Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employment and Labor Practices
• Operational Practices
• Community Investment
• Environment

Environmental Achievements

• Installed distributed solar power panels on the roof accounting for more than 30% of total power consumption.
• Installed LED lights saving about 955 kilowatt hours of power consumption.
• Implemented a paperless office policy.

Social Achievements

• Developed a “Social Responsibility Management System” to ensure compliance with international labor standards and applicable labor regulations.
• Provided trainings 596 times for new staff and 214 times for senior workers.
• Participated in various community activities, including charity events and blood donation campaigns.
• Organized staff activities such as travelling trips, sports events, and cultural events.

Governance Achievements

• Established the “Measures to Prevent Commercial Bribery” in accordance with relevant laws and regulations.
• Set up a whistleblowing system and reporting hotline.

Climate Goals & Targets

Environmental Challenges

• Managing potential environmental impacts from energy consumption, waste disposal, and resource usage.
• Maintaining compliance with evolving labor regulations and international labor standards.

Mitigation Strategies

• Implemented energy-saving measures, including solar panels and LED lights.
• Developed a “Social Responsibility Management System” with internal audits and management reviews.
• Established stringent procedures for waste management and recycling.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Integrated reviews on suppliers’ production capacities, product quality, production environments and staff capabilities.
• Consideration of environmental and social risk factors (e.g., tree cutting licenses, animal welfare certificates).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guide” (ESG Guide)

Third-party Assurance: Not disclosed

Environmental Metrics

ESG Focus Areas

• Employment and Labour Practices
• Operational Practices (Supply Chain Management, Product Responsibility, Anti-corruption)
• Community Investment
• Environment (Emissions, Use of Resources, Environment and Natural Resources)
• IFC Performance Standards (PS1-PS8)

Environmental Achievements

• Installed distributed solar power panels accounting for more than 45% of total power consumption (2016: 30%)
• Installed LED lights saving about 1056 kilowatt hour (2016: 955 kilowatt hour) of power consumption
• Implemented paperless office policy
• Recycled and reused solid wastes such as leftover woods, fabrics and leather

Social Achievements

• Organized various activities and meetings to collect comments and feedbacks from stakeholders
• Provided trainings to 487 new staff and 224 senior workers
• Participated in various community activities (health publicity, cleanup activity, promoting civilized behavior, supporting Haining Library)
• Organized staff activities (caring and greeting activities, corporate retreats, leisure activities, skill competitions)

Governance Achievements

• Invited a legal expert to present a seminar on anti-corruption to staff
• Established a whistleblowing system and reporting hotline

Climate Goals & Targets

Environmental Challenges

• Staff turnover rate of 17.4% (2016: 11.9%)
• Minor non-fatal injuries in the manufacturing process

Mitigation Strategies

• Developed a “Social Responsibility Management System” to ensure compliance with international labor standards and applicable labor regulations
• Implemented health management measures (annual body checks, medical insurance)
• Enhanced health and safety training to staff
• Formulated contingency plans for production safety accidents

Supply Chain Management

Supplier Audits: 111 suppliers (2016: 164 suppliers)

Responsible Procurement

• Integrated reviews on suppliers’ production capacities, product quality, production environments and staff capabilities
• Consideration of environmental and social risk factors (e.g., tree cutting licenses, animal welfare certificates)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guide” (ESG Guide)

Environmental Metrics

ESG Focus Areas

• Employment and Labour Practices
• Operational Practices
• Community Investment
• Environment
• IFC Performance Standards

Environmental Achievements

• Reduced total greenhouse gas emissions from 5.2 kilo tonnes (CO2 equivalent) in 2017 to 4.4 kilo tonnes in 2018.
• Increased renewable energy share to more than 50% in 2018 from 45% in 2017.
• Reduced water consumption per capita from 48 m3 per person in 2017 to 41 m3 per person in 2018.
• Recycled and reused solid wastes such as leftover woods, fabrics and leather.

Social Achievements

• Organized various activities and meetings to collect comments and feedbacks from stakeholders.
• No work-related fatal incident in 2018.
• Implemented a series of health management measures, including annual body checks and medical insurance for staff.
• Provided trainings to 1,019 new staff and 109 senior workers in 2018.
• Donated RMB300,000 to Haining Charitable Institution for purchasing air-conditioners for families in need.

Governance Achievements

• Established a whistleblowing system and a reporting hotline to encourage reports of corruption.
• No report of corruption, threat, fraud and money laundry received in 2018.
• Implemented ISO9001, ISO14001 and OHSAS18001 in June 2018.

Climate Goals & Targets

Environmental Challenges

• Maintaining compliance with international labor standards and applicable labor regulations.
• Managing occupational health and safety risks.
• Reducing energy and resource consumption.

Mitigation Strategies

• Developed a “Social Responsibility Management System” to fulfill social responsibilities and maintain good labor relations.
• Formulated contingency plans for production safety accidents and implemented health management measures.
• Adopted proactive measures in reducing energy and resources consumption and vigorously promoting the philosophy of energy-saving and emission-reducing.

Supply Chain Management

Supplier Audits: 100 suppliers reviewed during the Reporting Period

Responsible Procurement

• Reviewing suppliers’ qualification certificates, production capacities, product quality, production environments and staff capabilities.
• Considering environmental and social risk factors (e.g., tree cutting licenses, animal welfare certificates).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guide” (ESG Guide)

Certifications: ISO9001, ISO14001, OHSAS18001

Environmental Metrics

ESG Focus Areas

• Employment and Labour Practices
• Operating Practices (Supply Chain Management, Product Responsibility, Anti-corruption)
• Community Investment
• Environment (Emissions, Use of Resources, Environment and natural resources)
• IFC Performance Standards (PS1-PS8)

Environmental Achievements

• Reduced total greenhouse gas emissions to 3.9 kilo tonnes (CO2 equivalent) from 4.4 kilo tonnes in 2018.
• Reduced total waste to 850 tonnes from 1,100 tonnes in 2018.
• Increased renewable energy share to over 51% from 50% in 2018.

Social Achievements

• Organized voluntary blood donation activity with over 100 employees participating.
• Organized various staff activities including corporate retreats, recreational fun day, and celebrations.
• Participated in tree-planting and gardening campaign with 30 volunteers.

Governance Achievements

• Established measures to prevent commercial bribery in accordance with relevant laws and regulations.
• Implemented a whistleblowing system and reporting hotline.
• No reports of corruption, threat, fraud, or money laundering received.

Climate Goals & Targets

Environmental Challenges

• High staff turnover rate of 46.0% in 2019 (compared to 18.6% in 2018).

Mitigation Strategies

• Improved human resources management system and talent development mechanism.
• Implemented KPI system to evaluate employee performance.
• Developed a “Social Responsibility Management System” to ensure compliance with international labor standards.

Supply Chain Management

Supplier Audits: 109 suppliers reviewed (2019)

Responsible Procurement

• Integrated reviews on production capacities, product quality, production environments, and staff capabilities.
• Consideration of environmental and social risk factors (e.g., tree cutting licenses, animal welfare certificates).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guide” (ESG Guide)

Certifications: ISO9001, ISO14001, OHSAS18001