Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employee Care
• Operating Practices
• Environmental Protection
• Community Investment

Environmental Achievements

• Replaced approximately 1,500 traditional spotlights with LED lights to reduce power consumption.
• Installed inverter air conditioners in five large branches and planned to install them in the remaining branches.

Social Achievements

• Established training centers with various courses for employee development.
• Developed job-based training targets and contents, training employees on management, sales, machine application, and various skills in professional beauty care.
• Provided allowance for beauty products and treatments, overseas accommodation and round-trip tickets, and medical benefits to employees.
• Organized gala parties for retail employees.

Governance Achievements

• Developed measures to strictly prohibit bribery, blackmailing, fraud, or money laundering.
• Developed Rules of Buyers to specify anti-corruption guidelines for employees.
• Developed Guidelines of Sales requiring employees not to make false representations in the discharge of their duties.

Climate Goals & Targets

Environmental Challenges

• Lack of comprehensive data collection system for ESG reporting, initially focusing only on Hong Kong service centers (75.5% of total revenue).
• Absence of environmental KPIs in the first report; carbon emission evaluation planned for the following year.

Mitigation Strategies

• Planned expansion of data collection and ESG practices to cover the entire Group's operations.
• Planned carbon emission evaluation to further specify and standardize report indicators.

Supply Chain Management

Supplier Audits: Over 20 field surveys to packaging suppliers in Mainland China; planned expansion to key product suppliers in foreign countries.

Responsible Procurement

• Careful evaluation of suppliers' experience, financial strength, reputation, and track record of raw materials and finished products.
• Prioritization of allergy-free, non-hazardous, petrochemical-free products with natural fragrance.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange's Environmental, Social and Governance Reporting Guide

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Sustainability
• Governance

Environmental Achievements

• Reduced GHG emissions through energy conservation measures (replaced 1,079 light bulbs with LED lights, saving approximately 143,636.5 kWh annually)
• Implemented packaging-saving policies (simplifying packages, using large volume packaging materials, and purchasing biodegradable packaging materials)
• Reduced water consumption through various measures (environmental publicity, maintenance of water systems, employee training)

Social Achievements

• Established fair promotion standards and opportunities for all employees
• Provided comprehensive training and development programs for employees (over 27,482 training hours)
• Complied with all relevant employment laws and regulations
• Offered various employee benefits (beauty products and services allowance, overseas accommodation, medical benefits)

Governance Achievements

• Established dedicated teams to manage ESG issues within each business division
• Established anti-corruption policies and whistle-blowing procedures
• Strictly adhered to relevant laws and regulations on products’ safety, advertising, and labelling

Climate Goals & Targets

Environmental Challenges

• Minimizing environmental impact of operations
• Managing risks throughout the supply chain
• Maintaining high customer satisfaction

Mitigation Strategies

• Stringent control of emissions and resource consumption
• Careful supplier selection and assessment
• Active collection of customer feedback and continuous improvement

Supply Chain Management

Responsible Procurement

• Careful evaluation of suppliers' experience, financial strength, and reputation
• Requirement for at least 3 supplier quotations for major projects

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

UN Sustainable Development Goals

• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation and Infrastructure
• Goal 12: Responsible Consumption and Production

The Group prioritises and incorporates these SDGs into its whole operation management.

Awards & Recognition

• Caring Company for 8 consecutive years

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Sustainability
• Governance

Environmental Achievements

• GHG emissions from Scope 1 (Direct Emissions) dropped by 67.9%
• Intensity of non-hazardous solid waste generated declined by 25.2%

Social Achievements

• Provided internship opportunities and placements to local students and fresh graduates
• Organized several charitable activities around caring for the elderly
• Held a Flag Selling Day, raising HKD367,309.70 for Grateful Heart Charitable Foundation

Governance Achievements

• Established a sustainability governance framework overseen by the Board of Directors
• Implemented anti-corruption policies and whistle-blowing procedures
• Provided anti-corruption training to directors and staff

Climate Goals & Targets

Environmental Challenges

• Extreme weather affecting the cost and reliability of raw materials and timely delivery of goods
• Increasingly stringent environmental laws and regulations in different regions

Mitigation Strategies

• Developed actions to mitigate climate-related risks aligned with TCFD recommendations
• Integrated climate-related issues into major action plans and policies
• Implemented energy-saving practices, such as using telephone conferences instead of physical meetings and encouraging public transport use

Supply Chain Management

Supplier Audits: Onsite investigations

Responsible Procurement

• Prioritising hypoallergenic, non-toxic, and oil-free chemical products and products containing natural fragrances

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather affecting raw material supply

Transition Risks

• Increasingly stringent environmental laws and regulations

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Certifications: World Green Organisation’s “Green Office Label”

UN Sustainable Development Goals

• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)

The Group's operations align with these SDGs through responsible investment, community investment, employee well-being initiatives, and environmentally friendly practices.

