Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic performance
• Market presence
• Procurement practices
• Anti-corruption
• Environmental responsibility
• Recruitment, retention and development
• Occupational health and safety
• Labor standards
• Local communities
• Customer health and safety
• Marketing and labeling
• Information security

Environmental Achievements

• Adopted a Group-level Health, Safety and Environment (HSE) policy effective January 1, 2017.
• Converted entire facility in Philippines to energy-efficient LED lighting between 2014 and 2016.
• Initiatives to reduce materials usage in watch manufacturing (Maurice Lacroix), such as consolidating warranty certificates and manuals.

Social Achievements

• Launched DKSH Fantree Academy, offering over 39 training programs.
• Implemented a new Compliance Incident Reporting and Investigations policy in 2017.
• Employs around ten deaf people from the local community in Malaysia.

Governance Achievements

• Enhanced anti-corruption policies adopted and communicated to all governance body members in June 2016.
• Implemented ISO 27001:2013 standard on information security management (certified in 2018).
• Harmonized operations with the EU General Data Protection Regulation (GDPR) and implemented a new Group Data Privacy Policy, a new Website Policy and a Global Privacy Governance Structure in May 2018.

Climate Goals & Targets

Environmental Challenges

• Data collection challenges for sustainability reporting, particularly in some areas.
• High integrity risks in some Asian markets.
• Varying standards among countries in human rights practices.
• Limited availability of qualified candidates in less developed markets.

Mitigation Strategies

• Working to enhance data collection and reporting over the next few years.
• Modeling anti-corruption program on FCPA and UK Bribery Act requirements.
• Considering centralized oversight of human rights practices with clear reporting lines.
• Offering competitive remuneration, benefits, and an Employer Value Proposition (EVP).

Supply Chain Management

Responsible Procurement

• Code of Conduct
• Supplier sustainability requirements (in Healthcare and Performance Materials)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 27001:2013 (Information Security Management)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved climate neutrality in Japan, Singapore, the Philippines, and Switzerland.
• Reduced CO2 emissions by 5%.
• Planted 50,000 trees.
• Implemented energy-efficient measures in distribution centers (Hong Kong and Singapore certified to ISO 14001:2015 and LEED Gold/Platinum).

Social Achievements

• Supported more than 40 social projects across Asia.
• 13-year partnership with Right to Play in Thailand, extended to include Liverpool FC Foundation, reaching 2,000 children and 1,500 communities.
• Employees received an average of 12 hours of training.

Governance Achievements

• Introduced sustainability policy and targets for the Executive Committee.
• Became a member of the Roundtable on Sustainable Palm Oil (RSPO).
• Linked Executive Committee compensation to sustainability efforts.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to unforeseen events (implied by COVID-19 mention)
• Reducing carbon emissions across all operations.
• Maintaining high safety standards in distribution and transportation.

Mitigation Strategies

• Offsetting carbon emissions in founding markets.
• Implementing energy efficiency initiatives (e.g., mobile printers, LED lighting, route optimization software).
• Investing in battery-operated vehicles.
• Promoting safe driving and work towards zero deaths and high-consequence injuries on roadways by 2025.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Focus on local suppliers whenever possible
• Stringent qualification processes for suppliers in Performance Materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2015 (Hong Kong and Singapore distribution centers), LEED Gold/Platinum (Hong Kong and Singapore distribution centers)

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

DKSH's business activities contribute to these goals through various initiatives described in the report.

Sustainable Products & Innovation

• Additives for pollution-absorbing coatings
• CO2-absorbing substance for building materials

Environmental Metrics

ESG Focus Areas

• Environmental responsibility
• Our people
• Our partners
• Our planet
• Diversity & Inclusion
• Local communities
• Climate change
• Responsible procurement
• Occupational health and safety
• Anti-corruption
• Customer health and safety
• Information security

Environmental Achievements

• 8% reduction in own carbon emissions year-on-year
• 100% renewable energy sourced at major food blending plant in the Philippines
• 1 million kWh energy saved in Thailand distribution centers (17% of total consumption)
• 80% reduction in wastewater management costs for a customer in Taiwan

Social Achievements

• Launched diversity, equity, and inclusion initiative
• Supported 43 charitable projects across Asia Pacific
• Expanded partnership with Right To Play and Liverpool FC Foundation
• More than 80,000 online learning and training sessions completed
• Employs 11 deaf people in Malaysia

Governance Achievements

• Established a clear governance structure for sustainability management
• Appointed a dedicated Board member for Sustainability
• Established a Sustainability Committee
• Introduced an Integrity Line
• Nearly 100% of workforce completed Code of Conduct training

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on operations and travel
• High attrition rates in South-East Asia and logistics sector
• Underrepresentation of women in senior leadership
• Corruption risks in some operating markets
• Data collection challenges in Myanmar due to political situation

Mitigation Strategies

• Ensured reliable delivery of essential goods during pandemic
• Developed a new Sustainability Framework
• Implemented initiatives to increase female and local representation in leadership
• Established a comprehensive compliance management system and program
• Introduced an Integrity Line for reporting misconduct
• Developed a more comprehensive guideline on waste management
• Implemented a group-wide “Faster – Leaner – Greener” project

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Ethical standards
• Stringent contract management procedures
• Due diligence procedures for contract manufacturers
• GMP and WHO standards for Favorex supply sources
• Responsible procurement standards for Maurice Lacroix suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 27001:2013 (Corporate Shared Services Center SAP Infrastructure)

Third-party Assurance: SGS

UN Sustainable Development Goals

• Not disclosed

Contributes to the UN Sustainable Development Goals

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EcoVadis gold rating in France
• Awards at the Asia eCommerce awards
• One of the best companies at HR Asia Award in Vietnam

Environmental Metrics

ESG Focus Areas

• diversity
• responsible procurement
• waste management
• green energy
• climate change

Environmental Achievements

• Reduced own greenhouse gas emissions by 40%, achieving the initial reduction target of 35% by 2025 ahead of time.
• Installed charging stations for electric vehicles in a shopping mall in Hong Kong.
• Relocated Taiwan distribution center to a new building with a solar rooftop.

