Zhongshan Huali Industrial Group Co., Ltd.
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:2,487,093 tCO2e/year (2023)
Scope 1 Emissions:19,017 tCO2e/year (2023)
Scope 2 Emissions:328,558 tCO2e/year (2023)
Scope 3 Emissions:2,139,518 tCO2e/year (2023)
Renewable Energy Share:28.1% (2023)
Water Consumption:1.711 million m3/year (Vietnam factories only)
Waste Generated:34,824 tons of general solid waste and 3,320 tons of hazardous waste/year
ESG Focus Areas
- Environmental Protection
- Talent Development
- Social Contributions
- Corporate Governance
Environmental Achievements
- Achieved "zero landfill and zero incineration" of solid waste in all manufacturing factories starting September 2023, with a 56.8% solid waste recycling and reuse rate by year-end (75.5% in Q4 2023).
- Reduced biomass fuel consumption by 17% in 2023.
- Total carbon emission reduction of 7.8% in 2023 (2,487,093 tons compared to 2,697,898 tons in 2022).
Social Achievements
- Provided special assistance to employees in need from August to October 2023.
- Completed "eliminating workplace violence and harassment" training for over 100,000 employees from July to November 2023.
- Implemented the HER project in several factories, focusing on women's issues and leadership development.
Governance Achievements
- Officially joined the Science Based Targets initiative (SBTi) in February 2023.
- Established a chemical management system based on ZDHC CMS standards and implemented a Chemical Visibility Management Project in 11 factories.
- No reported incidents of corruption in 2023.
Climate Goals & Targets
Long-term Goals:
- Reduce 90% absolute greenhouse gas emissions from Scope 1, 2, and 3 by 2050 (from a 2022 baseline).
- 100% recycling and reuse of waste by 2035.
Short-term Goals:
- Reduce 50.4% absolute scope 1 and 2 GHG emissions by 2032 (from a 2022 base year).
- Reduce 30% scope 3 GHG emissions from purchased goods and services by 2032 (from a 2022 base year).
Environmental Challenges
- Macroeconomic downturn impacting customer orders.
- Frequent extreme climate events impacting business operations.
- Data limitations in Scope 3 emissions calculations.
Mitigation Strategies
- Focus on customer service, efficiency improvement, and quality enhancement.
- Commitment to science-based carbon targets with a goal of carbon neutrality by 2050.
- Implementing energy efficiency improvement projects and increasing investment in renewable energy.
Supply Chain Management
Supplier Audits: 100% of suppliers passed audit in 2023.
Responsible Procurement
- Localized procurement strategy.
- Joint supplier audits with customers.
- Supplier grading system.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI Standards, Shenzhen Stock Exchange Guidelines No. 2
Certifications: ISO 14001
Sustainable Products & Innovation
- Tree Runner, MTE UL TRARANGE VR3, Charged Assert 10 shoe models using recycled and low-carbon materials.
Awards & Recognition
- Science Based Targets initiative (SBTi) commitment.
- World Wildlife Fund certificate.
- Various awards for subsidiaries from Deckers and New Balance.