Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emission intensity by -21% compared to 2009 baseline and -42% compared to 2011 baseline.
• Reduced water use by 28% compared to 2014 baseline and 40% compared to 2011 baseline.
• Achieved a 16% reduction in water intensity compared to 2014 baseline, exceeding the 13% target.

Social Achievements

• Trained 690 people at management level and 23,582 workers and staff in Social Labour Standard Operating Procedures (SOPs).
• Implemented a self-monitoring program to identify and address discrepancies in SOP implementation.
• Charitable donations of almost US$5 million.

Governance Achievements

• Integrated Managerial Leadership Competencies (MLCs) into the TAL Human Capital Management (HCM) System.
• Participation in the Social Labour Convergence Program (SLCP).

Climate Goals & Targets

Environmental Challenges

• Increased manufacturing costs and wage rates.
• Inability to pass price inflation onto customers due to price pressures in US retail.
• Challenges in Ethiopia related to housing, transportation, and sporadic civil unrest.
• Difficulties in finding recyclers for waste materials.
• Maintaining GHG intensity while managing business fluctuations.

Mitigation Strategies

• Investing in sustainability initiatives.
• Seeking efficiencies and cost-saving opportunities.
• Adjusting expectations and plans in Ethiopia.
• Implementing water saving techniques and investing in water recycling.
• Investing in more efficient equipment to reduce absolute GHG emissions.

Supply Chain Management

Supplier Audits: 38 subcontractors screened (2017-2018)

Responsible Procurement

• Subcontractor screening process to ensure compliance with sustainability standards.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: LEED Platinum (Hong Kong Office), LEED Gold (Vietnam Garments Manufacturing)

Sustainable Products & Innovation

• Rainwear made from 100% recycled plastic PET bottles

Environmental Metrics

ESG Focus Areas

• Social sustainability issues
• Sustainable products
• Resource efficiency
• Climate change

Environmental Achievements

• Reduced water intensity by 64% compared to 2011 baseline (18.39 L/piece in 2022)
• Achieved 80/100 points average score across factories in Higg FEM 2022 verification
• Converted steam boilers from heavy fuel oil to natural gas in Thailand
• Implemented EcoWash process, reducing water usage by 80% (from 11L/piece to 2L/piece)
• Installed rooftop solar PV system at TAL HKO headquarters

Social Achievements

• More than 500 employees trained on managerial leadership competencies in 2022
• Three factories completed FSLM verification in 2022 with scores ranging from 80% to 87%
• TAV Limited achieved Fair Trade USA certification
• Implemented various COVID-19 response measures, including factory shutdowns and vaccination drives
• Partnered with Issara NGO to conduct due diligence interviews with foreign migrant workers in Thailand

Governance Achievements

• Won the Large Corporate category for the INSEAD ‘Business as a Force for Good’ Award in 2021
• Delman Lee elected as Chair of the SAC Board of Directors in 2022
• Active participation in SAC strategic councils and METs

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic
• Record high costs of raw materials, manufacturing, and transportation
• Extended supply chain lead times due to port congestions
• COVID-19 outbreaks in Thailand and Vietnam
• US Uyghur Forced Labour Prevention Act (UFLPA) impacting sourcing from China
• Reduced demand for recycled fibers in 2021
• Challenges in finding recyclers for fabric scraps in Thailand

Mitigation Strategies

• Agile response to changing demands and unpredictable operating environments
• Close collaboration with customers to understand their needs
• Implementation of the Factory Sandbox Scheme in Thailand to manage COVID-19 outbreaks
• Company-wide vaccination drive
• Diversification of sourcing strategies to mitigate UFLPA risks
• Implementation of EcoWash process to reduce water usage
• Exploration of waste-to-fuel options for fabric scraps

Supply Chain Management

Supplier Audits: 65 subcontractors screened in 2021-2022

Responsible Procurement

• Sustainable fibre material guidelines
• bluesign® approved chemicals
• ZDHC Supplier to Zero program

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Floods

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy investments

Reporting Standards

Frameworks Used: GRI Standards

Certifications: bluesign® system partner, GOTS, OCS, GRS, RCS, ZDHC MRSL

Sustainable Products & Innovation

• Enro reusable face masks
• Innogreen program

Awards & Recognition

• INSEAD ‘Business as a Force for Good’ Award (2021)
• Certificate from the Ministry of Trade and Industry for creating a conducive work environment (ETG, 2022)

Environmental Metrics

ESG Focus Areas

• Ethics
• Social
• Health & Safety
• Environment

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Promoting Social, Health & Safety and Environmental Responsibility in the Value Chain

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact