亞東集團控股有限公司

Climate Impact & Sustainability Data (2021, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:66,479.52 tCO2e/year

Scope 1 Emissions:4,412.00 tCO2e/year

Scope 2 Emissions:62,067.52 tCO2e/year

Scope 3 Emissions:Not disclosed

Renewable Energy Share:Not disclosed

Total Energy Consumption:172,551 MWh/year

Water Consumption:740,373 tonnes/year

Waste Generated:3,875 tonnes (hazardous)/year, 127,729 kg (non-hazardous)/year

Carbon Intensity:81.69 tCO2e/revenue of RMB1 million

ESG Focus Areas

Pollutant emission and management
Greenhouse gas emission and management
Mitigation and adaptation to climate change
Hazardous waste disposal and management
Use of resources and use efficiency
Occupational health and safety
Quality and safety of products and services
Sustainable management of supply-chain
Innovation in research and development

Environmental Achievements

Achieved up-to-standard emission for all pollutants.
Scope 1 carbon emission has been reducing constantly.
Increased utilisation rate of waste to achieve qualified management and control of hazardous and non-hazardous waste.
Continuously reducing energy consumption and achieving faster production with enhanced energy efficiency.
Continuously saving water resources and enhancing consumption efficiency of water resources while progressively reducing water consumption per unit.
Pad dyeing workshop experienced an overall increase in production efficiency by 15%, which marked simultaneous improvement in productivity and reduced energy consumption.

Social Achievements

Yadong (Changzhou) was awarded the Advanced Unit by the Production Safety Association of Tianning District, Changzhou.
Yadong (Changzhou) was awarded the Deputy President Unit by Changzhou Textile Industry Association.
Yadong (Changzhou) was awarded the top 30 Enterprise in China Printing and Dyeing Industry in 2021.
No work-related fatality, and the number of days lost due to work-related injuries is 0 day.
Total training hours on health and safety was 5,784 hours.
Organised various activities for employees to help them continuously enhance team spirit and strengthen the construction of corporate culture (employee travel, holiday benefits and health check-ups).

Governance Achievements

Improved the three-level ESG governance structure, incorporating environmental, social and governance strategic considerations into the Company’s daily operations.
Founded an ESG professional committee at the board level.
Formulated the “ESG Management System”, which clearly stipulates eight responsible fields.
Established specific ESG goals and indicators at the departmental level.

Climate Goals & Targets

Long-term Goals:

Reduce the emission intensity of greenhouse gases and hazardous wastes; improve the use efficiency of energy and water resources, and to reduce the use intensity of energy and water resources.

Medium-term Goals:

By 31 December 2022: Utilise Net Proceeds for acquisition of a company with existing production plant in Jiangsu province.

Short-term Goals:

By 30 June 2022: Utilise Net Proceeds for expansion of production capacity and product coverage; acquisition of the Target Company with the Properties.

Environmental Challenges

Global warming leading to extreme weather changes causing damage to infrastructure and production.
Rise of sea level impacting the location of the Company’s office building.
Natural disasters causing supply chain disruptions.
Government/regulatory authorities putting forward climate change disclosure requirements and stricter environmental compliance requirements.
Structural change from high-carbon to low-carbon economy requiring faster adaptation.
Increasing awareness towards environmental protection potentially harming company image if unable to respond to market expectations.

Mitigation Strategies

Formulated crisis and emergency management plans for extreme weather events.
Set up a reserve fund for emergency use.
Improved building adaptability.
Provided comprehensive insurance.
Assessed climate-related risks in the supply chain and identified alternative supply sources.
Requested suppliers to adopt climate risk prevention measures.
Implemented emergency evacuation plans and conducted regular drills.
Adopted special work arrangements during extreme weather conditions.
Identified, assessed, managed and monitored climate-related risks regularly.
Reviewed global and local policies, regulations, technological development and market trends.
Participated in consultations on climate-related regulations.
Implemented internationally recognised management systems.
Reviewed the Group’s risks checklist.
Consulted professionals and experts on low-carbon technologies.
Assigned appropriate employees to handle climate-related risks.
Reported to management on climate-related impacts and the Group’s strategy.

Supply Chain Management

Supplier Audits: 100% inspection rate for dyes upon delivery; 100% batch test for regular auxiliaries; on-site visits and evaluations for major suppliers like greige fabric suppliers.

Responsible Procurement

Formulated a comprehensive Procurement Management System; Compare Deals principle (at least three suppliers for comparison); green procurement practices (avoiding disposable products, prioritizing products with less packaging, using recycled materials, environmentally-friendly raw materials).

Climate-Related Risks & Opportunities

Physical Risks

Typhoons, hail, heavy rain, floods, rise in sea level, natural disasters, casualties

Transition Risks

Stricter environmental compliance requirements, increased labour and materials costs, energy transition needs, market preference shifts

Opportunities

Development of energy-efficient products, seizing opportunities from the “double carbon policy”

Reporting Standards

Frameworks Used: Appendix 27 of the Main Board Listing Rules of The Stock Exchange of Hong Kong Limited

Certifications: GB/T 24001-2016 and ISO 14001-2015 (environmental management system), GB/T 19001-2016 and ISO 9001:2015 (quality management system), OHSAS 18001:2007 and GB/T 28001-2011 (occupational health and safety management systems), ISO 50001:2018; RB/T 102-2013 (Energy Management System)

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

Environmentally-friendly “TENCEL” corduroy, “MODAL” corduroy and coloured cotton corduroy.

Awards & Recognition

National green factories
Advanced Unit (Production Safety Association)
Deputy President Unit (Changzhou Textile Industry Association)
Top 30 Enterprise in China Printing and Dyeing Industry
Changzhou Smart Exemplar Workshop
Honorary Certificate of Territorial Principle of Tax Contribution Award
Significant Contribution Award
Jinhui Award: Digital Transformation Pioneer
AA-standard Integration of Informationization and Industrialisation Management System Certificate
Star-rating Cloud enterprise Certificate
2021 China Annual Excellent Partner Award
Changzhou’s Administration of Precursor Chemicals (“A” Credit Grade)
Jiangsu Water Conservation Enterprise Certificate
Star Enterprise (Changzhou Municipal Committee)
Four-Star Enterprise (Changzhou Tianning District Committee)
Award for realisation of policy for promoting quality development for the industry

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:Not disclosed

Scope 1 Emissions:Not disclosed

Scope 2 Emissions:Not disclosed