Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability sourcing
• Sustainable mill and garment operations
• Product responsibility
• Supply chain management
• Energy saving management
• Social labor compliance
• Women Empowerment

Environmental Achievements

• Maxim has also started the sourcing of sustainable materials such as recycled polyester
• Supplier recognition from Walmart for joining and setting goals and showing results in Project Gigaton aimed at reducing emissions in global supply chain by 1 billion metric tons by 2030.
• Maxim has also started the sourcing of sustainable materials such as recycled polyester, which is a step forward to be climate positive in our value chain.
• We have become one of the partners that are committed to responsible cotton production and have committed to the five core principles of the Cotton LEADS™ Program as the foundation for a program that fosters the ability of supply chain entities to meet the world's demand for responsibly-produced cotton.

Social Achievements

• Empowering women makes sense for GLG where we believe that women in the retail supply chain not only play a crucial role for retail business, but their empowerment is crucial to the economic well-being of their families and communities.
• Women who earn an income typically invest 90 percent of it back into their families and their communities, helping to break the cycle of poverty.
• GLG aims to continue and train and creating opportunities for women in our product supply chains.
• The Group’s Singapore subsidiary, Ghim Li Global received certification from WeConnect International, a global network that connects women-owned businesses like GLG Corp to qualified multinational corporate buyers around the world.

Governance Achievements

• GLG has established a written policy designed to ensure compliance with ASX listing rule disclosure and accountability as senior executive level for compliance.
• The Company has implemented a Diversity Policy. This policy sets as a target 25% of all Board seats and management positions to be held by women.

Climate Goals & Targets

Environmental Challenges

• FY2019 was a challenging year for the Company as a whole, as we faced headwinds in sales efforts which resulted in lower sales by nearly US$5 million, mainly attributed to continued weakness in our end-customer retail apparel market in the U.S.
• lower sales from existing customers who experienced inventory glut and slowdown of their retail orders
• The trade war between U.S. and China bringing a major disruption to the supply chain especially for U.S. retailers who over-relied on China for production, having to shift production out of China to other countries.
• lower profitability in FY2019 arising from continuing losses incurred in the Vietnam factory, as well as start-up losses in the Cambodia factory in its first fiscal year of full production.

Mitigation Strategies

• The Company consciously improved its mix of customers by adding new customers in the U.S., despite seeing lower sales from existing customers who experienced inventory glut and slowdown of their retail orders.
• As GLG has no production presence in China, we were well-positioned to react to our customers’ needs with our deep, cultivated relationships and capabilities.
• The Board made the strategic decision to sell the factory business to an external party, Dragon Crowd Garment Inc.

Supply Chain Management

Responsible Procurement

• We are committed to avoid dealing with vendors who have any record of human rights violations or social issues such as the use of child labour, worker exploitation, etc.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Tough Cotton, Transdry, Anti-microbial, Liquid Cotton

Awards & Recognition

• Gold Guru award on Project Gigaton for 2019 Energy GHG emission reduction

Environmental Metrics

ESG Focus Areas

• Sustainable Fashion
• Environmental Sustainability
• Ethical Sourcing
• Climate Risk
• Modern Slavery

Environmental Achievements

• 30% Reduction in Energy Usage
• 30% Reduction in Waste (Recycling Program & 6S Management System)
• 50% Savings of Freshwater used in production
• All packaging with 100% recycled material
• 2,175Mt Reduction of Greenhouse Gases (2018 – 2022)
• 24,001.3Mt Reduction of Greenhouse Gases (2018-2022)
• 29.9Mt Reduction of Greenhouse Gases (2018-2022)
• Since 2017, as a group, we reduce 26,206.20 mt of CO2 emission

Social Achievements

• Social Cause – Environmental Tree planting and beach cleaning.
• Social Cause – Handicapped/Disabled Donation to Handicapped and Mentally Disabled.
• Social Cause – Elderly Donated garments to old folks home.
• Social Cause – Community Donated UOB annual charity S$10K.
• Social Cause – Children Donated S$10K to Eton-charity fund.
• Social Cause – Children Babes.org.sg event on Childminding Support.
• Social Cause – Community Donate S$5K to NKF Race

