Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon intensity (per gross floor area) for the fifth consecutive year by 3.90%
• Reduced scope 2 emissions by 5.1% due to increased LED lighting utilization
• Reduced emissions related to business air travel by 26.5% through promoting alternative communication
• Committed to eliminating plastic microbeads in rinse-off products by the end of 2018 (first large-scale multi-brand cosmetic retailer in Hong Kong to make this commitment)

Social Achievements

• Completed six key ESG-related policies (Employment, Environmental, Health and Safety, Responsible Product and Supply Chain, Training and People Development, and Equal Opportunity)
• Launched three new streams in the Management Trainee program (E-commerce, Logistics, and Finance and Accounting)
• Organized a beach cleanup event with over 100 colleagues and their families
• Collected 580,000 red packets for reuse, a 99% increase from the previous year
• Provided “Business Grooming & Etiquette” classes to over 1,000 IVE students

Governance Achievements

• Enhanced stakeholder engagement by including customers, shareholders, and non-executive directors
• Received recognition from Hong Kong Chamber of Listed Companies, Hang Seng Sustainability Index, and Hong Kong Management Association

Climate Goals & Targets

Environmental Challenges

• Increasing global temperature and the need to reduce carbon footprint
• Waste management and recycling of resources
• Growing global concern over water availability
• Evolving customer journey and expectations

Mitigation Strategies

• Reviewing science-based targets for carbon reduction
• Optimizing operations and raising environmental awareness
• Implementing measures to promote greenhouse gas emission reduction, energy and water conservation, efficient use of natural resources, and waste reduction
• Phasing out microbeads
• Increasing the scope of waste reporting across operations
• Implementing an e-leave application system to reduce paper use
• Reusing carton boxes
• Using oxo-biodegradable plastic and FSC-certified paper bags
• Implementing a computer recycling program
• Driving forward Online-to-Offline (O2O) transformation to enhance customer experience
• Introducing various forms of mobile payment convenience

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier evaluation including environmental and social aspects (protection of environment, labour welfare and rights, equal opportunities, non-participation in animal testing, protection of endangered species, responsible sourcing)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide, GRI G4 Sustainability Reporting Guidelines, ISO 26000

Certifications: ISO 9001:2008 (Logistics, Category Management, Product Development, Customer Service)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Hong Kong Chamber of Listed Companies’ Corporate Governance Excellence Awards and Sustainability Excellence Awards
• Member of Hang Seng Sustainability Benchmark Index (six consecutive years)
• Honourable Mention in Hong Kong Management Association Best Annual Reports Awards Judges’ Report 2016
• World’s Excellent Brands Awards 2016-2017
• Hong Kong Retail Management Association Awards (six accolades)
• Hong Kong Service Awards Tourist Choice
• Outstanding QTS Merchart Award 2017 (eight awards)
• WWF-Hong Kong Gold Label in Low-carbon Office Operation Programme
• World Green Organisation Green Office Awards Label

Environmental Metrics

ESG Focus Areas

• Talent Development
• Waste Management
• Energy Efficiency
• Plastic Reduction
• Community Engagement

Environmental Achievements

• Reduced greenhouse gas emissions by nearly 6% to 14,873 tonnes of CO2e compared to 15,867 tonnes in 2017/18.
• Overall GHG emissions decreased by 23.7% since 2014/15.
• Carbon intensity per square meter of floor area decreased by 29.8% since 2014/15.
• Overall electricity consumption dropped by 3.3% compared to the previous fiscal year.
• Successfully banned plastic microbeads in all exfoliating and cleansing products by the end of 2018.
• Achieved nearly 100% recycling rate for cardboards, stretch film, and pallets at the logistics center.
• Installed LED lights in 84% of stores in Hong Kong and Macau.

Social Achievements

• Established a working group for talent development to improve employee wellbeing and address staff turnover.
• Applied to register Beauty Consultant Training Programme under the Government’s Qualifications Framework.
• Achieved zero product recalls.
• Named the most sought-after brand amongst tourists in the Hong Kong Service Awards 2019.
• Partnered with Po Leung Kuk to launch the Sa Sa Eternal Beauty charitable programme.
• 500 employees devoted 738 hours to community service.
• Sa Sa Making Life Beautiful Charity Fund donated HK$4.95 million.

Governance Achievements

• Established a new Sustainability Steering Committee, directly accountable to the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Keen competition for talent and changing career expectations leading to staff turnover.
• Changing retail landscape with the rise of e-commerce.
• Ageing population in Hong Kong.
• Rising environmental concerns and plastic waste build-up.
• Growing threat of global warming and extreme weather events.
• Widening poverty gap in Hong Kong.
• Ageing population with more elderly living in poverty.
• More discerning consumers factoring sustainability into purchasing decisions.
• Frequent and severe extreme weather events impacting sales and supply chain.

Mitigation Strategies

• Investing in employee training and development, reviewing compensation and benefits, and offering share options.
• Promoting digitalization of retail business and exploring new online sales channels.
• Implementing measures to reduce carbon footprint, waste, and water consumption.
• Promoting environmental awareness among employees.
• Establishing partnerships with community organizations and giving back to communities.
• Linking ESG risks to the enterprise risk management framework.
• Developing contingency measures to manage risks from extreme weather events.
• Implementing energy conservation measures, including LED lighting and energy-efficient appliances.
• Introducing a policy to ban microbeads in all cleansing and exfoliating products.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference for suppliers integrating environmental conservation, labor rights, and responsible sourcing into their operations.
• Developing a code of conduct for suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, thunderstorms, heavy rainfall impacting sales.
• Disruption to logistics and supply due to extreme weather.

Transition Risks

• Regulatory changes related to carbon reduction.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Hong Kong Service Awards 2019
• WWF’s Low-carbon Office Operation Programme 2018/2019 – Silver Award
• Hong Kong Retail Management Association “Service and Courtesy Awards” 2018

Environmental Metrics

ESG Focus Areas

• Serve with Heart
• Support Our Talents
• Advance Resource Efficiency
• Achieve Sustainable Growth

Environmental Achievements

• 49% reduction in GHG emissions against 2014/15 level
• 58% reduction in paper consumption against 2014/15 level
• 26% reduction in shopping bag consumption against 2019/20 level
• Launched Sasatinnie brand with green and clean beauty products
• Received Hong Kong Green Organisation Certification

Social Achievements

• 60 staff members graduated from Junior Beautician Trainee Programme
• Launched first KOL Training Programme
• Zero non-compliance with health and safety regulations
• HK$6.46 million invested in employee compensation and benefits
• Signed Mental Health Workplace Charter

Governance Achievements

• Zero non-compliance incidents relating to anti-corruption and bribery
• Received six ESG awards

Climate Goals & Targets

Environmental Challenges

• Evolving retail landscape and changing customer needs and expectations
• Prioritising healthy and sustainable lifestyle
• Climate change impacting sales, supply chain, and operations
• High waste disposal rate and low recycling rate in Hong Kong
• Complex and demanding supply chain
• Economic uncertainty impacting retail industry growth
• Staff engagement and supporting employment with limited resources
• High expectations on work-life balance and workplace health and safety
• Community stress and resilience due to COVID-19
• Millennials' demand for responsible companies
• Need to address ESG concerns to maintain reputation and trust

Mitigation Strategies

• Implemented measures to enhance energy efficiency, minimise waste, and promote sustainable supply chain
• Upgraded Hong Kong shopping website and mobile app
• Partnered with Boutir to extend in-store customer intimacy online
• Implemented various sanitisation measures in stores to prevent COVID-19 spread
• Provided anti-epidemic products to customers
• Offered diverse training opportunities for employees
• Implemented measures to foster employee wellness and work-life balance
• Signed Mental Health Workplace Charter
• Donated to various causes and partnered with community organizations
• Incorporated ESG into Sa Sa’s Risk Management Framework
• Implemented annual ESG training for all staff

