Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social

Environmental Achievements

• Maintained existing low emission operating model and strived to reduce resources consumed during production and improve energy efficiency
• Implemented measures to reduce emissions including using natural gas-fueled boilers, installing air filters, fume purification devices, and replacing diesel forklifts with electric ones.
• Established an environmental management system certified with ISO 14001 standard.

Social Achievements

• Complied with various Code of Conduct audits including ICTI CARE, Sedex, and EICC.
• Maintained ISO 9001 and ISO 14001 certifications.
• Established comprehensive human resources policies and guidelines covering recruitment, compensation, promotion, and termination.
• Provided a healthy and safe working environment for employees, with no severe injuries or fatalities reported during the financial year.
• Emphasized employee training and development with pre-job, position transfer, on-the-job, external, and special training programs.
• Established policies to strictly prohibit child and forced labor.
• Implemented guidelines and management measures to manage environmental and social risks related to the supply chain.
• Conducted customer satisfaction surveys to improve product quality.
• Implemented anti-corruption measures including posting anti-bribery notices and terminating business transactions with parties involved in bribery.

Governance Achievements

• Board of Directors oversees the Group’s ESG strategy and reporting.
• ESG working groups established to monitor and report ESG matters.

Climate Goals & Targets

Environmental Challenges

• Minimizing environmental impact from energy consumption, resource use, and waste production.
• Managing health and safety risks in the workplace.
• Ensuring compliance with labor standards and employment laws.
• Managing environmental and social risks in the supply chain.
• Maintaining product responsibility and compliance with relevant regulations.
• Preventing unlawful acts such as bribery and corruption.

Mitigation Strategies

• Established mechanisms to collect and monitor emission data.
• Implemented energy-saving measures and promoted resource recycling and reuse.
• Established policies and procedures to manage health and safety, labor standards, and supply chain risks.
• Regularly evaluated suppliers and ensured compliance with social responsibility commitments.
• Conducted customer satisfaction surveys to improve product quality and address customer concerns.
• Implemented anti-corruption policies and procedures, including employee training and monitoring.

Supply Chain Management

Responsible Procurement

• Supplier Quality Evaluation Guidelines
• Supplier Social Responsibility Commitment
• Supplier Agreement
• Material Supply Conformity Declaration

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social

Environmental Achievements

• Reduced Nitrogen Oxides emissions per HKD million of production by 25%, Sulphur Oxides by 22%, and Particulate Matters by 26% compared to the previous reporting period.
• Maintained Greenhouse gases emissions per HKD million of production at around 30 tonnes.
• Maintained average hazardous waste disposed of per HKD million of production at 0.3 tonnes.

Social Achievements

• No severe injuries or fatalities reported during the reporting period.
• Improved working environment by installing additional air conditioners in production lines and staff quarters.
• Compliance with various Codes of Conduct including ICTI, IETP, SMETA and RBA.

Governance Achievements

• No significant incidences of non-compliance with relevant laws and regulations related to anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Minimizing environmental impacts by managing energy consumption, resource use, and waste production.
• Maintaining safe and ethical working conditions for employees.
• Managing environmental and social risks related to the supply chain.

Mitigation Strategies

• Established a mechanism to collect emission data and monitor environmental impact.
• Established ESG working groups to monitor and report emission data.
• Implemented measures to reduce emissions (e.g., replacing diesel oil with natural gas, installing air filters and VOC disposal systems, recycling food waste).
• Engaged licensed hazardous waste collectors.
• Implemented energy-saving measures (e.g., setting air conditioning at 26 degrees Celsius, two-sided printing, digitalizing documents).
• Established guidelines and management measures to manage environmental and social risks related to the supply chain.
• Established policies to strictly prohibit child and forced labor.

