Our 8th Sustainability Report reflects our sustained commitment to transparency, ethical governance and the advancement of a resilient energy future. It provides a detailed overview of the strategic initiatives undertaken, performance outcomes achieved, and stakeholder engagement efforts pursued across core Environmental, Social and Governance (ESG) domains, underscoring our role as a trusted corporate entity within Pakistan’s dynamic energy sector.
The report covers the period from July 1, 2024, to June 30, 2025 and was officially published on December 16, 2025. The report encompasses KE’s vertically integrated core operations, which include the generation, transmission, distribution and supply of electricity. It excludes sustainability performance data of subsidiaries and supply chain entities.
The data presented is recorded on an actual basis; however, where data is unavailable, estimations are used and disclosed in the report at the respective locations.
The report has been developed in accordance with the Global Reporting Initiative (GRI) Standards 2021 and is aligned with the Sustainability Accounting Standards Board (SASB) Electric Utilities Sector Standard. Additional alignment was ensured through reference to ESG guidelines issued by the Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange (PSX). This report reflects our management approach, policies and performance on material topics identified through the materiality assessment process. Further details on the materiality approach and identified topics are provided on page 29. KE is preparing to align with the IFRS Sustainability Disclosure Standards following the SECP’s adoption order issued on December 31, 2024. Although these standards become mandatory for reporting periods starting July 1, 2025, KE is developing IFRS S1 and S2 aligned disclosures for the year ending June 30, 2025, as part of its readiness and transition efforts and plans to present in line with financial disclosures.
This report underscores our alignment with the United Nations Sustainable Development Goals (SDGs), showcasing our contributions toward advancing both national and global development priorities.
To ensure transparency and credibility, this sustainability report has undergone review and oversight from KE’s Sustainability Council. It was externally assured by the BDO Ebrahim & Company, Chartered Accountants, an independent assurance firm in accordance with ISAE-3000 (Revised). KE’s management team actively engaged in selecting the external assurer and supported the assurance process to maintain clarity and integrity in our disclosures. Full details of the external assurance process are provided on pages 78-79.
We value feedback on the Sustainability Report 2025 and invite all stakeholders to share their views, suggestions and comments. For queries or input, please contact us at sustainability@ke.com.pk.
Reflecting on the year gone by, significant shifts are unfolding across the region. Economies are striving for growth while navigating climate extremes, rising energy demand, and evolving geopolitical dynamics. For Pakistan, FY25 brought cautious economic stabilisation, but it was also marked by unprecedented heatwaves, volatile fuel markets, and mounting pressure on energy infrastructure and water resources. These challenges reinforce the reality that the future of energy must be reliable, affordable, and sustainable.
In this context, KE is committed to taking a leading role. As Pakistan’s only vertically integrated utility, our decisions shape how the region is powered today as well as how future generations will live, learn, and grow. Looking back, I am proud that we remained focused on strengthening our foundations while preparing for a transitioning energy future, one that is low carbon, digitally enabled, and economically competitive.
Becoming climate-resilient is central to this journey. We are aligning our business with national and global sustainability pathways, reducing dependence on fossil fuels, and actively pursuing renewable integration. Our planned renewable energy projects, including large-scale solar and wind, are progressing through regulatory stages, and we remain committed to significantly increasing the share of clean energy in our supply mix. Simultaneously, we are operationalising our ESG Roadmap 2030, embedding responsible resource use, emissions reduction, waste management, and stronger climate governance across our operations.
Innovation and digital transformation are helping us build a future-ready utility. KE became one of the first power utilities in the region to transition to SAP S/4HANA RISE, a foundational leap that strengthens cybersecurity, enhances transparency, and enables data-driven decision-making. From grid automation and smart metering to customer-centric digital platforms, we are transforming every layer of our value chain to deliver faster, safer, and more efficient services.
I am proud of the KE employees who are committed to advancing the Company in its broad sustainability goals. We are determined to invest in capability-building, encouraging innovation, and ensuring that our workforce remains empowered, diverse, and future-focused. Safety continues to be non-negotiable across all our sites and communities.
Achieving energy security will require a smart expansion of our infrastructure. Building climate resilience will demand consistent investment, innovation, and policy alignment. I am encouraged by how far we have come and energised for the work ahead. On behalf of the Board of Directors, I extend my sincere gratitude to our employees, partners, regulators, lenders, and the millions of customers who place their trust in us every day. Together, we will continue to power Pakistan forward with responsibility and purpose, building an energy future that is sustainable, equitable, and resilient for generations to come.
