Chatthe Group — Sustainability FY 2024–25

FY 2024–25 Sustainability Disclosures

Rooted in circularity.
Powered by bagasse.

An integrated agro-industrial ecosystem in Kisumu, Kenya — where four companies share energy, water and material flows so that one company's by-product becomes another's feedstock.

Operating Companies

100%

Renewable Electricity

1,215

People Employed

Workplace Fatalities

02 — The Group

Four companies. One ecosystem.

Chatthe Group operates an integrated agro-industrial ecosystem in Kisumu, Kenya. Four subsidiaries share energy, water and material flows in a circular system — what one company produces as a by-product becomes an input for another.

KSAIL

Kibos Sugar & Allied Industries

Sugar milling from sugarcane — and the source of bagasse, molasses, press mud and boiler ash that feed the rest of the Group.

KDL

Kibos Distillers

Ethanol distillation from molasses sourced internally from KSAIL. Produces vinasse, used downstream as fertilizer input.

KPPL

Kibos Paper & Packaging

Paper, paper bags and polyethylene bags — using bagasse pulp internally, packaging KSAIL sugar and KFL fertilizer downstream.

KFL

Kibos Fertilizer

Blended fertilizer production — drawing on press mud, boiler ash and vinasse from upstream subsidiaries as raw inputs.

Cane is the source — and the system.

03 — Circular Flows

Nothing leaves the Group.

KSAIL → All

Bagasse from cane milling generates the renewable electricity and steam used by all four companies.

KSAIL → KDL

Molasses from sugar milling becomes the feedstock for ethanol distillation.

KSAIL → KPPL

Bagasse is also pulped to produce paper at the packaging facility.

KSAIL+KDL → KFL

Press mud, boiler ash and vinasse become raw inputs for blended fertilizer.

KPPL → KSAIL+KFL

Paper and plastic bags are used to package sugar and fertilizer.

Material flows across the four Chatthe Group subsidiaries.

04 — Performance

Performance at a glance.

Every figure below is drawn directly from each company's FY 2024–25 Sustainability Report. Where indicators are reported by all four companies, results are presented side by side.

100%

Renewable Electricity

Bagasse cogeneration · Group-wide

Workplace Fatalities

Across all four subsidiaries

Regulatory Penalties

FY 2024–25 reporting period

LCAs Completed

All four companies, ISO 14040/44

Workforce by company

1,215 people employed across the Group · FY 2024–25

Indicator	KSAIL	KDL	KPPL	KFL
Annual production	108,171 t sugar	23,492,951 L ethanol	36,000 t pulp + bag lines	133,143 t fertilizer
Total workforce	585	74	441	115
Workplace fatalities	0	0	0	0
Renewable electricity share	100%	100%	100%	100%
Electricity used (kWh / year)	55,757,000	9,801,126	15,722,101	1,872,000
Scope 1 emissions (tCO₂e)	30.01	~100	925	5,009
Scope 2 emissions (tCO₂e)	0	0	0	0
Water withdrawal (m³ / year)	240,000	274,719	222,700	18,720
Regulatory penalties	0	0	0	0
Confirmed discrimination cases	0	0	0	0
Reporting framework	GRI 2021	GRI 2021	GRI 2021	GRI 2021

Methodological Notes

Production volumes are shown in each company's native unit because the products differ. KPPL's 36,000 tonnes refers to bagasse-derived pulp; additional production covers paper for bag conversion (230.2 t), virgin polyethylene bags (from 600 t of resin) and recycled polyethylene bags (from 560 t of recycled polymer).
Scope 1 emissions differ in methodological boundary between subsidiaries: KSAIL covers owned vehicles; KDL covers biogenic CH₄ and N₂O from bagasse combustion; KPPL covers diesel combustion; KFL covers diesel plus bagasse CH₄ and N₂O.
KDL's water withdrawal figure combines three process streams: treated water (129,785 m³), soft water (135,995 m³) and demineralised water (8,939 m³).

05 — Life Cycle Assessment

Cradle-to-gate, independently verified.

All four Chatthe Group subsidiaries completed cradle-to-gate Life Cycle Assessments during FY 2024–25, conducted in accordance with ISO 14040 and ISO 14044 and using the TRACI 2.1 impact assessment method. These LCAs provide scientifically verified, product-level environmental data for customers, regulators and buyers of low-carbon products.

