Vitasoy International Holdings Limited
Climate Impact & Sustainability Data (2017, 2019-03 to 2020-03)
Reporting Period: 2017
Environmental Metrics
ESG Focus Areas
- Environmental Protection
- Social Responsibility
- Corporate Governance
Environmental Achievements
- Produced eco-friendly footwear and apparel with Teflon EcoElite™ and XT2® Technology.
- Upgraded facilities and adopted clean energy to reduce greenhouse gases and carbon emissions.
Social Achievements
- Launched the “Moving for the Future” CSR campaign to support 10 million poor Chinese teenagers.
- Officially opened the first batch of “ANTA Adream Center” to support education in remote areas of China.
- Maintained a stable employee turnover rate.
Governance Achievements
- Strategic transformation from a traditional private company into an internationally competitive listed corporation with modern governance standards.
- Compliance with the Model Code for Directors’ Securities Transactions.
- Established Board Committees (Audit, Remuneration, Nomination, and Risk Management).
Climate Goals & Targets
Long-term Goals:
- Internationalization of management system in five core skill areas – operation, brand building, distribution management, product innovation and organization management.
Medium-term Goals:
- To hit RMB100 billion for all brands’ retail sales by 2025.
Short-term Goals:
- Target Number of Stores by End of 2018: ANTA and ANTA KIDS: 9,700-9,800 FILA and FILA KIDS: 1,300-1,400 DESCENTE: 100-110 KOLON SPORT : 200-210 KINGKOW: 60-70 SPRANDI: 190-200
- Shortening Delivery Time, Enhancing Replenishment Efficiency and Frequency via our new logistic center
Environmental Challenges
- Intensified market competition in the sportswear industry.
- Risks from counterfeit brands.
- Production safety hazards.
- Increased sales channel costs.
- Product development risks.
- Emergencies.
- Economic cycle volatility and weakened downstream demand.
- Supplier management risks.
- Talent shortage and loss of talent.
- Product transportation management risks.
- Exchange rate risk.
Mitigation Strategies
- Strengthened supply chain to produce differentiated products.
- Revised performance-based incentive system for suppliers.
- Implemented high-speed production lines.
- Strategically combined in-house and outsourced production.
- Improved supply chain to shorten production lead times.
- Enhanced quality controls and workflow efficiency.
- Proactively adopted safeguards to protect intellectual property rights.
- Implemented policies and procedures to create a safe and healthy working environment.
- Provided safety education and fire safety trainings.
- Actively monitors foreign exchange rate fluctuations to ensure that its net exposure is kept to an acceptable level.
Supply Chain Management
Responsible Procurement
- Strict partner and supplier selection regime.
- Assistance to suppliers to enhance governance, production and operation standards.
- Performance-based incentive system to motivate suppliers.
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- Eco-friendly footwear and apparel with Teflon EcoElite™ and XT2® Technology.
Awards & Recognition
- Hang Seng Corporate Sustainability Benchmark Index
- Top 100 Rated Stocks 2017
- Best IR Company
- Asia’s Best Managed Company
- World’s Top 50 Most Valuable Apparel Brands 2017
- Top 100 Most Valuable Chinese Brands 2017
Reporting Period: 2019-03 to 2020-03
Environmental Metrics
ESG Focus Areas
- Climate Change
- Health and Product Nutrition
- Food Safety
- Non-GM
- Packaging
Environmental Achievements
- Reduced water usage in manufacturing by 15.8% vs 2013/14 base
- Reduced fuel usage in manufacturing by 15.4% vs 2013/14 base
- Reduced electricity usage in manufacturing by 11.1% vs 2013/14 base
- Achieved 99.4% okara recycling rate
- 100% FSC paper from sustainably managed forests in cartons
- 100% recycled PET bottle on VITA Water (Hong Kong)
- Sustained internal glass recycling rate >90%
Social Achievements
- Employees and infrastructure protected during COVID-19
- Grown market shares on both VITASOY and VITA brands
- Progressed Dongguan factory
Governance Achievements
- Established a Board-level ESG Committee
- Established an Executive Sustainability Committee
- Adopted international reporting standards (GRI, TCFD)
Climate Goals & Targets
Medium-term Goals:
- Reduce water usage in manufacturing by 25% vs 2013/14 base
- Reduce fuel usage in manufacturing by 25% vs 2013/14 base
- Reduce electricity usage in manufacturing by 25% vs 2013/14 base
Short-term Goals:
- Maintain ≥90% plant-based beverages
- Maintain ≥95% nutritious plant milk beverages
- Maintain ≥93% “low fat”, “low saturated fat and zero trans fat” beverages
- Achieve 82% sugar: moderate-zero beverages
Environmental Challenges
- COVID-19 impact, particularly in Wuhan
- Social unrest and COVID-19 affecting Vitaland schools’ business
- Extreme drought reducing local soybean supply and increasing material costs
Mitigation Strategies
- Strong online and hyper/supermarket channel performance
- Secured alternative soybean source from the US
- Driving core brands and core fundamentals, pacing investments to maximize productivity
Supply Chain Management
Responsible Procurement
- Secured alternative soybean source from US
Climate-Related Risks & Opportunities
Physical Risks
- Extreme drought
Reporting Standards
Frameworks Used: GRI, TCFD