Mark Gerard Skelton
Chairman
K-Electric Limited
The past year has been defined by remarkable achievements, innovation, and growth in Pakistan. Despite macroeconomic pressures, climate volatility, and geopolitical challenges, we remained committed to powering forward, energising over 3.8 million customers with reliability, responsibility, and resilience.
Energy security took centre stage with the commissioning of KE’s first 500 kV KANUPP–KE Interconnection Grid and the 220 kV Dhabeji-2 line. This enabled us to off-take power up to 2,000 MW from the National Grid, ensuring uninterrupted supply for our customers.
We accelerated our digital transformation with one of the region’s first SAP S/4HANA RISE rollouts, strengthening cybersecurity, operational efficiency, and data-driven decision-making. With 2.6 million customers now engaging through digital platforms, including the KE Live App, WhatsApp, and Kineto, we continue our journey toward a more transparent and eco-friendly business model. Pakistan’s first power sector loyalty programme, KE Star Rewards, further boosted KE Live App engagement by 45%, reflecting our focus on customer empowerment and innovation.
In parallel, the inaugural Energy Progress and Innovation Challenge (EPIC) brought together academia, industry, startups, and researchers, generating over 250 solutions to national energy challenges. Our Operational Excellence Programme, focused on Customer Experience, Cost Leadership, Operational Efficiency, and Employee Wellbeing, continues to strengthen our foundation for sustained improvement and long-term value creation.
At the same time, we continued advancing renewable integration, securing Pakistan’s lowest tariff bids, ranging between PKR 8.9–11.6 per unit, through competitive bidding for 640 MW of clean energy projects. Through K-Solar, 11.1 MW of distributed solar was deployed for commercial and industrial users. We embedded ISO 50001 energy management practices across operations and reduced greenhouse gas emissions by 4%, reaffirming our commitment to a greener future. Innovations such as Battery Energy Storage Systems (BESS) remain key to enhancing grid flexibility and renewable uptake.
We believe that our people are at the heart of every success. During the year, we delivered over 486,000 training hours, while gender diversity increased by 16%. Through initiatives like Roshan Raahien, we continue to promote career pathways for women across the organisation. Corporate Social Responsibility remained integral to our purpose, with 2.9 million people benefiting from flagship programmes such as Roshni Baji Safety Ambassadors, Khel, Kood aur Khayal, and the KHI Awards, which supported 45 social impact organisations in healthcare, education, community development, and other sectors.
Further strengthening local value chains, we prioritised working with local suppliers, supporting national industry and growth. As part of our sustainability roadmap, we are expanding capacity with new grid stations, transmission lines, and additional distribution infrastructure, underpinned by modern protection and automation systems. Our generation assets sustained strong performance with 92.3% average availability, ensuring consistent support for Karachi’s growing energy needs.
We extend our sincere gratitude to our partners, stakeholders, lenders, and customers for their steadfast trust and collaboration. Together, we will continue to reinforce Pakistan’s energy future by accelerating renewable integration, modernising grids, enabling digital ecosystems, and deepening public and private partnerships for a resilient and inclusive energy landscape.
Syed Moonis Abdullah Alvi
Chief Executive Officer
K-Electric Limited
As Pakistan’s sole vertically integrated power utility, KE is engaged in generation, transmission, distribution and supply of electricity for a vast and densely populated service network, including Karachi, Uthal, Bela, Vinder, Gharo, Hub and Dhabeji.
Established in 1913 as the Karachi Electric Supply Company (KESC) to meet the electricity needs of the port city, the organisation has since evolved into K-Electric Limited, now serving the complex and expansive energy demands of our service network. It plays a central role in powering the nation’s economic hub, driving industrial growth, urban development and improving the quality of life for over 3.8 Mn customers.
As a publicly listed company on the PSX, KE’s shareholding structure is majority private, with the Government of Pakistan retaining a minority stake. The Company operates under NEPRA’s regulatory purview and complies with all applicable national laws governing electricity generation, transmission, distribution, and supply.
Since privatisation in 2005, KE has invested USD 4.7 Bn to expand its infrastructure and customer base, doubling both, while cutting transmission and distribution losses by half. Building on this progress, KE has outlined a multi-year investment plan to strengthen and modernise its transmission and distribution network.
These commitments are anchored in the assumption of a stable tariff and regulatory environment for FY24–30, which is essential for the Company to maintain investment momentum, optimise existing assets, and expand capacity in line with our customers’ growing energy needs. KE remains engaged with stakeholders to help ensure a consistent policy environment that supports responsible development and reliable, affordable power for all.
KE delivers long-term value across multiple capitals, enhancing its infrastructure while promoting knowledge sharing and efficiency, strengthening renewable energy integration and supporting affordable, reliable power. This approach advances Pakistan’s transition to a low-carbon future, empowering its people and communities and strengthening trust with stakeholders through responsible growth.
