Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced average overall energy consumption per ton of paper by 3.1% to 0.31 ton of standard coal
• Reduced sulfur dioxide emissions per 10,000 tons of product by 13.1% to 0.73 ton
• Reduced carbon dioxide emissions per 10,000 tons of product by 4.1% to 10,726 tons
• Maintained water recycling rate above 95%
• Sourced over 99% of wood pulp from certified or responsible sources

Social Achievements

• Achieved 100% passing rate in product sampling inspections for 16 consecutive years
• Maintained employee engagement score over 80%
• Implemented various safety training programs resulting in reduced LTAs and DLAs
• Conducted 1,505 safety seminars for 71,446 participants
• Provided 137,967 hours of training in mainland China

Governance Achievements

• Implemented 29 internal audit programs
• Formulated “Conflict of Interest Reporting System” and “Anti-fraud Work Management Measures”
• Conducted internal investigations into whistle-blowing issues

Climate Goals & Targets

Environmental Challenges

• Increased electricity and fuel consumption in Taiwan due to longer production hours and warehousing revamp
• Slight increase in complaint rate in mainland China due to increased e-commerce sales

Mitigation Strategies

• Gradually replacing capacitors in Taiwan to reduce electricity consumption
• Implementing waste sorting and assessing recyclability of waste in Taiwan
• Upgrading sewage discharge systems in mainland China to enhance wastewater recycling rate

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Materials Purchasing Management System
• Supplier Management Standards
• Supplier Incentive and Elimination Mechanism
• Scheme on Strengthening On-site Management of Local Suppliers
• Pest Management Requirements for Suppliers
• Supplier Management Procedures
• Supplier Standard (covering code of conduct, quality, product safety, environment, chemicals, and cleanliness)

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO14001, ISO9001, ISO22000 (Mainland China factories), ISO50001 (some Mainland China factories), OHSAS18001 (Malaysia and Taiwan factories)

Third-party Assurance: Intertek Testing Services Ltd., Shanghai

Awards & Recognition

• High-skilled Talent Training Demonstration Site of Longyou County, Zhejiang Province
• Excellent Enterprise of Guangdong Province for the 40th Anniversary of Reform and Opening-up
• The Best Employer Enterprise in Guangdong Province for 2018
• JOBS 2019 Top Human Resources Management Awards
• Dajie.com Best Employer of the Year 2018
• M 100 Leading Graduate Employers Award
• Diamond Award of INTI University in Malaysia
• Caring Company Logo by The Hong Kong Council of Social Service (six consecutive years)
• MSOSH (Malaysian Society for Occupational Safety & Health) Gold Award (two consecutive years)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Average overall energy consumption per ton of paper in all factories was 0.33 ton of standard coal, lower than the advanced value of 0.42 ton of standard coal under GB31725-2015.
• Replaced fluorescent lights with LED lights in Malaysia factories and offices.
• Replaced LPG operated material handling equipment with electric operated MHE in Malaysia warehouse.
• Reduced electricity consumption and significantly reduced fuel consumption in Taiwan due to new production equipment and elimination of diesel stacking machines.
• Total carbon dioxide emission of the Group was 1,099,670 tons in 2019.
• Solid waste recycled in Malaysia was 3,266 tons in 2019.
• Recycled solid waste in Taiwan was 985 tons in 2019.
• Average water consumption per ton of paper was controlled to be within 10 tons, far lower than the national upper limit of 30 tons.
• Water recycling utilization rate consistently above 95% in mainland China.
• Over 99% of wood pulp procured were certified by forest certification systems or came from responsible sources.

Social Achievements

• Launched practical trainings on “Behaviour Safety Observation” in mainland China.
• Implemented behavioral safety and unsafe condition reporting through mobile application in Malaysia.
• Launched V-safety mobile application in Taiwan to encourage employees to proactively report potential safety risk.
• Organized 2,149 safety seminars for 99,040 participants in mainland China.
• Refurbished 16 Children Homes and improved the lives of 585 children in Malaysia through “Drypers Share A Little Comfort” campaign.
• Provided 135,607 hours of training to 88,350 participants in mainland China.
• Provided 9,404 training hours to 768 participants in Malaysia.
• Provided 4,840 hours of training to 1,827 participants in Taiwan.

