FY 2025/26

Sustainability at Haycarb

Sustainability continues to shape how Haycarb creates value today while building a more resilient and responsible business for the future. ACTIVATE 2030, our sustainability roadmap, translates this into measurable action across five key ESG pillars: RESTORE, INSPIRE, EXCITE, UPLIFT and INNOVATE.

As an early adopter of SLFRS S1 and S2, Haycarb continues to strengthen how we assess and communicate material sustainability and climate-related risks and opportunities (SRROs and CRROs) across our value chain. Our independently assured disclosures provide deeper analysis of the anticipated financial effects of our principal climate-related risks and opportunities.

Progress towards 2030

ACTIVATE 2030 translates our sustainability ambitions into measurable action across five pillars. Explore this year’s progress, impact metrics, target status and featured stories.

ACTIVATE 2030Annual Report Disclosure
Total commitments
20
Across 5 ACTIVATE pillars
Achieved / maintained
5
Targets met or maintained
On track / progressing
11
Moving toward 2030
Requires acceleration
4
Further action required
Intro Banner

Protecting and restoring the natural systems connected to our operations and value chain

RESTORE focuses on the natural resources and environmental systems that shape how we operate: the energy we use, the water we manage, the materials we transform and the ecosystems connected to our sites. In FY2025/26, our focus was on practical action: expanding renewable energy, improving waste heat recovery, strengthening water reuse, supporting circularity and embedding climate-conscious practices across our operations.

FY2025/26 standout
100%
of Shizuka’s water requirement was met through harvested rainwater in FY2025/26

Impact in action

Selected reported outcomes from the year

11,348 GJof solar energy generated during FY2025/26
30,500 m³of water recycled and reused across the Group
3,816 MTof non-hazardous waste recycled

Progress towards 2030

FY2025/26 performance against ACTIVATE 2030 commitments.

8 commitments
CommitmentFY2025/262030 targetStatus
Renewable-energy use9% increasevs FY2022/23 baseline50% increase18% · Progressing
Energy intensity18.44GJ/Rs. Mn17.83 GJ/Rs. Mn69% · On track
Scope 1 and 2 emissions29,369tCO₂e19,464 tCO₂eRequires acceleration
Solid-waste intensity0.08MT/Rs. Mn0.094 MT/Rs. Mn100% · Target achieved / exceeded
Sustainable raw-material packaging700k–800k bags/sackswith greater bulk-bag use25% reductionProgressing
Sustainable water sourcing16%of total water10%100% · Target achieved / exceeded
Water reuse and recycling4%of total water15%27% · Progressing
Water intensity11.79m³/Rs. Mn7.46 m³/Rs. MnRequires acceleration
Featured Story

Restoring value through waste heat utilisation

A closer look at how Haycarb is improving dryer efficiency by replacing LPG use with recovered waste heat, reducing fuel dependency and supporting lower-emission operations.

Explore story

S1 & S2 Climate Risk & Opportunity Outlook

How does climate change affect our value chain?

Explore four principal climate-related risks and opportunities, from the factors shaping each issue to the potential operational and financial effects across the short, medium and long term.

Annual Report Disclosure
Progress and Outlook

Climate risk to raw material supply

Climate pressure can tighten coconut shell charcoal supply and raise input costs.

Key climate & operational factors

Climate variability: Changing climate conditions can affect coconut productivity and raw-material availability.
Demand & shell availability: Market demand and the availability of coconut shells influence feedstock supply and pricing.
Sourcing regions: Supply exposure spans multiple sourcing regions, creating differing climate and availability risks.
Plantation ageing & replanting: Ageing plantations and replanting cycles can influence future shell availability and supply resilience.

What does this mean for Haycarb?

Core feedstockCoconut shell charcoal is a key raw material for activated carbon production.
Multi-country exposureThe analysis considers sourcing across Sri Lanka, India, Indonesia and Thailand.
Business effectTighter supply can translate into higher raw-material costs.
Key management leverMulti-country sourcing, fallback imports and replanting.

Driver and anticipated financial effect

Quantified operational drivers and financial effects across the short, medium and long term

View disclosure
Driver
Estimated Average Coconut Shell Charcoal Cost Increase Across Major Sourcing Regions
Compared with the FY 2025/26 baseline
0%36%72%108%143%179%20%30%55%88%108%160%CSC cost increase from baseline (%)
STFY 2026/27
MTFY 2027/28–FY 2029/30
LTBeyond FY 2029/30
Lower estimateUpper estimateEstimated range
Estimated rangeST 20%\u201330%MT 55%\u201388%LT 108%\u2013160%
Financial effect
Estimated Incremental Raw Material Cost Increase
Compared with FY 2025/26 raw material costs
010203039495.58.314.322.829.243.9Incremental raw material cost (LKR bn)
STFY 2026/27
MTFY 2027/28–FY 2029/30
LTBeyond FY 2029/30
Lower estimateUpper estimateEstimated range
Estimated rangeST 5.5\u20138.3 LKR bnMT 14.3\u201322.8 LKR bnLT 29.2\u201343.9 LKR bn
Resilience Lens

How this risk behaves across climate futures

Net Zero

Lower physical stress supports a more stable sourcing outlook, though ageing plantations and under replanting remain constraints.

Divergence

Higher physical stress amplifies yield variability and feedstock constraints, increasing charcoal availability and cost pressure.

Annual Report Climate Resilience Assessment