Governance Achievements

• Established a Code of Conduct
• Established a Whistleblower Policy
• Established an Anti-Bribery and Corruption Policy
• Implemented a Diversity Policy
• Formal Nomination & Remuneration Committee
• Formal Audit Committee

Climate Goals & Targets

Environmental Challenges

• Sudden decline in global sales due to COVID-19 pandemic
• Inventory issues stemming from shipping delays
• Inflation and soaring oil prices
• Reduced discretionary spending among end consumers
• Loss of a major customer
• Loss of sales orders from the impact of COVID-19
• Rising input costs
• Supply chain constraints
• Project delays
• Logistic disruptions

Mitigation Strategies

• Optimizing operations
• Refined supply chain dynamics
• Integrated lean manufacturing methodologies
• Strategies to safeguard against future disruptions
• Harnessing Digital 4.0 capabilities
• Collaborated closely with customers
• Cost reduction to streamline manpower cost
• Partnering with suppliers to modify design and construction
• Optimise marker efficiency and adjust fabric widths
• Digitalising processes for real-time data
• Installing renewable energy (solar)
• Installing reverse osmosis to recycle wastewater
• Switching to LED lights and installing transparent roofing
• Implementing recycling program and 6S waste management system
• Using 100% recycled material for packaging

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Strict supplier screening processes
• 100% compliance to customer RSL/MRSL (Restricted Substance List/Manufacturing restricted substance list) program in line ZDHC MRSL 2.0 guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: STEP-OEKOTEX (Maxim)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Pineapple Leaf Fabric
• Botanical dyes
• Functional fabrics

Awards & Recognition

• Macy’s vendor award
• Walmart Vendor award
• Cotton Inc USA Partner of the Year 2023

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental
• Social
• Governance

Environmental Achievements

• 30% Reduction in Energy Usage
• 30% Reduction in Waste
• 50% Savings of Freshwater used in production
• All packaging with 100% recycled material
• Reduction of 29,175 mt of CO2 emission since 2017
• Utilize back boiler condensate water to save 50% freshwater
• Install RO plant to recycle 30% of wastewater discharge
• LED Light
• Transparent roof project to reduce lighting usage
• Uses toxic-free chemical products
• 100% compliance to customer RSL/MRSL program in line ZDHC MRSL 2.0 guidelines

Social Achievements

• Launched "One Heart, One Mind, One Ghim Li" initiative integrating environmental and social efforts
• Obtained sustainability-linked loans from banks with annual carbon emission targets
• Completed RISE training at factories to empower female workers

Governance Achievements

• Established the “One Heart One Mind” group to organize ESG-related events
• Appendix 4E (Prelim Report) completed
• Appendix 4D (First Half of FY2024) financials statement reviewed and filed with ASX
• Annual Report FY2023 completed and made available
• Annual General Meeting of GLG Corp held
• Statutory Report FY2023 Completed and filed with ASX

Climate Goals & Targets

Environmental Challenges

• High inventory levels due to weak consumer spending
• Slowdown in procurement from customers
• Disruptions in the logistics supply chain due to the Ukraine war and the Red Sea crisis
• Soft consumer spending
• Price competition and lack of orders to meet optimal production capacity
• Rising input costs, supply chain constraints, and project delays
• High borrowing interest rate

Mitigation Strategies

• Partnerships in the Western Hemisphere for sourcing closer to the USA
• Streamlining operational costs and improving efficiency through proactive cost controls, job redesign, and digitalization efforts
• Securing new customers
• Partnering with suppliers to modify design and construction, optimise marker efficiency and adjust fabric widths
• Digitalising processes for real-time data and better line planning
• Installing renewable energy (solar energy)
• Installing a reverse osmosis plant to recycle wastewater

Supply Chain Management

Responsible Procurement

• Strict supplier screening processes
• 100% compliance to customer RSL/MRSL program

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Botanical dyes
• Functional fabrics
• Recycled polyester and regenerative cotton
• Pineapple leaf fabric
• CO2 capture clothing

Awards & Recognition

• Company of Good