Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Operating Practices
• Community Investment

Environmental Achievements

• Complied with all relevant PRC laws and regulations regarding environmental protection.
• Established an “Environmental Facilities Operation and Management System” to oversee emission control.
• Adopted policies and guidelines to improve the efficiency of energy, water and other material consumption.
• Did not apply chlorofluorocarbons as blowing agents in manufacturing.

Social Achievements

• Established and implemented a “Staff Handbook” covering compensation, dismissal, recruitment, working hours, and other benefits.
• Provided a healthy and safe workplace for all employees.
• Provided various types of training for employees.
• Complied with relevant national labor laws and regulations, including child and forced labor laws.

Governance Achievements

• Implemented a “Corporate Governance Policy” including rules on honesty, anti-corruption, and protection of company funds and properties.
• No legal cases regarding corrupt practices were brought against the Group or its employees during the reporting period.

Climate Goals & Targets

Environmental Challenges

• PRC government's increasingly stringent stance on environmental laws and regulations.
• Rigidity and low value of EPS scraps making recycling commercially unattractive.
• Potential environmental impact from uncontrolled disposal of EPS and EPO products.

Mitigation Strategies

• Allocation of operating and financial resources to ensure environmental protection compliance.
• Engagement of qualified recycling companies for waste disposal and treatment.
• Policies and procedures on efficient use of resources (energy, water, paper).
• Internal security staff patrol offices to ensure no power wastage.

Supply Chain Management

Responsible Procurement

• List of approved suppliers; purchases only from this list; fair and open competition; best value for money; adherence to contractual agreements; analysis and testing of raw materials.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO9001:2008, GB/T19001:2008

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented emission reduction and energy saving initiatives to manage emission and maintain green operations
• Installed water film scrubbers to reduce air pollutant emissions
• Implemented various measures to reduce fuel consumption (waste heat recovery, low-emission vehicles)
• Implemented waste reduction measures (separate collection and recycling, double-sided paper use, electronic documentation, reuse of packaging materials)
• Adopted energy and water efficiency initiatives and motivated employees to participate in resources conservation

Social Achievements

• Maintained a safe and equal working environment for employees
• Provided equal development opportunities and promoted employee health and well-being
• Conducted safety trainings for employees
• Provided personal protective equipment
• Offered orientation and on-the-job trainings
• Formulated a policy of “Prohibition of Recruitment of Child Labour Policy and Remedy Procedures”
• Implemented a policy of “Procurement Control Procedures” to regulate procurement activities
• Installed quality management systems for manufacturing in accordance with ISO9001 and GB/T19001 standards
• Stringent policies stipulated in the Group’s “Corporate Governance Policy” to ensure employees abide by anti-corruption guidelines

Governance Achievements

• Established multiple effective communication channels to stakeholders
• Implemented “Environmental Facilities Operation and Management System”
• Formulated policies, recorded relevant data, implemented and monitored measures to optimize and improve disclosure requirements
• Complied with “comply or explain” provision in the Listing Rules of the Stock Exchange of Hong Kong

Climate Goals & Targets

Environmental Challenges

• One case of violation of Environmental Protection Regulations of Chongqing Municipality on air pollutants emission

Mitigation Strategies

• Formulated and implemented remedial plans to install water film scrubbers to reduce pollutants emitted

Supply Chain Management

Responsible Procurement

• Evaluations on product quality, price, delivery time and service; annual assessment of approved suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Environmental Metrics

ESG Focus Areas

• Emissions
• Use of Resources
• Environment and Natural Resources
• Employment and Labour Practices
• Health and Safety
• Development and Training
• Labour Standards
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Decreased air pollutants emission (SO2, NOx, PM) due to decreased coal consumption and implemented emission control measures.
• Slight decrease in total GHG emission due to decreased fuel consumption and energy saving initiatives.
• Decrease in non-hazardous waste amount generated due to effective waste reduction strategy.

Social Achievements

• Maintained a safe and equal working environment for employees.
• Provided equal development opportunities and promoted employee health and well-being.
• Offered various training programs to enhance employee capabilities and skills.
• Implemented policies to avoid child and forced labor.

Governance Achievements

• Strict compliance with relevant laws and regulations in the PRC, including anti-corruption laws.
• Implemented stringent policies in the Group’s “Corporate Governance Policy” to ensure employees abide by internal guidelines related to anti-corruption.
• No legal case concerned with corruption practices was brought against the Group.

Climate Goals & Targets

Environmental Challenges

• Reducing air pollutants emission from fuel consumption and vehicle use.
• Reducing GHG emission from fuel, electricity, and steam consumption.
• Reducing non-hazardous waste generation.