5.1 LCA results across the Group

Indicator	KSAIL	KDL	KPPL	KFL
Functional unit	1 t brown sugar	1 L ethanol	1 t bag product	1 t fertilizer
System boundary	Cradle-to-gate	Cradle-to-gate (A1–A3)	Cradle-to-gate	Cradle-to-gate
Standard	ISO 14040/44/67	ISO 14040/44	ISO 14040/44	ISO 14040/44
Impact method	TRACI 2.1	ISO LCA	TRACI 2.1	TRACI 2.1
Fossil GWP intensity	60.8 kg CO₂-eq / t	0.398 kg CO₂e / L	See products below	51.65 kg CO₂-eq / t
Annual fossil GWP	~6,580 tCO₂e	9,350 tCO₂e	See products below	6,880 tCO₂e

5.4 KPPL — Bag carbon intensity comparison

Functional unit: 1 tonne of finished bag product · Recycled PE bags achieve ~10× the carbon performance of virgin PE.

5.2 KSAIL — detailed impact categories

Functional unit: 1 tonne of brown sugar. Diesel transport contributes approximately 95% of fossil GWP.

Impact category	Result per tonne of sugar
Fossil Global Warming Potential	60.8 kg CO₂-eq
Acidification	0.067 kg SO₂-eq
Eutrophication	0.0103 kg N-eq
Smog Formation	0.0226 kg O₃-eq
PM2.5 Formation	0.00451 kg PM2.5-eq
Ozone Depletion	Near zero

5.3 KDL — ethanol LCA

Functional unit: 1 litre of ethanol · Cradle-to-gate (A1–A3) system boundary.

Metric	Result
Fossil GHG intensity (A1–A3)	0.398 kg CO₂e per litre
Annual fossil GHG (A1–A3)	9,350 tCO₂e / year
Biogenic CO₂ emissions	10,080 tCO₂ / year
Avoided downstream emissions	85,000 tCO₂e / year

5.5 KFL — fertilizer LCA

Functional unit: 1 tonne of fertilizer at factory gate. Cradle-to-gate LCA covering A1 raw materials, A2 transport and A3 manufacturing.

Metric	Result
Total annual GHG emissions	6,880 tCO₂-eq / year
GWP intensity	51.65 kg CO₂-eq per tonne
Scope 1 emissions	5,009 tCO₂-eq / year
Scope 2 emissions	0 tCO₂-eq / year
Upstream Scope 3 emissions	1,870 tCO₂-eq / year

Across all four subsidiaries, the largest environmental hotspot is not manufacturing itself — it is the long-distance transport of raw materials and external logistics. This finding is reshaping each company's sustainability priorities toward logistics optimisation, supplier diversification and the expansion of circular material flows.

06 — Planet Care

Planet Care.

6.1

Carbon footprint & emissions.

All four Chatthe Group companies run entirely on renewable electricity generated from bagasse, eliminating Scope 2 emissions Group-wide.

100%

Renewable electricity, all four companies

0 tCO₂e Scope 2 emissions across KSAIL, KDL, KPPL and KFL — a structural climate advantage from bagasse cogeneration.

6.2

Energy use & efficiency.

Every kilowatt-hour used across the Group comes from renewable bagasse cogeneration. KSAIL — as the source of the bagasse and the largest sugar-milling operation — accounts for the majority of consumption.

6.3

Water stewardship.

Water is managed through structured monitoring, recirculation systems and zero-discharge practices. KPPL operates a closed-loop water system with no liquid discharge.

6.4

Waste & circular economy.

The Chatthe Group is built around circular material flows. Waste from one subsidiary becomes feedstock for another — bagasse, molasses, press mud, boiler ash, vinasse and paper offcuts all re-enter the system rather than leaving it. Each company maintains documented waste-handling procedures aligned with NEMA and EMCA requirements.

Six material streams cycle within the Group rather than leaving it as waste.

6.5

Sustainable sourcing.

Raw materials are sourced locally wherever possible. Internal Group flows significantly reduce dependence on virgin materials across all four subsidiaries.

