Climate Change Data

Environmental Metrics

ESG Focus Areas

• Products
• Employees
• Environment
• Community

Environmental Achievements

• Achieved ISO 14001 certification for Environmental Management System in Hong Kong and Dongguan operations.
• No non-compliance in Air Pollution Control Ordinance (Cap.311), Waste Disposal Ordinance (Cap.354), and Hazardous Chemicals Control Ordinance (Cap.595) in Hong Kong.
• Replaced 60% of traditional light bulbs with LED lamps in Dongguan.
• Upgraded afterburner to water scrubber for flue gases treatment in Hong Kong, estimated to reduce 30% of diesel consumption.
• Adopted Euro V diesel vehicles to reduce road air emission of NOx and SOx.

Social Achievements

• Established TW Club to organize leisure activities for employees.
• Offered competitive welfare packages including remuneration and other benefits.
• Implemented policies on anti-discrimination and harassment.
• No violation of human and labour rights identified.
• 74% of employees received training.

Governance Achievements

• Established a Risk Management (RM) Committee to evaluate and manage potential risks.
• Implemented a Whistle Blower Policy.
• No legal case regarding unethical or corrupt practices.

Climate Goals & Targets

Environmental Challenges

• Minimizing diesel consumption and air emission from freight transportation.
• Reducing waste generation.
• Managing hazardous waste.

Mitigation Strategies

• Planning shortest delivery routes to minimize diesel consumption.
• Preventing over-procurement to eliminate unnecessary wastage.
• Clearly sorting general waste, recyclable waste and hazardous waste.
• Encouraging reuse and recycling of non-hazardous materials.
• Using recycled paper and Forest Stewardship Council certified paper for packaging.
• Exploring the feasibility of using biodegradable packaging.

Supply Chain Management

Responsible Procurement

• Vendor Management System evaluating new and existing suppliers based on compliance, quality, and food safety certifications (ISO 22000, HACCP).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 9001:2015, ISO 22000:2005, HACCP, ISO 14001

Sustainable Products & Innovation

• Premium tea and powder products for fruit tea and bubble tea.

Awards & Recognition

• 10 Years Plus Caring Company Logo

Environmental Metrics

ESG Focus Areas

• Products
• Employees
• Environment
• Community

Environmental Achievements

• Achieved all environmental targets in Dongguan operations in 2019.
• Total greenhouse gas emissions decreased compared with 2018 to 2,513 tonnes of carbon dioxide equivalent (CO2e).
• 100% recycling rate of hazardous waste was achieved.
• Total electricity consumption decreased by 7% compared to the previous year.

Social Achievements

• Achieved safety performance targets in the reporting year with only one minor injury incident.
• Established Coffee Academy for the Community to support underprivileged groups.
• Continued support to the community with focus on four areas: fostering the youth, community care, supporting athletes and sport events and environmental care.
• No cases of non-compliant behaviour regarding discrimination and harassment.

Governance Achievements

• Established an ESG governance structure to integrate ESG considerations into business operations.
• Adopted a risk governance structure to manage ESG-related risks.
• Maintained high ethical business standards with zero tolerance towards bribery, extortion, fraud and corrupt practices. No legal cases of unethical or corrupt practices.

Climate Goals & Targets

Environmental Challenges

• Climate change impacting the quality and pricing of raw materials.
• Environmental impact caused by coffee and tea cultivation.
• Stringent sustainability expectations from customers.
• Sustainability risks along the supply chain.

Mitigation Strategies

• Diversified supplier pool.
• Incorporated climate prediction reports into purchasing decisions.
• Incorporated sustainability considerations in supplier management.
• Conducted annual environmental assessments and inspections.
• Required suppliers to sign an environmental protection agreement.
• Increased sourcing from Rainforest Alliance, UTZ and Fair Trade certified suppliers.
• Supplier assessments encompassing environmental considerations.
• Review of supplier compliance with environmental laws and regulations.
• Review of supplier performance on waste management, energy-saving practices, and adoption of environmental management systems (e.g., ISO 14001).

