Climate Change Data

Kwong Lung Enterprise Co., Ltd.

Climate Impact & Sustainability Data (2019, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:2199.75 tons CO2e/year
Scope 1 Emissions:653 tons CO2e/year
Scope 2 Emissions:1546 tons CO2e/year
Total Energy Consumption:8,455,024 MJ/year
Water Consumption:389,000 tons/year
Waste Generated:202.45 tons/year
Carbon Intensity:0.36 tons CO2e per ton of down material (Scope 2), 0.15 tons CO2e per ton of down products (Scope 1)

ESG Focus Areas

  • Economic Performance
  • Environmental Sustainability
  • Social Responsibility

Environmental Achievements

  • Reduced electricity consumption by 885,600 million joules/year
  • Waste recycling 16.9 tons/month
  • Obtained Global Recycle Standard (GRS) certification
  • Achieved Bluesign certification
  • Recycled water utilization rate of 56%
  • Total carbon emissions from manufacturing process were 0.51 kg CO2e per kilogram of down products produced

Social Achievements

  • Launched employee well-being programs including health talks, fire drills, and health examinations
  • Implemented a sexual harassment prevention system
  • Provided employee childcare subsidies and scholarships, flexible work hours and nursing rooms
  • Donated food to food banks in Taiwan and provided free lunches and soy milk to children in need in Central Vietnam
  • Installed air-conditioning systems in rural schools in Taiwan
  • No discrimination occurred in 2019
  • Provided 24 employment opportunities in 2019

Governance Achievements

  • Ranked in the top 5% of the TWSE Corporate Governance Assessment
  • Established a remuneration committee with external experts
  • Implemented a conflict of interest policy
  • No incidents of corruption in 2019

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Wastewater recovery rate to exceed 60%

Environmental Challenges

  • Volatile demand for functional apparel markets due to global climate change
  • Fluctuations in down prices due to long-term (decreased farming volume) and short-term factors (avian influenza)
  • Increasing production costs
  • Covid-19 pandemic in 2020 impacting business operations
Mitigation Strategies
  • Designed diversified and highly functional products
  • Enhanced green supply chain capabilities
  • Implemented lean production and improved production efficiency
  • Emphasized vertical integration of upstream and downstream supply chains
  • Developed new products, new markets, and new customers
  • Established a management platform of global suppliers
  • Continuously updated production equipment
  • Developed new raw material supply sources in nearby countries
  • Strengthened internal control in reducing management expenses
  • Implemented an electronic information management system
  • Cultivated strategic partners in cost, quality and technology
  • Improved the production process to reduce the cost of materials
  • Offered a wide variety of product options for customers
  • Implemented ongoing management of enterprise operations and formulated a constant operation plan

Supply Chain Management

Supplier Audits: Regular audits and evaluations

Responsible Procurement
  • Requires all raw materials to be licensed, trackable, and environmentally friendly
  • Prohibits the purchase, production, processing and sale of any live plucked down
  • Requires suppliers to provide certified documents from the upstream breeding, slaughtering, to feather collection product flow

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
Transition Risks
  • Changes in market demand for down products
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, AA1000 Assurance Standard

Certifications: ISO 9001, ISO 14001, ISO 50001, Global Recycle Standard (GRS), Bluesign, Responsible Down Standard (RDS), DOWNPASS, Oeko-Tex Standard 100

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

  • SDG 3: Good Health and Well-being
  • SDG 5: Gender equality
  • SDG 6: Clean Water and Sanitation
  • SDG 7: Affordable and Clean Energy
  • SDG 8: Decent Work and Economic Growth
  • SDG 9: Industry, Innovation and Infrastructure
  • SDG 10: Reduced Inequalities
  • SDG 12: Responsible Consumption and Production
  • SDG 13: Climate Action
  • SDG 16: Peace, Justice and Strong Institutions
  • SDG 17: Partnerships for the Goals

Kwong Lung's initiatives contribute to these goals through various environmental, social, and governance programs

Sustainable Products & Innovation

  • Functional down products
  • Environmentally-friendly resin cotton series
  • Fluorine-free water-repellent down
  • Smart Down
  • Antibacterial down
  • Flame-retardant down
  • Heat storage down
  • Breathable down
  • Fragrance down
  • Hygroscopic down

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:14575.53 tCO2e/year (Scope 1+2)
Scope 1 Emissions:13153.54 tCO2e/year
Scope 2 Emissions:7207.28 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:0%
Total Energy Consumption:53,259,259 MJ/year
Water Consumption:684 m3/year
Waste Generated:401.8 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental Sustainability
  • Friendly Workplace
  • Good Society
  • Corporate Governance
  • Innovation and Sustainability

Environmental Achievements

  • Reduced total energy consumption by 33%
  • Reduced Scope 1 + Scope 2 greenhouse gas emissions by 21%
  • Reduced total water consumption by 41%
  • Achieved a 47% water recycling rate
  • Reduced total air pollution emissions by 22%
  • Increased the proportion of recycled down by 52%
  • Apparel, home textiles, and down material divisions fully completed GRS certification
  • Kwong Lung's cotton received the ISPO Textrends Award

Social Achievements

  • Provided 1,341 job opportunities
  • Implemented after-school tutoring program benefiting 226 children
  • Provided scholarships to 55 students
  • Mid-Vietnam Nutritional Lunch Program reduced child malnutrition from 50% to 14%
  • Total donation amount: NT$14,188,396; Number of beneficiaries: 13,409 people

Governance Achievements

  • Consistently ranked among the top 5% in corporate governance evaluations
  • Engaged external professional independent institutions to conduct an external performance evaluation of the board of directors
  • Established a Risk Management Committee
  • Achieved B Corp certification

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Reduce annual emission intensity by 3% to 5% compared to the baseline year of 2023 by 2025
Short-term Goals:
  • Reduce annual emission intensity by 1% compared to the previous year by 2030
  • Achieve a 10% improvement in energy efficiency by 2030
  • Achieve 60% process water recycling by 2030

Environmental Challenges

  • Challenging economic conditions caused by high inflation and interest rates
  • Intensifying environmental changes
  • Climate change affecting the supply chain and leading to shortages in raw materials
  • Rising costs of raw materials
  • Fluctuations in interest rates and exchange rates
  • Tariff barriers
Mitigation Strategies
  • Optimizing product portfolio
  • Flexible adjustment of production lines and layouts
  • Voluntarily pursuing bluesign® certification
  • Integrating ESG corporate management principles
  • Global procurement and vertical integration
  • Establishing environmental protection measures
  • Disaster prevention monitoring, detection, emergency response drills, and recovery capabilities
  • Managing the impact of controlled interest rate and exchange rate fluctuations on assets and cash flows
  • Enhancing the adaptability of operational and production models
  • Strengthening cooperative relationships within the supply chain
  • Developing new products, exploring new markets, and attracting new customers
  • Investing in workforce training
  • Establishing a further management mechanism for global suppliers
  • Improving formulas to reduce the cost of materials
  • Diversifying the products supplied

Supply Chain Management

Supplier Audits: 18 audits in 2023

Responsible Procurement
  • Supplier management inquiry
  • Supplier code of business conduct
  • Regular supplier evaluations
  • Responsible Down Standard (RDS) certification

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters
  • Extreme weather
  • Infectious diseases
  • Avian influenza
Transition Risks
  • Increase in greenhouse gas emissions pricing
  • Strengthening of emissions reporting obligations
  • Requirements and regulations for existing products and services
  • Substitution of existing products and services with low-carbon alternatives
  • Changes in customer behavior
  • Rising raw material costs
  • Shifts in consumer preferences
Opportunities
  • Recycling and reuse
  • Transition to more energy-efficient buildings
  • Reduce water consumption and usage
  • Use of low-carbon energy
  • Develop and/or increase low-carbon products and services
  • Energy substitution/diversification

Reporting Standards

Frameworks Used: GRI Standards, AA1000 Assurance Standard, TCFD

Certifications: ISO 14001, ISO 50001, ISO 9001, ISO 14064-1, ISO 45001, ISO/IEC 27001, GRS, RDS, bluesign®, B Corp

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 12
  • Goal 13
  • Goal 17

Initiatives contribute to these goals through environmental protection, social welfare, and ethical business practices.

Sustainable Products & Innovation

  • Special functional graphene resinous wool
  • Recycled cotton
  • High-transparency down
  • Improved peptide essence used in down
  • Antibacterial down with linseed oil

Awards & Recognition

  • ISPO Textrends Award for Excellence
  • Taiwan Corporate Sustainability Awards (TCSA)