Supply Chain Management

Supplier Audits: 100% completion of new vendor evaluation

Responsible Procurement

• Responsible Product and Supply Chain Policy; preference given to suppliers integrating environmental conservation, labour rights, equal opportunities, non-participation in animal testing, and responsible sourcing into their operations.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events affecting sales, product supply, and supply chain reliability

Transition Risks

• Transition to low-carbon economy

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: ISO 9001:2015 (Logistics Department), Hong Kong Green Organisation Certification

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Microbead-free cleansing and exfoliating products; Sasatinnie brand with green and clean beauty products

Awards & Recognition

• BDO/ESG Award (Small Market Capitalisation)
• Hong Kong Awards for Environmental Excellence – Gold Award 2019
• Hong Kong Investor Relations Association/The 6th “Investor Relations Awards” (Best ESG – Social, Best ESG – Corporate Governance, Grand ESG Award)
• Inno ESG Award 2020 Sustainability Prize
• Q-Mark Elite Brand Award 2020
• Adversity Award – Good Use of Technology Award 2020
• Best Retail Innovation – Industry Recognition Award
• Education Bureau’s “QF Gold Star Employer”

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Efficiency
• Waste Reduction
• Employee Training & Development
• Women in Leadership
• Equality, Diversity & Inclusion
• Product Quality & Safety
• Consumer Rights Protection
• Community Investment
• Supply Chain Sustainability

Environmental Achievements

• Reduced GHG emissions by 27.1% (absolute terms) from 2020/21; 62.6% reduction compared to the base year 2014/15.
• Reduced electricity consumption by 18.6% compared to the previous financial year.
• Achieved 62.6% reduction in GHG emissions against the 2014/15 base year (exceeding the initial target).

Social Achievements

• Trained 1,422 employees (total training hours: 45,742); average training hours per employee increased to 26.1.
• Reduced work-related injuries by 26.3% compared to 2020/21.
• Implemented various employee well-being measures during the COVID-19 pandemic (work from home, free lunches, vaccine initiatives).

Governance Achievements

• Established a Sustainability Steering Committee chaired by an executive director.
• Conducted anti-corruption training for directors.
• Maintained zero product recalls.

Climate Goals & Targets

Environmental Challenges

• Environmental impact from single-use plastics, packaging, online deliveries, and energy consumption.
• Increased waste from COVID-19 related products (masks, wipes, test kits).
• Climate-related risks (extreme weather damage, increased insurance premiums, business disruptions).
• Transitional risks (higher electricity costs, vehicle replacement costs, compliance with new regulations).
• Attracting and retaining talent in a declining retail industry.
• Meeting rising customer expectations for product information and customer experience.
• Widening social and economic disparities during the COVID-19 pandemic.

Mitigation Strategies

• Implementing energy-saving measures in offices, logistics centers, and stores (LED lighting, smart meters, etc.).
• Reducing store hours and temporarily closing stores.
• Using double-walled carton boxes, pallet wrapping machines, and reusing supplier boxes.
• Installing flow controllers for water taps.
• Investing in training and development, creating advancement opportunities for frontline staff.
• Implementing various employee well-being measures.
• Improving quality assurance processes and recall procedures.
• Actively sourcing clean beauty products.
• Investing in community initiatives and providing support during the pandemic.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Initial assessment of suppliers and products, checks and balances at different seniority levels, mitigation of risks through contractual provisions and certifications.

