Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Staff development
• Community investment
• Product quality
• Compliance management

Environmental Achievements

• Reduced coal consumption by more than 18% compared to 5 years ago
• Achieved water reuse rate of more than 80% in production
• Lowered water discharge to less than 10 m³/metric ton of paper produced
• Successfully reduced smoke and sulphur by more than 99.9% and 90% respectively
• 98% of packaging paper produced from recovered paper

Social Achievements

• Maintained employee salaries at competitive levels and reviewed annually
• Provided internal training and career ladder for employees
• Organized recreational activities for employees and their families
• Established an employees’ welfare fund
• Complied with all local labour requirements

Governance Achievements

• Complied with the Code on Corporate Governance Practices
• Established Audit Committee, Remuneration Committee, and Nomination Committee
• Implemented a policy on Board diversity
• Established a risk management framework
• Implemented a system for the prevention and control of occupational diseases

Climate Goals & Targets

Environmental Challenges

• Slackened demand for downstream end paper products
• Changes in China’s waste paper policy and the global waste paper market
• Economic climate and individual market performance
• Loss of key individuals or the inability to attract and retain talent
• Customers’ credit risk

Mitigation Strategies

• Developing a vertical business model covering pulp manufacture and recycling of waste paper
• Expanding scale, controlling costs and strengthening production capacity
• Implementing strategies to develop and strengthen penetration of relevant markets
• Regular reviews of recruitment and retention practices, remuneration packages and succession planning
• Careful evaluation of customers’ financial conditions and credit history

Supply Chain Management

Responsible Procurement

• Stringent supplier assessment mechanism
• System on Procurement and Suppliers Management
• Safety management system targeting suppliers and sub-contractors

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Environment-friendly products (unbleached bamboo pulp, recycle corrugated board, recycled grey back coated duplex white board and unbleached tissue paper)

Awards & Recognition

• National Outstanding Enterprise Proactively Fulfilling Social Responsibility
• Hong Kong-Guangdong Cleaner Production Partner (Manufacturing)
• Environment-Friendly Enterprise
• Cleaner Production Enterprise in Guangdong
• Outstanding Labour Law Compliant Enterprise in Guangdong
• Advanced Energy Conversation Unit
• Ecological Improvement and Environmental Protection

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Occupational Health and Safety
• Employee Welfare
• Community Investment
• Supply Chain Management
• Anti-corruption

Environmental Achievements

• Achieved water re-use by the rate of more than 80% in its production and water discharge less than 10 m3 per tonne of paper produced.
• Reduced smoke and sulphur by more than 99.9% and 90% respectively.
• Sewage discharged by the Group’s operations has achieved more than 99.5% of pollutants removal.
• Overall energy consumption per tonne of paper produced by the Group was less than 0.30 tonne of standard coal

Social Achievements

• Launched a number of charity projects to help the poor and the disabled.
• Improved labor management mechanism and enhanced staff welfare.
• Maintained provident fund and social insurances for its employees.
• Arranged convenient accommodation and meals for employees and their families.

Governance Achievements

• Established an anonymous whistleblowing mechanism for employees.
• Regularly provide anti-corruption trainings to the management and employees.
• All employees are required to abide by the “Standards for Commercial Ethics”.

Climate Goals & Targets

Environmental Challenges

• Rising costs due to rising energy prices and the restricted international shipping capacity.
• Tight supply of waste paper as a raw material and rising pulp prices.
• Difficulties of control in waste water, non-hazardous waste, consumption of water and coal due to the rapid increase in international price of coal and issuance of tightened environmental protection policies.

Mitigation Strategies

• Continued to consolidate upstream resources and develop a vertical business model covering pulp-manufacturing and waste paper recycling.
• Continued to expand its scale, control costs, and increase production capacity.
• Significantly increased purchases of domestic waste paper and set up plants overseas to process waste paper raw materials before importing to China.
• Improving operation workflow and adopting relevant measures to reduce energy consumption and emissions.

Supply Chain Management

Supplier Audits: Comprehensive assessment on suppliers and contractors in accordance with ISO guidelines.

Responsible Procurement

• Policy on Procurement and Suppliers Management
• Sustainable procurement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (e.g., rainstorm, flood, drought)

Reporting Standards

Frameworks Used: Appendix 27 “Environmental, Social and Governance Reporting Guide” of the Main Board Listing Rules of Hong Kong Exchange

Certifications: ISO9001, ISO14001, FSC-COC, IECQ QC 080000, ISO45001, ISO50001

Sustainable Products & Innovation

• Environmentally friendly test linerboard
• Environmentally friendly coated white linerboard

Awards & Recognition

• Top 200 Enterprises in China Light Industries 2021
• Top 10 Enterprises of Paper Industry in China Light Industries 2021
• High and New Technology Enterprise
• Quality Brand Incubator
• National Level Green Factory
• Advanced collective enterprise for energy conservation and circular economy in 2020
• Excellent enterprise for energy-saving and emission reduction in 2021
• AA Grade Enterprise for Quality and Credit for Industrial Enterprises in Jiangsu Province in 2021
• Enterprise with Harmonious Labor Relations
• Demonstration Unit for Harmonious Labor Relations
• Care and Respect for the Elderly Unit
• National Outstanding Enterprise Proactively Fulfilling Social Responsibility
• Hong Kong-Guangdong Cleaner Production Partner (Manufacturing)
• Environmentally Friendly Enterprise
• Cleaner Production Enterprise in Guangdong
• Outstanding Labour Law Compliant Enterprise in Guangdong
• Advanced Energy Conversation Unit
• Advanced Ecological Improvement and Environmental Protection Unit

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Occupational safety
• Employee well-being
• Community investment
• Supply chain management
• Anti-corruption
• Data privacy

Environmental Achievements

• Reduced overall air emissions by 25% (compared to 2019 baseline)
• Reduced waste water emissions by 4% (compared to 2019 baseline)
• Reduced annual unit product coal consumption at major plants by 2% (compared to 2019 baseline)
• Reduced annual unit product water consumption at major plants by 1% (compared to 2019 baseline)
• Achieved water reuse rate of more than 80% in production
• Reduced smoke and sulphur dioxide emissions by more than 99.9% and 90% respectively
• 99.5% of pollutants removed from sewage discharged
• Reduced greenhouse gas emissions by 8% (compared to 2021)
• 98% of packaging paper made from recovered paper

Social Achievements

• Launched various training programs for employees, resulting in a significant increase in training hours
• Improved employee welfare and development
• Maintained competitive salary levels and provided annual reviews
• Established an anonymous whistleblowing mechanism
• Implemented anti-discrimination policies
• Improved occupational safety management, resulting in ISO45001 certification for several plants

Governance Achievements

• Implemented stringent anti-corruption policies and procedures
• Established a confidential management system for data protection
• Complied with all applicable laws and regulations

Climate Goals & Targets

Environmental Challenges

• Increased sludge generation due to the shift to domestic wastepaper
• Increased machinery downtimes for repair and maintenance
• Tightened environmental protection policies restricting raw material imports
• COVID-19 pandemic impacting operations and supply chains

Mitigation Strategies

• Built a waste incinerator to treat sludge internally
• Strengthened equipment management to reduce downtimes
• Increased purchases of domestic waste paper
• Established plants overseas to process waste paper raw materials
• Implemented stringent pandemic prevention and control measures

Supply Chain Management

Responsible Procurement

• Comprehensive assessment of suppliers and contractors based on ISO guidelines
• Sustainable procurement practices
• Emphasis on environmentally friendly products and services

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (e.g., rainstorms, floods, droughts)

Reporting Standards

Frameworks Used: HKEx Reporting Guide

Certifications: ISO 9001, ISO 14001, FSC-COC, IECQ QC 080000, ISO 45001, ISO 50001

Sustainable Products & Innovation

• Environmentally friendly test linerboard
• Environmentally friendly coated white linerboard

Awards & Recognition

• Top 10 Enterprises of Paper Industry in China Light Industries
• National Green Factory
• Demonstration Unit for Harmonious Labor Relations
• Energy Efficiency “Leaders” in Guangdong Province’s Paper Manufacturing Industry (Boxboard)
• Chongqing Specialized and New Enterprises
• 2022 Vice President of Science and Technology of Jiangsu Province
• 2022 Outstanding Taxpaying Enterprise
• 1992-2022 Outstanding Contribution Enterprise
• Sustainable Enterprise 2022

Environmental Metrics

ESG Focus Areas

• Green development
• Energy saving
• Emission reduction
• Sustainable development

Environmental Achievements

• Achieved goals of saving energy and reducing emissions via recycling waste paper and employing advanced production technologies
• Developed and launched various environmentally-friendly products

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Volatile prices of waste paper and pulp

Mitigation Strategies

• Flexibly allocating raw material supply, giving full play to the advantage of its business model

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Various environmentally-friendly products

Awards & Recognition

• Not disclosed