Supply Chain Management

Responsible Procurement

• Guidelines for Supplier Quality Evaluation
• Supplier Account Opening / Evaluation Form
• Questionnaire / survey to suppliers
• Supplier Social Responsibility Commitment
• Supplier Agreement
• Material Supply Conformity Declaration

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social

Environmental Achievements

• Reduced Nitrogen Oxides emissions per HKD million of production value by 16%, Sulphur Oxides by 12%, and Particulate Matters by 15%.
• Reduced average direct and indirect energy consumption per HKD million of production value by 5%
• Reduced water consumption per HKD million of production value by 9%

Social Achievements

• Maintained compliance with various Codes of Conduct including ICTI Ethical Toy Program, Sedex Members Ethical Trade Audit, Social and Environmental Accountability, Business Social Compliance Initiative, Responsible Business Alliance, EcoVadis, Tesco Blue Site Certificate and Disney FAMA.
• No severe injuries or fatalities reported during the reporting period.
• Implemented various training programs for employees covering pre-job training, position transfer training, on-the-job training, external training and special training.

Governance Achievements

• Established ESG working groups to monitor and report emission data and overall ESG performance.
• Implemented anti-corruption measures including posting Anti-bribery Notices and disciplinary actions for employees engaging in bribery.

Climate Goals & Targets

Environmental Challenges

• Increase in hazardous waste disposal per HKD million of production value due to disruption of hazardous waste collectors’ service and increased water usage in production.
• Increase in water usage in production.

Mitigation Strategies

• Implemented initiatives to reuse wastewater to reduce water usage.
• Installed wastewater processing facilities in Shenzhen factory.
• Engaging licensed hazardous waste collectors to collect and dispose of hazardous waste.
• Keeping track of hazardous waste collection records.

Supply Chain Management

Responsible Procurement

• Guidelines for Supplier Quality Evaluation
• Supplier Account Opening / Evaluation Form
• Supplier Social Responsibility Commitment
• Supplier Agreement
• Material Supply Conformity Declaration

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social

Environmental Achievements

• Reduced Nitrogen Oxides emissions per HKD million of production value by 50%, Sulphur Oxides by 26%, and Particulate Matters by 50% compared to the previous reporting period.
• Decreased average hazardous waste disposed of per HKD million of production value to 0.27 tonnes from 0.43 tonnes in the previous reporting period.

Social Achievements

• Maintained compliance with various Codes of Conduct including ICTI Ethical Toy Program, Sedex Members Ethical Trade Audit, Social and Environmental Accountability, Business Social Compliance Initiative, Responsible Business Alliance, EcoVadis, and Disney FAMA.
• No severe injuries or fatalities reported during the reporting period.

Governance Achievements

• Established and maintained anti-corruption policies and measures, including posting Anti-bribery Notices in office areas.

Climate Goals & Targets

Environmental Challenges

• Increased water consumption per HKD million of production value by 37% due to extended cooling tower operating hours and higher average temperatures.

Mitigation Strategies

• Implementing measures to manage water usage, including reusing wastewater in production.

Supply Chain Management

Responsible Procurement

• Guidelines for Supplier Quality Evaluation
• Supplier Account Opening / Evaluation Form
• Supplier Social Responsibility Commitment
• Supplier Agreement
• Material Supply Conformity Declaration

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social

Environmental Achievements

• Reduced Nitrogen Oxides emissions per HKD million of production value by 33%
• Reduced Sulphur Oxides emissions per HKD million of production value by 38%
• Reduced Particulate Matter emissions per HKD million of production value by 36%
• Reduced Greenhouse gas emissions per HKD million of production value by 18%
• Reduced average hazardous waste disposed of per HKD million of production value by 22%
• Reduced average direct and indirect energy consumption per HKD million of production value by 18%
• Reduced water consumption per HKD million of production value by 24%

Social Achievements

• Maintained compliance with various Codes of Conduct including ICTI Ethical Toy Program, Sedex Members Ethical Trade Audit, Social and Environmental Accountability, EcoVadis and Responsible Business Alliance.
• Maintained NBCUniversal Factory Approval and Disney Facility and Merchandise Authorization.