Climate-Related Risks & Opportunities

Physical Risks

• Damage to assets in extreme weather
• Increased insurance premiums
• Loss of business and productivity
• Increased cooling costs
• Disruption to goods delivery

Transition Risks

• Higher electricity costs
• Costs of replacing vehicles and equipment
• Increased raw material costs
• Increased costs to comply with environmental laws

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 9001:2015 (logistics department)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• 25 new clean beauty products

Awards & Recognition

• 2021 Quality Service Retailer of the Year (La Colline)
• Smart Transformation & Innovation Awards (Hong Kong Retail Management Association)
• Smart Retail Talent Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Conservation
• Waste Reduction
• Employee Development
• Community Investment
• Product Quality and Safety
• Supply Chain Management
• Consumer Rights Protection
• Anti-corruption

Environmental Achievements

• Reduced scope 1 and scope 2 GHG emissions by 68.9% from the 2014/15 base year, on track to achieve a 70% reduction by 2025.
• Reduced electricity intensity per sqm GFA by 45% from the base year.
• Reduced carbon intensity per sqm GFA by 63% from the base year.
• Reduced carbon intensity per HK$1M revenue by 13% compared to the last financial year.
• Reduced use of plastic bubble wraps by 57.8% in online delivery.
• Reduced use of plastic stretch film by 19.2%.
• Increased reuse rate of carton boxes by 30.6%.
• Increased recycle rate of plastic stretch film by 14.7%.
• Reduced paper consumption by 8.1%.
• Disposed 2.5 tonnes less of solid waste and 2.2 tonnes less of liquid waste.

Social Achievements

• Increased total number of employees trained by 250.0% YoY.
• Increased total number of training hours by 263.5% YoY.
• Increased average hours of training per employee by 238.6% YoY.
• Reduced work-related injuries by 33.3% YoY.
• Reduced lost days due to work injury by 52.5% YoY.
• Launched electronic proof of delivery, eliminating 400,000 pieces of paper annually.
• Donated over 150 pieces of used computer hardware to a non-profit organization.
• Participated in the Lai See Reuse and Recycle Program, collecting 5.0 tonnes of red packets for reuse.

Governance Achievements

• Established an ESG Taskforce and Sustainability Steering Committee.
• Received Award for Corporate Governance Excellence and Award for Sustainability Excellence.
• Implemented a Vendors Code of Conduct.
• Participated in a crime prevention program (Project HERO).

Climate Goals & Targets

Environmental Challenges

• Transition to a low-carbon economy (higher electricity costs, costs of replacing vehicles and equipment).
• Increased costs to comply with environmental laws and regulations.
• Damage to assets from extreme weather events.
• Disruption to goods delivery due to severe weather.
• Increased water consumption due to the end of government concessions.

Mitigation Strategies

• Building a culture of sustainability and encouraging behavioral change.
• Lowering carbon footprint through energy conservation measures (LED lighting, energy-efficient appliances).
• Acquiring electric company cars.
• Implementing greener commuting options (employee shuttle service).
• Reducing plastic packaging and increasing reuse and recycling rates.
• Installing flow controllers for water taps to improve water efficiency.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Initial assessment of suppliers and products, checks and balances, contractual provisions, warranties, third-party certifications.

Climate-Related Risks & Opportunities

Physical Risks

• Damage to assets from extreme weather (typhoons, flooding)
• Increased insurance premiums
• Loss of business and productivity during severe weather

Transition Risks

• Higher electricity costs
• Costs of replacing vehicles and equipment
• Increased raw material costs due to new regulations

Opportunities

• Expand customer base with sustainable products
• Innovate and optimize resource use
• Accelerate digital transformation

Reporting Standards

Frameworks Used: GHG Protocol

Certifications: Null

Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA) - reasonable assurance on key climate data

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Clean beauty products, FSC certified paper packaging, marine-friendly sunscreen, vegan products, biodegradable paper masks, reusable shopping bags.

Awards & Recognition

• Caring Company Award (15+ years)
• BDO ESG Award 2021
• Hong Kong Awards for Environmental Excellence (HKAEE)
• TVB ESG Special Recognition Award
• Special Mention, 2022 Best Corporate Governance and ESG Awards (HKICPA)