Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Employee care
• Community care
• Environmental care

Environmental Achievements

• Engaged consultant to give advice on reducing carbon emission in manufacturing activities
• Implemented policies in environmental protection
• Committed to adopt a clean production model
• Built a “future factory” in Cebu with focus on innovation, automation and integrating waterless fabric dyeing technology

Social Achievements

• Provided safe and enjoyable work and living environments, equitable compensation and benefit schemes, and opportunities for career growth through a variety of formal and informal learning and development programmes
• Fostered open communications with employees through various channels
• Supported diverse programs especially focusing on children’s welfare through sports activities, education, and fine arts training
• Helped prepare adults to integrate into the community by providing them with skills and employment opportunities

Governance Achievements

• Improved governance policies in compliance with regulatory requirements and in accordance with international recommended practices
• Formed the Audit Committee, Remuneration Committee and Nomination Committee all at the Board of Directors’ level

Climate Goals & Targets

Environmental Challenges

• Intense competition among apparel and accessories retailers
• Rapid changes in fashion trend and the popularity of online shopping
• Shortened life cycle of fashion trends leading to smaller orders with reduced lead time
• Shifting of orders from PRC factories to factories in other countries due to cost and duties considerations

Mitigation Strategies

• Continuous streamlining and restructuring of the organizational structure and effective control on the overall operating costs
• Persistent development of new customer base
• Investment in “smart” technology and built the “factory of the future” in Cebu, Philippines
• Revamping Cambodia production capacity for the production of bags and developing new capacities for the production of bags in the Philippines

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• People
• Community
• Environment

Environmental Achievements

• Reduced water consumption from 2,128,660 tonnes in 2018 to 1,595,027 tonnes in 2019.
• Reduced boiler fuel consumption from 8,269,772 kg in 2018 to 4,365,209 kg in 2019.
• Reduced hazardous waste generation from 483 tonnes in 2018 to 162 tonnes in 2019.
• Planted 5,278 trees in 2019.
• Saved approximately 133,156 single-use water bottles by switching to reusable bottles.

Social Achievements

• Launched the Luen Thai Leadership Competency Model.
• Launched the 7 XO Habits program for employee development.
• Launched XO SHiNE Management Fundamental Program.
• Employees donated 33,798 hours through the Donate-an-Hour program.
• $43,365.95 USD donated to various causes.
• Implemented eNPS (employee Net Promoter Score) survey across all facilities.

Governance Achievements

• Implemented anti-corruption policies, rules, and regulations.
• Employee induction process includes extensive guidance on anti-corruption measures.
• Compliance with all applicable provisions of the Corporate Governance Code.

Climate Goals & Targets

Environmental Challenges

• Uncertain times due to unprecedented changes in politics, technology, economics, and the environment.
• COVID-19 pandemic impacting every aspect of life globally.

Mitigation Strategies

• Adopted measures to improve preparedness for and response to COVID-19.
• Continued to work with health authorities on efforts against COVID-19.

Supply Chain Management

Responsible Procurement

• Close communication with branded customers and material suppliers in material selection.
• Follow branded customers’ quality requirements and standards in selecting materials.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (some apparel factories in Philippines and Cambodia)

Sustainable Products & Innovation

• Waterless dyed fabrics
• Automated folding and bagging machines
• Laser printing

Awards & Recognition

• Best in Digital Manufacturing award at the 2019 adidas Partner Summit