Climate Change Data

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environment
• Labour Practices
• Human Rights
• Product Responsibility

Environmental Achievements

• Exceeded energy conservation target during the 12th five-year period.
• Solar photovoltaic power generation project achieved grid connection in 2015.
• 13 subsidiaries received ISO 14001 certification.
• Total energy savings exceeded 4,500 tonnes of coal equivalent (tce).

Social Achievements

• Launched "Lesso Mall", an online trading platform.
• Lesso College successfully established a faculty team comprising employees from China Lesso.
• Annual average employee turnover rate controlled below 5%.
• Organized over 100 health and safety training sessions.

Governance Achievements

• Established a CSR Committee in 2014.
• Established a CSR Working Group comprising 20 members from different departments.
• Disclosed corporate governance performance in accordance with the standard given in the listing rules of the SEHK.

Climate Goals & Targets

Environmental Challenges

• Dust control in manufacturing sites.
• Energy consumption.
• Employee leave system improvements.
• Providing clinical services and nursing room facilities at production bases.

Mitigation Strategies

• Improving dust-producing equipment (dust extractors, automated mixing equipment).
• Reducing energy consumption per product unit.
• Complying with labor regulations and considering employee needs to improve leave policies.
• Assigning female employees to less strenuous positions.

Supply Chain Management

Supplier Audits: Periodic interviews and performance evaluations (more than 2,000 suppliers)

Responsible Procurement

• Supplier Management Code, assessment and management system for suppliers, consideration of quality management, environmental management and occupational safety management systems.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 core options

Certifications: ISO 14001 (13 subsidiaries), OHSAS 18001 (13 subsidiaries)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lead-free PVC-U drainage pipes.

Awards & Recognition

• Numerous awards listed in Chapter 5, Section 5.5

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• Achieved mass production of lead-free PVC pipes, pipe fittings, and section bars.
• Recycled over 6,054.32 tons of waste.
• Generated 21.52 million kWh of PV power.

Social Achievements

• Provided one-stop convenient service to customers.
• Implemented a mechanism for promptly recalling defective products.
• Organized 2,542 employee training sessions.
• Conducted various charitable activities, including poverty alleviation and voluntary services.

Governance Achievements

• Established whistle-blowing policies, procedures, and reporting channels.
• No cases of corruption prosecuted against the Group or its employees in 2017.

Climate Goals & Targets

Environmental Challenges

• Technical challenges in lead-free drain pipe mass production (poor thermal stability, poor production stability, additive precipitation, narrow processing window).
• Supply chain management challenges (not explicitly stated, but implied by the focus on supplier management).

Mitigation Strategies

• Invested over RMB 100 million in R&D for lead-free drain pipes.
• Optimized formulation systems, improved equipment, and adjusted process parameters for lead-free pipe production.
• Improved supply chain management through supplier management and responsible procurement practices.

Supply Chain Management

Responsible Procurement

• Sunshine Purchase
• Supplier management methods

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: The Stock Exchange of Hong Kong Limited Environmental, Social and Governance Reporting Guide, GRI G4 Sustainability Reporting Guidelines

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 50001, QEO (24 subsidiaries)

Sustainable Products & Innovation

• Lead-free pipes
• Rainwater management systems
• Underground utility tunnel PVC-C cable conduits
• Ventilation systems
• Floating platforms and offshore aquaculture cages

Awards & Recognition

• Foshan Model Enterprise for Quality Manufacture
• Guangdong-Hong Kong Cleaner Production Partner (Manufacturing Industry) Bronze Award
• Clean Production Enterprise in Guangdong Province
• Member of Guangzhou Technical Innovation Alliance of Black and Odorous Water Treatment and Sponge City Construction
• China Environmental Labelling Certification (Water Supply and Drain Pipes and Pipe Fittings)
• Various safety and product quality awards

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

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

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• China First-choice Brand of Green Buildings 2016
• Top Ten China Plastic Enterprises of Light Industry

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• 25.82 million kWh of PV power generated in 2018
• 3,774,100 tons of water resources recycled in 2018
• 10,115.88 tons of waste recycled in 2018
• Reduced greenhouse gas emissions (total 574,386.08 tons in 2018)