Social Achievements

• Increased the share of women in senior leadership positions from 27% in 2020 to 29% in 2021.
• Expanded training curricula to all employees, achieving a significant increase in training reach.
• Supported 35 charitable projects.
• Delivered more than 80 million doses of COVID-19 vaccines.

Governance Achievements

• Joined the United Nations Global Compact in May 2022.
• Integrity Line fully operative.

Climate Goals & Targets

Environmental Challenges

• Climate change and its adverse effects.
• Waste management from logistics (packaging materials).
• High attrition rate in South-East Asia, particularly in the logistics sector.
• Higher exposure to corruption risks in some Asian markets.

Mitigation Strategies

• Implementing efficiency measures in transport and energy use.
• Purchasing renewable electricity and I-RECs.
• Developing waste management guidelines and piloting new procedures in Thailand.
• Implementing a comprehensive compliance management system and program to mitigate bribery risks.
• Conducting bribery risk assessments.
• Providing training and education on anti-corruption policies.

Supply Chain Management

Supplier Audits: 100% of new suppliers in Vietnam, Malaysia and Business Unit Technology were screened for social criteria in 2021

Responsible Procurement

• Supplier Code of Conduct
• Ethical standards and stringent contract management procedures
• Due diligence procedures for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 27001:2013 (Information Security)

Third-party Assurance: SGS

Sustainable Products & Innovation

• Maurice Lacroix Aikon #tide watch made from recovered ocean plastic

Awards & Recognition

• 17 HR awards across various markets
• HR Asia’s award for ‘Best Companies to Work for in Asia 2021’ in Cambodia and Vietnam

Environmental Metrics

ESG Focus Areas

• Enable Our People to Flourish
• Make Our Value Chains More Sustainable
• Become Climate-neutral by 2030
• Make a Positive Local Impact

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 42.0% compared with the base year 2020 and by 3.5% compared with 2021
• Reduced tap water usage at denim finishing facility in Ayutthaya, Thailand from about 95,000 m3 in 2005 to an average of about 12,000 m3 per year from 2015 to 2022
• Reduced CO2 footprint by 120 tons annually with new distribution centers in Thailand equipped with solar panels

Social Achievements

• Increased percentage of employees receiving training from 78% in 2021 to 97% in 2022
• Implemented a group-wide Belonging Policy covering diversity, equity, and inclusion. 74% of managers completed the comprehensive Belonging e-learning program.
• Organized 76 local community projects

Governance Achievements

• Adopted a Responsible Procurement Policy in 2022
• Established a roadmap to assess suppliers
• Improved compliance training with interactive format and validation by a leading law firm

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events and drought
• Increased emission reporting obligations
• Greenwashing accusations
• Dependency on electricity supply
• High uncertainty about energy supply and prices
• Reduced capital availability
• Increased pricing of greenhouse gas emissions

Mitigation Strategies

• Improved Business Continuity Plan (BCP)
• More efficient distribution processes and vehicles
• More efficient building infrastructure
• Digitized services
• Sales of low-emission goods & services
• Implementing the ERA’s recommendations to further strengthen environmental management approach

Supply Chain Management

Supplier Audits: Business Unit Performance Materials audited selected goods suppliers (32 audits)

Responsible Procurement

• Responsible Procurement Policy
• Supplier Business Conduct Policy
• Supplier Code of Conduct (replaced by Supplier Business Conduct Policy)
• EcoVadis assessment of suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Damage to transportation infrastructure
• Damage to energy infrastructure
• Reduced raw material availability
• Lack of insurance
• Health impact on workforce
• Delivery disruption

Transition Risks

• Greater emission reporting obligations
• Greenwashing accusations
• Dependency on electricity supply
• High uncertainty about energy supply and prices
• Reduced capital availability
• Increased pricing of greenhouse gas emissions

Opportunities

• More efficient distribution processes and vehicles
• Improvements to the BCP
• More efficient building infrastructure
• Digitized services
• Sales of low-emission goods & services

Reporting Standards

Frameworks Used: GRI Standards 2021, UN Global Compact, TCFD

Certifications: ISO 9001, ISO 14001, ISO 27001:2013 (Corporate Shared Services Center SAP infrastructure), EcoVadis Gold

Third-party Assurance: SGS

Awards & Recognition

• EcoVadis Gold Rating
• SAP Sustainability Award
• Asia Corporate Excellence & Sustainability (ACES) Award for Community Collaboration

Environmental Metrics

ESG Focus Areas

• Climate-neutral operations
• Human rights
• Responsible procurement
• Waste management
• Local community engagement
• Social impact
• Employee engagement
• Diversity and inclusion
• Talent development

Environmental Achievements

• Goal to become climate-neutral by 2030 (Scope 1+2)
• Implementation of solar panels
• Increased emission transparency

Social Achievements

• 98.3% of employees received development in 2023 (average of almost 15 hours per employee)
• Focus on diversity, equity, and inclusion
• 55% female employees
• Employees representing 97 cultures
• 80% locals in market leadership teams

Governance Achievements

• Clear governance structure for sustainability management
• Board of Directors charts strategic direction
• Executive Committee implements Sustainability Strategy with Sustainability Committee

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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

Contribute to the Sustainable Development Goals of the United Nations

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed