Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Obtained ISO 14001:2004 certification for its Dongguan manufacturing site.
• Implemented environmental friendly measures including Reduce, Reuse and Recycle principle, installation of new environmental protection and energy-saving equipment, use of environmental friendly raw materials, and energy conservation initiatives.
• All waste handled and disposed by qualified agencies.

Social Achievements

• Developed internal controls to protect employee rights and interests, complying with Hong Kong and PRC labor laws.
• Offers competitive remuneration packages, share option schemes, performance-based bonuses, provident fund contributions and medical insurance.
• Provides training and education opportunities for employees.
• Prioritizes employee health and safety with measures including safety procedures, protective equipment, fire equipment, regular training, and medical checkups.

Governance Achievements

• Formulated anti-corruption policies targeting management, procurement, sales, and accounting staff.
• Established a reporting mechanism for bribery concerns.

Climate Goals & Targets

Environmental Challenges

• Greenhouse gases, sewage, solid wastes and other pollutants generated in daily operation.
• Potential risks associated with supply chain management.

Mitigation Strategies

• Efforts to reduce emission of sewage, waste gases and noise in production processes.
• Regular review/audit of supply chain management system by external auditors.
• Implementation of RoHS Directives and mandatory compliance for vendors.

Supply Chain Management

Responsible Procurement

• Complies with ISO 9001:2008 standard

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO 14001:2004, ISO 9001:2008

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Obtained ISO 14001:2004 certification for its Dongguan manufacturing site.
• Implemented environmental friendly measures including Reduce, Reuse and Recycle principle to efficiently use resources, reduce waste and conserve energy.
• Installed new environmental protection and energy-saving equipment to reduce electricity consumption.
• Used environmentally friendly raw materials and components.
• Raised staff awareness on water and electricity conservation.
• Installed “Air (Heat Pump) Hot Water Heater” central system in employee dormitories.
• Employed electronic business process workflow management system and used double-sided printing and copying to reduce paper consumption.
• Used video or telephone conferencing to minimize transportation.
• Appointed qualified recycling companies to handle waste.
• Installed water purification system.

Social Achievements

• Developed internal controls to protect employee rights and interests.
• Provided equal employment opportunities.
• Offered competitive remuneration packages including share option schemes, performance-based bonuses, provident fund contributions and medical insurance.
• Conducted exit interviews to understand employee departures.
• Implemented measures to protect employee health and safety, including posting safety procedures, providing protective equipment, acquiring fire equipment and first aid supplies, establishing designated smoking areas and warehouses for hazardous materials, organizing training courses and drills, and arranging regular medical checkups.
• Developed Employee Skill Training Program.
• Developed policies on preventing child and forced labor, complying with relevant laws and regulations.

Governance Achievements

• Developed anti-corruption procedures to address bribery, extortion, fraud and money laundering.
• Provided anti-corruption education to procurement and sales and marketing staff.
• Instilled integrity among accounting staff.
• Established a reporting mechanism for bribery issues.

Climate Goals & Targets

Environmental Challenges

• Greenhouse gas emissions, sewage, solid wastes and other pollutants generated in daily operation.

Mitigation Strategies

• Efforts to reduce emission of sewage, waste gases and noise in production processes.
• All waste handled and disposed by qualified agencies.
• Strict compliance with national and local laws and regulations relating to environmental protection and pollutant emissions.

Supply Chain Management

Responsible Procurement

• Supplier Control Program
• Procurement Management Procedures

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO 14001:2004, ISO 9001:2008

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced Nitrogen oxides (NOx) emissions from 2.33 kg in 2018 to 2.24 kg in 2019.
• Reduced Sulphur oxides (SOx) emissions from 0.12 kg in 2018 to 0.13 kg in 2019.
• Reduced Particulate matter (PM) emissions from 0.17 kg in 2018 to 0.16 kg in 2019.
• Reduced GHG emissions per unit produced from 2.45 kg of CO2e to 1.39 kg of CO2e.
• Reduced non-hazardous waste generated per unit produced from 0.0148 kg to 0.0082 kg.
• Installed environmental protection and energy-saving equipment to reduce electricity consumption.
• Used environmentally friendly raw materials to reduce environmental impact of production and waste management.
• Implemented waste separation facilities for recyclable, non-recyclable, and hazardous waste.
• Obtained ISO 14001:2004 certification for its Dongguan manufacturing site.

Social Achievements

• Developed Employee Skill Training Program.
• Provided training courses for staff at different working stages and functional departments.
• Organised induction training for new recruits.
• Offered opportunities to attend seminars.
• Developed policies on preventing child labour and forced labour.
• Complied with relevant laws and regulations regarding child and forced labour.
• Implemented measures to protect employee wellbeing, including safety procedures, protective equipment, fire equipment, first aid supplies, designated smoking areas, and regular health and safety training.
• Organised bi-annual sports galas and arranged annual medical checkups for workers.

Governance Achievements

• Developed anti-corruption procedures relating to bribery, extortion, fraud, and money laundering.
• Provided anti-corruption education to procurement and sales and marketing staff.
• Set up a reporting mechanism for employees to report bribery issues.

Climate Goals & Targets

Environmental Challenges

• Greenhouse gas emissions
• Waste generation
• Energy consumption
• Water consumption

Mitigation Strategies

• Installation of environmental protection and energy-saving equipment
• Use of environmentally friendly raw materials
• Waste separation and recycling
• Energy conservation measures (LEDs, heat pump water heaters)
• Water conservation measures (water purification system)

Supply Chain Management

Responsible Procurement

• Supplier Control Program
• Procurement Management Procedures

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO 14001:2004, ISO 9001:2008

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Installed environmental protection and energy-saving equipment to reduce electricity consumption.
• Minimized environmental impact by using environmentally friendly raw materials.
• Implemented waste separation facilities for recycling.
• Obtained ISO 14001 certification.

Social Achievements

• Developed Employee Skill Training Program.
• Implemented policies to prevent child and forced labor.
• Provided a safe working environment and implemented numerous protective and control measures to safeguard employee hygiene and safety during the COVID-19 pandemic.
• Organized regular health and safety training courses and fire and evacuation drills.
• Arranged regular medical checkups for all workers.

Governance Achievements

• Developed anti-corruption procedures.
• Established a reporting mechanism for bribery issues.

Climate Goals & Targets

Environmental Challenges

• Increased emissions due to diesel consumption from a new factory truck.

Mitigation Strategies

• Closely monitoring GHG emissions and waste disposal.
• Implementing emission reduction measures such as installing energy-saving equipment and using environmentally friendly materials.

Supply Chain Management

Responsible Procurement

• Supplier Control Program
• Procurement Management Procedures

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO 14001, ISO 9001:2015

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions
• Energy consumption
• Employee welfare
• Occupational health and safety
• Training and development
• Supply chain management
• Customer privacy
• Anti-corruption
• Community investment

Environmental Achievements

• Reduced total GHG emissions from 2,801,772 kg of CO2e in 2022 to 2,165,956 kg of CO2e in 2023
• Reduced non-hazardous waste generated from 30,700 kg in 2022 to 27,250 kg in 2023
• Reduced hazardous waste generated from 2,466 kg in 2022 to 2,351 kg in 2023
• Reduced electricity consumption from 5,312,008 kWh in 2022 to 4,170,877 kWh in 2023

Social Achievements

• Maintained low employee turnover rate (0.8% overall)
• Implemented various safety measures resulting in no work-related fatalities for three years and only 3 work-related injuries in 2023
• Provided 100% of employees with training, averaging 1 hour per employee

Governance Achievements

• Established anti-corruption procedures and reporting mechanisms
• Developed policies to prevent child labor and forced labor

Climate Goals & Targets

Environmental Challenges

• Potential impact of climate change on business operations
• Managing environmental and social risks in the supply chain

Mitigation Strategies

• Regular review of government policies and market trends to identify climate-related risks and develop response plans
• Supplier assessments to evaluate performance and ensure compliance with standards

Supply Chain Management

Supplier Audits: Regular assessments of major suppliers

Responsible Procurement

• Supplier Control Program
• Procurement Management Procedures

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Typhoons
• Sustained high temperatures
• Sea level rise

Transition Risks

• Policy, legal, technology, and market changes to address climate change

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Rules Governing the Listing of Securities of The Stock Exchange of Hong Kong Limited)

Certifications: ISO 14001:2015, ISO 9001:2015

Third-party Assurance: Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Operating Practices
• Community Investment

Environmental Achievements

• Reduced total GHG emissions from 2,165,956 kg of CO2e in 2023 to 1,196,755 kg of CO2e in 2024.
• Reduced non-hazardous waste generated from 27,250 kg in 2023 to 14,083 kg in 2024.
• Reduced hazardous waste generated from 2,351 kg in 2023 to 1,171 kg in 2024.
• Reduced electricity consumption from 4,170,877 kWh in 2023 to 2,299,803 kWh in 2024.
• Reduced diesel consumption from 35,717 kWh in 2023 to 19,694 kWh in 2024.
• Reduced total packaging material (paper) used for finished products from 728,000 kg in 2023 to 372,000 kg in 2024.
• Dongguan Kenford obtained ISO 14001:2015 Environmental Management System certification.

Social Achievements

• Implemented Employee Skill Training Program, providing training in occupational safety and health, 6S lean manufacturing, ISO standards, chemical handling, and waste management.
• 100% of employees received training in 2024.
• No work-related fatalities reported for three years ended 31 March 2024.
• Implemented measures to protect employee well-being, including safety procedures, protective equipment, fire equipment, designated smoking areas, and regular health and safety training.
• Implemented policies to prevent child labor and forced labor, including background checks and identity verification of potential employees.

Governance Achievements

• Board maintains oversight of ESG-related risks and opportunities.
• Annual materiality assessment conducted.
• Established a reporting mechanism for bribery concerns.

Climate Goals & Targets

Environmental Challenges

• Potential impact from climate change on business and operation (physical and transition risks).

Mitigation Strategies

• Regular review of government policies, regulatory updates, and market trends to identify potential climate-related risks.
• Development of response plans to reduce negative impacts of climate-related risks.
• Incorporation of sustainable practices in business operations.

Supply Chain Management

Supplier Audits: Regular assessments of major suppliers.

Responsible Procurement

• Supplier Control Program
• Procurement Management Procedures

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Typhoons
• Sustained high temperatures
• Sea level rise

Transition Risks

• Policy changes
• Legal framework changes
• Technology changes
• Market changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix C2 to the Rules Governing the Listing of Securities of The Stock Exchange of Hong Kong Limited)

Certifications: ISO 14001:2015, ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed