its Boundary 12 - 13
Management Approach 103-2 The management approach and its components 18
103-3 Evaluation of the management approach 18
GRI 202: Market Presence 202-1 Ratios of standard entry level wage by 18 5,8
gender compared to local minimum wage & 10
Indirect Economic Impacts
GRI 103: Management 103-1 Explanation of the material topic and its Boundary 12 - 13
Approach 103-2 The management approach and its components 23
GRI 203: Indirect 203-2 Significant indirect economic impacts 23 4,6
Economic Impacts &12
Procurement Practices
Management Approach 103-3 Evaluation of the management approach 17
103-2 The management approach and its components 17
GRI 204: Procurement 204-1Proportion of spending on local suppliers 17
Practices
Environmental
Energy
GRI 103: Management 103-1 Explanation of material topics and its boundaries 12 - 13
Approach 103-2 The Management Approach and its components 33
103-3 Evaluation of the Management Approach 33
GRI 302: Energy 302-1 Energy consumption within the organization 33 7,12
& 13

Sustainability

Water
Approach
103-2 The management approach and its components 34
GRI 303: Water 303-3 Water withdrawal 34
303-4 Water discharge 34 12
Biodiversity
Management Approach 103-2 The management approach and its components 35
GRI 304: Biodiversity 304-1 Operational sites owned, leased, managed 35 12
in, or adjacent to, protected areas and areas of high &15
biodiversity value outside protected areas.
304-2 Significant impacts of activities, 35 12
products, and services on biodiversity &15
Effluents and Waste
Management Approach 103-2 The management approach and its components 34 - 35
GRI 306: Effluents 306-1 Water discharge by quality and destination 34 6 & 14
and Waste
Social
Employment
GRI 401: Employment 401-2 Benefits provided to full-time employees that are 19
not provided to temporary or part-time employees 8
401-3 Parental leave 21 8
Occupational Health and Safety
GRI 403: Occupational 21 8
Health and Safety 403-9 Work - Related injuries

Sustainability

Training and education
Approach 103-2 The management approach and its components 20 - 21
GRI 404: Training 404-1 Average hours of training per year per employee 21
and education
404-2 Programs for upgrading skills and 20 - 21
transition assistance programmes
Diversity and equal opportunity
GRI 405: Diversity and 405-1 Diversity of governance bodies and employees 18
equal opportunity 405-2 Ratio of basic salary and remuneration of women to men 18 8
Non-discrimination
Local Communities
103-2 Evaluation of the Management Approach 23
GRI 413: Local communities 413-1 Operations with local community engagement, 23 - 32 4, 6
impact assessments and development programmes & 12
Customer Health and Safety
GRI 103: 103-1 Explanation of material topics and its boundaries 12 - 13
Management Approach 103-2 The Management Approach and its components 23, 27 - 30
103-2 Evaluation of the Management Approach 23, 27 - 30
GRI 416: Customer 416-1 Assessment of the health and safety 30
Health and Safety impacts of product and service categories 3

Independent Auditor’s Report
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INDEPENDENT ASSURANCE REPORT TO CARGILLS (CEYLON) PLC
We have been engaged by the directors of Cargills (Ceylon) PLC (“the Company”) to provide reasonable assurance and limited
assurance in respect of the Sustainability Indicators as identified below for the year ended 31 March 2021. The Sustainability
Se
y
Indicators are included in the Cargills (Ceylon) PLC’s Integrated Annual Report for the year ended 31 March 2021 (the "Report").
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The Reasonable Assurance Sustainability Indicators covered by our reasonable assurance engagement are:
O
Assured Sustainability Indicators Sustainability Report Page. (Supplementary
ge
Information to the Integrated Annual Report)
Financial Highlights 02 - 03
p
Pa
The Limited Assurance Sustainability Indicators covered by our limited assurance engagement are:
tu
Limited Assurance Sustainability Indicators Sustainability Report Page. (Supplementary
Information to the Integrated Annual Report)
Se
O
Non-Financial Highlights 04
Information provided on following
IM
Financial Capital 16 - 17
Human Capital 18 - 22
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Social and Relationship Capital 23 - 32

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Natural Capital 33 - 35
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Manufactured Capital 36 - 37
Intellectual Capital 38 - 41
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Our Conclusions
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Our conclusion has been formed on the basis of, and is subject to, the matters outlined in this report. We believe that the evidence
we have obtained is sufficient and appropriate to provide a basis for our conclusions.
IM
rD
Fo

Sustainability Independent Auditor’s Report
Reasonable Assurance Sustainability Indicators We have complied with the independence