Mitigation Strategies

• Waste heat recovery from wastewater and air compressors.
• Waste heat recycling from flue gas.
• Use of low-emission vehicles.
• Energy saving initiatives (variable frequency drives, cleaning heat exchangers, LED lights, etc.).
• Water saving initiatives (water-saving posters, water meters, water recycling).
• Waste reduction strategies (separate collection and recycling, double-sided printing, electronic documentation, reuse of packaging materials).

Supply Chain Management

Supplier Audits: Annual assessment of approved suppliers.

Responsible Procurement

• Evaluation of product quality, price, delivery time, and service.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Guidelines, Appendix 27 of the Listing Rules of The Stock Exchange of Hong Kong Limited

Environmental Metrics

ESG Focus Areas

• Environmental Aspects
• Social Aspects
• Governance

Environmental Achievements

• Implemented emission reduction and energy saving initiatives to manage emission and maintain green operations
• Decrease in amount of nitrogen oxides and sulphur dioxide emissions in 2020 due to effective implementation of energy saving strategies
• Implemented various measures to reduce fuel consumption to mitigate air pollutants emission (waste heat recovery, low-emission vehicles)
• Stable GHG emission in 2020 compared to 2019 due to energy conservation efforts
• Stable non-hazardous waste generation in 2020 compared to 2019 due to effective waste management strategies (recycling, paper reduction, electronic documentation)
• Implemented energy and water efficiency initiatives and motivated employees to participate in resources conservation

Social Achievements

• Maintained a safe and equal working environment for employees, provided equal development opportunities and promoted employee health and well-being
• Conducted safety trainings for employees, provided personal protective equipment, and assigned safety officers to conduct safety inspections
• Provided training opportunities (orientation, on-the-job) to enhance employee capabilities and skills
• Complied with relevant laws and regulations regarding labour standards, preventing child and forced labour
• Implemented a policy of “Procurement Control Procedures” to regulate procurement activities and maintain stable relationships with qualified suppliers
• Implemented quality management systems (ISO-9001 and GB/T19001) to ensure product quality

Governance Achievements

• Strict compliance with applicable laws and regulations in the PRC, including the Criminal Law of the PRC, to ensure business ethics and anti-corruption
• Stringent policies stipulated in the Group’s “Corporate Governance Policy” and staff handbooks to prevent corruption
• Employees can report any observed and suspected non-compliance case related to bribery, extortion, fraud and money laundering issues to Corporate Supervision Department

Climate Goals & Targets

Environmental Challenges

• Increase in particulate matter emission in 2020 due to the new adoption of using wood pellet as a fuel in the manufacturing process

Mitigation Strategies

• Implemented various measures to reduce fuel consumption to mitigate air pollutants emission (waste heat recovery, low-emission vehicles)
• Implemented energy and water efficiency initiatives and motivated employees to participate in resources conservation
• Implemented waste management strategies (recycling, paper reduction, electronic documentation)

Supply Chain Management

Supplier Audits: Annual assessment of approved suppliers

Responsible Procurement

• Evaluations on product quality, price, delivery time and service

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Guidelines, Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Environmental Metrics

ESG Focus Areas

• Emissions
• Use of Resources
• Environment and Natural Resources
• Climate Change
• Employment
• Health and Safety
• Development and Training
• Labour Standards
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced GHG emission by 6% by 2025
• Reduced air pollutants emission by 6% by 2025
• Reduced non-hazardous waste generation by 5% by 2025
• Reduced energy consumption by 4% by 2025
• Reduced water consumption by 5% by 2025
• Reduced packaging material consumption by 5% by 2025

Social Achievements

• Maintained a safe and equal working environment
• Provided equal development opportunities and promoted employee health and well-being
• Provided training opportunities for employees to enhance their capabilities and skills
• Upheld the elimination of all forms of forced labour and child labour
• Maintained stable relationships with qualified suppliers
• Provided high quality products and services to offer excellent customer experience

Governance Achievements

• Established an ESG Working Group
• Conducted materiality assessment each year
• Implemented various safety management policies to establish safety guidelines and procedures against accidents
• Implemented a policy of “Prohibition of Recruitment of Child Labour Policy and Remedy Procedures”
• Implemented a policy of “Procurement Control Procedures”
• Implemented policies including “Inspection Control Procedures” and “Procedures on the Control of Nonconforming Product”

Climate Goals & Targets

Environmental Challenges

• Increased severity and frequency of extreme weather events
• Increased likelihood and severity of wildfire
• Changes in precipitation patterns and extreme variability in weather patterns
• Energy efficiency requirements, carbon-pricing mechanisms
• Mandates on and regulation of existing products and services
• Exposure to litigation risk
• Developing the low carbon energy saving technologies
• More customers are concerned about climate-related risks and opportunities
• Unable to fulfil the expectations of the customers, damage the Group’s reputation and image

Mitigation Strategies

• Establish a natural disasters emergency plan
• Devise an action plan to articulate the goals and targets of the reductions in GHG emission and energy consumption
• Planned improvements, retrofits, relocations, or other changes to facilities
• Conduct a carbon footprint survey
• Monitor the updates of the relevant environmental laws and regulations
• Monitored the updates of environmental laws and regulations and implemented GHG emissions calculations in advance
• Invest in the innovations of energy saving technologies
• Examined the feasibility and benefits of applying the latest low-carbon and energy-saving technologies into our operation
• Fulfilled the climate-related regulations by the government
• Prioritize the climate change as a high concern in the market decisions
• Supported the green productions
• Organized more activities or executing actions to demonstrate how we place importance on climate change

Supply Chain Management

Supplier Audits: Annual

Responsible Procurement

• Product quality, price, delivery time and service

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather events
• Increased likelihood and severity of wildfire
• Changes in precipitation patterns and extreme variability in weather patterns

Transition Risks

• Energy efficiency requirements, carbon-pricing mechanisms
• Mandates on and regulation of existing products and services
• Exposure to litigation risk
• Developing the low carbon energy saving technologies
• More customers are concerned about climate-related risks and opportunities

Opportunities

• Resource efficiency
• Energy source
• Products and services
• Markets
• Resilience

Reporting Standards

Frameworks Used: GRI Guidelines

Certifications: ISO-9001, GB/T19001

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced non-hazardous waste generation by 1.5 tonnes (from 15.3 to 13.8 tonnes)
• Implemented various measures to reduce fuel consumption to mitigate air pollutants emission (waste heat recovery, low-emission vehicles)
• Implemented energy saving initiatives (variable frequency drives, heat exchanger cleaning, LED lights, energy reduction incentive plan)

Social Achievements

• Maintained a safe and equal working environment
• Provided equal development opportunities and promoted employee health and well-being
• Conducted safety trainings for employees and provided personal protective equipment
• Offered various training programs (orientation, on-the-job, safety, debugging, mold maintenance, quality)

Governance Achievements

• Established an ESG Working Group to oversee ESG issues
• Conducted materiality assessment to understand stakeholder expectations on ESG issues
• Implemented policies to manage and monitor environmental, employment, operating practices and community risks
• Complied with relevant laws and regulations in the PRC and Hong Kong Listing Rules

Climate Goals & Targets

Environmental Challenges

• Increased severity and frequency of extreme weather events
• Increased likelihood and severity of wildfire
• Changes in precipitation patterns and extreme variability in weather patterns
• Government regulations to reduce GHG emission
• Energy efficiency requirements and carbon-pricing mechanisms
• Tightened environmental and safety laws and standards
• Developing low-carbon energy saving technologies
• Changes in customer preference due to climate-related risks
• Inability to attract co-financiers and/or investors
• Negative stakeholder feedback on less environmentally-friendly products

Mitigation Strategies

• Establish a natural disasters emergency plan
• Devise an action plan to reduce GHG emission and energy consumption
• Planned improvements, retrofits, relocations to reduce vulnerability to climate impacts
• Record energy consumption to identify peaks in usage
• Engage with local/national governments and stakeholders on local resilience
• Conduct a carbon footprint survey to prioritize energy and waste reductions
• Monitor updates of environmental laws and regulations
• Invest in innovations of energy saving technologies
• Examine feasibility and benefits of applying low-carbon technologies
• Fulfill climate-related regulations
• Prioritize climate change in market decisions
• Support green productions
• Organize activities to demonstrate importance on climate change

Supply Chain Management

Supplier Audits: Annual assessment of 200 suppliers

Responsible Procurement

• Procurement Control Procedures

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Wildfire
• Changes in precipitation patterns

Transition Risks

• Increased cost of fossil fuels
• Tightened environmental regulations
• Increased R&D costs
• Changes in customer preference

Opportunities

• Resource efficiency
• Use of lower-emission energy sources
• Development of climate adaptation solutions
• Access to new markets

Reporting Standards

Frameworks Used: GRI Guidelines, Appendix 27 of the Hong Kong Listing Rules