Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Operating governance

Environmental Achievements

• Decreased water consumption by approximately 4.38% compared to the previous year.
• Consumed a total of 3,180,301 tons of reclaimed water.
• Achieved a usage rate of over 40% for recycled lightly polluted water.
• Replaced biomass boilers with natural gas boilers in Ningbo district, effectively alleviating the adverse impact on the atmosphere.
• Reduced emission of nitrogen oxides to below 100 mg/m3 in Ningbo factory district.
• Planted 107,458 trees, representing an increase of approximately 64.43% compared to the previous year.

Social Achievements

• Chartered coaches for staff to go home during Chinese New Year holidays for ten consecutive years, spending approximately RMB30 million in 2019.
• Constructed the largest central kitchen in Huadong region, supplying food to nearly 40,000 employees.
• Provided free lunch to staff in Vietnam and Cambodia.
• Launched "Shenzhou e-Home", a multi-channel staff service platform, with 15,829 employees registered and a 99.58% feedback satisfaction rate.
• Established a mental health information center, "Joyful Community".

Governance Achievements

• Established a Sustainable Development Committee chaired by the Chairman of the Board.
• Implemented a comprehensive quality management system.
• Established a stringent identification and tracking system for chemicals.
• Formulated requirements for the strict prohibition of engaging child labor, underage workers, and forced labor.
• Established an internal audit department and engaged Ernst & Young as an external auditor to improve its anti-corruption standard.

Climate Goals & Targets

Environmental Challenges

• Governmental limitations on environmental emission index.
• Increased production capacity leading to increased energy and water consumption.
• Expansion of production capacity leading to increased solid waste handling volumes.

Mitigation Strategies

• Use of environmental-friendly raw materials, improvement in dyeing process, and introduction of environmental-friendly equipment.
• Modification and upgrade of water and electricity conservation equipment.
• Replacement of biomass boilers with natural gas boilers.
• Development of a high efficiency and high temperature treating machine for tail gas from setting machine.
• Implementation of the Household Garbage Classification Administrative Measures.

Supply Chain Management

Responsible Procurement

• Supplier Behaviour Undertaking Letter (including prohibition of forced labor and child labor, prohibition of discrimination, harassment and bullying, anti-corruption, timely payment of salaries, and compliance with occupational health, environmental protection, and safety standards).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix 27 of the Listing Rules)

Certifications: ISO 9001, ISO 14001, OHSAS 18001, LEED GREEN GOAL

Sustainable Products & Innovation

• G2 Ozone Wash (reduces chemical and water usage)
• Digitally printed T-shirts (eliminates film and water consumption in traditional printing)

Awards & Recognition

• Advanced Enterprise in Energy Saving and Emission Reduction in 2009
• 2011 Advanced Unit in Pollution and Emission Reduction in Ningbo
• 2012 Circular Economy Demonstration Industrial Enterprise in Ningbo
• 2013 Advanced Enterprise in Water Saving in Ningbo
• Advanced Unit in Energy Conservation and Consumption Reduction in the 11th Five-year Plan in Ningbo
• Advanced Unit in Pollution and Emission Reduction in the 11th Five-year Plan in Ningbo
• Circular Economy Demonstration Industrial Enterprise in Ningbo
• 2014 Water-saving Enterprise (Unit) in Zhejiang Province
• 2017 Zhejiang Province Green Enterprise
• 2018 Water-saving Enterprise in Ningbo
• Sixth Session "Charity Prize of Zhejiang – Institution Donation Prize"
• 2018 5th Top Ten Caring Companies in Ningbo
• 2018 Donation Enterprise in Ningbo Award
• 2017 Outstanding Social Caring Organization Award
• 2019 Sustainable Financing Programme – Certificate of Participation
• 2019 InnoESG Prize
• 2018 BOCHK Corporate Environmental Leadership Awards – EcoPartner
• 2019 Textile Vision China National Textile and Apparel Council Knitted Underwear Innovation Contribution Award
• 2019 Top 100 Innovative Enterprises
• 2018 Zhejiang Export Famous Brand
• 2016 Zhejiang Name Brand
• 2016 Ningbo Brand Top 100
• 2018 The Largest Capitalization Private Company Award
• ListCo Excellence Awards 2018
• 2018 Best Investment Value Award for Listed Companies
• Asia’s 50 Top Listed Companies 2018
• ListCo Excellence Awards 2018
• 2018 Golden Lion Award: The Best Listed Company
• 2018 China’s 500 Largest Listed Companies
• 2018 China’s Top 50 Boards of Directors
• 2019 China’s Top 50 Boards of Directors
• 2015 Best Corporate Governance Awards for Listed Companies
• 2016 DHL/SCMP Hong Kong Business Awards – Enterprise Award
• 2018 The Hong Kong Corporate Governance Excellence Awards: Award for Sustainability Excellence
• 2019 Adidas Apparel Award (various awards)
• 2019 ANTA Outstanding Supplier Award
• 2019 Zhejiang Semir Garment Co., Ltd. Outstanding Co-operation Partner
• IR Magazine Awards Greater China 2019 – Certificate for excellence in investor relations
• 2019 Listed Company Awards of Excellence – Main Board

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Operating governance
• Resource utilization
• Energy conservation and emission reduction
• Remuneration package
• Working environment
• Training and development of staff
• Social engagement
• Procurement chain management
• Anti-corruption
• Lean production
• Innovation
• Investor relationships

Environmental Achievements

• Established science-based carbon emission reduction targets pursuant to SBT i Criteria 4.2 in 2021.
• Reduced total carbon emission intensity by 3% compared to 2020.
• Reduced sulphur dioxide emissions by 3.08% compared to the previous year.
• Significantly reduced nitrogen oxide emissions by 33.56% compared to 2020.
• Reduced smoke and dust emissions by 9.28% compared to 2020.
• Reduced hazardous waste emissions by approximately 30% compared to the previous year.
• Decreased water consumption intensity despite a 21.5% increase in fabric output.
• Plan to increase the efficiency in water usage of fabric units by 20% before 2025, as compared with 2020.

Social Achievements

• Maintained a relatively low staff turnover rate (approximately 3.56% monthly average in 2021).
• Constructed the largest central kitchen in Huadong region, providing meals to nearly 40,000 employees.
• Invested more than RMB1.30 million to reconstruct and refurbish Xin Lei Kindergarten.
• Launched Shenzhou e-Home, a multi-channel staff service platform.
• Established a mental health information center, “Joyful Community”.
• Provided competitive salaries with an average annual raise of approximately 10% to 13% for the past ten years.
• Provided free annual body checks for staff in Ningbo and two free body checks to staff in Vietnam.
• Improved employee accommodation with new dormitories in Ningbo and Vietnam.

Governance Achievements

• Established a Sustainable Development Committee chaired by the Chairman of the Board.
• Implemented a comprehensive anti-corruption policy with no lawsuits or complaints related to corruption in 2021.
• Established an internal audit department and engaged Ernst & Young as an external auditor.
• Implemented a standardized system integrating employee development and enterprise development.

Climate Goals & Targets

Environmental Challenges

• Increase in water consumption (8.59% year-on-year increase in 2021) due to increased fabric output.
• Increase in natural gas consumption (28.91% year-on-year increase in 2021) due to increased fabric production.
• Increase in outsourced steam consumption (23.27% year-on-year increase in 2021) due to increased fabric production.
• Increase in non-hazardous waste (approximately 9% year-on-year increase in 2021) due to increased garment production.

Mitigation Strategies

• Improvement in dyeing process, introduction of environmental friendly equipment and the use of reclaimed water.
• Construction of reclaimed water recycling facilities in Vietnam (expected completion by end of 2022).
• Continuous efficiency upgrading, development of renewable energy (rooftop solar power), and purchase of green electricity.
• Transition from coal to biomass fuel and natural gas.
• Implementation of water and energy conservation measures, such as upgrading dyeing and finishing facilities and using continuous washing equipment.
• Installation of nitrogen oxide neutralization devices in natural gas boilers.
• Improvement in smoke and dust emissions control.
• Installation of Fenton system in Ningbo fabric factory to reduce sludge volume by 50%.

Supply Chain Management

Responsible Procurement

• Code of Conduct of Shenzhou
• Emphasis on environmental friendliness of raw materials
• Requirement for suppliers to improve environmental performance and energy efficiency.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Development of renewable energy sources

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules

Certifications: ISO 9001, ISO 14001, ISO 45001, LEED GREEN GOAL, Control Union (organic and recyclable/renewable products)

Sustainable Products & Innovation

• Moisture-absorbing, breathable, and skin-friendly cellulose acetate imitated silk fabrics
• Eco-friendly products using digital printing and ozone washing technologies

Awards & Recognition

• Various awards for energy conservation and emission reduction
• 2021 Sustainable Development Award (Adidas)
• Corporate Social Responsibility Award and Lean Production Award (Adidas Cambodia)
• Trustworthy Partner Award (Uniqlo)
• Best Innovative Breakthrough Award (Anta)
• Best IR Company (Hong Kong Investor Relations Awards)
• Listed Company Awards of Excellence (HKEJ)
• 2015 Best Corporate Governance Awards (Ta Kung Pao)
• 2016 Enterprise Award (DHL/SCMP Hong Kong Business Awards)
• 2018 Hong Kong Corporate Governance Excellence Awards: Award for Sustainability Excellence
• InnoESG Prize
• ESG Care Label 2021-2022
• Various awards from Guizhou Municipal Committee, Guizhou Provincial People’s Government, Ningbo Charity Federation, China Charity Federation, and local governments in Vietnam and Cambodia.