Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Adopted ISO 14001 Environmental Management System across major operation sites.
• Reduced the use of plastic in bottles, caps and handles, saving a total cost of RMB600,000.

Social Achievements

• Maintained Caring Company Award for ten consecutive years.
• Organized various employee engagement activities (annual conference, team building activities, tours).

Governance Achievements

• Implemented policies on anti-corruption and procedures concerning offering or accepting gifts and gratuities.
• No concluded legal case regarding corrupt practices brought against the Group or its employees during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Labour shortage in PRC.
• Government tightening control over pollution in PRC.

Mitigation Strategies

• Deploying advanced technologies in packaging processes to reduce dependency on labour.
• Investing sufficient resources to ensure environmental performance meets or exceeds statutory requirements and reducing overall energy consumption.

Supply Chain Management

Supplier Audits: Annual audits for suppliers of packaging materials.

Responsible Procurement

• Buy only what the business operation needs; source from local supplies; source from high quality and competitive supplies.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Listing Rules and Guidance set out by The Stock Exchange of Hong Kong Limited)

Certifications: ISO 14001, ISO 9001, ISO 22000

Sustainable Products & Innovation

• Products with refill packaging that reduce the use of plastic pumps

Awards & Recognition

• Caring Company Award (10 consecutive years)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions intensity to 0.05 tCO2eq./tonnes of production volume
• Achieved over 80% recycling rate for non-hazardous waste, with 100% recycling rates for scrap metal, waste paper, plastic and sludge
• Installed a 220-kW solar PV system on the rooftop of Lam Soon Building

Social Achievements

• Awarded the “Caring Company Award” for the thirteenth consecutive year
• Participated in poverty alleviation program in Jintan
• Organized parent-child baking activity with Hong Chi Morningjoy School

Governance Achievements

• Implemented policies on anti-corruption and procedures concerning offering or accepting gifts and gratuities
• Maintained compliance with all applicable laws of Hong Kong and the PRC regarding labour rights and employment
• Complied with all the “comply or explain” provisions set out in the ESG Reporting Guide

Climate Goals & Targets

Environmental Challenges

• Substantial increase in NOx emission due to change in emission factors
• Substantial increase in generation of other wastes due to change of hazardous waste classification code and disposal of empty chemical containers
• Increase in waste with organic solvent caused by end of production of certain homecare products and expired chemicals

Mitigation Strategies

• Relentless efforts on emission reduction through various initiatives and policies (e.g., using high efficiency and low NOx emissions boiler, upgrading vehicles to hybrids, upgrading forklift trucks to electric-powered models)
• Engaging qualified companies for collection and further handling of hazardous waste
• Adopting electronic communication for a paperless office and using smart-print application

Supply Chain Management

Supplier Audits: Annual audits for packaging suppliers; six-monthly evaluations for raw material suppliers

Responsible Procurement

• Just-in-time inventory model
• Sourcing from local suppliers
• Sourcing high quality and competitive products

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Certifications: ISO 14001, ISO 9001, ISO 22000, HACCP, FSSC22000, China Environmental Labelling Products Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Hong Kong Top Brand
• Demonstration Enterprise of Corporate Safety Culture Construction in Nanshan, Shenzhen
• National Excellent Enterprise with Foreign Investment – Excellent Tax Payment and Turnover
• 2019 Guangdong Top 100 Baking Enterprises – Top 10 Baking Ingredients Companies
• Hong Kong Premier Brand
• Top 100 Manufacturers of Guangdong
• Top 500 Enterprises of Guangdong
• National Demonstration Project of Safe Grain and Oil – Demonstration Processing Enterprise

Environmental Metrics

ESG Focus Areas

• Climate change mitigation and adaptation
• Employee well-being, health and safety
• Product quality and safety
• Corporate governance

