SML Holdings Limited
Climate Impact & Sustainability Data (2021, 2022)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:27.36 million kg CO2e (2021)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:100% in some EMEA sites (through RECs)
Total Energy Consumption:918 million kWh (2021)
Water Consumption:130,902.51 m³ (2021)
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Climate Change
- Circular Economy
- Social Compliance
- Operation Green
Environmental Achievements
- Reduced absolute GHG emissions by 20% compared to 2018 baseline
- Increased use of recycled yarn by 113% and recycled tape by 165% compared to 2018 baseline
- Increased use of FSC™-certified paper by 118% compared to 2018 baseline
- Achieved 89.3% landfill-free waste and 89.3% recycled waste
- 95.5% of chemicals procured conform to environmental and social values
Social Achievements
- Launched Management Trainee Programme (MTP) and Succession Planning Programme (SPP)
- Provided over 27,314 training hours to 44% of employees
- Total Recordable Incident Rate (TRIR) reached a record low of 0.44, significantly below the industry average
- Organized various recreational activities to promote work-life balance
- Donated HK$2,000,000 to Hong Kong Baptist University and provided COVID-19 testing kits to Hoa Phu Health Department in Vietnam
Governance Achievements
- Established an ESG Working Group to oversee sustainability initiatives
- Implemented comprehensive ESG policies and risk management mechanisms
- No irregularities regarding data leakage or infringement of intellectual property rights
- No lawsuits or complaints related to corruption
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Achieve 100% renewable energy by 2030 in own operations
- Support zero deforestation and sustainable forest management by 2025
Short-term Goals:
- Achieve 25% low-impact materials sourcing by 2025
- Achieve 50% renewable energy by 2025 in own operations
Environmental Challenges
- Slightly increased GHG emissions compared to the previous year
- Climate-related risks including policy and legal risks, market risks, acute risks (extreme weather events), and chronic risks (long-term climate changes)
Mitigation Strategies
- Formulated GHG reduction plans at production site level
- Expanded on-site solar energy capacity in China
- Purchased Renewable Energy Certificates (RECs) in the EMEA region
- Implemented energy-saving measures at production sites
- Promoted the use of non-solvent-based inks
- Installed emission reduction systems
- Implemented a group-level business continuity plan
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Global Procurement Policy
- Best Practice Guidelines
- Ethical & Green Trading Policy
- Environmental, Social Performance and Quality Assessment
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (wildfires, typhoons, hurricanes, flooding)
- Long-term changes in weather patterns (high temperatures, droughts, sea-level rise)
Transition Risks
- Policy and regulatory updates
- Increased customer demands on environmental performance
- Disruption to transport services
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: HKEX ESG Guide
Certifications: ISO 9001:2015, OEKO-TEX Standard 100, FSC™ Chain of Custody, Global Recycled Standard, SMETA
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- EcoInspire™ sustainable product collection (recycled materials, FSC™-certified paper, recycled LDPE polybags)
Awards & Recognition
- IOTE Star Award 2021 – The Most Influential Innovative Product in the RFID Industry - Electronic Label Award
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:19,022.34 tCO2e/year
Scope 1 Emissions:2,111.49 tCO2e/year
Scope 2 Emissions:16,910.85 tCO2e/year
Renewable Energy Share:100% in EMEA region through RECs; increasing in Asia Pacific
Total Energy Consumption:40,291.06 MWh/year
Water Consumption:107,355.37 m3/year
Waste Generated:3,534.34 tons/year (Non-hazardous) + 309.39 tons/year (Hazardous)
Carbon Intensity:1.24 kg CO2equivalent/1,000 pieces in 2022
ESG Focus Areas
- Circular Economy
- Operation Green
- Positive Social Impact
Environmental Achievements
- Reduced absolute GHG emissions by 3% in CO2 equivalent (12% reduction by 2022 compared to 2018 baseline)
- Increased use of FSC™-certified paper by 149% compared to 2018 baseline
- Increased percentage use of recycled yarn by 555% compared to 2018 baseline
- Increased percentage use of recycled tape by 368% compared to 2018 baseline
- Achieved 90.1% landfill-free waste and 90.1% waste recycled
- Achieved 99% chemical conformance to SML's environmental and social values
Social Achievements
- Maintained highest standards of safe working environment and ensured compliance to ethical trading policies (Total incident rate recorded 0.44%)
- Organized various staff activities to promote work-life balance and employee wellbeing
- Provided extensive training to 49% of employees, totaling over 51,643 training hours (average 9.04 hours per employee)
Governance Achievements
- Implemented effective ESG risk and opportunity management mechanisms
- Complied with all material respects with relevant legal and regulatory requirements, with no irregularities with regards to data leakage or infringement of intellectual property rights
- Provided anti-corruption training to all employees
Climate Goals & Targets
Long-term Goals:
- Net-zero emissions by 2050 (aligned with SBTi)
Medium-term Goals:
- Reduce scope 1 & 2 GHG emissions by 40% by 2030 (compared to 2018 baseline)
- Increase percentage of sustainable products to 90% by 2030
- Increase percentage of waste diverted from landfill to 95% by 2030
- Increase percentage of suppliers conforming to environmental and social policies to 95% by 2030
- Achieve a female-to-male ratio of 45:55 in workforce by 2030
- Achieve zero fatal accidents and a total recordable incident rate below the industry average by 2030
Environmental Challenges
- Climate change related risks: policy and legal risks, market risks, acute physical risks (extreme weather), chronic risks (long-term weather changes)
- Supply chain disruptions due to extreme weather events
Mitigation Strategies
- Closely monitor policy developments and regularly review business practices
- Implemented a range of sustainability measures and actively obtain environmental and social certifications
- Formulated a group-level Business Continuity Plan
- Developed Occupational Health and Safety Policy
- Implemented measures to increase energy efficiency at manufacturing locations
- Developed EcoInspire sustainable product collection
- Developed RFID-focused business lines
- Increased RFID production capabilities through TIDC
- Exploring business opportunities in the RFID market
Supply Chain Management
Supplier Audits: 1,187 suppliers engaged during the Reporting Period; annual assessments conducted
Responsible Procurement
- Global Procurement Policy
- Supplier assessment criteria and procedures
- Best Practice Guidelines
- Ethical & Green Trading Policy
- Restricted Substance List (RSL)
- Manufacturing Restricted Substance List (MRSL)
Climate-Related Risks & Opportunities
Physical Risks
- Increased severity of extreme weather events
- Long-term changes in weather patterns
Transition Risks
- Policy and legal risks
- Market risks
Opportunities
- Increased customer expectations on environmental performance
- Climate change mitigation measures increasing resource efficiency
- Increased demand for RFID products and services
Reporting Standards
Frameworks Used: HKEx ESG Guide, TCFD, UN SDGs
Certifications: ISO 9001:2015, FSC™, OEKO-TEX Standard 100, SMETA, Higg FEM, Higg FSLM
UN Sustainable Development Goals
- Not disclosed
Aligned with 11 UN SDGs
Sustainable Products & Innovation
- EcoInspire™ sustainable product collection
- Clarity® RFID Enterprise Software Suite