Climate Change Data

Zhi Sheng Group Holdings Limited

Climate Impact & Sustainability Data (2020, 2021-01 to 2022-06, 2022-07 to 2023-06, 2023-07 to 2024-06)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:461.7 tonnes of CO2-e (Sichuan Greenland)
Scope 1 Emissions:52.8 tonnes of CO2-e (Sichuan Greenland)
Scope 2 Emissions:408.9 tonnes of CO2-e (Sichuan Greenland)
Total Energy Consumption:629.13 MWh (Sichuan Greenland)
Water Consumption:7,248 m3 (Sichuan Greenland)
Waste Generated:10.95 tonnes hazardous waste; 160 tonnes non-hazardous waste (Sichuan Greenland)
Carbon Intensity:9.22 tonnes of CO2-e/unit of production (Sichuan Greenland)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Achieved an average 30% decrease in air pollutant emissions (Sichuan Greenland).
  • Total GHG emission decreased by over 10% (Sichuan Greenland).
  • Reduced non-hazardous waste by 13.5% (Sichuan Greenland).

Social Achievements

  • No non-compliance regarding employment noted.
  • No industrial accidents, work-related accidents, or lost days due to work injury (Sichuan Greenland).
  • Provided approximately 40 hours of on-the-job training.

Governance Achievements

  • No incident of corruption, bribery, extortion, fraud, and money laundering.

Climate Goals & Targets

Environmental Challenges

  • Limited services provided by the qualified waste collection company during the COVID-19 lockdown, resulting in accumulated hazardous waste.
  • Accidental leakage of water pipe (Sichuan Greenland).
  • Potential physical impacts of climate change on operations.
Mitigation Strategies
  • Expanded isolated storage area for hazardous waste and engaged another qualified waste collection company.
  • Arranged repairs of the water pipe immediately.
  • Robust enterprise risk management and strategic planning; environmental initiatives to reduce GHG emissions.

Supply Chain Management

Supplier Audits: Annual review

Responsible Procurement
  • Vendor selection criteria including Production License of Industrial Products and Timber and Bamboo Operation and Processing License

Climate-Related Risks & Opportunities

Physical Risks
  • Changes in rainfall and storm patterns and intensity
Transition Risks
  • Laws and regulations which could lead to increased costs for electricity

Reporting Standards

Frameworks Used: Appendix 20 to the rules governing the listing of securities on GEM (ESG Reporting Guide)

Certifications: ISO 14001 (Sichuan Greenland)

Reporting Period: 2021-01 to 2022-06

Environmental Metrics

Scope 1 Emissions:41.0 tonnes of CO2-e (Sichuan Greenland, 12-month pro-rata)
Scope 2 Emissions:438.4 tonnes of CO2-e (Sichuan Greenland, 12-month pro-rata)
Total Energy Consumption:674.42 MWh (Sichuan Greenland, 12-month pro-rata)
Water Consumption:7,027.20 m3 (Sichuan Greenland, 12-month pro-rata)
Waste Generated:250 tonnes (Sichuan Greenland, 18 months); 167 tonnes (12-month pro-rata)
Carbon Intensity:10.34 tonnes of CO2-e/unit of production (Sichuan Greenland, 12-month pro-rata)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced air pollutant emissions by up to 32% (12-month pro-rata basis) due to downsizing of vehicle fleet and use of electric trucks.
  • Improved hazardous waste intensity by 14% (12-month pro-rata basis) due to changes in sales mix and government regulations.
  • Obtained ISO 14001 accreditation for environmental management system.

Social Achievements

  • Launched a series of training programs for employees, including factory safety, waste management, and orientation training.
  • Provided approximately 40 hours of on-the-job training.
  • Offered maximum 98 days of maternity leave and 7 days of childcare leave.

Governance Achievements

  • Established an ESG Task Force to oversee ESG processes and risk management.
  • Provided 3 hours online training on anti-corruption matters to directors and senior management.
  • Implemented a system to prevent commercial bribery and corruption.

Climate Goals & Targets

Short-term Goals:
  • Reduce air pollutants emission by 5% to 8% by 2025.
  • Reduce GHG emission intensity by 3% to 5% by 2025.
  • Reduce water consumption density by 5% by 2025.
  • Reduce energy usage by 3% to 5% by 2025.
  • Reduce density of packaging materials by 5% by 2025.
  • 5% reduction in both hazardous waste and non-hazardous waste generation by 2025.

