Climate Change Data

Environmental Metrics

ESG Focus Areas

• Anti-corruption
• Energy
• Waste
• Training and Education
• Child Labour

Environmental Achievements

• Replaced two injection moulding machines with more energy-efficient models at DGLZ and replaced diesel-powered moulding ovens with electric ones at HYLR, with an accumulated investment of nearly HK$0.4 million in 2017.
• No cases of non-compliance with environmental laws or regulations in DGLZ and HYLR, and no significant spills.

Social Achievements

• Received the Learning Enterprise Award from the Professional Validation Council of Hong Kong Industries in 2017 for efforts in staff development.
• 100% of employees received regular performance and career development reviews.

Governance Achievements

• Established Group CSR Department to initiate, drive and monitor various aspects of sustainability practices.
• Implemented Business Ethics and Integrity Management Guidelines and Anti-bribery and Anti-corruption Management Procedures in DGLZ and HYLR, with grievance mechanisms and evaluation measures.

Climate Goals & Targets

Environmental Challenges

• Product safety and quality issues, lack of social and environmental management along the supply chain.
• Negative publicity concerning business ethics and integrity, and labour practices.
• Climate change (carbon emissions, stringent regulatory requirements, rising sea levels, heat stress).
• Potential for child labor in the supply chain.

Mitigation Strategies

• Established procedures to ensure that nonconforming products are identified and controlled; procedural optimisation and employees training.
• Established Group CSR Department; planning to expand these structures into a group-level sustainability committee.
• Configured energy-efficient devices in manufacturing facilities and buildings; continues to look for ways to improve efficiency level; Environmental Management System in place.
• Zero tolerance for child labor; implemented relevant policies and procedures; regular on-site inspections and assessments on suppliers.

Supply Chain Management

Supplier Audits: Regular supplier assessment by internal and external parties

Responsible Procurement

• Supplier Management Guidelines outline the social and environmental responsibility of suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Rising sea levels (Indonesia plant)
• Heat stress and high temperatures

Transition Risks

• More stringent regulatory requirements
• Higher level of carbon pricing

Opportunities

• Policy incentives for energy efficiency and renewable energy

Reporting Standards

Frameworks Used: GRI Standards 2016, SGX-ST Listing Rules 711A, Practice Note 7.6: Sustainability Reporting Guide

Certifications: ISO 14001

Third-party Assurance: Carbon Care Asia

Awards & Recognition

• Learning Enterprise Award (2017)

Environmental Metrics

ESG Focus Areas

• Governance
• Inclusive Workplace
• Effective Operations
• Protecting the Environment

Environmental Achievements

• Zero incident resulting in staff permanent disability or fatality (100% achievement)
• Implemented waste management control procedures aiming for zero landfill
• Energy-saving initiatives resulting in 1,627,250 MWh of energy saved

Social Achievements

• 7,765 permanent employees across four operations
• Established grievance procedures and communication platforms for employees
• 100% of employees received regular performance and career development reviews

Governance Achievements

• Established an Executive Management Committee to assist the Board in providing strategic direction on sustainability
• Implemented anti-corruption policies and training for all 7,765 employees and four out of six directors
• No cases of non-compliance concerning breaches of customer privacy or loss of customer data

Climate Goals & Targets

Environmental Challenges

• Product responsibility in a value chain with high standards
• Socially responsible conduct and potential for misconduct
• Climate change and carbon emissions from manufacturing facilities

Mitigation Strategies

• Established procedures for handling non-conforming products, including product correction, verification, procedural optimization, and employee training
• Strengthened sustainability governance structure, observed social norms and laws, and implemented Supplier Management Guidelines
• Implemented environmental management systems, invested in energy-efficient technologies, and explored opportunities in energy efficiency and renewable energy

Supply Chain Management

Responsible Procurement

• Supplier Management Guidelines outlining social and environmental responsibility
• Supplier evaluation through internal and third-party assessments

Climate-Related Risks & Opportunities

Physical Risks

• Heat stress from higher temperatures resulting in employee fatigue and lower productivity

Transition Risks

• Increasingly stringent regulatory requirements potentially affecting climate readiness

Opportunities

• Capitalizing on policy incentives for energy efficiency and renewable energy

Reporting Standards

Frameworks Used: GRI Standards (Core option), SGX-ST Listing Rule 711A, SGX-ST Listing Rule 711B

Certifications: ISO 9001, ISO 14001, OHSAS 18001, QC080000IECQ-HSPM, ISO/IEC 17025:2005, ICTI Ethical Toy Program

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• People Management
• Diversity and Inclusion
• Labour/management relations
• Training and development
• Customer Privacy Protection
• Anti-corruption
• Labour Standards
• Responding to COVID-19
• Waste Management
• Energy Efficiency
• Emissions Control

Environmental Achievements

• Implemented measures to control VOCs emissions.
• Invested in energy-efficient technologies and implemented reduction initiatives resulting in a 7,044.40 MWh annual energy reduction.

Social Achievements

• Reviewed and redesigned its salary structure to ensure competitiveness.
• Launched various programs to improve employee skills, providing 123,637 training hours.
• Implemented a “care program” to improve workplace environment.
• Recruited more than 10 people for its management team with multinational working experiences.

Governance Achievements

• Established a whistleblowing platform.
• Provided anti-corruption training to all directors and employees.
• Implemented Intellectual Property Protection (IPP) Management System.

