Climate Change Data

Environmental Metrics

ESG Focus Areas

• Emissions Management
• Use of Resources
• Occupational Health and Safety
• Supply Chain Management
• Quality Management
• Anti-corruption

Environmental Achievements

• Replaced two boiler burners and added an external flue gas recirculation system, reducing nitrogen oxides emissions.
• Implemented water-saving programs such as “Pure Water Production Equipment Renovation Program” and “Program for the Increased Use of the U.S. Gamajet Cleaning Nozzles”.
• Improved the production conveyor to reduce damage to glass wine bottles, thus reducing consumption of packaging materials.
• Obtained a new utility model patent for a filter device for wine processing, reducing waste of raw materials.

Social Achievements

• Implemented an employee reform plan with adequate compensation for terminated and early retired employees.
• Awarded the “Good MPF Employer 6 Years” and “MPF Promotional Award” by the Mandatory Provident Fund Schemes Authority of Hong Kong.
• Provided safety knowledge training to enhance employees’ knowledge on safety, including 24 hours of pre-employment training for new employees.
• Organized table tennis and badminton tournaments for employees in the PRC and festive events and knowledge competitions for employees in Hong Kong.

Governance Achievements

• Established an ESG management structure with Executive Directors responsible for ESG management and an ESG working group for data collection and performance evaluation.
• Established a code of conduct specifying standards of conduct for directors and employees on policies relating to accepting advantages and declaration of conflicts of interest.
• Held 6 training sessions for cadre-level employees on warning education and punishment methods for corruption incidents.

Climate Goals & Targets

Environmental Challenges

• Climate change affecting rainfall patterns and increasing extreme weather, potentially increasing operating costs and affecting consumer demand.
• Potential environmental and social risks in the supply chain.

Mitigation Strategies

• Regularly identifies, evaluates, manages and monitors climate-related risks.
• Evaluates climate-related risks in the supply chain and identifies alternative supply sources.
• Reviews updates of local policies and regulations related to the supply chain and communicates with internal and external stakeholders to understand and identify potential environmental and social risks.
• Gives preference to internationally certified or accredited suppliers in environmental and social aspects.

Supply Chain Management

Supplier Audits: Annual assessment of existing suppliers; small purchases during one-year inspection period for new suppliers.

Responsible Procurement

• Evaluates suppliers based on production scale, production capacity, testing capability, quality management system, product quality certification.
• Stringent requirements on raw materials with clear product name, expiry date, storage temperature, etc.
• Verification of supplier’s calibration records of inspection, measuring and testing equipment.
• Preference given to suppliers closer in proximity and those with lower environmental impacts.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes, market shifts

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide under Appendix 27 to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited

Sustainable Products & Innovation

• Dynasty Chinese Zodiac Commemorative Dry Red Wine, Dynasty Jiuxiang Rose Liqueur series, second generation of Dynasty Merlot Dry Red Wine series, Dynasty Seven-Year Reserve Dry Red Wine series, 3 new Dynasty V.S.O.P. Brandy products.

Awards & Recognition

• Good MPF Employer 6 Years
• MPF Promotional Award

Environmental Metrics

ESG Focus Areas

• Emissions Management
• Use of Resources
• Employee Working Conditions
• Occupational Health and Safety
• Supply Chain Management
• Quality and Health of Customers
• Anti-corruption

Environmental Achievements

• Replaced two boiler burners and added an external flue gas recirculation system, reducing nitrogen oxides emissions.
• Implemented water-saving programs, including the “Pure Water Production Equipment Renovation Program” and “Program for the Increased Use of the U.S. Gamajet Cleaning Nozzles”.
• Improved production conveyor to reduce damage to glass wine bottles, reducing unnecessary consumption of packaging materials.
• Obtained a new utility model patent for a filter device for wine processing, reducing waste of raw materials.

Social Achievements

• Implemented an employee reform plan, reducing employee turnover rate to 10% (from 22% in 2020).
• Provided various benefits to employees, including overtime subsidies, performance incentives, and bonuses.
• Provided social security for employees in the PRC (five social insurances and one housing fund) and engaged employees in Hong Kong in the Mandatory Provident Fund Scheme.
• Organized table tennis and badminton tournaments, festive events, and knowledge competitions for employees.

