Governance

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Our governance approach is aligned with the broader governance framework of our parent entity, Hayleys PLC, providing a consistent foundation for oversight, accountability and responsible business conduct across the Group. At Hayleys Fabric, this is complemented by structures and processes that support the delivery of GreenCatalyst and the integration of ESG considerations into decision-making, risk management and performance monitoring.

Our approach focuses on effective oversight, responsible business conduct, integrated risk management and transparent engagement with stakeholders.

How ESG is Governed

GreenCatalyst is supported by a broader governance foundation that brings together defined reporting structures, policies, management responsibilities and performance monitoring across the business. ESG priorities and targets are tracked through established reporting mechanisms, supported by relevant policies, internal controls and management review, helping integrate sustainability considerations into decision-making and maintain accountability for progress.

This structure connects Hayleys Fabric’s ESG agenda with the wider Hayleys Group governance framework, supporting consistency in policy, oversight and accountability.

Doing Business the Right Way

Responsible business conduct is guided by the Hayleys Way, the Group’s Code of Conduct, together with policies covering areas such as anti-bribery and corruption, whistleblowing, conflicts of interest and regulatory compliance.

These expectations apply across our organisation and are reinforced through employee awareness and training. Confidential reporting mechanisms provide employees with channels to raise concerns, while our approach to responsible business conduct also extends to relevant suppliers, partners and other parties working with us.

Managing Risk Responsibly

Sustainability-related risks are considered alongside broader strategic, operational and financial risks, helping us understand how environmental and social factors could affect our operations, supply chain and long-term resilience.

This includes climate-related physical and transition risks, resource availability, regulatory change and evolving customer expectations. These risks are assessed through established risk management processes, with relevant actions incorporated into business planning, operational controls and management review.

Transparency and Accountability

We maintain regular engagement with customers, employees, suppliers, communities, regulators, shareholders and other stakeholders to understand the issues that matter to them and incorporate relevant feedback into our decisions and priorities.

Progress against GreenCatalyst is monitored through defined metrics and targets, supported by internal reporting and external standards, certifications and assurance where relevant. We also communicate our environmental, social and governance performance through public reporting and disclosures, providing stakeholders with visibility into both our commitments and progress.

Structure and Oversight

Strategic direction on ESG sits with our ESG Steering Committee, supported by cross-functional working groups that carry implementation and performance tracking into every operational area, backed by governance systems refined across more than a century of Hayleys Group experience.

Stakeholder Engagement

Rather than one blanket policy, we maintain distinct engagement approaches for six stakeholder groups, customers, suppliers, investors, employees, government and regulators, and communities, each with guidance suited to what actually matters to that relationship.

ESG Risk Management

ESG risk is tracked through defined metrics across environmental, social and governance categories, reviewed against an annual Double Materiality Assessment that weighs both our impact on society and the environment, and the financial risk each issue represents to the business.

Ethics and Culture

Our governance practices are aligned with the ICASL / SEC Code of Best Practice on Corporate Governance, backed by open channels for employees to raise concerns without fear, and a consistent standard of integrity expected from the factory floor to senior management.

Transparent and Accurate Reporting

We report against GRI Standards, SASB, the UN SDGs and the UN Global Compact, and were among the early adopters of SLFRS S1 and S2, Sri Lanka's sustainability-related financial disclosure standards, well ahead of when adoption became mandatory.