Climate Goals & Targets

Environmental Challenges

• Product responsibility risks (meeting customer requirements and standards).
• Socially responsible conduct risks (business ethics, employment misconduct).
• Climate change risks (extreme weather, regulatory requirements).
• COVID-19 pandemic impact on operations and employee well-being.

Mitigation Strategies

• Established procedures to identify and tackle non-conforming products.
• Established CSR Guidelines and a sustainability governance structure.
• Implemented environmental management systems, invested in energy-efficient technologies.
• Established COVID-19 Epidemic Control Teams, implemented safety measures, and developed an incident management plan.

Supply Chain Management

Responsible Procurement

• Requires suppliers to conduct self-assessments and adhere to policies prohibiting child and forced labor.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (floods and extremely hot days)

Transition Risks

• Stringent regulatory requirements to reduce climate change

Opportunities

• Capitalizing on policy incentives for energy efficiency and renewable energy

Reporting Standards

Frameworks Used: SGX-ST Listing Rule 711A, SGX-ST Listing Rule 711B, GRI Standards (Core option)

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO/IEC 17025:2005, ICTI Ethical Toy Program, Sedex Members Ethical Trade Audit, Responsible Business Alliance review, Global Security Verification (GSV)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Sustainability
• Diversity, Equity and Inclusion (DE&I)

Environmental Achievements

• Increased usage of sustainable raw materials from 22% in FY2021 to 35% in FY2022
• Commenced 3 additional paper production lines in Heyuan, China, and Sragen, Indonesia
• Collaborated with universities and commercial institutes to research and develop new modifications of Green PE and rPET materials

Social Achievements

• Conducted a series of community initiatives that benefitted more than 7,600 people
• Enhanced volunteering structure, encouraging more employee participation in community initiatives
• Implemented a range of initiatives to improve human capital management, resulting in significant reduction in employee turnover rates
• Implemented DE&I initiatives to foster a workplace culture where everyone feels valued

Governance Achievements

• Generally adhered to the principles and guidelines as set out in the Code of Corporate Governance 2018 and the Listing Manual issued by the Singapore Exchange Securities Trading Limited

Climate Goals & Targets

Environmental Challenges

• Global economic challenges including geopolitical tension, rising inflation, interest rate hikes, and the lingering impact of the pandemic
• Environmental pollution and climate change

Mitigation Strategies

• Delivered a resilient full-year performance reflecting the robustness of the organization and customer relationships
• Continued to transform into a future-ready green operation, leveraging people, technology, and innovation
• Implemented comprehensive and practical business contingency plans and risk management planning
• Investing in automation and new technologies for greater cost efficiencies and quality improvements
• Exploring alternative material and product options, such as Green PE and rPET, and investigating material modification
• Donated two truck-mounted hydraulic arm rollers to two villages in Indonesia to improve waste disposal

Supply Chain Management

Responsible Procurement

• Using sustainable raw materials

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Paper and hybrid toy products using Green PE, rPET, aluminum, and FSC certified paper

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• 15.58% reduction in carbon emission intensity compared to the previous year
• 16.46% of electricity sourced from renewable sources
• 40% of products produced using certified sustainable materials
• 11.78% reduction in energy consumption intensity
• 12.28% reduction in water intensity

Social Achievements

• 100% coverage in DE&I training for all manager grade and above
• 28% of leadership positions held by women
• 35 community development projects benefiting over 22,000 people
• Employee turnover below 8%

Governance Achievements

• Established the Executive Management Committee (EMC) to integrate sustainability into strategy
• ESG department coordinates sustainable development practices across departments and subsidiaries
• 100% of employees completed business ethics training

Climate Goals & Targets

Environmental Challenges

• Increased costs due to more stringent environmental regulations
• Risk of business value loss due to regulatory non-compliance
• Rising energy prices
• Potential for operational delays due to extreme weather events

Mitigation Strategies

• Continuous reduction of greenhouse gas emissions
• Strict compliance with laws and regulations through EMS
• Workflow optimization and improved electrical equipment efficiency
• Strengthening BCP measures and conducting surveys of suppliers' business continuity systems

Supply Chain Management

Responsible Procurement

• Sourcing raw materials from approved vendors
• Use of Green PE, rPET, and FSC™ certified paper
• RBA Code of Conduct, ICTI Ethical Toy Program, SMETA compliance

Climate-Related Risks & Opportunities

Physical Risks

• Operational delays, increased operating costs, supply chain disruptions due to severe weather

Transition Risks

• Increased costs due to stricter GHG emission regulations
• Risk of business value loss due to regulatory non-compliance
• Rising energy prices

Opportunities

• Increased sales through sustainable products
• Development of sustainable materials
• Gaining stakeholder trust by achieving carbon neutrality

Reporting Standards

Frameworks Used: GRI, SGX-ST Listing Rule 711A and 711B, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, ISO/IEC 17025:2005, ICTI Ethical Toy Program, Sedex Members Ethical Trade Audit (SMETA), Global Security Verification (GSV), Supplier Compliance Audit Network (SCAN)

Sustainable Products & Innovation

• Products using Green PE, rPET, and FSC™ certified paper

Awards & Recognition

• Hong Kong ESG Reporting Award - Grand Award for Best ESG Report (Small-Cap)
• Hong Kong ESG Reporting Award - Commendation Newcomer Award
• Outstanding Contribution to Non-Public Enterprises
• Pioneering Award for ESG Disclosure Contribution
• ESGBusinessWorkplace Wellness Programme Award - China