Environmental Achievements

• Established Climate Change Policy
• Conducted climate risk assessment
• Participated in CLP Power Hong Kong Limited Renewable Energy Feed-in Tariff Scheme by installing 542 solar PV modules
• Replaced 70 induction lights with LED high bay lights
• Achieved 76% diversion rate for non-hazardous waste and maintained 100% recycling rate for hazardous waste

Social Achievements

• Deployed various explosion protection systems to minimise explosion hazard in the flour mills
• Adopted flexible work arrangements and preventive measures during COVID-19 pandemic
• Purchased formaldehyde-free office furniture
• Provided various training schemes and an E-learning platform
• Achieved zero work-related fatalities

Governance Achievements

• Invited ICAC to provide anti-corruption training
• Audited packaging materials suppliers against safety and hygiene performances
• Group’s business operations were accredited with ISO 9001, ISO 22000, HACCP, and FSSC 22000 certifications
• Strictly complied with laws and regulations regarding marketing and labelling
• Established a publicly available whistleblowing channel

Climate Goals & Targets

Environmental Challenges

• Extreme weather events (extreme wind or cyclone, flooding, water stress)
• Transition risks (policy, technology, and market risks)

Mitigation Strategies

• Established Climate Change Policy
• Implemented ISO 14001 Environmental Management System
• Formulated a Flood Prevention Contingency Plan

Supply Chain Management

Supplier Audits: Annual audits of packaging suppliers; six-monthly evaluations of raw material suppliers for flour mills and edible oil plant

Responsible Procurement

• Procurement Management, Supplier Management and Evaluation Policies
• New logistics guidelines on e-bidding and request for quotation

Climate-Related Risks & Opportunities

Physical Risks

• Extreme wind/cyclone
• Flooding
• Water stress

Transition Risks

• Policy and legal risks
• Technology risks
• Market risks

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 9001, ISO 14001, ISO 22000, HACCP, FSSC 22000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Caring Company Award (15 consecutive years)

Environmental Metrics

ESG Focus Areas

• Environment
• Human Capital
• Corporate Governance
• Social Capital

Environmental Achievements

• Performed a climate risk scenario analysis for major operational sites with reference to TCFD recommendations.
• Upgraded all forklift trucks to electric-powered models, resulting in lower fuel consumption and exhaust emission.
• Built a 0.7 MW solar photovoltaic system in the flour plant in Jintan.
• Replaced R22 refrigerant with R32 refrigerant (lower Global Warming Potential).
• Obtained the “Urban Sewage Discharge into Drainage Network Permit” (wastewater discharge upgraded to Class 3 standard).
• Achieved 84% diversion rate for non-hazardous waste and maintained 100% recycling rate for hazardous waste.

Social Achievements

• Deployed various explosion protection systems to minimise explosion hazard in the flour mills.
• Purchased formaldehyde-free office furniture.
• Updated Lam Soon Learning Development Management Guidelines.
• Provided various training schemes, an e-learning platform and subsidies for employee development.
• Maintained zero employee fatality in the past three years.

Governance Achievements

• Established Whistleblowing Policy with publicly available reporting channels.
• Launched the Supplier Relationship Management system.
• Audited packaging materials suppliers against safety and hygiene performances.
• Group’s business operations accredited with ISO 9001, ISO 22000, HACCP, and FSSC 22000 certifications.
• Homecare product plant accredited with China Environmental Labelling Products Certification.

Climate Goals & Targets

Environmental Challenges

• Climate change (physical risks: extreme weather, flooding, water stress; transition risks: policy, technology, and market changes).
• Supply chain disruptions (e.g., biofuel forbiddance).

Mitigation Strategies

• Climate Change Policy, ISO 14001 Environmental Management System, Flood Prevention Contingency Plan, scenario analysis.
• Just-in-time inventory model, sourcing from local suppliers, high-quality products, Supplier Relationship Management (SRM) system.

Supply Chain Management

Supplier Audits: Annual audits of packaging material suppliers, six-monthly evaluations of raw material suppliers.

