Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product and Services Responsibility
• Community contribution
• Environmental protection
• Information Disclosure & Transparency
• Supply Chain Management

Environmental Achievements

• Reduced total GHG emissions per employee by 13%
• Reduced total packaging material consumption per floor area by 26%
• Increased use of LED lighting and T5 Fluorescent tubes

Social Achievements

• Established an ESG working group
• Established an approved supplier list with regular supplier reviews
• Provided Hygiene Supervisor Training Courses to 10 employees
• Organized various leisure activities to enhance staff bonding

Governance Achievements

• Established an Anti-Corruption and Whistleblowing Policy
• Established a remuneration committee
• Established a nomination committee
• Established an audit committee

Climate Goals & Targets

Environmental Challenges

• Weaker performance of the global and local economy
• Fierce competition in the tea drinks serving market
• Rising operating costs due to increased market wages and rental prices
• Increasing operating costs for distribution businesses (rental costs of warehouses and retail premises, increasing labor costs)
• Ease of online retailing creating competition for traditional brick-and-mortar retailers

Mitigation Strategies

• Strengthened the leading market position of TenRen business in Hong Kong
• Maintained expansion momentum with a prudent yet optimistic approach
• Introduced more brands and products of high quality from around the world
• Improved customer experience and product innovations
• Introduced new retail brands
• Enlarged brand and product portfolio for distribution business
• Focused on overseas brands and products that suit the tastes and preferences of Hong Kong consumers
• Adopted a transportation day plan to ensure efficient use of vehicles and minimize air emissions
• Arranged direct delivery from supplier to retail outlets where possible
• Upgraded equipment to increase energy efficiency (environmental friendly electrical appliances, lighting and air-conditioning systems)
• Promoted efficient use of power and adopted green technologies
• Encouraged customers to go plastic-and-disposable-free and serve drinks with reusable cups
• Participated in the bring your own mugs or tumblers campaign

Supply Chain Management

Supplier Audits: Regular supplier reviews

Responsible Procurement

• Multiple qualified suppliers of raw materials
• All suppliers are required to hold valid licences
• All imported goods shall obtain proper clearance
• Supplier review and assessment system based on selection criteria including pricing, quality, reputation, service, agility, delivery efficiency and past performance
• Environmental criteria are also taken into consideration

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide under Appendix 27 of the Listing Rules

Sustainable Products & Innovation

• TenRen Folding Cup

Environmental Metrics

ESG Focus Areas

• Product health and safety
• Customer satisfaction
• Customer information and privacy
• Occupational health and safety
• Supply chain management
• Diversity and equal opportunity of employees
• Climate change
• Anti-corruption

Environmental Achievements

• Reduced total GHG emissions by 28%
• Reduced total GHG emissions per floor area by 21%
• Reduced total GHG emissions per employee by 22%
• Reduced total water consumption by 24%
• Reduced total packaging material consumption by 18%

Social Achievements

• Achieved gender equality in the workforce (54% female, 46% male)
• Provided anti-corruption training to 116 employees and 7 directors
• Made charitable donations of HK$88,200 to registered non-profit organizations

Governance Achievements

• Established an ESG working group
• Established an Anti-Corruption and Whistleblowing Policy
• Complied with all code provisions of the CG Code except for C.2.1 (separation of Chairman and CEO roles)

Climate Goals & Targets

Environmental Challenges

• Weakened market sentiment due to the fifth wave of COVID-19 in Hong Kong
• Fierce competition in the tea drinks serving industry
• Pressure from rental and labor costs
• High operating costs in the distribution sector
• Ease of online retailing
• Potential impact of new policies related to waste reduction

Mitigation Strategies

• Cost controls and rationalising store networks
• Sales and marketing initiatives to capture consumer spending
• Reviewing lease agreements to optimize cost structure
• Enlarging brand and product portfolio
• Exploring long-term innovative solutions to reduce waste
• Adopting a five-stage approach to tackle climate risk (assessment, identification, measure development, implementation, and review)

Supply Chain Management

Supplier Audits: Regular supplier reviews conducted by the purchasing department

Responsible Procurement

• Requirement for suppliers to hold valid government licenses
• Requirement for imported goods to obtain proper clearance
• Encouraging suppliers to enhance green practices and minimize environmental impact

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons and heavy rains
• Impact of weather patterns on ingredient quality and price

Transition Risks

• Regulatory changes related to waste reduction
• Market shifts towards environmentally friendly products

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules (ESG Reporting Guide)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 13 (Climate Action)

Reducing greenhouse gas emissions

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Employee remuneration, benefits and rights
• Product health and safety

Environmental Achievements

• Reduced water consumption by 21.82% compared to FY2023
• Implemented initiatives to reduce packaging materials consumption; consumption per revenue remained relatively stable

Social Achievements

• Increased total number of employees by 10.47% compared to FY2023
• Provided anti-corruption training to 108 employees (7 directors and 101 employees) with a total of 864 training hours

Governance Achievements

• Established an ESG working group to support the Board in implementing its ESG-related strategies and targets
• Maintained a sufficient public float as required under the Listing Rules

Climate Goals & Targets

Environmental Challenges

• Fierce competition in the tea drinks serving industry
• Severe labor shortage in Hong Kong
• High operating costs in the distribution sector
• Ease of online retailing creating competition for traditional retailers
• Weak consumer market sentiment impacting revenue growth
• Rising operational costs (rent and salaries)

Mitigation Strategies

• Comprehensive set of sales and marketing initiatives to revitalise consumer interest and drive sales
• Proactively reviewing lease agreements to optimise cost structure
• Strong actions to control operating costs (manpower, rental expenses, other operating expenses)
• Enlarging brand and product portfolio to remain competitive
• Strengthening TenRen’s market position through brand building, improving customer experience, product innovations, digitalisation and automation
• Adopting a supply chain diversification strategy by sourcing ingredients across the globe

Supply Chain Management

Supplier Audits: Regular supplier reviews conducted by the purchasing department

Responsible Procurement

• Approved supplier list; valid government licenses required; proper clearance from authorities; selection criteria including pricing, quality, reputation, service, agility, delivery efficiency, past performance and environmental criteria

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events (typhoons, heavy rains, flooding)
• Changes in weather patterns (increased precipitation, temperature, sea level rise)

Transition Risks

• Enhanced emissions reporting obligations
• New laws and regulations
• Shift of consumer attitudes towards sustainable lifestyle

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 13 (Climate Action)

Reducing greenhouse gas emissions; aiming for net-zero emissions by 2050

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed