Climate Change Data

Environmental Metrics

ESG Focus Areas

• Customer Service
• Information Security and Personal Data Protection
• Quality First
• Safety First
• Protection of Intellectual Property Rights
• Fair Recruitment
• Corporate Governance
• Employment and Benefits
• Anti-Competitive Practice
• Digital Innovation
• COVID-19 Response

Environmental Achievements

• Launched YS by YesStyle, an own-brand fashion collection using eco-friendly materials like organic cotton and recycled polyester.

Social Achievements

• Awarded 'Best Diversity & Inclusion Strategy Award (Gold)' by Ctgoodjobs.
• Awarded 'Caring Company' by the Hong Kong Council of Social Service for 14 consecutive years (2007-2021).

Governance Achievements

• Full compliance with the Corporate Governance Code in Appendix 14 to the Listing Rules.
• Zero legal cases regarding corrupt practices.

Climate Goals & Targets

Environmental Challenges

• Decreased revenue (approximately 6.5%) in 2021 compared to 2020 due to the COVID-19 pandemic and increasing freight costs.
• Increased logistics costs due to the COVID-19 pandemic.
• Risk of supplier disintermediation.

Mitigation Strategies

• Focus on cost savings and efficiency improvements, including a memorandum of understanding with CN Logistics and plans for a smart AI Robotic Warehouse.
• Passing increased logistics costs to customers.
• Innovative marketing approach and strong social media presence to attract and retain suppliers.

Supply Chain Management

Supplier Audits: 11,534 suppliers assessed for corporate social responsibility (100% of product suppliers)

Responsible Procurement

• ESG policy considering ESG factors in supplier cooperation.
• Stringent supplier selection process based on quality, safety, occupational health, training, and anti-corruption.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Changes in national policies and regulations
• Changes in consumer preferences for eco-friendly products

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: HKEx Environmental and Social Aspects (Appendix 27 to the Listing Rules), ESG Reporting Guide (Appendix 27 to the Listing Rules)

Sustainable Products & Innovation

• YS by YesStyle fashion collection

Awards & Recognition

• Hong Kong’s Most Outstanding Business Awards 2019, 2020
• PayPal Top Seller 2018, 2019
• Caring Company 2021
• Young Ambassador Program Award from the Hong Kong HR Awards 2021
• Best Diversity & Inclusion Strategy Award (Gold) from the Best HR Awards Dec 2021
• Cosmetics Retailer of the Year – Hong Kong Aug 2021
• Technology Excellence Award – E-commerce Retail 2020
• Asia’s Most Prominent Online Fashion and Beauty Products Retailer Of The Year at Asia’s Most Valuable Service Awards 2020
• #1 Beauty And Fashion Platform Of The Year, Hong Kong’s Most Outstanding Service Awards 2020
• Asia’s Best E-tailing Awards – Best Cross-border Award 2020

Environmental Metrics

ESG Focus Areas

• Cybersecurity and Personal Data Protection
• Quality First
• Safety First
• Employment and Benefits
• Customer Service
• Digital Innovation
• Anti-Competitive Practice
• Protection of Intellectual Property Rights
• COVID-19 Response
• Comprehensive Training
• Corporate Governance
• Procurement and Supply Chain Management
• Green Logistics
• Energy Management
• Caring for the Community
• Responsible Production
• Mitigation of GHG Emissions and Climate Change

Environmental Achievements

• Reduced total paper usage intensity (by workforce) in Hong Kong offices by 10% compared to 2019 (target for 2025)
• Reduced total paper usage intensity (by revenue) in Hong Kong warehouses by 10% compared to 2019 (target for 2025)
• Established paper usage reduction mechanism in Hong Kong offices and warehouses by 2023

Social Achievements

• Received the ‘Caring Company’ award from the Hong Kong Council of Social Service for 15 consecutive years (2007-2022)
• Awarded the Youth Ambassador Program Award by JobsDB for effective engagement programs with young job seekers
• Contributed 24 hours of voluntary work and donated HK$3,000 to the community

Governance Achievements

• Full compliance with the provisions of the Corporate Governance Code in 2022 (except for deviation from provision D.2.5)
• No legal cases related to corrupt practices launched or brought against the Company and employees during the Reporting Year
• Implemented board diversity policy

Climate Goals & Targets

Environmental Challenges

• Rising food and fuel inflation impacting competitiveness
• Potential intellectual property rights infringement by third-party manufacturers
• COVID-19 pandemic impacting operations and logistics
• Inventory obsolescence due to fluctuating demand

Mitigation Strategies

• Cost savings and operational efficiency initiatives (collaboration with CN Logistics and YA Logistics)
• Incorporation of relevant terms and conditions in supplier agreements, background checks on new suppliers
• Work-from-home policy, special working hour arrangements, hygiene guidelines, air purification systems, virus protection kits
• Just-in-time inventory management strategy, demand forecasting, optimized supply chain management

