Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced sulphur dioxide emissions by 85%, nitrogen oxides by 35%, and flue dust by 65% compared to the previous year.
• Implemented a project for carbon dioxide recovery from coke oven exhaust gas to increase clean energy utilization.
• Reduced membrane slag generation by 50% through acidification and dehydration processes.
• Replaced power generators with energy-saving models, projecting annual power savings of approximately 15%.
• Phased out old air compressors and replaced them with energy-saving models, reducing daily power consumption by 25%-30%.
• Used new LED lights for exposure machines, reducing power consumption by 60%.

Social Achievements

• Established stringent procedures for examination and approval to ensure fairness in the recruitment process.
• Implemented a three-tier safety training program for new employees.
• Organised regular health checks for all staff annually.
• Launched continuous learning courses (“Kingboard Class”) in collaboration with various schools and colleges.
• Launched “Kingboard Tertiary Class” in Qingyuan and Jiangmen to provide a learning platform for staff.
• Established a whistleblowing system to investigate unfair treatments.

Governance Achievements

• Established an anonymous whistleblowing mechanism to deal with reports on bribery, extortion, fraud, and money laundering.
• Implemented annual conflict of interest declarations for management personnel.
• Provided regular training on the code of conduct for all staff.

Climate Goals & Targets

Environmental Challenges

• Minimising the environmental impact of air emissions, wastewater, and solid wastes generated in the production process.
• Reducing the volume of discharge of air emissions, wastewater, and hazardous wastes.
• Managing hazardous wastes effectively.
• Proper handling of non-hazardous wastes.
• Reducing energy and resource consumption.
• Ensuring workplace safety and protecting employees from occupational hazards.

Mitigation Strategies

• Formulated regulations and operating procedures relating to environmental protection.
• Conducted regular evaluation of the source of discharge and emission.
• Devised schemes to reduce discharge and emission at source.
• Made adjustments to energy-related technologies and equipment.
• Sought opportunities for recycling discharged materials.
• Optimised facilities and procedures for processing discharge and emission.
• Educated employees on environmental protection.
• Established an environmental protection task force.
• Implemented the ISO14001 management system.
• Implemented a range of measures to reduce the discharge of hazardous wastes.
• Required plants to place hazardous wastes at designated storage facilities.
• Set up waste recycling areas in all premises of operation.
• Adopted electronic versions or two-sided printing for office documents.
• Employed industry-advanced production processes and equipment.
• Implemented ERP systems to facilitate centralised administration and resource allocation.
• Formulated rules and regulations relating to the use of resources.
• Engaged professional environmental consulting firms to conduct tests on workshop hazards.
• Required employees to attend occupational health checks.
• Established a complete occupational health and safety management system.

Supply Chain Management

Supplier Audits: Annual reviews of suppliers through on-site examination.

Responsible Procurement

• Stringent requirements in respect of suppliers; vetting process for business licenses, accreditations, and qualifications; on-site assessments at suppliers’ plants; sample tests on products.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Guide (Appendix 27 to the Main Board Listing Rules of the Hong Kong Stock Exchange)

Certifications: ISO14001, ROHS, SS-00259, ISO9001:2008, IATF 16949, OHSAS 18001

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon dioxide equivalents (CO2e) emissions to 716,002 tonnes in FY 2019, showing an overall downward trend compared with the previous year.
• Improved dust removal rate from 50% to 95% by replacing old dust removal equipment.
• Invested in special equipment for boiler tail gas treatment and incinerator-specific dryers.
• Installed online monitoring instruments to monitor exhaust emissions.
• Implemented measures to reduce SO2 emissions.
• Invested RMB9 million in gradually replacing incinerators to enhance waste and emission reduction efficiency.
• Adopted the "hydrolytic acidification and contact oxidation" process for wastewater treatment.
• Installed an online chemical oxygen demand (COD) detector for wastewater.
• Encouraged recycling industrial wastewater for reuse.

Social Achievements

• Organised various staff activities and provided benefits, including staff quarters, festival gift bags, annual dinner, and staff travel.
• Implemented a three-tier safety training program for new employees.
• Conducted annual health checks for all staff.
• Offered more than 500 jobs in Zhangpu Town, Kunshan.
• Offered internship opportunities for young people through the "Vibrant Youth Undergraduate Internship Programme".

Governance Achievements

• Adopted a board diversity policy.
• Conducted annual internal audits to ensure compliance with employment laws and regulations.
• Developed and implemented employment-related policies and procedures.
• Established a whistle-blowing system.
• Implemented supply chain management systems, including Supplier Management Procedures and Supplier Evaluation Criteria.
• Developed and implemented product management policies and procedures.
• Established anonymous reporting and independent team investigation mechanisms to deal with reports on bribery, extortion, fraud, money-laundering and competitive behaviour.
• Implemented a compliance checklist to forbid anti-competitive acts.

Climate Goals & Targets

Environmental Challenges

• Increasingly severe environmental management challenges.
• Need to reduce energy and resource consumption.

