Climate Change Data

Environmental Metrics

ESG Focus Areas

• Workplace Quality
• Environmental Protection
• Operating Practices
• Community Involvement

Environmental Achievements

• Lowered wastewater emission in 2014 compared to 2013 due to decreased production volume and suspension of production in Changchun.
• Recycled approximately 73,000 metric tonnes of wastewater annually in Jinzhou for watering plants, cleaning, and flushing.
• Invested HK$34,102,000 in equipment upgrades and production workflow improvements in 2014 to improve resource efficiency.

Social Achievements

• Organized various sports events and ball games for employees, fostering a sense of belonging.
• Provided welfare housing for eligible employees.
• Offered gifts during traditional Chinese festivals and assistance to employees facing family difficulties.

Governance Achievements

• Established a Corporate Governance Committee to ensure effective governance and internal controls.
• Documented a Code of Conduct outlining ethical principles and behavioral frameworks for all members.
• Implemented a whistleblowing policy and procedures to address corruption concerns.

Climate Goals & Targets

Environmental Challenges

• Intense competition and economic slowdown in China's corn refinery industry.
• Seven work-related accidents in Shanghai in 2014 (five slips/falls, two equipment-related).
• One work-related accident in Changchun in 2013 (conveyor belt incident).

Mitigation Strategies

• Adjusted strategies and reformed internal control procedures and management.
• Provided extra training sessions on work safety and equipment operation in Shanghai after accidents.
• Provided extra training sessions on work safety in Changchun after the accident.
• Implemented tailor-made work manuals incorporating occupational health and safety procedures and established work safety inspection teams.

Supply Chain Management

Supplier Audits: Stringent supplier certification process; random checks by QA department.

Responsible Procurement

• Stringent quality control/assurance process for corn procurement; assessment of suppliers based on qualifications, background, food safety, product quality, pricing, and delivery.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO9001, ISO14001, HACCP, QS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards from various national, provincial, and municipal institutions (detailed in the report).

Environmental Metrics

ESG Focus Areas

• Workplace Quality
• Environmental Protection
• Operating Practices
• Community Involvement

Environmental Achievements

• Lowered greenhouse gas emission through R&D
• Reduced waste disposal and imposed stringent wastewater treatment standards
• Promoted use of recycled materials and renewable resources
• Promoted sustainable use of energy, water, crops and other raw materials
• Promoted energy conservation
• Minimized the impact on biodiversity and ecosystem
• Complied with relevant environmental regulations in all production facilities
• Recycled approximately 73,000 metric tonnes of wastewater annually in Jinzhou for watering plants, cleaning, and flushing water.
• Invested HK$43,468,000 in equipment upgrades and production workflow improvements.

Social Achievements

• Provided job openings and equal opportunities to every individual, regardless of race, religion, color, age, sex, sexuality, or disability.
• Built a platform for employee development, providing multi-level on-the-job training.
• Provided comprehensive medical, accidental, and disability insurance coverage and retirement schemes.
• Provided welfare housing for eligible employees.
• Organized various extracurricular and social activities for employees.
• Selected outstanding athletes to participate in local marathons and other public sports events.

Governance Achievements

• Engaged an internal control expert to review the Group’s internal controls and systems.
• Established an internal control team to implement recommendations from the internal control expert.
• Documented a Code of Conduct outlining ethical principles and behavioral framework.
• Implemented a whistleblowing policy and procedures.
• Adopted a zero-tolerance policy to corruption.

Climate Goals & Targets

Environmental Challenges

• Suspension of Jinzhou and Changchun plants for most of the year, resulting in staff layoffs and decreased production.
• Increase in staff turnover rate (24% in 2015, compared to 15% in 2014), mainly due to the production suspension.
• Several quality issues in the Jinzhou site, posing challenges in quality control.
• Low facility utilization in Jinzhou.

Mitigation Strategies

• Focused on continuing R&D to upgrade production efficiency and develop new high-value-added products.
• Provided extra training sessions to workers on work safety and equipment operation.
• Implemented more stringent control and additional staff training sessions in Jinzhou to minimize quality issues.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Stringent supplier certification process
• Stringent quality control/assurance process during corn procurement

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO9001, ISO14001, HACCP, QS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Outstanding Brand of Shanghai (2015)
• Jinzhou Production Safety Role Model Company for the Youth (2012-2014)
• Meritorious Enterprise of Jinzhou City (2012-2014)
• Integrity Example Enterprise

Environmental Metrics

ESG Focus Areas

• Workplace Quality
• Environmental Protection
• Operating Practices
• Community Involvement

Environmental Achievements

• Relocating production facilities to improve efficiency and reduce energy consumption.
• Upgraded coal-consuming facilities in Shanghai to use bio-based materials, resulting in zero cinder emission in Shanghai.
• Recycled approximately 73,000 metric tonnes of wastewater in Jinzhou for watering plants, cleaning, and flushing.

Social Achievements

• Reduced staff turnover rate to 15% in 2016 from 24% in 2015.
• Provided an average of 10.3 hours of training for ordinary staff in China (excluding Changchun due to suspension).
• Organized various sports events and encouraged employee participation in community activities.

Governance Achievements

• Improved internal control and risk management systems.
• Established a Corporate Governance Committee.
• Documented a Code of Conduct outlining ethical principles and anti-corruption policies.

Climate Goals & Targets

Environmental Challenges

• Work-related accidents in Shanghai and Jinzhou production sites.
• Suspension of Changchun production site impacting training hours and resource consumption.

Mitigation Strategies

• Formed investigation teams to analyze accident causes and implement preventive measures, including extra safety training.
• Implemented resource conservation schemes and incorporated results into annual appraisals.

Supply Chain Management

Supplier Audits: Stringent supplier certification process; random checks by QA department.

Responsible Procurement

• Stringent quality control for corn procurement; database of suppliers with assessment criteria (qualifications, background, food safety, quality, pricing, delivery, customer service).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO9001, ISO14001, HACCP, QS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Top 20 Enterprises in China Starch Sugar Industry (Shanghai), Best Growth Enterprise (Shanghai), Meritorious Enterprise (Jinzhou), AAAAA Credit Rating Enterprise (Jinzhou), Outstanding Enterprise (Jinzhou), Major Export Enterprise (Jinzhou)

Environmental Metrics

ESG Focus Areas

• Workplace Quality
• Environmental Protection
• Operating Practices
• Community Involvement

Environmental Achievements

• Reduced water, electricity, steam, and coal consumption compared to 2018 (due to decreased output).
• Recycled wastewater for cooling and cleaning.
• Recycled catalysts after rinsing and filtration.
• Sold cinders as raw material for cinder blocks after treatment.

Social Achievements

• Provided comprehensive medical, accidental, and disability insurance coverage and retirement schemes.
• Offered comprehensive training sessions and career development programs.
• Organized team-building activities.
• Maintained stringent recruitment procedures to avoid child or forced labor.

Governance Achievements

• Established a Corporate Governance Committee.
• Implemented a Code of Conduct embedding ethical principles and anti-corruption measures.
• Provided anti-bribery and corruption seminar for Hong Kong staff.

Climate Goals & Targets

Environmental Challenges

• Increased wastewater discharge in Changchun due to higher production of high-end products.
• Increased greenhouse gas emissions in Jinzhou due to lower-quality coal in the power plant.
• Customer complaints and product returns related to concentration, color, and packaging problems.

Mitigation Strategies

• Management in Jinzhou evaluated the pros and cons of using lower-quality coal.
• Investigation teams formed to strengthen inspection and prevent future work-related accidents.
• Extra training sessions provided on work safety and machinery operation.
• QA department investigates customer complaints and implements product recall procedures if necessary.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Stringent supplier certification process.
• Stringent quality control/assurance process during corn procurement.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme climate disrupting transportation and consumption patterns

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Certifications: ISO9001, ISO14001, HACCP, QS

Third-party Assurance: Not disclosed

Awards & Recognition

• Certificate of Enterprise Credit Grade – AAA Level
• Civilized Unit of Minhang District
• Shanghai Enterprise with Good Credit in Honoring Contracts
• Certificate of Contract Credit Rating
• Advanced Pilot Enterprises of “Integration of Two Industries” in Jinzhou
• Enterprise with Outstanding Contribution to the Steady Industrial Growth of Jinzhou

Environmental Metrics

ESG Focus Areas

• Workplace Quality
• Environmental Protection
• Operating Practices
• Community Involvement

Environmental Achievements

• Continued R&D effort to improve production efficiency and lower greenhouse gas emission
• Reduced waste disposal and imposed stringent wastewater treatment standards
• Promoted use of recycled materials and renewable and biodegradable resources
• Promoted sustainable use of energy, water, crops and other raw materials
• Promoted energy conservation
• Complied with relevant environmental regulations in all production facilities

Social Achievements

• Provided trainings, career development and growth opportunities to employees
• Offered competitive remuneration and comprehensive insurance coverage
• Provided welfare housing for eligible employees in the PRC
• Organized various extracurricular and social activities for employees
• Made donation to help combat the COVID-19 pandemic

Governance Achievements

• Established a corporate governance framework to ensure ESG governance aligns with strategic growth
• Established an ESG working group to manage and evaluate ESG performance
• Implemented stringent recruitment procedures to avoid child or forced labour
• Implemented a Code of Conduct embedding ethical principles and a behavioral framework
• Provided anti-bribery and anti-corruption training to Directors and staff

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting daily lives and business operations, leading to production suspension and increased costs
• Typhoons reducing corn harvest and increasing production costs
• Extreme climate disrupting transportation and consumption patterns

Mitigation Strategies

• Suspended most production lines to reduce cashflow pressure
• Continued R&D efforts to develop greener products
• Implemented stringent quality control in corn procurement
• Improved production facilities and streamlined processes after relocation

Supply Chain Management

Responsible Procurement

• Stringent supplier certification process; consideration of ESG performance of suppliers; stringent quality control in corn procurement; avoidance of suppliers involved in child labor or poor working conditions

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons affecting corn harvest
• Extreme climate disrupting transportation and consumption patterns

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO9001, ISO14001, HACCP, QS

Awards & Recognition

• Shanghai Safety Demonstration Unit
• Four-star Party Branch of Maqiao Town
• Meritorious Enterprise

Environmental Metrics

ESG Focus Areas

• Workplace Quality
• Environmental Protection
• Operating Practices
• Community Involvement

Environmental Achievements

• Reduced wastewater discharge in Shanghai due to temporary suspension of operations.
• Continued R&D efforts to improve production efficiency and lower greenhouse gas emissions.
• Reduced non-hazardous waste produced in Shanghai due to temporary suspension of operations.
• Recycle use of wastewater and catalysts.

Social Achievements

• No work-related fatal events.
• Provided training programs for employees, including occupational safety training.
• Maintained a low employee turnover rate (4%).
• Complied with all relevant labor regulations.

Governance Achievements

• Established a corporate governance framework aligning ESG governance with strategic growth.
• Implemented stringent anti-corruption measures and training.
• Established a whistleblowing policy and procedures.

Climate Goals & Targets

Environmental Challenges

• Sporadic COVID-19 outbreaks and strict pandemic control policies hindering economic development.
• Reduction in corn harvest due to heavy rain and flooding.
• Suspension of operations in Changchun and Jinzhou.
• Temporary suspension of operations in Shanghai due to lockdowns.

Mitigation Strategies

• Suspended operations in Changchun and Jinzhou to minimize cash flow pressure.
• Continued R&D efforts to develop greener technologies and applications.
• Implemented stringent quality control processes in corn procurement.
• Implemented measures to prevent reoccurrence of work-related accidents.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Stringent supplier certification process.
• Consideration of ESG performance of suppliers.
• Stringent quality control in corn procurement.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO9001, ISO14001, HACCP, QS

Third-party Assurance: Not disclosed

Environmental Metrics

ESG Focus Areas

• Workplace Quality
• Environmental Protection
• Operating Practices
• Community Involvement

Environmental Achievements

• Continued R&D effort to production efficiency and lower greenhouse gas emission; reduced waste disposal and imposed stringent wastewater treatment standards against the discharge of pollutants; promoted use of recycled materials and renewable and biodegradable resources; promoted sustainable use of energy, water, crops and other raw materials; promoted energy conservation; and complied with the relevant environmental regulations in all production facilities.

Social Achievements

• Formulated the compensation and benefits system and conducted regular salary adjustment to ensure that all employees are rewarded and recognised with respect to their efforts and contributions; promotes fair competition. Any kind of discrimination against one’s age, gender, religion, marital status, ethnic background, sexual orientation, disability, and pregnancy is strictly prohibited in the Group; provides welfare housing for eligible employees in the PRC; provides assistance to employees whose families are in difficulties from time to time; invests in the personal and career development of its employees; provides tailor-made training programmes to employees in different posts; actively promotes good corporate governance by offering chances for senior management and executives to attend seminars or forums.

Governance Achievements

• Established a corporate governance framework to ensure that ESG governance aligns with our strategic growth; implemented stringent supplier certification process; adopts a zero tolerance policy to corruption; provides employees with whistle blowing channels and guidance; outlines its ethical principles and behavioral framework in its Code of Conduct; given training on anti-bribery and corruption to raise their awareness on the subject matter.

Climate Goals & Targets

Environmental Challenges

• Increasing complexity and uncertainty of the external environment, frequent geopolitical conflicts, and persistent global inflationary pressure; balancing efficiency and green and low-carbon development amidst the sluggish global economic recovery; the suspension of the Group’s operation in Northeast China; increase in non-hazardous waste produced in the Group’s Shanghai production site was a result of the increase in production volume.

Mitigation Strategies

• Facilitated its restructuring plan by introducing new controlling shareholders and transferring its subsidiaries in Changchun site to GBT; continued its research and development (“R&D”) team continued its efforts in developing new technologies and applications that make our products “greener”; reduced waste disposal and imposed stringent wastewater treatment standards; promoted use of recycled materials and renewable and biodegradable resources; promoted sustainable use of energy, water, crops and other raw materials; promoted energy conservation; utilising its R&D capabilities on the application of new technologies in waste recycling and treatment of solid waste; incorporates production efficiency and resource conservation scheme results into the annual appraisal of individual staff; continuously explores new packaging materials and transportation mode that are more environmental-friendly and cost saving.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Stringent quality control process in our corn procurement; stringent supplier certification process; takes into consideration the ESG performance of our suppliers when assessing and shortlisting the Group’s suppliers; zero tolerance for working with suppliers that engage child or forced labour, put their workers in poor working conditions, or deprive their human rights; assesses aspects of environmental sustainability amongst our suppliers by taking into account their emission control, environment protection, energy conservation, as well as their corporate value towards making greener production process enhancement and new production applications.

Climate-Related Risks & Opportunities

Physical Risks

• extreme climate resulting from climate change will disrupt transportation network and change consumption patterns of consumers overall; corn harvest will directly affect the business of the Group

Opportunities

• development of energy-efficient products

Reporting Standards

Frameworks Used: Appendix C2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO9001, ISO14001, HACCP, QS

Third-party Assurance: Not disclosed