KangLi International Holdings Limited
Climate Impact & Sustainability Data (2018, 2019, 2021, 2023)
Reporting Period: 2018
Environmental Metrics
Total Carbon Emissions:72,391.92 tons
Scope 1 Emissions:22,305.80 tons
Scope 2 Emissions:49,541.76 tons
Scope 3 Emissions:402.81 tons
Total Energy Consumption:66.07 GWh
Water Consumption:199,389 m3
Waste Generated:152.04 tons (emulsion), 6.21 tons (paper)
Carbon Intensity:149.88 tons per employee
ESG Focus Areas
- Environmental sustainability
- Human rights and social culture
- Stakeholder engagement
- Employee support
- Sustaining local communities
Environmental Achievements
- Maintained compliance with environmental laws and regulations with no material non-compliance issues.
- Implemented a mature sewage-handling system with closed-circuit purification for water reuse.
- Installed a neutralization system for acid waste produced during metal pickling.
- Implemented a hydrocarbon removal system to manage gaseous waste production.
Social Achievements
- Maintained a low monthly average employee turnover rate of approximately 2%.
- Achieved 0 cases of serious injury or fatality and 0 cases of serious fire or chemical incidents.
- Provided 112 days of training to employees, including professional skill, leadership skill, and safety training.
- Donated HK$1,000,000 for the Stock Code Balloting for Charity Scheme.
Governance Achievements
- Established an "Anti-Bribery & Anti-Corruption Management Policy" and no concluded legal cases regarding fraud were reported.
- Implemented a whistle-blowing mechanism to allow employees to report alleged malpractices.
Climate Goals & Targets
Environmental Challenges
- Uncertain demand for products due to global economic environment, trade wars, China's real estate market, and government policies.
- Price fluctuation risk of raw materials (hot-rolled steel coils) due to policies and economic situations.
- Risk of shortage of supply of raw materials.
- Stringent environmental laws and regulations.
Mitigation Strategies
- Maintaining long-term business relationships with major customers and offering high-quality products.
- Adopting a "cost-plus" pricing model and placing back-to-back orders with suppliers.
- Maintaining long-term relationships with major suppliers and identifying alternative suppliers.
- Closely monitoring environmental laws and regulations and ensuring compliance through staff training.
Supply Chain Management
Supplier Audits: Annual
Responsible Procurement
- Supplier qualification assessment, reputation, product quality, quality consistency, and on-time delivery ability.
Climate-Related Risks & Opportunities
Reporting Period: 2019
Environmental Metrics
Total Carbon Emissions:87,800 tons
Scope 1 Emissions:33,272.96 tons
Scope 2 Emissions:54,324.61 tons
Scope 3 Emissions:14.69 tons
Total Energy Consumption:64.19 GWh
Water Consumption:220,000 m3
Waste Generated:3.06 tons (paper)
Carbon Intensity:158 tons per employee
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Reduced paper waste by 51%
- Decreased total electricity consumption by approximately 3%
- Reduced water consumption by approximately 11%
Social Achievements
- Maintained a low monthly average employee turnover rate of approximately 3.8%
- Reduced number of reported injuries from 11 to 9 cases
- Provided 463 days of training for employees
Governance Achievements
- Established an “Anti-Bribery & Anti-Corruption Management Policy”
- Adopted the Model Code for Securities Transactions by Directors of Listed Issuers
- Established a Nomination Committee and a Remuneration Committee
Climate Goals & Targets
Environmental Challenges
- Uncertain demand for products due to global economic environment, trade war, real estate market, and government policies
- Price fluctuation risk of raw materials (hot rolled steel coils)
- Risk of shortage of supply of raw materials
- Stringent environmental laws and regulations
Mitigation Strategies
- Maintaining long-term business relationships with customers and suppliers
- Adopting a “cost-plus” pricing model
- Identifying alternative suppliers for raw materials
- Closely monitoring environmental laws and regulations and ensuring compliance
Supply Chain Management
Supplier Audits: Annual
Responsible Procurement
- Qualification
- Reputation
- Product quality
- Quality consistency
- On-time delivery
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Appendix 27 to the Main Board Listing Rules
Certifications: ISO 9001:2015
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:59,000 tons (2020: 81,700 tons)
Scope 1 Emissions:22,032.49 tons (2020: 32,393.12 tons)
Scope 2 Emissions:36,810.46 tons (2020: 49,198.89 tons)
Scope 3 Emissions:<1% of total GHG emission
Total Energy Consumption:60.34 GWh (2020: 62.11 GWh) electricity; 110.08 GWh (2020: 143 GWh) natural gas
Water Consumption:106,000 m3 (2020: 130,000 m3)
Waste Generated:2.45 tons (2020: 2.47 tons) paper waste; 6,950.55 tons (2020: 11,800 tons) acid waste
Carbon Intensity:118 tons per employee (2020: 169 tons per employee)
ESG Focus Areas
- Environmental Sustainability
- Human Rights and Social Culture
- Stakeholder Engagement
- Employee Support
- Community Sustainability
Environmental Achievements
- Reduced total air pollutants produced by 32%
- Reduced total greenhouse gas emission by 28%
- Reduced acid waste produced by approximately 40%
- Reduced total paper waste produced by 1%
- Reduced total electricity consumption by approximately 3%
- Reduced total water consumption by approximately 19%
Social Achievements
- Maintained 0 cases of serious injury or fatality; 0 cases of serious fire accident or chemical incident
- Injury rate of 1% (4 cases) per year
- 92% of total employees completed training
- Charitable donation of 30,000 Renminbi to the Disabled Persons Federation of Changzhou City
- Organized a volunteering activity at the local library with 25 employees contributing 25 hours
Governance Achievements
- Compliance with all applicable code provisions set out in the CG Code
- Full compliance with the required standard set out in the Model Code
- Established an “Anti-Bribery & Anti-Corruption Management Policy”
Climate Goals & Targets
Medium-term Goals:
- Maintain the intensity of electricity and natural gas consumption at/below 121 MWh and 220 MWh per employee respectively
- Maintain the intensity of water consumption at/below 212 m3 per employee
Short-term Goals:
- Maintain GHG emissions intensity at/below 120 metric tons CO2e per employee
- Maintain the intensity of total hazardous waste produced at/below 14 tons per employee
- Maintain the intensity of total non-hazardous waste at/below 2.5 tons per employee
Environmental Challenges
- Uncertain demand for products due to global economic environment, trade wars, real estate market, and government policies
- Price fluctuation risk of raw materials (hot rolled steel coils)
- Risk of shortage of supply of raw materials
- Stringent environmental laws and regulations
- Potential climate-related risks (physical and transition)
Mitigation Strategies
- Maintaining long-term business relationships with customers and suppliers
- Offering high-quality products with strong production know-how
- Adopting a “cost-plus” pricing model
- Placing back-to-back orders to suppliers
- Identifying alternative suppliers
- Closely monitoring environmental laws and regulations and consulting legal advisors
- Providing trainings on environmental protection
- Regularly monitoring the regulatory environment and adhering to emission-reduction measures
- Monitoring product market and exceeding customer demands
- Maintaining a large supplier base and setting up safety measures for extreme climate events
- Adopting energy conservation measures
Supply Chain Management
Supplier Audits: Annual assessment of 222 approved suppliers
Responsible Procurement
- Qualification
- Reputation
- Product quality
- Quality consistency
- Compliance with environmental and social regulations
- Ability to deliver on time
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather conditions such as flooding and storms
Transition Risks
- Policy and Legal changes, Market shifts
Reporting Standards
Frameworks Used: Appendix 27 of the Main Board Listing Rules
Certifications: ISO 9001:2015
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:68,513.41 tonnes of CO2e
Scope 1 Emissions:26,395.40 tonnes of CO2e
Scope 2 Emissions:41,996.80 tonnes of CO2e
Scope 3 Emissions:121.21 tonnes of CO2e
Total Energy Consumption:212.26 GWh
Water Consumption:224,260.00 m3
Waste Generated:33,000 tonnes (Hazardous: 9173, Non-Hazardous: 23813)
Carbon Intensity:118.13 tonnes of CO2e per employee
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Successfully selected as one of the green factories in Jiangsu Province
- Workshops under the production capacity expansion project successfully passed the intelligent workshop accreditation of Changzhou City and the demonstrative intelligent manufacturing workshop accreditation of Jiangsu Province
- The 5G digital management and control platform scenario was awarded the second prize as a typical application scenario of intellectualisation and digitalisation achievements in the manufacturing industry for the year of 2023
Social Achievements
- Reduced the number of injury cases from 7 in 2022 to 6 in 2023
- 99.8% of total employees completed training in 2023
- Donated RMB1,030,000 to a charity foundation
Governance Achievements
- Compliance with all applicable code provisions set out in the CG Code
- Full compliance with the required standard set out in the Model Code during the year ended 31 December 2023
- No incidents of non-compliance with the Model Code by the Directors and the relevant employees of the Company were noted by the Company during the year ended 31 December 2023
Climate Goals & Targets
Short-term Goals:
- Reduce or maintain air emissions between 90% to 120% of the level of the baseline year ended 31 December 2023 in the next reporting year
- Maintain the GHG emissions intensity between 90% to 120% of the level of the baseline year ended 31 December 2023 in the next reporting year
- Maintain the intensity of total hazardous waste produced between 90% to 120% of the level of the baseline year ended 31 December 2023 in the next reporting year
- Maintain the intensity of total non-hazardous waste produced between 90% to 120% of the level of the baseline year ended 31 December 2023 in the next reporting year
- Maintain the intensity of energy consumption within the range of 90% to 120% of the baseline level from the year ended 31 December 2023
Environmental Challenges
- Risk of uncertain demand for our products
- Price fluctuation risk of raw materials
- Risk of shortage of supply of raw materials
- Risks of stringent environmental laws and regulations
Mitigation Strategies
- Maintaining long term business relationships with most of its major customers, offering high quality products with strong production know-how
- Adopting a “cost-plus” pricing model
- Maintaining long term business relationships with most of its major suppliers, identifying alternative suppliers
- Closely monitoring the development of the relevant laws and regulations, consulting PRC legal advisers, providing trainings
Supply Chain Management
Supplier Audits: 298 approved suppliers, annual assessment
Responsible Procurement
- Qualification, reputation, product quality, quality consistency, compliance with environmental and social regulations, and the ability to deliver on time
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather conditions such as flooding and storms that lead to supply chain disruption, reduction of revenue and loss of property
Transition Risks
- Increase compliance costs and potential disruption related to new climate-related regulations
- Reduce demand for goods due to shift in consumer preferences to green products