Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced rubbish bag consumption at offices
• Recycling non-hazardous factory waste
• Paperless office initiatives
• Promoting vegetarian diet to reduce polluting emissions

Social Achievements

• Group-wide training programme
• Strengthened bonds with staff and their families through activities like Family Sports Day and Christmas party
• Implemented occupational safety training for all staff
• Improved work and life balance initiatives

Governance Achievements

• Implemented corruption prevention measures
• Established clear procedures for supplier selection and factory inspection

Climate Goals & Targets

Environmental Challenges

• Reducing energy and water consumption
• Managing waste and improving recycling
• Maintaining high standards in supply chain management
• Ensuring product quality and safety

Mitigation Strategies

• Implemented energy-saving measures
• Improved waste management and recycling practices
• Developed supplier selection practices and procedures
• Established quality accreditation processes

Supply Chain Management

Responsible Procurement

• Supplier selection practices and procedures

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced paper consumption and rubbish bag consumption at offices
• Reduced plastic bag use in retail and export businesses
• Used high technology to foster conservation in interior decoration and renovation business
• Promoting vegetarian diet to reduce polluting emissions

Social Achievements

• Implemented group-wide training program
• Improved staff health and safety
• Improved work and life balance
• Provided staff benefits

Governance Achievements

• Implemented corruption prevention measures

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Maintaining high quality standards

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented quality verification processes

Supply Chain Management

Responsible Procurement

• Supplier selection practices and procedures

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced CO2e emissions from 1,655 tonnes in 2019 to 1,474 tonnes in 2020.
• Reduced electricity consumption from 2,012,696 kWh in 2019 to 1,477,219 kWh in 2020.
• Reduced water consumption from 23,046 tonnes in 2019 to 11,965 tonnes in 2020 (Mainland China only).
• Paperless office and reduced rubbish bag consumption at offices.
• Reduced plastic bag use in retail and export businesses.
• Promoting vegetarian diet to reduce polluting emissions.

Social Achievements

• Implemented group-wide training programs for various grades.
• Improved staff health and safety with various initiatives.
• Improved work-life balance with various initiatives.
• Implemented staff development and training programs.

Governance Achievements

• Implemented corruption prevention measures.
• Established managers’ committee in China headquarters for oversight and communication.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Maintaining high standards across all suppliers

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented factory inspection exemption system
• Strengthened supplier selection practices and procedures

Supply Chain Management

Responsible Procurement

• Supplier Selection Practices and Procedures for Interior Decoration and Renovation Business
• Supplier Selection Practices and Procedures for Apparel Export Business
• Supplier Selection Practices and Procedures for Retail Business in Hong Kong (Jeanswest)

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced paper carton boxes used by Changhong from 1,931 in 2020 to 820 in 2021.
• Reduced paint residues collected by Changhong from 1.4 tonnes in 2020 to 1 tonne in 2021.
• Reduced plastic bags used by Jeanswest from 16,600 in 2020 to 14,993 in 2021.
• Implemented waste sorting at China headquarters.
• Promoted vegetarian diet in Huizhou staff canteen every Wednesday.

Social Achievements

• Organized COVID-19 vaccination promotion and support for staff.
• Organized various health-related activities for staff (annual health checkups, seminars on depression, first aid workshops).
• Provided comprehensive staff benefits including insurance, housing provident fund, and various leaves.
• Implemented a group-wide training program with specified training hours per employee.
• Established communication channels including management review meetings, managers’ committee, newsletters, and social media.

Governance Achievements

• Held “ICAC-Corruption Prevention Seminar” and “ICAC-Integrity Management of Retail Business Self-learning Online Course” for staff.
• Implemented strict anti-corruption policy and guidelines.
• No litigation against the Group or its staff for corrupt activities during the reporting period.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted business operations and slowed down renovation projects in 2020.
• Climate change could induce extreme weather conditions affecting business.
• Potential risks associated with supply chain disruptions.

