Climate Change Data

DFI Retail Group Holdings Limited

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:577 kt CO2e/year (Scope 1 & 2)
Scope 1 Emissions:236 kt CO2e/year
Scope 2 Emissions:341 kt CO2e/year
Scope 3 Emissions:3348 kt CO2e/year
Total Energy Consumption:2.59 Million gigajoules/year
Water Consumption:2190 million litres/year
Waste Generated:67,980 tonnes/year
Carbon Intensity:63 tonnes CO2e per US$m net sales (Scope 1 & 2)

ESG Focus Areas

  • Climate Change
  • Waste
  • Water
  • Plastic
  • Sustainable Products
  • Community Engagement and Support
  • Human Capital
  • Health, Safety and Wellbeing
  • Social Compliance
  • Product Safety and Quality
  • Ethics and Anti-corruption
  • Data Privacy and Cybersecurity
  • Tax Governance

Environmental Achievements

  • 19% reduction in Scope 1 and 2 GHG emissions vs 2021 baseline
  • 54% waste diversion rate in 2023, up from 51% in 2022
  • 24% of Own Brand products in selected categories now have sustainability certifications, more than doubling the number from 2022
  • Plastic bags and plastic wrap usage down 38% (compared with 2022)
  • 57% of own brand products with plastic packaging are recyclable

Social Achievements

  • More than 1,129 volunteering hours were contributed in Hong Kong
  • US$3.7m donated to communities across the markets in which we operate
  • Launched a Mental Health Awareness programme including webinars, self-evaluation tools, and expanded benefits

Governance Achievements

  • 94% of factories in high-risk countries supplying own brand products have been audited against Amfori or equivalent standards
  • 81% of own brand product factories were third-party audited for a globally recognised food safety certification

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • 50% absolute Scope 1 and 2 emission reduction by 2030
  • 25% Scope 3 emission reduction across targeted categories by 2030
  • Fully electrify fleet in own operation by 2030
  • Increase OB plastic packaging that is recyclable by 50% by 2030
Short-term Goals:
  • Accelerate decarbonisation across operations by 2025 (refrigerants, fleet electrification pilot, waste diversion)

Environmental Challenges

  • Changes in customer behaviours following the pandemic
  • Higher interest rates, inflationary pressures and a broader economic slowdown on the Chinese mainland
  • Intense competition and weakening consumer sentiment caused by rising cost of living pressures
  • Reduced home renovation and furniture demand due to a softening in property market sentiment
  • Increased levels of outbound travel impacting shopping behaviour
  • High interest rates, inflationary and wage pressures and uncertainty as to the impact these factors will have on consumer sentiment
  • Physical risks from severe weather conditions (typhoons, flooding, extreme heat)
  • Transition risks from regulatory compliance, low-carbon technologies, carbon pricing, energy prices, and consumer preference changes
  • Reputational risks from investor and consumer expectations regarding climate change
Mitigation Strategies
  • Appointment of Scott Price as Group Chief Executive to lead business transformation
  • Introduction of a new strategic framework: Customer First, People Led, Shareholder Driven
  • Alignment of organisation structure to a format structure across Food, Health and Beauty, Convenience and Home Furnishings
  • New go-to-market digital strategy
  • Development of business continuity plans for all locations
  • Review of overflow and draining systems in areas prone to flooding
  • Implementation of security of supply initiatives and resilient sourcing practices
  • Energy and refrigeration efficiency initiatives
  • Maintaining and enforcing safety-at-work procedures for heat-related illness
  • Compliance programme to ensure adherence to evolving regulations
  • Use of low global warming potential refrigerants
  • Investment in energy efficiency equipment
  • Adoption of water loop refrigeration systems
  • Planning of Scope 3 GHG emission plan
  • Implementation of measures to reduce Scope 1 and 2 GHG emissions
  • Adjustment of product offerings to align with sustainability and climate-friendly demands
  • Stakeholder engagement
  • Investment in climate initiatives (US$10-20 million annually)
  • Transition to electric trucks
  • Increase waste diversion rate
  • Source low carbon OB products from suppliers

Supply Chain Management

Supplier Audits: 94% of factories in high-risk countries supplying own brand products audited against Amfori or equivalent standards

Responsible Procurement
  • Supplier Code of Conduct
  • Amfori BSCI membership
  • Ethical Sourcing Programme
  • Supplier pre-qualification onboarding process
  • GFSI certification for food products

Climate-Related Risks & Opportunities

Physical Risks
  • Disruption of services and business operations caused by severe weather conditions
  • Store closures, power outages, and transportation disruptions
  • Damage to equipment, facilities, and properties due to floodwaters
  • Decrease in business demand
  • Supply chain disruptions
  • Higher energy costs and consumption for cooling
  • Faster spoilage of perishable items
Transition Risks
  • Regulatory compliance
  • Increased operational costs and inefficiencies associated with outdated and carbon-intensive technologies
  • Carbon pricing
  • Rising energy prices
  • Consumer preference change
Opportunities
  • Energy and refrigeration efficiency initiatives
  • Renewable energy sources
  • Sustainable products
  • Electrification of fleet
  • Sustainable Finance opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, UN SDGs

Certifications: SBTi validated targets

Third-party Assurance: PricewaterhouseCoopers (limited assurance)

Sustainable Products & Innovation

  • Sustainable Seafood (MSC certified)
  • Sustainable Cocoa (Rainforest Alliance certified)
  • Sustainable Coffee Beans (Rainforest Alliance certified)
  • FSC certified paper products

Awards & Recognition

  • Hong Kong Awards for Environmental Excellence – Super Gold Award
  • CLP Smart Energy Award 2023
  • TVB ESG Award