Mitigation Strategies

• Implementing eco-friendly operational objectives of "high efficiency, low emissions, less pollution, and more recycling."
• Integrating environmental management into daily operations.
• Exploring possibilities of reducing emissions and energy consumption.
• Improving environmental awareness of staff and external suppliers.
• Working closely with various parties and innovating while complying with environmental standards.
• Implementing policies and operational instructions concerning wastewater discharge.
• Developing waste management measures.
• Actively promoting various clean production programmes.
• Improving employees’ awareness of reducing wastes.
• Implementing professional certifications such as ISO14001 and RoHS.

Supply Chain Management

Responsible Procurement

• Strict requirements on suppliers; supplier evaluation before cooperation; vetting process for business licenses, accreditations, and qualifications; supplier approval committee; on-site product assessments; sample tests; "Confidentiality and Integrity Undertakings of Supplier", "Agreement for Environmental Protection", and "Guarantee of No Containment of Prohibited Substances".

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO14001, OHSAS 18001, ISO9001:2015, ISO 13485: 2016, IATF 16949: 2016, IATF 16949: 2019

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment
• Operation
• Community

Environmental Achievements

• Reduced carbon dioxide equivalents (CO2e) emissions to a level similar to FY2019 through manufacturing process innovation and equipment transformation.
• Improved dust removal rate from 50% to 95% by replacing old equipment.
• Invested RMB 9 million in gradually replacing incinerators to enhance waste and emission reduction efficiency.
• Installed an online chemical oxygen demand (COD) detector for wastewater and encouraged wastewater recycling.

Social Achievements

• Implemented a mentorship program, interdepartmental exchanges, and skills and leadership training to maintain a steady average turnover rate.
• Organized various staff activities and provided benefits to promote work-life balance.
• Provided diversified development opportunities and training sessions through Kingboard Institute of Management.

Governance Achievements

• Adopted a board diversity policy in accordance with the Hong Kong Stock Exchange’s Corporate Governance Code.
• Established a whistle-blowing system to investigate unfair treatment and take appropriate actions.
• Developed and implemented various policies and procedures related to product management and supply chain management to ensure compliance.

Climate Goals & Targets

Environmental Challenges

• Increasingly severe environmental management challenges.
• Maintaining a steady average turnover rate.
• Ensuring compliance with laws and regulations related to employment, product safety, and environmental protection.

Mitigation Strategies

• Implementing eco-friendly operational objectives of “high efficiency, low emissions, less pollution, and more recycling”.
• Implementing a mentorship program, interdepartmental exchanges, and skills and leadership training.
• Developing and implementing various policies and procedures, conducting regular audits, and establishing a whistle-blowing system.

Supply Chain Management

Responsible Procurement

• Strict requirements on suppliers, including ISO accreditations (ISO9001, ISO14001, OHSAS18001), UL certifications, and RoHS compliance.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Guidelines contained in Appendix 27 to the Main Board Listing Rules of the Hong Kong Stock Exchange

Certifications: ISO14001

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment
• Operation
• Community

Environmental Achievements

• Reduced CO2 equivalent per unit of finished product by 7% by FY2025 compared to FY2021.
• Applied electric boosting technology to optimize production equipment in Qing Yuan Chung Shun Electronic Materials Co., Ltd. to improve energy use efficiency and reduce waste discharge or emissions.
• Built distributed solar photovoltaic power stations in three plants to save energy.
• Started recycling of high-temperature condensed water in Qing Yuan Chung Shun Century to reduce water consumption in the production process.

Social Achievements

• Implemented a mentorship programme, interdepartmental exchanges and skills and leadership training to ensure a steady average turnover rate.
• Organized a number of staff activities and provided several benefits to employees.
• Developed and implemented employment-related policies and procedures to ensure compliance with relevant laws and regulations.

Governance Achievements

• Established a comprehensive corporate governance structure in compliance with the Company Law of the People’s Republic of China, the Rules Governing the Listing of Securities of Hong Kong Stock Exchange and other laws and regulations.
• Established a CSR Working Group responsible for implementing and coordinating all ESG-related activities.
• Established risk management and internal control systems to identify, assess, and manage risks related to the environment, society and governance.

Climate Goals & Targets

Environmental Challenges

• Increasingly severe environmental management challenges.
• Increase in production volume leading to a corresponding overall increase in CO2e compared to FY2020.
• Environmental impact of wastewater generated during the production process.

Mitigation Strategies

• Implementing eco-friendly operational objectives of “high efficiency, low emissions, less pollution, and more recycling”.
• Investing in emission reduction equipment and technologies.
• Developing internal management measures such as the Wastewater Discharge Management Measures and Air Emission Management Measures.
• Implementing water recycling projects and reusing treated industrial wastewater.

Supply Chain Management

Responsible Procurement

• Supplier Management Procedures
• Supplier Evaluation Criteria
• Procurement Evaluation Procedures
• Risk and Opportunity Identification and Control Procedure

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, heavy rains, flooding)

Reporting Standards

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

Certifications: ISO 14001, OHSAS 18001