Smart Globe Holdings Limited
Climate Impact & Sustainability Data (2017, 2021, 2023)
Reporting Period: 2017
Environmental Metrics
Total Carbon Emissions:11.08258 tonnes CO2-e (Scope 1) + 7,121.33 tonnes CO2-e (Scope 2)
Scope 1 Emissions:11.08258 tCO2e/year
Scope 2 Emissions:7,121.33 tCO2e/year
Total Energy Consumption:8,188,519.00 kWh/year
Water Consumption:115,297.44 m3/year
Waste Generated:4.3 tonnes hazardous waste + 461.54 tonnes non-hazardous waste
ESG Focus Areas
- Environmental Protection
- Employment
- Occupational Health and Safety
- Development and Training
- Labour Standard
- Supply Chain Management
- Product Quality Assurance
- Anti-Corruption
Environmental Achievements
- Successfully passed the ISO 14001 environmental management certification
- Planted 356 trees in the Heyuan Factory
Social Achievements
- Strictly complied with a series of labour laws in People’s Republic of China and Hong Kong
- Carried out regular health examinations for employees
- Provided a series of training to our employees
- Formulated “Child labour policy” and “Anti-forced labour policy”
Governance Achievements
- Established an Audit Committee, Remuneration Committee and Nomination Committee
- Complied with Rules 5.48 to 5.67 of the GEM Listing Rules as the code of conduct for dealing in securities of the Company by the Directors
Climate Goals & Targets
Environmental Challenges
- Profit margin squeeze due to favorable terms offered to two major customers and one-off listing expenses
- Continuing appreciation of Renminbi may lead to an increase in the cost of production
Mitigation Strategies
- Launch various credit controls, tighten control over operating expenses, streamline production control and improve manufacturing efficiency with advanced machinery to minimise the labour cost and maximise the facility utilisation rate
- Explore new business opportunities for existing products in different markets
- Further tighten control over operating expenses and streamline the production processes
- Cautiously explore viable investment and acquisition opportunities
Supply Chain Management
Responsible Procurement
- Work with FSC/CoC certified paper suppliers
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GEM Listing Rule Appendix 20
Certifications: ISO 14001, OHSAS 18001
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:7,457.03 tonnes CO2-e (Scope 2 only)
Scope 1 Emissions:15.576 tCO2e
Scope 2 Emissions:7,457.03 tCO2e
Total Energy Consumption:12,217,173 kWh
Water Consumption:166,907.40 m3
Waste Generated:332.18 tonnes (non-hazardous)
ESG Focus Areas
- Environmental protection
- Human resources
- Operating practice
- Community involvement
- Climate change
Environmental Achievements
- Successfully passed the ISO 14001 environmental management certification
- Reduced NOx emission from 21,222.30 g to 15,390.15 g
- Reduced SOx emission from 277.54 g to 97.02 g
- Reduced PM emission from 2,033.50 g to 1,474.67 g
- Reduced CO2 emission (Scope 1 only) from 44.557 tonnes to 15.576 tonnes
- Reduced CH4 emission (Scope 1 only) from 0.080 tonnes to 0.028 tonnes
- Reduced N2O emission (Scope 1 only) from 6.467 tonnes to 2.261 tonnes
- Reduced total hazardous waste consumed from 9.61 tonnes to 43.16 tonnes
- Reduced intensity of hazardous waste consumed from 0.00036 tonnes/m2 to 0.00160 tonnes/m2
- Reduced intensity of non-hazardous waste consumed from 0.01192 tonnes/m2 to 0.01229 tonnes/m2
- Reduced total packaging material used from 948.25 tonnes to 1,468.72 tonnes
- Reduced intensity of packaging material used from 0.04 tonnes/m2 to 0.05 tonnes/m2
- Reduced electricity consumption intensity from 0.30 tonnes CO2-e/m2 floor area to 0.27 tonnes CO2-e/m2 floor area
- Reduced water consumption intensity from 6.677438664 m3/m2 to 6.129293345 m3/m2
Social Achievements
- Complied with all applicable labor laws in PRC and Hong Kong
- Established “Employment policy”, “Remuneration calculation and compensation policy”, and “Anti-discrimination policy”
- Provided various channels of communication with employees
- Improved human resources policies and workplace facilities
- Implemented safety measures at production sites and established guidelines for work safety and occupational health safety
- Awarded ISO 45001 certification for occupational health and safety
- Provided orientation training, on-job training, and specialized training to employees
- Strictly complied with laws and regulations related to intellectual property rights in Hong Kong and the PRC
- Provided anti-corruption training to staff
- Made a donation of HK$80,000 to Aberdeen Kai-Fong Welfare Association Social Service Centre
Governance Achievements
- Established an ESG Working Group
- Established a governance structure to enhance its management of ESG issues
- Complied with code provisions in the CG Code except for two deviations (roles of chairman and CEO performed by the same individual and independent non-executive directors not appointed for specific terms)
- Established the Remuneration Committee, Nomination Committee, and Audit Committee
- Adopted a board diversity policy
- Established a policy on the procedures and internal controls for the handling and dissemination of inside information
- Company Secretary confirmed that he has taken no less than 15 hours of relevant professional training during FY21
Climate Goals & Targets
Short-term Goals:
- Maintain the level of air emission not greater than that of financial year 2021 in the coming three years
- Reduce 10% electricity consumption in the next 3 years ended 31 December 2022 to 2024
- Maintain or reduce non-hazardous waste intensity in the next reporting year
- Maintain or reduce total water consumption to 6.0 m3/m2 per intensity in the next reporting year
Environmental Challenges
- Keen competition in the industry
- Below-par financial performance due to COVID-19
- Increased labor cost and raw material cost (mainly paper cost)
- Potential climate-related risks (physical risks from extreme weather and transition risks from regulatory changes and market shifts)
Mitigation Strategies
- Lowered gross profit margin to capture more market shares
- Extended geographical market coverage
- Increased marketing activities in Greater China and globally
- Launched various credit controls and tightened control over operating expenses
- Streamlined production control and improved manufacturing efficiency with technology advanced machinery
- Implemented energy conservation measures
- Maintained a large supplier base to source from alternate suppliers in the event of extreme weather conditions
- Monitored the regulatory environment and developed products that meet customers’ demand
Supply Chain Management
Supplier Audits: Annual evaluation to the suppliers
Responsible Procurement
- Work with FSC/CoC certified paper suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather conditions such as flooding and storms
- Sustained high temperature
Transition Risks
- Change in environmental-related regulations
- Change in customer preferences
Reporting Standards
Frameworks Used: Appendix 27 to the Rules Governing the Listing Securities on The Stock Exchange of Hong Kong Limited
Certifications: ISO 14001, ISO 45001
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:4,386.29 tonnes CO2-e
Scope 1 Emissions:18.19 tonnes CO2-e
Scope 2 Emissions:4,368.10 tonnes CO2-e
Total Energy Consumption:7,723.87 MWh
Water Consumption:248,790.00 m3
Waste Generated:83.24 tons
Carbon Intensity:0.16 tonnes CO2-e/m2 floor area (2023)
ESG Focus Areas
- Environmental protection
- Human resources
- Operating practice
- Community involvement
- Climate change
Environmental Achievements
- GHG emissions intensity decreased by 8%
- Intensity of total non-hazardous waste decreased by 13%
Social Achievements
- Successfully passed ISO 45001 certification for occupational health and safety
- 95% of employees received training
- No product recalls for safety or health reasons
Governance Achievements
- Established a dedicated ESG Working Group
- Adopted a board diversity policy
- Complied with the Corporate Governance Code (with one deviation regarding the roles of Chairman and CEO)
Climate Goals & Targets
Medium-term Goals:
- Reduce or maintain total GHG emissions intensity between 90% to 120% of the level of the baseline year ended 31 December 2023
- Reduce or maintain the intensity of hazardous and non-hazardous waste produced between 90% to 120% of the level of the baseline year ended 31 December 2023
- Reduce or maintain energy consumption intensity between 90% to 120% of the level of the baseline year ended 31 December 2023
- Maintain water consumption intensity between 90% to 120% of the level of the baseline year ended 31 December 2023
Short-term Goals:
- Maintain air emissions at a similar level to the baseline year ended 31 December 2023
Environmental Challenges
- Significant increase in NOx, SOx, and PM emissions due to pandemic recovery efforts and increased vehicle usage
- Increase in hazardous waste intensity due to increased use of hazardous materials following pandemic recovery
- Increase in water consumption intensity due to pandemic recovery
Mitigation Strategies
- Regular vehicle maintenance to enhance fuel consumption efficiency and minimize air emissions
- Replacing old vehicles with low-emission vehicles where applicable
- Implementing energy-efficient measures (LED lighting, switching off equipment)
- Prohibiting combustion of wastes
- Water-saving initiatives and employee education
Supply Chain Management
Supplier Audits: Annual evaluation of suppliers
Responsible Procurement
- Working with FSC/CoC certified paper suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather conditions (flooding, typhoons)
- Sustained elevated temperatures
Transition Risks
- Changes in environmental regulations
- Shift in consumer preference towards environmentally friendly products
Reporting Standards
Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix C2 to the Listing Rules of the HKEX)
Certifications: ISO 14001, ISO 45001