Social Achievements

• 97.31% customer satisfaction
• RMB 5,129,000 of donations to external parties throughout the year
• 658 hours of volunteer service in 2018
• 197 employees participated in volunteer activities
• 252,555 hours spent on employee training
• 100% physical examination rate for occupational diseases
• Launched Lesso Customer School providing training services for distributors

Governance Achievements

• Established a standardized corporate governance structure
• Formulated an Anti-fraud Management System
• Received 0 whistleblowing incidents in 2018
• Held eight Board meetings in 2018
• Protected its rights against the infringement of its brand name "Lesso", resulting in the changing or cancellation of the names of 240 enterprises

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: 90% of suppliers screened according to ISO 9000, ISO 14000, and ISO 18000 standards

Responsible Procurement

• Supplier Management Measures

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: QEO (Quality, Environment and Occupational Health)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lead-free PVC-U water supply and drainage pipeline systems
• Steel-plastic water platforms and float systems

Awards & Recognition

• Golden Wing Award
• Lv Ying Award – Benchmark Enterprise of Pipe Valve Manufacturing and Services
• Guangdong Science and Technology Advancement Award
• China National Light Industry Council Science and Technology Advancement Award
• Guangdong Provincial Leading Group for Poverty Alleviation and Development Bronze Cup
• 2017 Annual Charity Enterprise Award
• 2017 Guangdong Province Manufacturing Industry Excellent Enterprise
• 2017 Advanced Unit of Volunteer Blood Donation in Shunde District
• Guangdong Province Enterprise of Observing Contract and Valuing Credit
• Guangdong Patent Award (Excellence Award)
• Guangdong Province Branded Products
• National Plastic Pipe Industry Quality Leader
• National Quality Inspection Stable Qualified Products
• National Plastic Pipe Industry Leading Quality Brand
• Top 500 Chinese Private Enterprises
• Excellence Enterprise in National Quality Management Team Activities
• First Prize for Scientific and Technological Progress in Guangdong Province
• Third Prize for Scientific and Technological Progress by China National Light Industry Council
• Second Prize for Scientific and Technological Progress by Guangdong Light Industrial Council
• Third Prize for Scientific and Technological Progress by Guangdong Light Industrial Council
• Social Contribution (Charity Unit) Bronze Medal
• Shunde District 2017 Tax Contribution Pioneer Enterprise Bronze Medal

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Management
• Social Responsibility
• Supply Chain Management

Environmental Achievements

• Generated 27.8 million kWh of photovoltaic power, saving about RMB 4.17 million in electricity charges.
• Recycled 424 million tonnes of water resources.
• Recycled 180,314 tonnes of plastic.

Social Achievements

• Improved customer satisfaction to 97.37%
• Total staff training hours: 371,508 hours
• Localized procurement rate: 94.86%
• External donations: RMB 11.08 million

Governance Achievements

• Established a standardized corporate governance structure and internal control systems.
• Implemented an Anti-Fraud Management System.
• Organized anti-corruption training for different levels of staff.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19 pandemic
• Counterfeit products
• Climate change risks

Mitigation Strategies

• Established counterfeit prevention project teams and a database for product identification.
• Implemented energy saving and emissions reduction measures.
• Developed resource efficiency and value and reduced resource wastage.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Management System with standardized criteria for supplier access, evaluation and discontinuation; social responsibility requirements (prohibition of child labor, non-discrimination).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, Stock Exchange of Hong Kong Limited ESG Reporting Guide

Certifications: ISO 9001, ISO 14001, OHSAS 18001, China Environmental Labeling Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• RTP fiberglass pipes, PE-RT II insulation pipes

Awards & Recognition

• Leading Industry Brand
• GoldenBee 2020 Excellent Corporate Social Responsibility Report, Employee Responsibility Information Disclosure Award
• Enterprise Honoring Contracts and Being Trustworthy for Seventeen Consecutive Years
• Guangdong Poverty Alleviation Red Silk-Cotton Cup Bronze Award
• AAA Corporate Credit Level
• The Award for Outstanding Contributions to the Fight Against the Pandemic
• Enterprise with Harmonious Labor Relations