Supply Chain Management

Supplier Audits: 30% of suppliers receive on-site audits annually

Responsible Procurement

• Vendor Management System
• Supplier assessments
• Product quality and safety assessments
• Annual performance reviews incorporating food safety and environmental criteria
• Environmental Protection Agreement
• Social Responsibility Statement
• Prioritization of suppliers with good environmental and social practices
• Sourcing from farms meeting local government regulations on pesticide usage
• Increasing sourcing from Rainforest Alliance, UTZ, and Fair Trade certified suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Rain
• Temperature changes
• Soil conditions
• Plant diseases

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 9001:2015, ISO 22000:2005, HACCP, Halal Certificate (for coffee and tea), Rainforest Alliance Certification (for coffee)

Sustainable Products & Innovation

• Increasing sourcing of sustainable/organic coffee and tea products.

Awards & Recognition

• Caring Company Label (11 consecutive years)
• Industry Cares 3+ Year Caring Certificate
• Excellence Award for New Project in Social Governance (from Hengli People’s Government)

Environmental Metrics

ESG Focus Areas

• Products
• Employees
• Environment
• Community

Environmental Achievements

• Dongguan plant met all its environmental goals in 2021
• Reduced electricity consumption by 1% in Dongguan by replacing old equipment with energy-efficient ones and implementing a smart energy control system.
• Achieved 100% recycling rate of hazardous waste in Dongguan.
• Reduced water consumption to 1.8 m3 per tonne of products.
• Reduced paper consumption by 1.3% in Dongguan and 39% in Hong Kong.

Social Achievements

• No work-related fatalities in Hong Kong and Dongguan.
• 95.7% of employees received training.
• Contributed 370 community service hours and donated HK$186,000.
• Awarded the Excellent Service Project Award in Dongguan.

Governance Achievements

• No breaches of laws and/or regulations by any TWG staff.
• Implemented a Whistle Blower Policy.
• Provided training for directors and staff on integrity, proper conduct, and anti-corruption laws.

Climate Goals & Targets

Environmental Challenges

• Surging demand for vegan products.
• Climate change posing imminent impacts across the business, including the supply chain.
• COVID-19 outbreak impacting operations and supply chain.
• Delayed delivery of water scrubber due to COVID-19.

Mitigation Strategies

• Sourced plant-based milk to cater to customer needs.
• Formulated a Climate Change Policy and expanded climate risk management to the supply chain.
• Purchased diversified raw materials to address climate risks.
• Developed group-wide medium-term energy and water reduction targets (1.2% and 1.3% reduction by 2025, respectively).
• Established recovery measures, such as vaccination leave, amidst the pandemic.
• Developed a training plan for employees.
• Shifted to online evaluation for overseas suppliers due to the pandemic.
• Planned to renovate Hong Kong plant facilities and replace the coffee bean roaster’s afterburner with a water scrubber (expected completion mid-2022).

Supply Chain Management

Supplier Audits: 30% of suppliers annually (on-site audits for China suppliers, online evaluation for overseas suppliers)

Responsible Procurement

• Supplier assessments considering environmental and social performance.
• Requirement of valid pre-shipment reports for raw materials.
• Internal sensory inspection and benchmark test results against government requirements.
• Environmental Protection Agreement and Social Responsibility Statement from suppliers.
• Prioritization of suppliers with HACCP, ISO 14001, and ISO 22000 certifications.
• Sourcing organic black tea and sustainable coffee beans with Rainforest Alliance Certification.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding affecting manufacturing process.
• Unsuitable storage conditions for raw materials due to extreme temperatures.

Transition Risks

• Stricter policies and regulations to control GHG emissions in China.

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 22000:2018, HACCP, FSSC 22000 Version 5.1, Rainforest Alliance Certification, ISO 14001

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Low sugar instant products
• Clean label products
• Plant-based milk products
• DIY fruit tea products

Awards & Recognition

• Quality Food Scheme 2021 Diamond Enterprise
• Excellent Service Project Award

Environmental Metrics

ESG Focus Areas

• Products
• Employees
• Environment
• Community

Environmental Achievements

• Achieved 1.3% water consumption reduction target by 2025 (baseline year 2019)
• Dongguan plant achieved all environmental objectives
• Received Hong Kong Awards for Environmental Excellence Certification in 2021

Social Achievements

• Implemented flexible working arrangements and pandemic prevention measures
• Organised five Eat Well, See Well and Exercise Well activities under TWG Healthier & Happier Wellness Programs
• No employees were laid off or experienced pay reduction during the COVID-19 outbreak