Environmental Challenges

  • Potential physical impacts of climate change on operations (changes in rainfall and storm patterns).
  • Increased costs for electricity due to potential laws and regulations.
  • Two work-related accidents resulting in 38 lost staff working days at Sichuan Greenland.
Mitigation Strategies
  • Robust enterprise risk management and strategic planning.
  • Environmental initiatives to reduce GHG emissions (energy and water efficiency, reduced air pollutant emission).
  • Providing staff with driving safety and fire prevention courses and conducting fire drills.

Supply Chain Management

Supplier Audits: Annual review

Responsible Procurement
  • Vendor selection criteria (price, quality, Production License of Industrial Products, Timber and Bamboo Operation and Processing License, environmental and social certifications).

Climate-Related Risks & Opportunities

Physical Risks
  • Changes in rainfall and storm patterns and intensity
Transition Risks
  • Increased costs for electricity due to potential laws and regulations

Reporting Standards

Frameworks Used: Appendix 20 to the rules governing the listing of securities on GEM (ESG Reporting Guide)

Certifications: ISO 14001 (Sichuan Greenland)

Reporting Period: 2022-07 to 2023-06

Environmental Metrics

Total Carbon Emissions:376.7 tonnes of CO2e (Sichuan Greenland)
Scope 1 Emissions:21.3 tonnes of CO2e (Sichuan Greenland)
Scope 2 Emissions:355.4 tonnes of CO2e (Sichuan Greenland)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:546.74 MWh (Sichuan Greenland), 8.5 MWh (WNT)
Water Consumption:4,184.00 m3 (Sichuan Greenland), 2.20 m3 (WNT)
Waste Generated:140 tonnes (Sichuan Greenland), Null (WNT)
Carbon Intensity:8.48 tonnes of CO2e/unit of production (Sichuan Greenland)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced GHG emission intensity by 16.8% (Sichuan Greenland), reduced air pollutant emissions by 86% (Sichuan Greenland)
  • Reduced hazardous waste intensity by 55.5% (Sichuan Greenland)
  • Reduced non-hazardous waste by 16.2% (Sichuan Greenland)
  • Reduced electricity consumption by 5.6% (WNT)

Social Achievements

  • No work-related accidents at Sichuan Greenland during the reporting period
  • Provided approximately 39 hours of on-the-job training
  • Organized health talks and safety training for employees

Governance Achievements

  • Established an ESG Task Force
  • Provided anti-corruption training (2.5 hours)

Climate Goals & Targets

Short-term Goals:
  • Reduce air pollutant emissions by over 5% by 2025 (Sichuan Greenland)
  • Reduce GHG emission intensity by more than 5% by 2025 (Sichuan Greenland)
  • Reduce hazardous and non-hazardous waste generation by more than 5% by 2025 (Sichuan Greenland)
  • Reduce energy usage by more than 5% by 2025 (Sichuan Greenland)
  • Reduce water consumption intensity by more than 3% by 2025 (Sichuan Greenland)
  • Reduce density of packaging materials by 5% by 2025 (Sichuan Greenland)
  • Reduce electricity use by 3% by 2025 (WNT)

Environmental Challenges

  • Recurrent power cuts impacting production (Sichuan Greenland)
  • Aging water pipes causing leakage (Sichuan Greenland)
  • Stringent requirements on diesel-fueled vehicles (Sichuan Greenland)
Mitigation Strategies
  • Downsized vehicle fleet and transitioned to electric trucks (Sichuan Greenland)
  • Strengthened water management to prevent leakage (Sichuan Greenland)
  • Upgraded paint waste gas treatment (Sichuan Greenland)
  • Implemented energy-saving and emission reduction measures (Sichuan Greenland)

Supply Chain Management

Supplier Audits: Annual review

Responsible Procurement
  • Supplier selection criteria based on qualifications, certifications (ISO 14001, ISO 9001), and on-site inspections

Climate-Related Risks & Opportunities

Physical Risks
  • Changes in rainfall and storm patterns and intensity
Transition Risks
  • Increased costs for electricity

Reporting Standards

Frameworks Used: Appendix 20 to the rules governing the listing of securities on GEM — Environmental, Social and Governance Reporting Guide

