Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Welfare
• Supply Chain Management
• Product Responsibility
• Anti-Corruption
• Community Development

Environmental Achievements

• Obtained ISO 50001 energy management system certificate in October 2016 at the Vietnam plant.
• Implemented energy management system and continuous power consumption management, using energy-saving equipment.
• Promoted park-like construction in factory areas with extensive tree planting.
• Complied with all environmental protection laws; air monitoring, sewage discharge, and waste disposal met national standards.

Social Achievements

• Maintained sincere communication with employees, valuing their benefits and opinions.
• Complied with national labor laws, providing benefits such as free food, clothing, housing, and transportation to employees in Vietnam and China.
• Established diversified communication channels for employee feedback and implemented improvements based on their suggestions.
• Provided labor insurance and health insurance, and arranged regular health checks for employees.
• Offered comprehensive educational training and promotion systems for employees.

Governance Achievements

• Established a designated inspection unit to prevent corruption and fraud.
• Implemented transparent and open communication platforms for reporting corrupt conduct.
• Required all employees to abide by government regulations and internal company regulations.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Regular audits based on the 'Suppliers’ Annual External Assessment Program' and 'Assessment Form for New Supplier'

Responsible Procurement

• Prioritizing local suppliers to reduce transportation emissions
• Encouraging suppliers to implement their own management systems (including ISO 14001 and OHSAS 18001)
• Advocating green procurement policy, prioritizing recyclable, degradable, reusable, and recoverable products

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Environmental, Social and Governance (ESG) Reporting Guide (Appendix 27, Hong Kong Stock Exchange Listing Rules), CG Code (Appendix 14, Hong Kong Stock Exchange Listing Rules)

Certifications: ISO 50001 (Vietnam plant), ISO 14000 (Vietnam plant), ISO 18001 (Vietnam plant), GMP+, HACCP, ISO 9001, FSSC 22000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Red Cross Outstanding Contribution of Business Enterprise Award (Vietnam company)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Well-being
• Corporate Governance
• Supply Chain Management
• Community Development

Environmental Achievements

• Reduced CO2e emissions by 12,339.36 tons through improvements in the Vietnam plant's concentration system.
• Achieved a 72.54% energy conservation rate in the Vietnam plant's concentration system.
• Recycled 1.39 KL of condensation per ton of product, representing approximately 23.5% of water consumed in the production process.
• Achieved an 82% recycling rate for plastic cylinders used in packaging.
• Vietnam plant obtained ISO 50001 energy management system certificate in October 2016.

Social Achievements

• Maintained a low employee turnover rate (1.66% in Vietnam, 1.23% in China, 0.60% in Taiwan).
• Provided various benefits to employees, including free food, clothing, housing, transportation, education, entertainment, and training.
• Organized 37 training courses related to environmental safety and hygiene, with 2,617 participants and an average of 7.45 training hours per employee.
• Conducted two promotion assessments per year in Vietnam to encourage employee excellence.
• Organized 52,301 hours of education and training courses with an average of 14.65 hours per employee.

Governance Achievements

• Established a Corporate Social Responsibility Committee.
• Established an Incentive and Disciplinary Committee.
• Implemented a transparent and open communication platform to address corruption concerns.
• No employee was subject to legal proceedings regarding corrupt conduct in 2017.
• Fully implemented monthly review of the validity period of various intellectual property rights.

Climate Goals & Targets

Environmental Challenges

• Reducing the gap between national pledges on carbon reduction and actual performance.
• Minimizing work injuries (11 cases resulting in 3,444 lost working hours in 2017).

Mitigation Strategies

• Continuous improvement of resources management plans.
• Implementation of safety and hygiene inspections, education, training, and regular working environment inspections.
• Strengthening internal inspection and cycle improvement.
• Continuous improvement of safety and health management system.

Supply Chain Management

Supplier Audits: Completed annual supplier assessment in 2017; organized two key supplier interactive communication meetings.

Responsible Procurement

• Prioritizing local suppliers when feasible.
• Implementing green procurement policies.
• Requiring suppliers to comply with ISO 14001 and OHSAS 18001 standards.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27, Hong Kong Stock Exchange Listing Rules), CG Code (Appendix 14, Hong Kong Stock Exchange Listing Rules)

Certifications: ISO 14001, OHSAS 18001, ISO 50001, FSSC 22000, HACCP, ISO 9001, GMP+ Feed Safety Assurance, ISO 17025

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Red Cross Outstanding Contribution of Business Enterprise Award (Vietnam)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Well-being
• Corporate Governance
• Supply Chain Management
• Community Development

Environmental Achievements

• Reduced hazardous waste by 47.28%
• Increased recycling rate of plastic cylinders to 89.8% (from 78.2% in 2018)
• Implemented ISO 50001 Energy Management System in primary production bases
• Promoted park-like construction in factory areas with significant tree planting

Social Achievements

• Maintained a low employee turnover rate (0.42% in Vietnam, higher rates in China and Taiwan due to factors explained in the report)
• Provided various employee benefits including meals, transportation, and year-end bonuses
• Organized 102 training courses with 3,916 participants, averaging 7.63 hours per person
• Implemented various safety and hygiene drills and inspections to reduce work-related injuries

Governance Achievements

• Established a Corporate Social Responsibility Committee
• Established an Incentive and Disciplinary Committee
• Implemented transparent and open communication platforms to address corruption concerns
• Complied with all relevant laws and regulations

Climate Goals & Targets

Environmental Challenges

• Increased wastewater discharge due to improved wastewater collection and treatment
• Increased greenhouse gas emissions due to longer coal boiler repair time and use of alternative fuels
• Increased non-hazardous waste due to longer clearing times for sediments and ash
• Leakage in environmental protection accident testing pool leading to increased water consumption

Mitigation Strategies

• Improved wastewater collection and treatment systems
• Monthly review of energy consumption and setting baselines according to ISO 50001
• Outsourcing of fly ash and bottom ash clearance
• Implementation of water balance charts and review of water consumption

Supply Chain Management

Supplier Audits: Completed annual supplier assessment in 2019

Responsible Procurement

• Prioritizing local suppliers when feasible
• Promoting green procurement policies
• Requiring suppliers to comply with ISO 14001 and ISO 45001 standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 of the Hong Kong Stock Exchange Listing Rules (ESG Reporting Guide), Appendix 14 of the Hong Kong Stock Exchange Listing Rules (CG Code)

Certifications: ISO 14001, ISO 45001, ISO 50001, FSSC 22000, HACCP, ISO 9001, GMP+Feed Safety Assurance, ISO 17025

Sustainable Products & Innovation

• Non-burnt bricks made from coal ash (in trial production)

Awards & Recognition

• Red Cross Outstanding Contribution of Business Enterprise Award (awarded multiple times to Vietnamese company under the Group)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Safety and Well-being
• Corporate Social Responsibility
• Supply Chain Sustainability
• Good Corporate Governance

Environmental Achievements

• Obtained ISO 50001:2018 Energy Management System Certification and ISO 14067-1:2018 Greenhouse Gas Emission Inventory Certification in Vietnam.
• Reduced coal ash by 283 tons through the production of 220,000 non-burnt bricks in Vietnam.
• Achieved an 86% recycling rate for plastic cylinders used in maltose packaging.

Social Achievements

• Awarded the “Exemplary Enterprise Award for Commitment to Workers” in Vietnam for six consecutive years.
• Implemented various employee benefits, including meals, transportation, and year-end bonuses.
• Provided 77,352 hours of education and training courses for employees, with an average of 23.19 hours per person.

Governance Achievements

• Complied with the Corporate Governance Code (CG Code) of the Stock Exchange of Hong Kong, except for code provision F.2.2.
• Established a Board Independence Evaluation Mechanism.
• Implemented a Shareholders’ Communication Policy.

Climate Goals & Targets

Environmental Challenges

• Soaring raw material, energy, and ocean freight prices due to the Russia-Ukraine war and global inflation.
• Supply chain disruptions in the PRC due to the zero-COVID policy.
• Weak market sentiment in the US impacting demand for certain products.

Mitigation Strategies

• Exploring new supply sources and adjusting inventory levels to control procurement costs.
• Implementing flexible sales strategies to meet local demand in different markets.
• Strengthening supply chain operation and management, seeking strategic alliances, and developing high-value products.

Supply Chain Management

Supplier Audits: Completed annual assessment on suppliers in 2022.

Responsible Procurement

• Green procurement policy; prioritizes local suppliers; encourages suppliers to implement their own management systems; requires compliance with ISO 14001 and ISO 45001.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Financial Reporting Standards (HKFRS), Hong Kong Companies Ordinance Cap.622, Appendix 27 (ESG Reporting Guide), Appendix 14 (Corporate Governance Code)

Certifications: ISO 14001, ISO 45001, ISO 50001, FSSC 22000, HACCP, ISO 9001, ISO 14064-1:2018 Greenhouse Gas Emission Inventory Certification

Third-party Assurance: PricewaterhouseCoopers

Awards & Recognition

• Exemplary Enterprise Award for Commitment to Workers (Vietnam)