Governance Achievements

• Developed Anti-corruption Policy and revised Whistleblowing Policy
• Provided ICAC Integrity training for employees
• No breaches of laws and/or regulations in the Group during the reporting year

Climate Goals & Targets

Environmental Challenges

• Climate crisis and potential threat to supply chain
• Food fraud
• Growing sustainability demands from consumers

Mitigation Strategies

• Board reviews climate-related risks annually; developed Climate Change Policy and advanced climate risk assessment
• Obtaining raw materials from diverse sources
• Improved traceability of raw materials; Rainforest Alliance Chain of Custody (CoC) Certification
• Emergency and Product Recall Policy; regular evaluations and mock recalls
• Supplier assessments considering ESG performance; responsible sourcing from Rainforest Alliance certified farms

Supply Chain Management

Supplier Audits: 30% of suppliers audited annually; 15 suppliers audited on-site in Dongguan

Responsible Procurement

• Supplier assessments considering ESG performance
• Social Responsibility Statement and Environmental Protection Agreement required from suppliers
• Prioritising suppliers with HACCP, ISO 14001, and ISO 22000 certifications
• Rainforest Alliance Certification for coffee beans

Climate-Related Risks & Opportunities

Physical Risks

• Typhoon
• Extreme precipitation
• Water stress
• Drought
• Extreme heat/temperature rise

Transition Risks

• Policy and legal risk
• Market risk

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 9001:2015, ISO 22000:2018, HACCP, FSSC 22000 Version 5.1, Rainforest Alliance Certification, ISO 14001

Sustainable Products & Innovation

• Low-sugar instant products
• Clean label items
• OEM sustainable coffee

Awards & Recognition

• Hong Kong Best Enterprise Award 2022
• Hong Kong Awards for Environmental Excellence Certification 2021

Environmental Metrics

ESG Focus Areas

• Products
• Employees
• Environment
• Community

Environmental Achievements

• Achieved 1.3% water consumption reduction target by 2025 (baseline year 2019)
• Dongguan plant successfully achieved all environmental objectives in 2023 (eliminating fire accidents, hazardous chemical leakages, meeting wastewater and noise emission standards, achieving 100% hazardous waste recycling rate)

Social Achievements

• Implemented new employee benefits policies (one-day birthday leave, three-day paid marriage leave)
• No cases of non-compliance concerning advertisement and labelling of products or customer data privacy
• No instances of human and labour rights violations, including child or forced labour

Governance Achievements

• Reviewed and enhanced Whistleblowing Policy for clearer guidance on complaints
• Provided ICAC Integrity training for employees in Hong Kong
• No reported cases of non-compliance regarding bribery, extortion, fraud and money laundering

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events (typhoons, extreme precipitation, drought, extreme heat, sea level rise)
• Aggressive government policies enforcing transition to low-carbon economy
• Technology transformation leading to displacement of old systems

Mitigation Strategies

• Diversifying sources of raw materials
• Developing rigorous climate risk assessment strategies
• Setting medium-term energy and water reduction targets for 2025
• Conducting climate risk assessment to identify significant physical and transition risks
• Developing a 3-year TCFD Roadmap to strengthen climate change management capabilities
• Engaging a third-party consultant to enhance climate risk assessment
• Diversifying suppliers to reduce reliance on a single source

Supply Chain Management

Supplier Audits: 15 on-site audits and 8 online audits/year

Responsible Procurement

• Supplier screening and assessments
• Prioritizing suppliers with certifications (HACCP, ISO 14001, ISO 22000)
• Requiring Social Responsibility Statement and Environmental Protection Agreement
• Conducting annual evaluations of suppliers
• Monitoring working conditions and agricultural practices

Climate-Related Risks & Opportunities

Physical Risks

• Typhoon/Extreme precipitation
• Water stress
• Drought
• Extreme heat/temperature rise
• Sea level rise

Transition Risks

• Policy and legal risk (aggressive government policies)
• Technology risk (technology transformation)

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 9000:2015, ISO 9001:2015, ISO/TS 22002 –1:2009, ISO 22000:2018, ISO 14001:2015, FSSC 22000 Version 5.1, SQMS, Rainforest Alliance

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Diamond Enterprise at GS1 Hong Kong Quality Food Scheme Plus
• Hong Kong Top Brands Award
• Hong Kong Awards for Environmental Excellence Certification
• Energywi$e Certificate (Good Level) by the Hong Kong Green Organization Certification