Governance Achievements

• Established an ESG management structure with Executive Directors responsible for ESG management and an ESG working group reporting to the Board.
• Engaged an independent consultancy to assist in ESG management, including stakeholder engagement and materiality assessment.
• Established a code of conduct specifying standards of conduct for directors and employees on policies relating to accepting advantages and declaration of conflicts of interest.
• Held anti-corruption training for the Board and cadre-level employees.

Climate Goals & Targets

Environmental Challenges

• Climate change affecting rainfall patterns and increasing extreme weather, potentially increasing operating costs and affecting consumer demand.
• Potential environmental and social risks in the supply chain.

Mitigation Strategies

• Regularly identifies, evaluates, manages, and monitors climate-related risks.
• Evaluates climate-related risks in the supply chain and identifies alternative supply sources.
• Regularly reviews updates of local policies and regulations related to the supply chain.
• Communicates with internal and external stakeholders to understand and identify potential environmental and social risks related to the supply chain.
• Gives preference to internationally certified or accredited suppliers in environmental and social aspects.

Supply Chain Management

Supplier Audits: Annual assessment of existing suppliers.

Responsible Procurement

• Evaluates suppliers based on production scale, production capacity, testing capability, quality management system, product quality certification.
• Conducts factory inspections, verifies calibration records, and rejects non-conforming goods.
• Gives preference to suppliers closer in proximity and those with environmentally preferable products.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Changes in rainfall patterns

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide under Appendix 27 to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited

Sustainable Products & Innovation

• Dynasty Chinese Zodiac Dry Red Wine for the Ren Yin Year of the Tiger
• Dynasty Chateau Dry Red Wine
• Three Dynasty Highland Cabernet Dry Red Wine products

Awards & Recognition

• Good MPF Employer 5+ Years
• e-Contribution Award
• MPF Support Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions to 3,329 tons of CO2e in 2023 from 4,042 tons in 2022.
• Upgraded production boiler technology to further reduce atmospheric pollutant emissions.
• Implemented measures to reduce water consumption through equipment upgrades and employee education.
• Implemented waste reduction initiatives, including recycling and reuse programs.

Social Achievements

• Implemented employee reform plan with sufficient compensation for terminated employees and early retirees.
• Provided various employee benefits, including social security, additional welfare, and recreational activities.
• Organized various training programs for employees, including food safety, quality control, and wine knowledge.
• Maintained a zero-tolerance policy for discrimination and harassment in the workplace.

Governance Achievements

• Established an ESG management structure with executive directors responsible for ESG management.
• Engaged an independent consulting firm to assist in ESG data collection, analysis, and improvement suggestions.
• Implemented anti-corruption training for directors and mid-level personnel.

Climate Goals & Targets

Environmental Challenges

• Climate change impacting rainfall patterns and increasing extreme weather events, potentially increasing operational costs and impacting consumer demand.
• Supply chain disruptions.

Mitigation Strategies

• Developed contingency plans for heavy pollution weather.
• Sourced alternative supply sources to reduce supply chain vulnerability to climate change.
• Conducted market research to stay abreast of climate-related market trends.

Supply Chain Management

Supplier Audits: Annual assessment of 40 major suppliers.

Responsible Procurement

• Selection criteria include production scale, capacity, testing capabilities, quality management system, and product quality certifications.
• Prioritization of nearby suppliers to reduce transportation and environmental impact.
• Consideration of product environmental impact and preference for products with energy and water efficiency labels.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting operational costs and consumer demand.

Reporting Standards

Frameworks Used: Hong Kong Exchanges and Clearing Limited's Appendix C2, Environmental, Social and Governance Reporting Guidelines

Third-party Assurance: Shinewing Sustainability Advisory Services Limited

Sustainable Products & Innovation

• Development of 28 new product series.

Awards & Recognition

• Hong Kong Mandatory Provident Fund Schemes Authority's "MPF Good Employer 5 Years+", "Electronic Contribution Award", and "MPF Promotion Award"