Responsible Procurement

• Just-in-time inventory model
• Sourcing from local suppliers
• High-quality and competitive products
• Supplier Assessment and Control Procedures
• e-bidding and request for quotation guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Extreme wind/cyclone
• Flooding
• Water stress

Transition Risks

• Policy and legal changes
• Technology changes
• Market changes

Opportunities

• Development of energy-efficient products and technologies

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 9001, ISO 14001, ISO 22000, HACCP, FSSC 22000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Caring Company Award (16 consecutive years)

Environmental Metrics

ESG Focus Areas

• Towards a Greener Future
• Empowering our People
• Conducting Business with Honour
• Caring for our Community

Environmental Achievements

• Established new policy - Environmental Protection Control Procedures for New Projects to minimise pollution from construction and renovation activities.
• Launched two new biodegradable and phosphate-free products designed to reduce marine pollution.
• Published climate-related risks and opportunities with reference to the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”).
• Replaced old chillers in Lam Soon building to substitute the use of R22 refrigerant with R134a refrigerant, which in turn saves energy.
• Implemented a food waste collection program in collaboration with the Environmental Protection Department (“EPD”) to converting food waste in our canteen into energy.

Social Achievements

• Deployed various explosion protection systems to minimise explosion hazard in the flour mills.
• Emphasised the procurement of formaldehyde-free office furniture to safeguard employee safety.
• Conducted the Group General Competence Internal Trainer Workshop to foster talent development within the company.
• Developed a specialised training plan for sales team to enhance sales performance.
• Developed a new employee training system to help newcomers adapt to the work environment.
• Maintained zero employee fatality in the past three years.

Governance Achievements

• Collaborated with national law enforcement to battle against counterfeiting in e-commerce platform and offline shops.
• Adopted a document system to more efficiently verify, record and regularly assess the suppliers’ licenses.
• Incorporated environment and social risks consideration in supplier selection process
• Initiated the second phase of Supplier Relationship Management (“SRM”) development to expand the functionality and coverage of procurement management.

Climate Goals & Targets

Environmental Challenges

• Climate change is a significant threat to the sustainability of businesses and communities worldwide.
• Physical risks: extreme weather events (extreme wind/cyclone, flooding), rising water stress.
• Transition risks: policy and legal changes, technology (phase out of old equipment), market shifts (consumer preferences).

Mitigation Strategies

• Established Climate Change Policy (TCFD-aligned).
• Climate risk scenario analysis conducted.
• Comprehensive climate risk assessment planned for upcoming reporting period.
• Incorporated major climate-related risks into Enterprise Risk Management (ERM) Framework.
• Flood Prevention Contingency Plan formulated.
• GHG emission verification by third-party institutions.
• Phased out old equipment, upgraded lighting system, participated in CLP clean energy initiative.
• Developed GHG emission and energy use targets for manufacturing plants.

Supply Chain Management

Supplier Audits: Annual evaluation of packaging suppliers, six-monthly evaluation of raw material suppliers (flour mills and Shekou edible oil plant), monthly quality control meetings (home care product plant).

Responsible Procurement

• Just-in-time inventory model
• Sourcing from local suppliers
• Sourcing high-quality, competitive products
• Incorporating environmental and social risks in supplier selection and contracts
• Requiring outsourced providers to meet OHS standards
• Supplier Assessment and Control Procedures

Climate-Related Risks & Opportunities

Physical Risks

• Extreme wind/cyclone
• Flooding
• Water stress

Transition Risks

• Policy and legal changes
• Technology
• Market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SEHK ESG Reporting Guide

Certifications: ISO 9001, ISO 14001, ISO 22000, HACCP, FSSC 22000, China Environmental Labelling Product Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Two new biodegradable and phosphate-free home care products

Awards & Recognition

• Caring Company Award (17 consecutive years)
• Appreciation Certificate from CLP for participation in Peak Demand Management Programme 2023