Mitigation Strategies

• Implemented energy-saving measures (LED lighting, upgraded air-conditioning system, smart environment control system).
• Adopted water-saving production methods and machinery.
• Implemented waste sorting and reduction initiatives.
• Engaged in supplier assessments to manage environmental and social risks.
• Implemented a factory inspection exemption system to improve quality and internal control.

Supply Chain Management

Supplier Audits: 376 authorized suppliers (Interior Decoration & Renovation); 171 authorized suppliers (Apparel Export)

Responsible Procurement

• Supplier selection based on GB/T19001-2016, GB/T24001-2016, ISO45001:2018, GB/T50430-2017.
• Adherence to SA8000 for major suppliers.
• Use of “Supplier Inspection Form” and “Supplier Commitment Agreement”.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, rainstorms, flooding

Transition Risks

• Regulatory changes on environmental protection and emissions control

Opportunities

• Adoption of energy-efficient and environmental-friendly means of production

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities on the Stock Exchange

Certifications: ISO 14001, ISO 9001, ISO 45001, SA8000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards received by GSE and its subsidiaries (see page 28-30)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced plastic bag usage in retail (Jeanswest): 8,497 bags in 2022 vs 14,993 in 2021
• Reduced carton boxes and paper pallets in export business
• Promoted vegetarian diet in staff canteens
• Implemented waste sorting in Mainland China headquarters
• Installed energy-saving LED tubes in offices and retail stores
• Upgraded central air-conditioning system in Mainland China Headquarters to save energy

Social Achievements

• Organized health talks and free Chinese medicine consultation in Mainland China Headquarters
• Organized online seminars on various health topics and COVID-19 prevention
• Implemented “Excellent Performance Management Project” in Mainland China Headquarters, resulting in staff obtaining professional certificates
• Provided comprehensive staff benefits including labour insurance, social insurance, housing provident fund, etc.
• Reduced work-related injuries (1 in 2022 vs 5 in 2021)

Governance Achievements

• Reviewed and established whistleblowing procedures in “Employee Anti-Corruption and Anti-Bribery Policy”,
• Held online “ICAC-Corruption Prevention Seminar” for staff

Climate Goals & Targets

Environmental Challenges

• Increased direct and indirect emissions from Changhong due to sped-up renovation projects and COVID-19 pandemic
• Increased electricity consumption by Changhong due to sped-up renovation projects and COVID-19 pandemic
• Increased water consumption by Changhong due to sped-up renovation projects and COVID-19 pandemic
• Impact of climate change on business operations (extreme weather events)
• Global economic impact and COVID-19 pandemic affecting overseas manufacturer exploration

Mitigation Strategies

• Implemented Activity-based Carbon Footprint Modelling (ACFM) to manage carbon emissions
• Encouraged suppliers to use ACFM
• Used pulse filter cartridge dust collector, two-tier filtering, an activated charcoal absorber, and desorption-catalytic combustion equipment system to treat exhaust fumes from spray paint
• Collected paint residues by qualified waste management plant
• Employed logistic suppliers using Euro 5 Standard vehicles for Jeanswest
• Minimized product transfer frequency for Jeanswest
• Implemented energy-saving measures (LED lighting, upgraded air-conditioning, smart environment control system)
• Implemented water-saving production methods and regular pipe inspections
• Promoted paperless office and waste reduction guidelines

Supply Chain Management

Supplier Audits: 322 (Interior Decoration & Renovation), 153 (Apparel Export)

Responsible Procurement

• Quality Management Systems – Requirements GB/T19001–2016
• Environmental Management Systems – Requirements with Guidance for Use GB/T24001–2016
• Occupational Health and Safety Management System – Requirements with guidance for use ISO45001:2018
• Code for Quality Management of Engineering Construction Enterprises – GB/T50430–2017
• Social Accountability System SA8000

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, rainstorms, flooding

Transition Risks

• Laws and regulations on environmental protection and emissions control

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities on the Stock Exchange

Certifications: ISO 14001, ISO 9001, ISO 45001, SA8000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards listed in section 9