Governance Achievements

• Established policies to prevent unlawful acts such as bribery, extortion, fraud, and money laundering.
• Posted Anti-bribery Notice in office areas and meeting rooms.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Guidelines for Supplier Quality Evaluation
• Supplier Account Opening / Evaluation Form
• Supplier Social Responsibility Commitment
• Supplier Agreement
• Material Supply Conformity Declaration

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001:2015, ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emission management
• Climate change risks management
• Building green factories

Environmental Achievements

• Nitrogen Oxides emissions per HKD million of production value reduced by 57%
• Sulphur Oxides emissions per HKD million of production value reduced by 50%
• Particulate Matters emissions per HKD million of production value reduced by 57%
• Greenhouse gases emissions per HKD million of production value reduced by 34%
• Average hazardous waste disposed of per HKD million of production value decreased by 26%
• Average direct and indirect energy consumption per HKD million of production value reduced by 34%
• Water consumption per HKD million of production value decreased 35%

Social Achievements

• No work-related fatalities reported in the past three years
• Maintained certifications: ICTI Ethical Toy Program, Sedex Members Ethical Trade Audit, Social and Environmental Accountability, EcoVadis, Responsible Business Alliance, NBCUniversal Factory Approval, and Disney Facility and Merchandise Authorization

Governance Achievements

• Established ESG policy, infrastructure, and framework for managing ESG-related matters
• Board of Directors oversees the Group’s ESG strategy and reporting
• ESG working groups established in key business locations
• Annual assessment of key ESG issues by the Board
• Quarterly review of performance against ESG-related targets by the Board

Climate Goals & Targets

Environmental Challenges

• Increase in flooding (physical risk)
• Increase in customer concerns for green products (transition risk)

Mitigation Strategies

• Strengthened drainage capacity in production sites
• Increased use of recycled materials in printing and packaging
• Avoided usage of hazardous materials in the production process

Supply Chain Management

Supplier Audits: 46 suppliers (Shaoguan), 42 suppliers (Suzhou)

Responsible Procurement

• Supplier Quality Evaluation Guidelines
• Supplier Account Opening/Evaluation Form
• Supplier Social Responsibility Commitment
• Supplier Agreement
• Material Supply Conformity Declaration

Climate-Related Risks & Opportunities

Physical Risks

• Increase in flooding

Transition Risks

• Increase in customer concerns for green products

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emission management
• Climate change risks management
• Building green factories

Environmental Achievements

• Reduced Nitrogen Oxides emissions per HKD million of production value by 40%
• Reduced Particulate Matters emissions per HKD million of production value by 40%
• Reduced total greenhouse gases emission by 2.2%
• Maintained ISO 14001:2015 certification

Social Achievements

• No work-related fatalities reported in the past three years
• Compliance with various Codes of Conduct (IETP, SMETA, SEA, EcoVadis, RBA, NBCUniversal Factory Approval, Disney Facility and Merchandise Authorization)
• 81 product and service-related complaints received and resolved

Governance Achievements

• Established ESG policy, infrastructure, and framework
• Board of Directors oversees ESG strategy and reporting
• ESG working groups established in key business locations
• Annual assessment of key ESG issues by the Board

Climate Goals & Targets

Environmental Challenges

• Increase in greenhouse gases emissions per HKD million of production value (10.8% increase)
• Increase in hazardous waste disposed per HKD million of production value (35% increase)
• Increase in average direct and indirect energy consumption per HKD million of production value (11% increase)
• Increase in water consumption per HKD million of production value (19% increase)
• Increase in flooding risk due to climate change
• Increased customer concerns for green products

Mitigation Strategies

• Installing water and electricity meters in each workshop to monitor and conserve energy and water
• Replacing fuel-consuming forklifts with electric ones
• Upgrading air compressor equipment to reduce power consumption
• Strengthening drainage capacity in production sites to prevent flood accumulation
• Increasing the use of recycled materials in printing and packaging
• Avoiding the use of hazardous materials in the production process
• Addressing water leakage problems in Shaoguan factory

Supply Chain Management

Supplier Audits: 45 suppliers audited in both Shaoguan and Suzhou plants

Responsible Procurement

• Supplier Quality Evaluation Guidelines
• Supplier Account Opening/Evaluation Form
• Supplier Social Responsibility Commitment
• Supplier Agreement
• Material Supply Conformity Declaration

Climate-Related Risks & Opportunities

Physical Risks

• Increase in flooding

Transition Risks

• Increased customer concerns for green products