Awards & Recognition

• Partner Employer Award from Hong Kong General Chamber of Small and Medium Business
• Caring Employers Award from the Correctional Services Department

Environmental Metrics

ESG Focus Areas

• Resource Efficiency & Emissions Reduction
• Responsible Consumption and Production
• Climate Action
• Decent Work and Economic Growth
• Good Health and Well-being
• Quality Education
• Industry, Innovation and Infrastructure

Environmental Achievements

• Reduced SOx emissions by approximately 54.9%, NOx emissions by 18.4%, and PM emissions by 30.4%
• Reduced total GHG emissions by 56%
• Reduced non-hazardous solid waste by 48%
• Reduced wastewater by 32%
• Reduced energy consumption by 37% (town gas consumption reduced by 49%)

Social Achievements

• Zero work-related fatalities in the past three years
• Zero lost days due to work injury in FY2020/2021
• 82.5% of employees received 11,257 hours of training
• Awarded QF Star Employer by Qualifications Framework

Governance Achievements

• Compliance with all material and applicable laws and regulations related to ESG
• Established effective grievance mechanisms for reporting suspected misconduct
• Implemented anti-corruption guidelines and training for employees

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business operations and supply chains
• Potential physical and transition risks related to climate change impacting supply chain and logistics

Mitigation Strategies

• Implemented effective epidemic prevention and control measures
• Developed an effective integrated risk management and internal control system
• Adjusted health and safety policies to support employees during the pandemic
• Implemented safety measures upon business resumption (health declaration, enhanced cleaning, temperature monitoring, PPE)
• Urged employees to perform virus testing and encouraged vaccination

Supply Chain Management

Responsible Procurement

• Evaluation of suppliers based on product quality, production capability, compliance with laws, technical strength, financial status, reputation, and business track records
• Prioritising hypoallergenic, non-toxic, and oil-free chemical products and products containing natural fragrances

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting supply chain and logistics

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being

The Group's initiatives contribute to these goals through job creation, promoting healthy products, and ensuring employee well-being.

Sustainable Products & Innovation

• Prioritising hypoallergenic, non-toxic, and oil-free chemical products and products containing natural fragrances

Awards & Recognition

• QF Star Employer (2020/2021)
• Caring Company award (10 consecutive years)
• Smartest Business Award No.1 Beauty Healthcare and Technology Award (2020/2021)

Environmental Metrics

ESG Focus Areas

• Resource Efficiency and Emissions Reduction
• Responsible Consumption and Production
• Climate Action
• Decent Work and Economic Growth

Environmental Achievements

• Total GHG emissions decreased by 4%, with Scope 1 and Scope 3 emissions showing the greatest drop of 63% and 22% respectively. Wastewater decreased by 21%. All types of air pollutants declined significantly due to the elimination of diesel-fueled transport.

Social Achievements

• Zero work-related fatalities in the past three years. Implemented safety measures during the pandemic, including daily disinfection and temperature monitoring. 83% of employees received 19,992 hours of training.

Governance Achievements

• Established a robust governance structure for ESG matters, with regular meetings and reporting to the Board. Implemented an effective talent risk assessment and management framework. Complied with relevant laws and regulations regarding anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic. Potential impacts of extreme weather events and tightening environmental regulations.

Mitigation Strategies

• Implemented contingency planning and crisis management scenarios within the Group’s talent management. Engaging with suppliers regularly to maintain a sustainable supply chain. Adopting water-saving equipment and energy-efficient practices.

Supply Chain Management

Supplier Audits: Onsite investigations performed regularly.

Responsible Procurement

• Prioritising hypoallergenic, non-toxic, and oil-free chemical products and products containing natural fragrances. Engaging with local suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Increase in frequency of extreme weather events (typhoons, rainstorms, floods, heatwaves)

Transition Risks

• Improvement in sustainable energy development and technological innovation. Tightening environmental rules and guidelines.

Opportunities

• Change in customers’ preference towards green elements in consumption. Incorporating green building concepts into future plans.

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: World Green Organisation’s “Green Office Label”

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being

The Group's initiatives contribute to these goals through job creation, providing healthy products, and ensuring employee well-being.

Awards & Recognition

• World Green Organisation’s “Green Office Label”

Environmental Metrics

ESG Focus Areas

• Resource Efficiency and Emissions Reduction
• Product Responsibility
• Occupational Health and Safety
• Training and Promotion

Environmental Achievements

• Complied with relevant local environmental laws
• Reduced wastewater by around 2%
• Implemented measures to optimize packaging materials usage (simplify packaging, purchase biodegradable materials, reuse packaging)

Social Achievements

• Zero work-related fatalities in the past three years
• 85.1% of employees received 19,627.5 hours of training
• Implemented measures to avoid child and forced labor
• No substantial complaints from customers regarding products and services

Governance Achievements

• Established a robust governance structure with clearly defined responsibilities
• Incorporated ESG-related risks into its Enterprise Risk Management (ERM) framework
• Conducted materiality assessments to identify and prioritize ESG issues
• Formulated and implemented internal policies with reference to materiality assessment results
• Implemented stringent internal policies regulating the procedures for the dismissal of employees

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its associated prevention and control measures
• Increasing frequency and severity of extreme weather events
• Tightening environmental laws and regulations
• Fluctuating workforce shortage

Mitigation Strategies

• Implemented safety measures (daily workplace disinfection, temperature monitoring, PPE)
• Strengthened health and safety risk resilience
• Adjusted risk management approaches and internal control systems to mitigate potential ESG risks
• Developed relevant policies to mitigate climate-related risks
• Implemented energy-saving practices (switch off idling lights, prioritize energy-efficient equipment, regular maintenance)
• Implemented water-saving practices (water-saving equipment, regular inspection and maintenance)
• Implemented measures to optimize packaging materials usage
• Hiring new employees under non-continuous employment contracts

Supply Chain Management

Responsible Procurement

• Thorough due diligence before selecting suppliers
• Requirement for suppliers to submit samples, environmental certificates, internal strategies, and health and safety management plans
• Prioritization of local suppliers
• Preference for hypoallergenic, non-toxic, and oil-free chemical products

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, cyclones, droughts, flooding)

Transition Risks

• Tightening environmental laws and regulations
• Need for advanced technologies

Opportunities

• Development of sustainable products
• Saving operational costs through energy efficiency

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being

The Group's initiatives contribute to these goals through job creation, fair wages, product labeling, health and safety measures, and training programs.

Awards & Recognition

• World Green Organisation’s “Green Office Label”