Supply Chain Management

Supplier Audits: Annual review of existing suppliers, assessment of new suppliers

Responsible Procurement

• Criteria for selecting suppliers based on environmental impact (ISO 20400, Ceres, Hong Kong Productivity Council)
• ESG policy updated to reflect commitment to working with suppliers who prioritize ESG factors

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Changes in national policies and regulations
• Changes in consumer preferences for eco-friendly products

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-friendly, own-brand fashion collection

Awards & Recognition

• Say Yes To Breastfeeding Certificate of Appreciation 2022/2023
• 25th Anniversary Enterprise Outstanding Award in the Ecommerce Industry 2022
• Youth Ambassador Program Award at the Hong Kong HR Awards 2021,2022
• Hong Kong’s Most Outstanding Business Awards 2019, 2020
• PayPal Top Seller 2018, 2019
• Caring Company 2022
• Happy Company 2022
• Caring Company 2021
• Young Ambassador Program Award from the Hong Kong HR Awards 2021
• Best Diversity & Inclusion Strategy Award (Gold) from the Best HR Awards Dec 2021
• Cosmetics Retailer of the Year – Hong Kong Aug 2021
• Technology Excellence Award – E-commerce Retail 2020
• Asia’s Most Prominent Online Fashion and Beauty Products Retailer Of The Year at Asia’s Most Valuable Service Awards 2020
• # 1 Beauty And Fashion Platform Of The Year, Hong Kong’s Most Outstanding Service Awards 2020
• Asia’s Best E-tailing Awards – Best Cross-border Award 2020

Environmental Metrics

ESG Focus Areas

• Customer Service
• Safety
• Cybersecurity and Data Privacy
• Product Quality
• Intellectual Property Protection
• Employee Welfare
• Procurement and Supply Chain Management
• Digital Creativity
• Corporate Governance
• Comprehensive Training
• Community Care
• Greenhouse Gas Emission Reduction and Climate Change
• Responding to COVID-19
• Responsible Production
• Energy Management
• Solid Waste Management
• Green Logistics

Environmental Achievements

• Reduced paper consumption by approximately 93.6% from 2021 baseline.
• Reduced electricity consumption (1,232,099 kWh in 2023 vs 1,466,318 kWh in 2022) due to warehouse automation, reduced air conditioning, and office lease termination.
• Reduced water consumption by 86% compared to 2022 due to the new warehouse not using a water-cooling system.

Social Achievements

• Launched a new “YesStyle Influencer” loyalty program in May 2022.
• Achieved second place in the UN Children's Fund Charity Run 2023 15km Corporate Relay (Mixed Team).
• Won several Human Resources Excellence Awards in 2023.
• Consistently received the “Business in the Community” award for 17 consecutive years (2007-2023).

Governance Achievements

• Full compliance with the Corporate Governance Code except for the establishment of an internal audit function.
• No cases of corruption or whistleblowing issues received in 2023.
• Implemented a board diversity policy.

Climate Goals & Targets

Environmental Challenges

• Rising food and fuel prices impacting competitiveness.
• Potential risks associated with outsourcing customer service.
• Potential risks associated with third-party payment processing.
• Potential risks associated with product defects or quality issues from suppliers.
• Potential risks associated with intellectual property infringement.
• Potential risks associated with data breaches or privacy violations.
• Potential risks associated with climate change (extreme weather events, policy changes, market shifts, reputational risks).

Mitigation Strategies

• Collaborated with strategic logistics partners to optimize supply chain and improve efficiency.
• Established strict selection procedures and closely monitor service providers to maintain customer service standards.
• Implemented comprehensive content monitoring procedures and purchased product liability insurance.
• Strengthened internal control measures to prevent intellectual property infringement.
• Implemented robust cybersecurity measures, including penetration testing and migration to cloud data centers.
• Developed a business continuity plan to address unexpected events.
• Implemented measures to mitigate climate-related risks (regular inspections and maintenance of facilities, monitoring policy changes, developing eco-friendly products).

Supply Chain Management

Supplier Audits: 6,804 new suppliers assessed in 2023; 17,518 existing suppliers assessed.

Responsible Procurement

• Supplier selection based on quality, safety, occupational health, training, and anti-corruption measures.
• Emphasis on reduced plastic consumption, minimized paper usage, and increased use of recycled materials in packaging.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Changes in national policies and regulations
• Changes in consumer preferences for eco-friendly products

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action

Initiatives contributing to these goals are described throughout the report.

Sustainable Products & Innovation

• Eco-friendly fashion collection

Awards & Recognition

• Business Innovator Award – Most Innovative E-commerce Platform of the Year 2022
• Human Resources Excellence Awards 2023
• Business in the Community Award (17 consecutive years)