Climate Change Data

Hop Lun (Hong Kong) Limited

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:302,767 tCO2e/year (improved methodology)
Scope 1 Emissions:2,767 tCO2e/year
Scope 2 Emissions:5,213 tCO2e/year
Scope 3 Emissions:118,671 tCO2e/year
Renewable Energy Share:0.3% (excluding I-REC and TIGRs)
Total Energy Consumption:88.7 Million MJ/year
Water Consumption:372,000 m3/year
Waste Generated:6,309 tons/year
Carbon Intensity:GHG emissions per piece and per SMV (data provided in the report)

ESG Focus Areas

  • People
  • Environment
  • Compliance
  • Supply Chain
  • Governance

Environmental Achievements

  • Submitted CO2 emission reduction targets to SBTi
  • Improved methodology for CO2 emissions calculation
  • Offset one-third of manufacturing emissions with iRECs
  • Reduced Scope 2 emissions by 22% and Scope 3 emissions by 57% (using improved methodology)
  • Reduced waste per piece by nearly 10%
  • Reduced total water consumption by 27% compared to 2022

Social Achievements

  • Reached target of 65% female supervisors (original definition)
  • Expanded leadership program to include offices and warehouses
  • Increased minimum wage to exceed regulatory minimums
  • Implemented Hop Lun Ethics Line for anonymous reporting
  • Implemented Hop Lun’s Privacy Management Program
  • 100% compliance training record

Governance Achievements

  • Converted syndicated bank loan into a Sustainability-Linked Loan (SLL)
  • Launched new policies in key compliance areas
  • Upgraded IT security system
  • Significant reduction of external audit non-compliance (59.16% reduction in average non-compliance per audit and 57.56% reduction in total non-compliance vs 2022)

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2050
Medium-term Goals:
  • Achieve 55% absolute reduction in Scope 1, 2 & 3 emissions by 2033 (compared to 2021 baseline)
  • Achieve a minimum of 10% renewable energy in supply chain energy mix by the end of 2025
  • Have at least 2 Ambassador confirmed factories in Better Work program
Short-term Goals:
  • Reduce average non-compliance per audit in 2024 (specific targets for each factory provided in the report)
  • Increase the number of compliant fabric suppliers to match 2022 levels
  • Improve Hop Lun HIGG vFEM average in strategic suppliers by over 2%

Environmental Challenges

  • High percentage of Scope 3 emissions from supply chain (94%)
  • Increase in GHG emissions per SMV and per piece (due to improved methodology and increased product complexity)
  • Increase in energy consumption per piece and per SMV (due to decreased production volume and more complex products)
  • Challenges in effectively monitoring and tracking waste streams
  • Cuts and lacerations remaining the leading cause of injuries
Mitigation Strategies
  • Integrating HIGG vFEM KPI into ESG Financing and making it a primary criterion for supplier selection
  • Continued efforts to reduce energy consumption and explore renewable energy sources
  • Improved waste management practices in factories (new waste segregation boxes, recycling initiatives)
  • Further investigations on cuts and lacerations and exploring improvement opportunities
  • Issuing a more detailed Health & Safety guideline for factories employees

Supply Chain Management

Supplier Audits: 7% of suppliers underwent HIGG FEM assessment in 2023

Responsible Procurement
  • HIGG FEM assessment as a primary criterion for supplier selection
  • Supplier sustainability requirements
  • Certifications (GOTS, RCS, GRS, Oeko-tex, ZDHC)

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Sourcing renewable energy

Reporting Standards

Frameworks Used: GRI, SBTi, CDP

Certifications: ISO 14001, RSC, ACCORD, HIGG, SMETA, BSCI, WCA, WRAP, GSV, GRS/OCS/GOTS/RCS, Oeko-Tex, ZDHC (for strategic fabric suppliers with wet process)

Third-party Assurance: Third-party assurance for CO2 emissions, HIGG FEM and FSLM scores

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Leakproof Nursing Bra (EUNOIA)
  • Shapewear made with recycled yarn
  • Front Opening Bralette (SATIS)

Awards & Recognition

  • Best Sustainability Linked Loan – Private Equity (The Asset magazine)
  • Employer of the Year (JobsDB Awards 2023)
  • HR Innovator of the Year (JobsDB Awards 2023)
  • Caring Company (Hong Kong)