In our opinion, the Reasonable Assurance Sustainability Indicators, as defined above, and other ethical requirements of the
for the year ended 31 March 2021 are, in all material respects, prepared and presented Code of Ethics issued by the Institute of
in accordance with the Consolidated Set of Global Reporting Initiative Sustainability Chartered Accountants of Sri Lanka.
Reporting Standards Guidelines.
SLSAE 3000 requires that we plan
Limited Assurance Sustainability Indicators and perform the engagement to obtain
reasonable assurance about whether
Based on the limited assurance procedures performed and the evidence obtained, the Reasonable Assurance Sustainability
as described below, nothing has come to our attention that causes us to believe Indicators are free from material
that the Limited Assurance Sustainability Indicators, as defined above, for the year misstatement and limited assurance
ended 31 March 2021, have not in all material respects, been prepared and presented about whether the Limited Assurance
in accordance with the Consolidated Set of Global Reporting Initiative Sustainability Sustainability Indicators are free from
Reporting Standards Guidelines. material misstatement.
Management's Responsibility Reasonable assurance over

Management is responsible for the preparation and presentation of the Reasonable Reasonable Assurance Sustainability
Assurance Sustainability Indicators and the Limited Assurance Sustainability Indicators Indicators
in accordance with the Consolidated Set of Global Reporting Initiative Sustainability The procedures selected in our
Reporting Standards Guidelines. reasonable assurance engagement
depend on our judgment, including
These responsibilities includes establishing such internal controls as management the assessment of the risks of material
determines are necessary to enable the preparation of the Reasonable Assurance misstatement of the Reasonable
Sustainability Indicators and the Limited Assurance Sustainability Indicators that are Assurance Sustainability Indicators
free from material misstatement whether due to fraud or error. whether due to fraud or error.
Management is responsible for preventing and detecting fraud and for identifying In making those risk assessments, we
and ensuring that the Company complies with laws and regulations applicable to its have considered internal control relevant
activities. to the preparation and presentation of
the Reasonable Assurance Sustainability
Management is also responsible for ensuring that staff involved with the preparation Indicators in order to design assurance
and presentation of the description and Report are properly trained, information procedures that are appropriate in
systems are properly updated and that any changes in reporting encompass all the circumstances, but not for the
significant business units. purposes of expressing a conclusion as
to the effectiveness of the Company's
Our responsibility internal control over the preparation and
Our responsibility is to express a reasonable assurance conclusion on the Company’s presentation of the Report.
preparation and presentation of the Reasonable Assurance Sustainability Indicators
and a limited assurance conclusion on the preparation and presentation of the Limited Our engagement also included
Assurance Sustainability Indicators included in the Report, as defined above. assessing the appropriateness of the
Reasonable Assurance Sustainability
We conducted our assurance engagement in accordance with Sri Lanka Standard on Indicators, the suitability of the criteria,
Assurance Engagements SLSAE 3000: Assurance Engagements other than Audits being the Consolidated Set of Global
or Reviews of Historical Financial Information (SLSAE 3000) issued by the Institute of Reporting Initiative Sustainability
Chartered Accountants of Sri Lanka. Reporting Standards Guidelines, used by

Sustainability Independent Auditor’s Report
Independent Auditor’s Report contd.
the Company in preparing and presenting the Reasonable Assurance Sustainability Purpose of our report
Indicators within the Report, obtaining an understanding of the compilation of the In accordance with the terms of our
financial and non-financial information to the sources from which it was obtained, engagement, this assurance report has
evaluating the reasonableness of estimates made by the Company, and re-computation been prepared for the Company for the
of the calculations of the Reasonable Assurance Sustainability Indicators. purpose of assisting the Directors in
determining whether the Company's
Limited assurance on the Assured Sustainability Indicators Reasonable and Limited Assurance
Our limited assurance engagement on the Limited Assurance Sustainability Indicators Sustainability Indicators are prepared
consisted of making enquiries, primarily of persons responsible for the preparation and presented in accordance with the
of the Limited Assurance Sustainability Indicators, and applying analytical and other Consolidated Set of Global Reporting
procedures, as appropriate. These procedures included: Initiative Sustainability Reporting
Standards Guidelines and for no other
• interviews with senior management and relevant staff at corporate and selected purpose or in any other context.
site level concerning sustainability strategy and policies for material issues, and the
implementation of these across the business; Restriction of use of our report
• enquiries of management to gain an understanding of the Company's processes for Our report should not be regarded as
determining material issues for the Company's key stakeholder groups; suitable to be used or relied on by any
• enquiries of relevant staff at corporate and selected site level responsible for the party wishing to acquire rights against us
preparation of the Limited Assurance Sustainability Indicators; other than the Company, for any purpose
or in any other context. Any party other
• enquiries about the design and implementation of the systems and methods used than the Company who obtains access
to collect and report the Limited Assurance Sustainability Indicators, including the to our report or a copy thereof and
aggregation of the reported information; chooses to rely on our report (or any
• comparing the Limited Assurance Sustainability Indicators to relevant underlying part thereof) will do so at its own risk.
sources on a sample basis to determine whether all the relevant information has To the fullest extent permitted by law,
been appropriately included in the Report; we accept or assume no responsibility
and deny any liability to any party other
• reading the Limited Assurance Sustainability Indicators presented in the Report to
than the Company for our work, for this
determine whether they are in line with our overall knowledge of, and experience
independent assurance report, or for the
with, the sustainability performance of the Company;
conclusions we have reached.
• reading the remainder of the Report to determine whether there are any material
misstatements of fact or material inconsistencies based on our understanding
obtained as part of our assurance engagement.
The procedures performed in a limited assurance engagement vary in nature and CHARTERED ACCOUNTANTS
timing from, and are less in extent than for, a reasonable assurance engagement, Colombo
and consequently the level of assurance obtained in a limited assurance engagement
is substantially lower than the assurance that would have been obtained had a 4th June 2021
reasonable assurance engagement been performed. Accordingly, we do not express
a reasonable assurance conclusion on the Limited Assurance Sustainability Indicators.

