Climate Change Data

Transtech Optelecom Science Holdings Limited

Climate Impact & Sustainability Data (2021, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:4,656.84 tCO2e
Scope 1 Emissions:123.13 tCO2e
Scope 2 Emissions:4,533.72 tCO2e
Total Energy Consumption:9,237,529 KWh
Water Consumption:24,581 m3
Waste Generated:2,139.13 tons
Carbon Intensity:0.14 tCO2eq./m2

ESG Focus Areas

  • child & forced labor
  • product responsibility
  • occupational health & safety
  • anti-corruption

Environmental Achievements

  • Reduced water consumption significantly from the previous year (24,581 m3 in 2021 vs 49,008 m3 in 2020)
  • Reduced air pollutant emissions (Nitrogen dioxide, Sulphur oxides and inhalable particulate matter were 149.23 kg, 0.71 kg and 13.76 kg, respectively, in 2021)
  • Recycled 1.55 tonnes of optical fibre trays and 3.65 tonnes of paper boxes

Social Achievements

  • Established internal policies such as “Policy on Remuneration Management” and “Employee Handbook” to protect employee rights and interests.
  • Implemented measures to supervise the fairness and compliance of recruitment, onboarding and departure.
  • Provided various supports, including internal and external trainings and supports for employee development.
  • Organized and participated in a variety of philanthropic, environmental protection and epidemic prevention activities.

Governance Achievements

  • Adopted the Corporate Governance Code (CG Code) as set out in Appendix 14 to the Listing Rules.
  • Complied with the code provisions as set out in the CG Code during the year ended 31 December 2021.
  • Established an Audit Committee, Remuneration Committee and Nomination Committee to oversee different aspects of the Group’s affairs.

Climate Goals & Targets

Environmental Challenges

  • Oversupply of optical fibre cables and optical fibres in the market.
  • Persistent spread of COVID-19, resulting in lower selling prices and less demand from customers.
  • COVID-19 persistently interrupted the Group’s supply chains and sale activities.
  • Slowdown in market demand and long operation suspension in the upstream and downstream industrial chains in ASEAN countries due to COVID-19.
  • Weak demand in PRC.
Mitigation Strategies
  • Closely monitor the development of COVID-19, continuously assess its impact on the Group and adopt necessary measures to minimise the business risk.
  • Seek further opportunities for industry chain integration and improve the capability of controlling raw material costs.
  • Reinforce cost control to improve its competitive strengths and profitability.
  • Futong Group International waived three months rent in 2020 and 2021 to relieve the adverse impact from COVID-19.
  • Established a foreign currency risk management policy to monitor and manage foreign currency risks.
  • Maintains a balanced portfolio of fixed rate and variable rate borrowings to manage interest rate risk.
  • Delegated senior management to be responsible for determination of credit limits and monitoring procedures to ensure that follow-up action is taken to recover overdue debtors to manage credit risk.
  • Monitors the Group’s cash flow positions on a regular basis to ensure the cash flows of the Group are closely controlled and maintain committed credit lines available to manage liquidity risk.

Supply Chain Management

Responsible Procurement
  • Purchasing Management System
  • Supplier Management System
  • Supplier Information Sheet
  • Supplier’s Environmental Commitment Agreement

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Heavy rains
  • Extreme heat

Reporting Standards

Frameworks Used: Appendix 27 of the Rules governing the listing of securities on the SEHK

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Awards & Recognition

  • 3+ year Caring Certificate presented by Federation of Hong Kong Industries Corporate Social Responsibility (CSR) Recognition Scheme “Industry Cares” 2021

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:3,225.52 tCO2e/year
Scope 1 Emissions:123.88 kgCO2e/year
Scope 2 Emissions:3,101.64 kgCO2e/year
Total Energy Consumption:6,471,110 kWh/year
Water Consumption:21,121 m3/year
Waste Generated:106.87 tonnes/year
Carbon Intensity:0.10 tCO2eq./m2 (2022: 0.15) with reference to the total floor area of the Group’s business operations, or 18.75 tCO2eq./employee (2022: 27.61) with reference to total number of employees

ESG Focus Areas

  • Environmental Protection
  • Employee Well-being
  • Supply Chain Management
  • Anti-corruption

Environmental Achievements

  • Obtained ISO 14001:2015 certification for environmental management system.
  • Implemented various measures to reduce exhaust gas emissions, including switching to unleaded fuel, phasing out substandard vehicles, and optimizing operational procedures.
  • Implemented waste segregation processes and recycling initiatives to reduce waste generation and improve recycling rates.
  • Implemented energy and water conservation measures in offices and plants.

Social Achievements

  • Established a fair and competitive remuneration system for employees.
  • Implemented various employee benefits, including paid annual leave, maternity leave, and other types of leave.
  • Established a labour union to facilitate internal communications and address employee issues.
  • Organized various activities to enrich employees’ lives and enhance their sense of belonging.

Governance Achievements

  • Established an audit committee, remuneration committee, and nomination committee to oversee different aspects of the Group’s affairs.
  • Adopted a code of conduct regarding securities transactions by directors.
  • Implemented an anti-corruption training program for directors and employees.
  • Established a whistleblowing system to promote a clean and transparent corporate culture.

Climate Goals & Targets

Short-term Goals:
  • Gradually reduce energy consumption and greenhouse gas emissions.

Environmental Challenges

  • Decrease in revenue due to decreased sales of optical fibres to customers in Indonesia and Thailand.
  • Weak demand and low prices for optical fibre and optical fibre cable products.
  • Overproduction and general downtrend of optical fibre and optical fibre cable capital expenditure in China.
  • Temporary suspension of manufacturing and trading of optical fibres.
  • Fluctuation of exchange rates among RMB, THB, US$, and HK$.
Mitigation Strategies
  • Adjusted production volume based on sales orders.
  • Considered modifying the group operation mode to a vertical structure to stabilize the supply of raw materials.
  • Implemented measures to reduce greenhouse gas emissions and improve resource efficiency.
  • Implemented measures to minimise consumption of paper during its operations.
  • Established a foreign currency risk management policy to monitor and manage foreign currency risks.

Supply Chain Management

Supplier Audits: Annual appraisals of major suppliers.

Responsible Procurement
  • Selection of suppliers through tenders.
  • Requirement for quality certification documents.
  • Preference for suppliers with management certifications (ISO 9001, OHSAS 18001, ISO 14001).

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (typhoons, storms, heavy rains, extreme cold or heat).
Transition Risks
  • Stricter environmental laws and regulations.
  • Changes in regulations, technologies, and market patterns due to climate change.
Opportunities
  • Opportunities to commit as an environmentally friendly energy user.

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018