108,171t

KSAIL — Sugar

23.5M L

KDL — Ethanol

36,000t

KPPL — Pulp + bag lines

133,143t

KFL — Fertilizer

07 — People & Communities

People & Communities.

Workplace fatalities, FY 2024–25

Across all four subsidiaries · OSHA 2007 compliant

Confirmed discrimination cases

Group-wide Equal Opportunity & Anti-Harassment policies

7.1

Wellbeing & occupational health.

All four Chatthe Group companies operate under OSHA 2007 and maintain formal Occupational Health and Safety management systems. Zero workplace fatalities were recorded at any subsidiary during FY 2024–25.

Indicator	KSAIL	KDL	KPPL	KFL
Total workforce	585	74	441	115
Workplace fatalities	0	0	0	0

7.2

Diversity, equity & inclusion.

Chatthe Group enforces Group-wide Equal Opportunity and Anti-Harassment policies. Employment practices prohibit discrimination on any grounds and merit-based promotion is the standard across all four subsidiaries.

Indicator	KSAIL	KDL	KPPL	KFL
Confirmed discrimination cases	0	0	0	0

7.3

Community programs.

The Chatthe Group is deeply embedded in the Kisumu regional economy. All four subsidiaries maintain active community engagement through local hiring, supplier networks, and partnerships with local authorities. Employment at the Group supports thousands of additional livelihoods across cane farming, transport, logistics and rural services.

Sunset over Lake Victoria, Kisumu, Kenya

Lake Victoria at Kisumu — the regional economy the Chatthe Group supports.

7.4

Human rights & labour standards.

Chatthe Group's Human Rights Policy applies to every subsidiary. All four companies prohibit child labour and forced labour, enforce identity verification at hiring, and provide confidential grievance channels with zero-reprisal protection. No regulatory non-compliance cases were recorded at any subsidiary during FY 2024–25.

Indicator	KSAIL	KDL	KPPL	KFL
Regulatory penalties	0	0	0	0
Confirmed discrimination cases	0	0	0	0

7.5

Customer responsibility.

Chatthe Group serves customers across agriculture, industry and consumer sectors. Every subsidiary operates under Kenya Bureau of Standards (KEBS) quality requirements with internal Quality Assurance functions, laboratory controls and product governance. All four companies have completed Life Cycle Assessments, giving customers transparent, verified sustainability data.

accredited

KEBS

Kenya Bureau of Standards

framework

GRI 2021

Global Reporting Initiative

verified

ISO 14040/44

All four LCAs completed

08 — Leadership & Accountability

Leadership & accountability.

8.1

Governance structure.

Chatthe Group operates a three-tier governance model across all four subsidiaries. The roles of Chair and Chief Executive are held separately to ensure balanced oversight. Each subsidiary has its own General Manager supported by departmental teams covering Operations, OSHE, Quality Assurance, Supply Chain, Finance, HR, and Sustainability / ESG.

Sukhwinder Singh Chatthe

Executive Director / Chairman

Raghbir Singh Chatthe

Managing Director

Jaspreet Singh Chatthe

Technical Director

8.2

Ethics & anti-corruption.

Chatthe Group enforces Anti-Corruption, Conflict-of-Interest and Workplace Conduct policies across all subsidiaries. No ethics violations or regulatory penalties were recorded at any of the four companies during FY 2024–25.

Indicator	KSAIL	KDL	KPPL	KFL
Regulatory penalties	0	0	0	0
Confirmed discrimination cases	0	0	0	0

8.3

Climate risk & resilience.

All four subsidiaries benefit from structural climate resilience. 100% renewable electricity insulates the Group from grid instability and future carbon pricing. Integrated circular material flows reduce exposure to supply-chain disruption. LCAs identify long-distance raw-material transport as the primary climate exposure, and each subsidiary is implementing transport optimisation programmes.

100%

Renewable electricity

All four companies

Scope 2 emissions (tCO₂e)

Group-wide

8.4

ESG reporting & materiality.

All four subsidiaries report in accordance with the GRI 2021 Standards and comply with Kenyan regulatory frameworks including NEMA, EMCA 1999, DOSH, KEBS and OSHA 2007. Each company has completed a formal materiality assessment and an ISO-aligned Life Cycle Assessment during the reporting period.