Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting overseas sales and production.
• Power restrictions at Jiangsu Production Base in September 2021.
• Non-compliance with social insurance and housing provident fund contributions for some employees.

Mitigation Strategies

• Voluntary self-disclosure (VSD) filed with OFAC regarding Cuba and Iran transactions.
• Measures taken to mitigate the impact of power restrictions at Jiangsu Production Base (re-arranging production schedule, using Shanghai Production Base, maintenance work, adjusting staff day-off).
• Made provision for non-compliance of social insurance and housing provident funds.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Compliance operation
• Talent management
• Green operation
• Social responsibility

Environmental Achievements

• Reduced GHG emissions (Scope 1 & 2) to 33,384.07 tCO2e in 2021.
• Reduced water consumption to 453,058.00 tonnes in 2021.
• Reduced non-hazardous waste to 45.20 tonnes in 2021.

Social Achievements

• No work-related fatalities in the past three years.
• Provided various employee welfare benefits including five social insurances and one housing fund, statutory holidays, and various leave benefits.
• Conducted regular safety training and provided personal protective equipment for employees.

Governance Achievements

• Established an ESG Working Group to oversee ESG matters.
• Implemented an anti-corruption policy with reporting mechanisms and training.
• Complied with relevant laws and regulations regarding intellectual property protection, information security, and product quality assurance.

Climate Goals & Targets

Environmental Challenges

• Potential physical risks from extreme weather impacting productivity and employee safety.
• Potential transition risks from stricter environmental regulations.

Mitigation Strategies

• Developing protective measures and emergency response plans for extreme weather.
• Reviewing regulatory changes and installing emission control devices.
• Cooperating with customers and suppliers to explore energy-saving and carbon-reducing practices.

Supply Chain Management

Supplier Audits: Annual assessment of major suppliers

Responsible Procurement

• Selection of suppliers based on qualifications, price, quality, and reputation.
• Requirement for quality management system certification and sample testing for new suppliers.
• Annual review of major suppliers based on supply performance, service attitude, delivery time, and price.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather impacting employee safety and facility damage.

Transition Risks

• Stricter regulations on greenhouse gas emissions.

Reporting Standards

Frameworks Used: Appendix 27 “Environmental, Social and Governance Reporting Guide” of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, SASB

Certifications: ISO 9001:2015, ISO 13485:2016, CE

Environmental Metrics

ESG Focus Areas

• Product quality and safety
• Data security
• Protection of customers’ privacy
• Protection of intelligent property
• Customer satisfaction
• Complaint handling
• Product and service labelling
• Anti-corruption
• Corporate governance
• Greenhouse gas (GHG) emission and management
• Energy management
• Water resources management
• Waste management
• Management of exhaust gas emission
• Management of waste water disposal
• Response to climate change
• Green products
• Supplier management
• Community investment
• Management of packaging materials
• Fairness and diversity
• Anti-discrimination
• Employee training and development
• Occupational health and safety
• Employment compliance
• Remuneration and benefits
• Labour standards
• Prevention of child and forced labour
• Responsible procurement
• Material procurement and efficiency
• Suppliers’ social standards
• Community communication and engagement

Environmental Achievements

• Reduced GHG emission intensity per m2 (Scope 1 & 2) to 0.42 tCO2e/m2
• Generated 2,415,700 kWh of solar energy (compared to 89,800 kWh in 2022)
• Reduced greenhouse gas emission by 14% in the production of 1.74 high resolution series of lens by using plant-based materials

Social Achievements

• Zero occupational fatality in the past three years
• Zero lost working days due to work-related injuries in 2023
• Organized various activities for employees, including a mobile phone photography competition and a floor curling team competition
• Provided various kinds of subsidies and awards to employees, such as confidentiality fee, high temperature subsidy, meal allowance, etc.
• Conducted anti-corruption trainings for 9 directors and 50 employees of manager level or above

Governance Achievements

• Established ESG governance structure with a Board, ESG working group, and execution unit
• Implemented a misconduct reporting mechanism and handling measures
• Formulated a reporting system for interest conflict

Climate Goals & Targets

Environmental Challenges

• Increase in energy consumption and solid waste due to increased business activities
• Extreme heat affecting employee health and safety and increasing cooling needs
• Potential policy risks from international climate change policies and regulations
• Reputation risks related to climate change issues
• Market risks related to costs of adopting low-emission technologies

Mitigation Strategies

• Implementing the use of sustainable energy (solar energy)
• Installing a new centralized filtration and cooling system in the workshop
• Adopting light fixtures with high energy efficiency and setting up individual light switches in the office
• Providing heat subsidy for employees
• Facilitating the adoption of more renewable energy
• Disclosing climate change-related matters and low-carbon operation measures in detail in the ESG report
• Applying low energy consumption technologies and low-carbon emission products

Supply Chain Management

Supplier Audits: 337/year

Responsible Procurement

• Requesting suppliers to comply with laws and regulations related to environmental protection, employment, and anti-corruption
• Prioritizing environmentally friendly products and services with less environmental impact during procurement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat

Transition Risks

• Policy Risk
• Reputation risk
• Market risk

Opportunities

• Increase resource efficiency

Reporting Standards

Frameworks Used: Appendix C2 “Environmental, Social and Governance Reporting Guide” of the Main Board Listing Rules on The Stock Exchange of Hong Kong Limited

Certifications: ISO9001, ISO13485

Sustainable Products & Innovation

• Plant-based lenses for 1.74 high resolution series of lens