Notes
www.cargillsceylon.com
Cargills (Ceylon) PLC

No. 40, York Street, Colombo 1.

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Cargills (Ceylon) PLC

Sustainability Report 2020 - 2021

Cargills (Ceylon) PLC Sustainability Report 2020 - 2021 1

About This Report

Per share data (Rs.)

2 Cargills (Ceylon) PLC Sustainability Report 2020 - 2021

120 6,000 3,500 100

120 3,500 4000 20

Cargills (Ceylon) PLC Sustainability Report 2020 - 2021 3

New Recruits Retained Permanent

Social and Relationship Capital

Educational Beneficiaries of Community Registered

Energy Consumption Furnace Oil Water Consumption

New products No. of employees with more than 15 years of service

4 Cargills (Ceylon) PLC Sustainability Report 2020 - 2021

Our Commitment to Sustainability Sustainability Strategy Our commitment to creating sustainable

Cargills (Ceylon) PLC Sustainability Report 2020 - 2021 5

6 Cargills (Ceylon) PLC Sustainability Report 2020 - 2021

Sustainable Development Goals

Cargills (Ceylon) PLC Sustainability Report 2020 - 2021 7

We serve millions of customers through our extensive retail network, backed by a

Stakeholder Engagement Process

8 Cargills (Ceylon) PLC Sustainability Report 2020 - 2021

How We Engage Our Stakeholders

Identifying Our Stakeholders

1. The stakeholder’s influence on the company

Taking these into account, we have identified customers, employees, shareholders,

Cargills (Ceylon) PLC Sustainability Report 2020 - 2021 9

Engage Engage Directly

Customers Farmers, SMEs, Traders

Keep Informed Manage Closely

Employees Local Community

Shareholders Government / Regulators

Stakeholder Frequency Mechanisms of Engagement Priorities / Areas of Concern

10 Cargills (Ceylon) PLC Sustainability Report 2020 - 2021

Stakeholder Frequency Mechanisms of Engagement Priorities / Areas of Concern

Cargills (Ceylon) PLC Sustainability Report 2020 - 2021 11

Not Reported Briefly Reported Reported in Detail

12 Cargills (Ceylon) PLC Sustainability Report 2020 - 2021

No. Material Issue GRI Materiality

Cargills (Ceylon) PLC Sustainability Report 2020 - 2021 13

Farmers, SMEs and Traders

14 Cargills (Ceylon) PLC Sustainability Report 2020 - 2021

Cargills (Ceylon) PLC Sustainability Report 2020 - 2021 15

Financial Capital 2020/21 2019/20

The direct economic value generated

16 Cargills (Ceylon) PLC Sustainability Report 2020 - 2021

Cargills (Ceylon) PLC Sustainability Report 2020 - 2021 17

Key highlights 2020/21

No. of New Employees Recruited and Retained

• Total no. of training hours: 30,154 hours

Diversity and Equal Opportunity

18 Cargills (Ceylon) PLC Sustainability Report 2020 - 2021

with the human rights code, employment

Cargills (Ceylon) PLC Sustainability Report 2020 - 2021 19

The Albert A. Page Institute (AAPI)

The AAPI has developed a series of

An AAPI team member conducting an online presentation

20 Cargills (Ceylon) PLC Sustainability Report 2020 - 2021

Independent Grocers Alliance