Hoe Leong Corporation Ltd.
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Energy Consumption:3,761 MWh/year
Water Consumption:6,043 m3/year
Waste Generated:476 tons/year (iron from recycling)
ESG Focus Areas
- Economic performance
- Energy consumption
- Occupational health and safety
- Corporate governance
- Climate-related risks
Environmental Achievements
- Replaced all fluorescent lighting at the Singapore corporate headquarters with energy-efficient LED lighting
- Implemented changes to the cleaning process at KKBM to reduce water usage
- Improved/replaced certain machinery at the new manufacturing facility in China to enable the use of recycled water
- Sold 476 tonnes of iron from unsellable inventory items to metal collectors for recycling
Social Achievements
- Implemented staff welfare initiatives, such as festive gifts
- Provided employees with medical benefits and medical insurance
- Provided maternity, paternity, and childcare leaves in accordance with local laws and regulations
Governance Achievements
- Substantial adherence to the Code of Corporate Governance 2018
- Established a 'Code of Business Conduct and Ethics for Employees' covering areas such as anti-corruption and conflict of interest
- Implemented a whistle-blowing policy
Climate Goals & Targets
Medium-term Goals:
- Set and monitor climate-related targets relating to GHG emissions and water and energy consumption
Short-term Goals:
- Zero occurrence of fatal workplace accident and ill-health in FY2023
- Formalise and conduct regular in-house training on anti-corruption for employees susceptible to corruption with effect from FY2023
Environmental Challenges
- Slowing economic activities impacting sales in North America and Europe
- COVID-19 lockdowns in China hindering production in the first half of 2022
- One workplace accident resulting in injury requiring medical review of over 6 months
Mitigation Strategies
- Reorganized Trackspares (Australia) Pty Ltd and improved sales team performance
- Launched the ‘Track Frame Rebuild and Exchange Programme’
- Relocated the manufacturing facility in Kunshan City (China) to a new premise
- Intensified inventory clearance exercise
- Vacated warehouse premise leading to rental savings
- Implemented new guards for grinders and ensured longer gloves are worn by workshop staff
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather patterns and temperature increases could lead to damage to the Group’s premise and equipment and harm to the health and well-being of our employees.
Transition Risks
- Increase in electricity and water pricing could have an adverse impact on the Group’s profitability.
Reporting Standards
Frameworks Used: GRI Standards (GRI 1: Foundation 2021)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:1,769.42 tCO2e/year (Scope 1 & 2)
Total Energy Consumption:3,964 MWh/year
Water Consumption:5,690 m3/year
Waste Generated:88 tons/year (recyclable iron)
Carbon Intensity:0.04 tonnes CO2-e/million S$ revenue
ESG Focus Areas
- Economic performance
- Energy consumption
- Climate change
- Occupational health and safety
- Employment practices
- Business conduct and ethics
- Anti-corruption practices
- Legal and regulatory compliance
Environmental Achievements
- Lower water usage due to changes in cleaning processes and machinery improvements at the China manufacturing facility.
- Sold 88 tonnes of recyclable iron (FY2022: 476 tonnes) during inventory clearance.
Social Achievements
- Zero fatal workplace accidents and ill-health incidents.
- Implemented staff welfare initiatives such as festive gifts and medical benefits.
Governance Achievements
- Substantial adherence to the Code of Corporate Governance 2018.
- No confirmed incidents of corruption.
- Anti-corruption briefing conducted for executive directors and key executives.
Climate Goals & Targets
Long-term Goals:
- Achieve net-zero GHG emissions.
Medium-term Goals:
- Adopting higher energy-efficient features and fittings.
- Reducing energy consumption to achieve net-zero GHG emissions.
Short-term Goals:
- Monitoring energy usage and promoting energy-saving habits.
- Assessing energy usage in operations and identifying areas for improvement.
Environmental Challenges
- Slowing economic activities impacting sales in North America and Europe.
- Higher interest rates, unfavorable exchange rates, and supply chain disruptions.
- Clearing old and slow-moving inventories.
Mitigation Strategies
- Diversification into newer areas within Europe.
- Expanding track frame rebuild capacity in Australia.
- Exploring new markets to diversify revenue streams.
- Transitioning away from the stockist model and clearing older inventory.
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather patterns and temperature increases.
Transition Risks
- Increase in electricity and water pricing.
Reporting Standards
Frameworks Used: GRI Standards (GRI 1: Foundation 2021)