Customer centricity is essential to our sustainable business model and is integrated throughout the organisation as a core value. Guided by principles of equity, transparency and consistency, we view customer centricity as a shared responsibility for all employees and consider it an integral part of our organisational culture.
KE’s customer experience transformation is anchored in accelerating end-to-end digitalisation to deliver convenience at home, reduce customer costs, and enable seamless access to services. Guided by global benchmarks, our focus remains on first-contact resolution, proactive transparency, and hyper-segmentation, enabling the design of value-added services tailored to specific customer segments and use-cases.
Our approach, rooted in creating digital trust, accessibility, personalisation, and reliability, continues to shape KE’s evolution as a modern, responsible energy provider, aligned with both sustainability and inclusive growth. We serve customers across multiple integrated touchpoints spanning physical, hybrid and fully digital channels.
Digitalisation is embedded across operations to enhance efficiency, transparency, and service quality, while supporting innovation and responsible resource use. Strong cybersecurity measures, privacy assessments, and employee training mitigate potential risks, while incident response protocols and compliance collaboration address any adverse situations.
Customer-centric digital innovation remained a core focus, with enhancements to KE Live App and WhatsApp, as well as the launch of the New Connection (NC) Portal, which simplifies onboarding and improves service transparency and accessibility.
The Advanced Distribution Management System (ADMS) project is progressing within KE’s distribution network, subject to a sustainable tariff and regulatory environment. This centralised platform will consolidate essential grid management tools, including Outage Management System (OMS), Supervisory Control and Data Acquisition (SCADA), Distribution Management System (DMS), Workforce Management (WFM) and Field Automation along with leveraging existing IT enterprise and Operational Technology (OT) systems.
In FY25, KE maintained exceptional platform uptime with zero major service interruptions, reaffirming operational resilience and business continuity. IT governance was further strengthened through the implementation of enhanced Segregation of Duties (SoD) and Role-Based Access Control (RBAC), ensuring robust data protection and compliance with global cybersecurity standards.
Building on its prior ISO 22301 certification, KE implemented a comprehensive Information Security Management System (ISMS) and achieved ISO/IEC 27001 certification, significantly bolstering its information security posture.
In FY25, 6 risk-based training sessions were delivered to internal teams, along with 5 awareness camps and a company-wide webinar as part of Cybersecurity Awareness month. Quarterly mock-drills were also conducted to enhance internal vigilance around cybersecurity threats, including phishing.
KE incorporates innovation and research & development into its operations to enhance efficiency, boost resilience and minimise environmental impacts. These efforts focus on conserving energy, reducing emissions, minimising waste and reusing resources, supported by employee-led innovation and in-house engineering solutions to develop long-term capabilities.
In FY25, sustainability and reliability efforts included grid-wide energy conservation projects, asset upgrades, predictive maintenance and replacing high-risk parts with advanced options, such as SF₆ equipment, polymer insulators and XLPE cables. These efforts improved operational reliability, safety and environmental performance while meeting increasing demand.
Digital and cybersecurity improvements further enhanced resilience, including the use of in-house SCADA tools, stable telecom links, upgraded Human Machine Interface (HMI) systems and advanced OT security.
To enable large-scale integration of Variable Renewable Energy (VRE), KE is undertaking a comprehensive study focused on long-term system optimisation, addressing operational challenges, and identifying transmission upgrades required for future renewable integration. This is complemented by a phased in-house strategy designed to ensure stability and reliability during the transition.
This year, KE successfully completed one of the region’s first direct upgrade from its legacy SAP ECC6 system to the modern cloud-based SAP S/4HANA RISE platform, laying the foundation for its Digital Core. Conducted alongside a comprehensive review and re-engineering of core business processes, this transformation has streamlined operations, enhanced productivity, and strengthened organisational agility to adapt to evolving business and market dynamics. The new platform forms the backbone of KE’s intelligent enterprise, enabling faster access to real-time insights, smarter forecasting, and seamless integration with emerging technologies. Together with the SAP Business Technology Platform (BTP), it provides the intelligence layer for automation, analytics, and AI-driven innovation across business functions. By embracing this next-generation Digital Core, KE is accelerating its evolution into a smart utility, leveraging real-time data to optimise operations, elevate customer experience, and ensure agility in a rapidly changing energy landscape.
KE integrates sustainability into its supply chain strategy to generate long-term value for its stakeholders while minimising risks and impacts across procurement activities.
KE requires suppliers to uphold strict environmental and social standards, prohibiting discrimination, child labour and unsafe practices while advancing initiatives on climate action, energy efficiency, waste reduction and biodiversity protection. Circular economy principles are embedded in procurement, supported by governance safeguards that ensure transparency, ethical conduct and zero tolerance for corruption. Supplier engagement is reinforced through the Supplier Code of Conduct, mandatory compliance in registration and contracts.
To build capacity and drive continuous improvement, KE conducts training and awareness programmes that foster collaboration with suppliers and partners, aiming to reduce environmental footprints, strengthen social responsibility and promote sustainable value creation across the supply chain.
The Supply Chain function has primary responsibility for implementing these practices, supported by all business lines in alignment with the Company’s HSEQ policies. Mandatory acceptance of the Supplier Code of Conduct, sustainability-linked contractual obligations and structured oversight through audits and performance evaluations are integral to the governance process.
KE’s supply chain reflects a deliberate shift towards localisation and supplier empowerment, ensuring that procurement activities contribute meaningfully to Pakistan’s economic growth. In FY25, around 91% of total suppliers were local (844), spanning construction materials, distribution equipment, and operational services. This growing local focus supports domestic industry, job creation, and skill development, while fostering greater self-reliance within the energy sector.
The remaining 9% of suppliers (86) represents imports of critical technologies and specialised electrical equipment essential for operational excellence. Through this strategic balance, KE continues to strengthen local partnerships, build supplier capacity, and enhance supply chain resilience, advancing both its operational efficiency and sustainability objectives.
Emissions are calculated using robust methodologies that cover Scope 1, Scope 2, and Scope 3 sources:
Scope 1
• Power generation sources
• Combustion of gases
• Fugitive emissions
• Vehicle emissions
Scope 2
• Electricity consumed at KE offices and operational sites
• Electricity consumed during transmission and distribution across KE-controlled network
Scope 3
• Generation of purchased electricity that is sold to end-users
KE continued to advance its ESG Framework 2030 initiatives with a strong focus on reducing CO₂ emissions across its operations. Key measures included the transition to Re-gasified Liquefied Natural Gas (RLNG) as a cleaner fuel alternative and a sustained reduction in Scope 2 emissions through the installation of solar PV systems at KE sites. This has resulted in a year-on-year increase in renewable energy consumption accompanied by a corresponding decrease in non-renewable energy use. Optimised auxiliary energy consumption during plant standby periods also contributed to emission reduction.
Carbon footprint calculation and monitoring is conducted across sites, with consolidated reporting at the corporate level. Current figures are primarily calculated on actual measured. Calculations cover Carbon Dioxide (CO2), Methane (CH4), and Nitrous Oxide (N2O), reflecting KE’s commitment to transparent and comprehensive accounting.
KE’s own emission intensity is calculated based on Scope 1 emissions only, representing direct emissions from its operations. In contrast, the Grid Emission Intensity is assessed by accounting for all relevant emission sources, including Scope 1, Scope 2, and Scope 3 emissions, to provide a comprehensive measure of the overall grid impact.
In FY25, KE achieved a reduction of over 300,000 MTCO₂e in GHG emissions compared to the previous year.
Our operations and associated material topics have a broad impact across nearly all SDGs. This report fulfills the minimum requirements set by the PSX for listed companies. It outlines our governance framework and approach to managing the impact of our activities on the SDGs, highlighting both our performance and contributions. This section specifically addresses the minimum indicators, while detailed information on relevant policies, practices and performance metrics are provided in the referenced sections of the report.
AT&C Aggregate Technical and Commercial
ASHRAE American Society of Heating, Refrigerating and Air-Conditioning Engineers
AGM Annual General Meeting
ALARP As Low As Reasonably Practicable
BU Business Unit
BQPS Bin Qasim Power Station
CPP Captive Power Plant
CBA Collective Bargaining Agent
DISCO Distribution Company
DEI Diversity, Equity and Inclusion
DEFRA Department for Environment, Food and Rural Affairs
EPA Environmental Protection Authority
GHG Greenhouse Gases
GRI Global Reporting Initiative
IPP Independent Power Producer
IEA International Energy Agency
IGCEP Indicative Generation Capacity Expansion Plan
IFRS International Financial Reporting Standards
ISAE International Standards on Assurance Engagements
KGTPS Korangi Gas Turbine Power Station
KPC Korangi Power Complex
kWh Kilo Watt Hours
MT Metric Ton
NEPRA National Electric Power Regulatory Authority
SEQS Sindh Environmental Quality Standards
PAP Power Acquisition Programme
PSX Pakistan Stock Exchange
RLNG Re-gasified Liquefied Natural Gas
SGTPS Site Gas Turbine Power Station
SASB Sustainability Accounting Standards Board
SDGs Sustainable Development Goals
TRIR Total Recordable Incident Rate