Luk Fook Holdings (International) Limited
Climate Impact & Sustainability Data (2023-03-31, FY2024)
Reporting Period: 2023-03-31
Environmental Metrics
Total Carbon Emissions:9,032.83 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:629.55 tCO2e/year
Scope 2 Emissions:8,403.28 tCO2e/year
Total Energy Consumption:17,744.89 MWh/year
Water Consumption:193,647.32 m3/year
Waste Generated:350.89 tons/year (non-hazardous)
Carbon Intensity:0.75 kg CO2e/turnover (HKD$’000) (Scope 1 & 2)
ESG Focus Areas
- Craft Inheritance and Innovation
- Sustainable Jewellery and Responsible Sourcing
- People Empowerment
- Caring for the Community
Environmental Achievements
- Achieved a 25% reduction in greenhouse gas emission intensity compared to FY2022
- Achieved a 21% reduction in total energy use intensity compared to FY2022
- Achieved a 30% reduction in total non-hazardous waste produced intensity compared to FY2022
- Guangzhou Victoria Gemological Institute Limited obtained the “China Metrology Accreditation”
Social Achievements
- Organised the innovative “Love ∞ Metaverse” campaign
- Total training hours exceeded 87,000 hours, with an approximate average of 12.5 hours per employee
- Donated approximately HK$1.1 million
Governance Achievements
- Established the Risk Management and Sustainability Committee
- Board of Directors independently reviewed the annual ESG report since FY2021
- Developed a set of 3-year corporate goals (FY2023 to FY2025)
Climate Goals & Targets
Short-term Goals:
- Complete the establishment of environmental protection goals within 3 years (FY2023 to FY2025), including long-term carbon reduction goals
Environmental Challenges
- Climate-related risks
- ESG-related risks in the supply chain
Mitigation Strategies
- Regularly conduct ESG-related risk assessments
- Implement energy-saving and emission reduction measures
- Issue safety guidelines to employees under severe weather conditions
- Purchase work-related injury insurance for employees
- Establish a comprehensive supply chain management mechanism
Supply Chain Management
Supplier Audits: 354 main suppliers as of 31 March 2023, all suppliers must pass a preset assessment process before formal procurement
Responsible Procurement
- Guideline on Green Procurement
- Supplier Agreement
- Corruption Prevention Policy
- Environmental Protection Manual of Working Inside a Workplace
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Reporting Standards
Frameworks Used: Stock Exchange ESG Reporting Guide
Certifications: ISO 9001:2015, ISO 14001:2015
Sustainable Products & Innovation
- NFTs
Awards & Recognition
- Outstanding Jewellery Retail Service Award
- Consumer Caring Company (10 Years Plus Award)
- Hong Kong Star Brand Award – Enterprise (10th Anniversary Award)
- 2021 Hong Kong Awards for Industries: Customer Service
- Diamond Award in the Hong Kong Genuine Brand Company Awards 2022
- Bronze Award in Outstanding QTS Merchant Award
- Outstanding QTS Merchant Service Staff Award Finalist
- 20-Year QTS Accredited Merchant
- Hong Kong Service Awards – Quality Living Category (Jewellery and Gold)
- In-house Counsel Awards 2021-22 (seven awards)
- Hong Kong Awards for Environmental Excellence (Certificate of Merit)
- BOCHK Corporate Environmental Leadership Awards (EcoPartner)
- 3 Years+ EcoPioneer Companies
- EcoPartner and 5 Years+ EcoPioneer Companies (Luk Fook Jewellery (Guangzhou) Company Limited and Lee Fook Diamond & Jewellery (Guangzhou) Company Limited)
- 10 Years Plus Caring Company Logo
- Happy Company
- Caring Certificate
- Good MPF Employer Award (three awards)
Reporting Period: FY2024
Environmental Metrics
Total Carbon Emissions:10,529.12 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:644.81 tCO2e/year
Scope 2 Emissions:9,884.31 tCO2e/year
Renewable Energy Share:74% (solar energy for air conditioning)
Total Energy Consumption:20,955.14 MWh/year
Water Consumption:185,018.31 m3/year
Waste Generated:299.55 tons/year (non-hazardous)
Carbon Intensity:0.70 kg CO2e/turnover (HKD$’000)
ESG Focus Areas
- Craft Inheritance and Innovation
- Sustainable Jewellery and Responsible Sourcing
- People Empowerment
- Caring for the Community
Environmental Achievements
- Total greenhouse gas emissions intensity reduced by 7.8% compared to FY2023.
- Total energy intensity reduced by 7.0% compared to FY2023.
- Installed 1,954 m2 of solar panels at the third phase of the "Luk Fook Jewellery Cultural and Creative Industrial Park", powering air conditioning.
- Opened our first green concept store at The Wai, partnering with Friends of the Earth (Hong Kong) to launch the “Climate Tree Care” initiative.
- Awarded the “Hong Kong Awards for Environmental Excellence” for the sixth consecutive year.
Social Achievements
- Recognised as a “Consumer Caring Company” by GS1 Hong Kong for the 11th consecutive year.
- Launched our new brand Love LUKFOOK JEWELLERY.
- Total donations of approximately HK$4.83 million.
- Partnered with Mango TV to launch the “Extraordinary Women, Honouring Her Strength” Women’s Day charity initiative.
- Sponsored the 2023 Xi'an Marathon.
Governance Achievements
- Signed a HK$326 million sustainability-linked loan with DBS Hong Kong.
- Awarded the “Hong Kong Corporate Governance and ESG Excellence Award (Hang Seng Index Constituent Companies)”.
- Received three awards under “Good MPF Employer” organised by the Mandatory Provident Fund Schemes Authority.
Climate Goals & Targets
Long-term Goals:
- Achieve carbon neutrality before 2050.
Short-term Goals:
- Reduce total energy consumption intensity and GHG emissions intensity (FY2023-FY2025).
Environmental Challenges
- Global water scarcity.
- Climate-related physical risks (e.g., climate-related natural disasters) and transition risks (e.g., changes in policy and regulatory requirements).
Mitigation Strategies
- Implementing energy-saving and energy efficiency measures.
- Regularly conducting ESG-related risk assessments, including identifying potential climate-related risks.
- Implementing strict management of waste sorting, storage, and recycling procedures.
- Educating employees about water-saving concepts and promoting drinking water recycling.
- Managing waste emissions and exhaust gas treatment facilities.
Supply Chain Management
Supplier Audits: 369 main suppliers; all suppliers required to pass preset assessment process before formal procurement.
Responsible Procurement
- Guideline on Green Procurement
- Supplier/Contractor Green Operation Record/Evaluation Form
- Lukfook Supplier Operational Risk Code of Conduct
- Kimberley Process Certification for diamonds
Climate-Related Risks & Opportunities
Physical Risks
- Climate-related natural disasters
Transition Risks
- Changes in policy and regulatory requirements
Reporting Standards
Frameworks Used: Stock Exchange ESG Reporting Guide
Certifications: ISO 14001:2015 (Nansha plant), ISO 9001:2015 (Nansha plant)
Awards & Recognition
- Outstanding Jewellery Retail Service Award
- Consumer Caring Company
- Hong Kong Star Brand Award – Enterprise
- Hong Kong Service Awards
- Hong Kong Awards for Environmental Excellence
- BOCHK Corporate Low-Carbon Environmental Leadership Awards
- ESG Special Recognition Award
- Hong Kong Corporate Governance and ESG Excellence Award
- QF Star Supporter
- Happy Company
- Good MPF Employer
- 3 Years + Industry Cares Recognition