Certifications: GB/T 24001-2016/ISO 14001:2015 (Sichuan Greenland), GB/T 45001:2020/ISO 45001:2018 (Sichuan Greenland), China Environmental Protection Certification (Sichuan Greenland), China Environmental Labeling Product Certification (Sichuan Greenland), China Environmental Labeling (Type II) Product Certification (Sichuan Greenland), Furniture Product Hazardous Substance Limitation Certification (Sichuan Greenland), Low VOCs Furniture Product Certification (Sichuan Greenland), Green Supply Chain Management System Certification (Five-Star Rating) (Sichuan Greenland), Environmental Guardian Product Evaluation Certification (Sichuan Greenland), GB/T 19001:2016/ISO 9001:2015 (Sichuan Greenland)

Third-party Assurance: Not disclosed

Awards & Recognition

  • 2022 Sichuan Provincial Local Excellent Office Furniture Product Recommended Catalog
  • 2023 Recommended Enterprises for Local Excellent Furniture Products in Sichuan Province

Reporting Period: 2023-07 to 2024-06

Environmental Metrics

Total Carbon Emissions:253.3 tonnes of CO2e (Sichuan Greenland) + 5.36 tonnes of CO2e (WNT)
Scope 1 Emissions:14.4 tonnes of CO2e (Sichuan Greenland)
Scope 2 Emissions:238.9 tonnes of CO2e (Sichuan Greenland)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:367.59 MWh (Sichuan Greenland) + 8.25 MWh (WNT)
Water Consumption:2,017.90 m3 (Sichuan Greenland) + 2.60 m3 (WNT)
Waste Generated:126 tons (Sichuan Greenland) + Null (WNT)
Carbon Intensity:7.80 tonnes of CO2e/unit of production (Sichuan Greenland, 2024)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced total GHG emissions by 32.7% and GHG emission intensity by 8.0% at Sichuan Greenland.
  • Reduced air pollutant emissions by 28% at Sichuan Greenland.
  • Reduced electricity consumption by 5.6% at WNT.
  • Reduced total water consumption by 51.8% and water consumption intensity by 37.1% at Sichuan Greenland.

Social Achievements

  • Launched a series of training programs for employees, providing approximately 42 hours of on-the-job training.
  • Organized employee participation in tree-planting activities.
  • Provided visits to families of sick employees and nursing homes.

Governance Achievements

  • Established an ESG Task Force to review and supervise ESG processes and risk management.
  • Implemented a system to prevent commercial bribery and corruption.
  • Provided 3 hours of anti-corruption training to key personnel.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Reduce air pollutant emissions by over 8% by 2025 (Sichuan Greenland)
  • Reduce GHG emission intensity by more than 5% by 2025 (Sichuan Greenland)
  • Reduce total GHG emission by 2% by 2025 (WNT)
  • Reduce electricity use by 2% by 2025 (WNT)
  • Reduce water consumption intensity by more than 5% by 2025 (Sichuan Greenland)
  • Reduce density of packaging materials by 5% by 2025 (Sichuan Greenland)
  • Reduce hazardous waste and non-hazardous waste generation by more than 5% by 2025 (Sichuan Greenland)

Environmental Challenges

  • Supply chain disruptions due to government restrictions on hazardous waste disposal.
  • Downturn in the furniture industry leading to decreased capacity utilization and workforce reduction.
Mitigation Strategies
  • Centralized disposal of accumulated hazardous waste.
  • Merging of positions to save labor costs.
  • Outsourcing/purchasing of furniture products to respond to higher environmental protection requirements.

Supply Chain Management

Supplier Audits: Annual review

Responsible Procurement
  • Supplier selection criteria based on price, quality, qualification certificates, and environmental, quality, and social certifications (e.g., ISO 14001, ISO 9001).

Climate-Related Risks & Opportunities

Physical Risks
  • Changes in rainfall and storm patterns and intensity.
Transition Risks
  • Laws and regulations leading to increased electricity costs.
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Appendix 20 to the rules governing the listing of securities on GEM (ESG Reporting Guide)

Certifications: GB/T 24001-2016/ISO 14001:2015 (Sichuan Greenland), GB/T 45001-2020/ISO 45001:2018 (Sichuan Greenland), China Environmental Protection Certification (Sichuan Greenland), China Environmental Labeling Product Certification (Sichuan Greenland), China Environmental Labeling (Type II) Product Certification (Sichuan Greenland), Furniture Product Hazardous Substance Limitation Certification (Sichuan Greenland), Low VOCs Furniture Product Certification (Sichuan Greenland), Green Supply Chain Management System Certification (Five-Star Rating) (Sichuan Greenland), Environmental Guardian Product Evaluation Certification (Sichuan Greenland), GB/T 19001-2016/ISO 9001:2015 (Sichuan Greenland)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed