Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented ISO14001 environmental management system since July 2014, aiming to reduce energy consumption and GHG emissions.
• Achieved approximately 99% integrated utilization rate of wood residue by using scraps and sawdust as boiler fuel and producing biomass energy.
• Decreased energy consumption intensity by approximately 12.8% from about 17.25 MWh per million RMB revenue in 2020 to about 15.05 MWh per million RMB revenue in 2021.

Social Achievements

• Established a fair, reasonable and competitive remuneration system for employees.
• Provided welfare benefits such as home purchasing subsidies, car subsidies, etc. for management and technical staff.
• Developed a comprehensive human resources management system with clear requirements and operational procedures for recruitment, evaluation, and promotion.
• Implemented a zero-tolerance policy for workplace discrimination, harassment, or infringement.

Governance Achievements

• Established an ESG working taskforce to collect relevant information and report to the Board of Directors.
• Formulated an Anti-bribery and Anti-corruption Policy and required key personnel to sign a Commitment on Prevention of Commercial Bribery.
• Complied with laws and regulations such as the “Company Law of the People’s Republic of China”, “Bidding Law of the People’s Republic of China”, “Anti-unfair Competition Law of the People’s Republic of China”.

Climate Goals & Targets

Environmental Challenges

• Increase in total GHG emissions by approximately 12.2% from about 12,218 tCO2e in 2020 to about 20,565 tCO2e in 2021, although GHG emissions intensity increased by approximately 58.1% due to decreased revenue.

Mitigation Strategies

• Actively adopted environmental protection, energy conservation, and water conservation measures.
• Actively adopted measures to reduce paper use in the office.
• Implemented the Energy Management System and established principles in the efficient use of equipment.
• Formulated water conservation measures including regular inspection on water supply facilities, using water supply facilities with good water efficiency, and establishing the mindset of water conservation.

Supply Chain Management

Responsible Procurement

• Established a stringent and standardized procurement system and supplier selection process.
• Conduct on-site inspection and categorize suppliers into three classes (A, B, C).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix 27 of the Main Board Listing Rules of the Stock Exchange of Hong Kong Limited)

Certifications: ISO14001

Awards & Recognition

• Excellent Enterprise in Fujian Furniture Industry in 2020
• National Green Wood Model Enterprise
• National Standardized Model Enterprise of the Forestry Industry

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented ISO14001 environmental management system since July 2014, aiming to reduce energy consumption and GHG emissions.
• Achieved approximately 99% integrated utilization rate of wood residue and other wastes by using them as boiler fuel and producing biomass energy.
• Successfully maintained similar level on the amount of packaging material per unit produced in 2022 as compared with 2021.

Social Achievements

• Established a fair, reasonable and competitive remuneration system for employees.
• Complied with laws and paid “five social insurance and one housing fund” for employees.
• Provided welfare benefits such as home purchasing subsidies, car subsidies, petrol subsidies, phone subsidies, and meal subsidies for management and technical staff.

Governance Achievements

• Established an ESG working taskforce to collect relevant information on ESG aspects and report to the Board of Directors.
• Formulated the Anti-bribery and Anti-corruption Policy, and requires key personnel to sign the Commitment on Prevention of Commercial Bribery.
• Established a sound quality/environment/occupational health and safety management manual.

Climate Goals & Targets

Environmental Challenges

• Increased severity and frequency of extreme weather events.
• Changes in precipitation patterns and extreme variability in weather patterns.
• Government regulations to reduce GHG emission.
• Exposure to litigation risk due to climate change regulations.
• Low-carbon, energy-saving technology advancements.
• Changes in customer preference due to climate-related concerns.
• Risk of stigmatization of the business sector due to climate change.

Mitigation Strategies

• Planned to establish a natural disasters emergency plan.
• Planned to devise an action plan to articulate the goals and targets of the reductions in GHG emission and energy consumption.
• Planned improvements, retrofits, relocations, or other changes to facilities to reduce vulnerability to climate impacts.
• Monitor updates of relevant environmental laws and regulations.
• Planned to invest in innovations of energy-saving products.
• Examined the feasibility and benefits of applying the latest low-carbon and energy-saving technologies.
• Fulfilled climate-related regulations by the government.
• Prioritize climate change in market decisions.
• Fulfilled social responsibility by organizing public relation activities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Stringent and standardized procurement system and supplier selection process.
• On-site inspection and categorization of suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather events
• Changes in precipitation patterns and extreme variability in weather patterns

Transition Risks

• Policy risk due to energy efficiency requirements and carbon pricing
• Legal risk due to tightened laws and regulations
• Technology risk due to low-carbon, energy-saving technology advancements
• Market risk due to changes in customer preference
• Reputational risk due to stakeholder concerns

Opportunities

• Resource efficiency gains through efficient transport, production, and distribution processes, recycling, and reduced water consumption
• Energy source diversification through lower-emission sources, policy incentives, and new technologies
• Development of climate adaptation and insurance risk solutions
• Access to new markets
• Resilience improvements through renewable energy programs and energy-efficiency measures

Reporting Standards

Frameworks Used: GRI Guidelines, ESG Reporting Guide (Appendix 27 of the Main Board Listing Rules of the Stock Exchange of Hong Kong Limited)

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Biomass wood pellet fuel

Awards & Recognition

• Excellent Enterprise in Fujian Furniture Industry in 2021
• National Green Wood Model Enterprise
• National Standardized Model Enterprise of the Forestry Industry