Governance Achievements

• Implemented 38 internal audit programs.
• 514 staff members participated in internal audit training.
• Established a series of complete management system on intellectual property rights.
• No corruption litigation against the Company or its employees.

Climate Goals & Targets

Environmental Challenges

• Maintaining energy efficiency across all factories.
• Managing waste generation, particularly scheduled waste from new production lines.
• Ensuring consistent water conservation practices across all regions.
• Maintaining high standards of safety across all operations.

Mitigation Strategies

• Implemented comprehensive energy management systems in mainland China factories.
• Implemented strict waste management procedures in accordance with ISO14001 and local regulations.
• Implemented water conservation measures and promoted water recycling.
• Implemented comprehensive safety management systems, regular safety inspections, and employee training programs.

Supply Chain Management

Responsible Procurement

• Sustainable procurement direction, prioritizing wood pulp from certified sources.
• Supplier Incentive and Elimination Mechanism.
• Scheme on Strengthening On-site Management of Local Suppliers.
• Pest Management Requirements for Suppliers.
• Supplier Standard covering code of conduct, quality, product safety, environment, chemicals, and sanitary management.

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO14001, ISO9001, ISO22000, ISO50001 (some subsidiaries), OHSAS18001 (Malaysia and Taiwan)

Third-party Assurance: Intertek Testing Services Ltd., Shanghai (for greenhouse gas emission data)

Awards & Recognition

• The National Model Enterprise of Harmonious Labour Relations
• JOBS 2019 Outstanding Human Resources Management Award
• The Best Employer Enterprise in Guangdong Province for 2019
• Malaysia Employer Brand Award 2019
• Gold Class by Malaysian Society of Occupational Safety and Health (MSOSH) for three consecutive years
• Gold Award by Essity for reaching 1,000,000 total working hours without LTA

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced nitrogen oxides (NOx) emissions by 22% and sulphur dioxide (SO2) emissions by 49% compared to 2019.
• Maintained water recycling rate at over 95%.
• 100% of procured wood pulp certified by recognised forest management standards (FSC/PEFC/CFCC).

Social Achievements

• Occupational injuries and workplace incidents fell 17.6% compared to 2019.
• Employee turnover rate was 14.72%, lower than the previous year's 17.52%.
• Launched various employee engagement initiatives, including online fitness classes, competitions, and team-building activities.

Governance Achievements

• Conducted 38 internal audit programs.
• All Board members participated in anti-corruption training.
• Implemented various internal control systems to prevent corruption and other illegal conduct.

Climate Goals & Targets

Environmental Challenges

• Aging population impacting product marketing and human resources.
• Increased attention to environmental issues and tightening environmental regulations.
• Shift to online consumption requiring adaptation of sales channels.
• Climate change causing extreme weather events affecting operations.
• COVID-19 pandemic impacting supply chain and increasing demand for hygiene products.

Mitigation Strategies

• Incontinence care brands (TENA and Dr. P) cater to the needs of the elderly.
• Implemented systems for energy efficiency, emission control, and wastewater management.
• Strong collaborations with major e-commerce platforms.
• Crisis management plans and regular drills for extreme weather events.
• Business Continuity Plan implemented across all regions and operations during the COVID-19 pandemic.

Supply Chain Management

Supplier Audits: Annual supplier review; 66 suppliers passed in 2020.

Responsible Procurement

• Supplier Code of Conduct, Supplier Management Standards, Supplier Incentive and Elimination Mechanism, Scheme to Strengthen On-site Management of Domestic Suppliers, Pest Management Requirements for Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, heavy rainstorms, floods)

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: The Stock Exchange of Hong Kong Limited's Environmental, Social and Governance Reporting Guide

Certifications: ISO 9001, ISO 22000, ISO 14001, ISO 50001 (some subsidiaries), ISO 45001 (some subsidiaries)

Third-party Assurance: SGS-CSTC Standards Technical Services Co. Ltd. (for greenhouse gas emissions data)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Drypers baby diapers without additives, Libresse feminine care products using PEFC certified paper, 500ml refill pouches for Drypers products, Tork SmartOne toilet paper dispensers.

Awards & Recognition

• Outstanding Award for Green Loan Issuer, The Asset ESG Corporate Awards – Gold Award, “Best Investor Relations Company” and “Best Annual Report”, Women’s Empowerment Principles Awards, Top Human Resources Management Awards, Leader in Energy Efficiency, Green Factory, Green Products, Inaugural Recipient – Quzhou City Ecological and Environmental Honour Roll, Leader in Water Usage Efficiency, Enterprise Leader in Water Conservation, Outstanding Contribution Award – Curbing the Coronavirus, Poverty Alleviation Caring Enterprise

Environmental Metrics

ESG Focus Areas

• carbon neutrality
• sustainable development
• energy management
• green supply chain
• carbon emissions
• sustainable procurement

Environmental Achievements

• energy utilization efficiency (standard coal consumption per HK$10,000 of sales) was 0.21 ton
• paper production sewage recycling rate was over 95%
• total carbon dioxide emissions (Scope 1 and Scope 2) totalled 1,220,493 tons
• wood pulp sourced were all certified by various forest certification system

Social Achievements

• recognised with the prestigious “Excellence in Human Resources Management Award 2021 ” and “2020 China A+ Employer”,
• provided a total of 223,035 hours of trainings to 11,347 employees
• TENA teamed up with elderly care organizations on jointly published health reports to raise public awareness and knowledge about incontinence care products

Governance Achievements

• MSCI upgraded the Group’s ESG rating from “BBB” to “A”, the highest ESG rating in China’s tissue industry
• received a HK$300 million long-term loan from China Construction Bank (Asia), became the first fast-moving consumer goods company in HKSAR being granted a sustainability linked loan
• received a number of ESG awards

Climate Goals & Targets

Environmental Challenges

• resurgence of COVID-19 pandemic
• raw material price fluctuations
• intensified market competition
• commodity cost increases
• higher logistic and energy costs
• evolving retail landscape
• increased competition
• pulp price fluctuation
• outbreak of transmissible disease
• uncertainties in financial market

Mitigation Strategies

• disciplined pricing strategies
• continuous optimization of product mix
• enhanced cost management
• effective sourcing strategy
• continuous expansion of production capacity
• COVID-19 combat measures
• policies to ensure that sales of products are made to customers with an appropriate credit history
• policies in place to ensure that outstanding trade receivables are collected on a timely basis
• maintaining sufficient cash and cash equivalents, the availability of funding through an adequate amount of committed credit facilities

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• sustainable sourcing

Climate-Related Risks & Opportunities

Physical Risks

• flooding

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• “Outstanding Award for Green and Sustainable Loan Issuer”,
• “Leadership Award for Green and Sustainable Finance Development ”,
• “Excellence in ESG Reporting Award ”,
• “ESG Leading Enterprise Awards ”,
• “Leading Environmental Initiative Award ”,
• “Leading Social Initiative Award ”,
• Platinum Award of the “ESG Corporate Awards ”

Environmental Metrics

ESG Focus Areas

• Energy Management
• Carbon Emissions
• Waste Recycling
• Green Supply Chain
• Water Resources
• Sustainable Sourcing
• Community Service
• Fair Employment
• Safety First
• Product Quality and Safety
• Customer Service
• Information Security and Personal Data Protection

Environmental Achievements

• Reduced use of standard coal in energy consumption by 237,000 tons.
• Reduced carbon emissions by 578,000 tons.
• 100% packaging made of renewable/recyclable materials.
• Approximately 93% of waste was recycled or used for energy or material recovery.
• 100% of hazardous waste was managed by qualified third-parties for disposal.
• 100% of the Group’s top twenty raw and auxiliary material suppliers (excluding wood pulp suppliers) were ISO14001 certified.
• Reduced water consumption by 46,000,000 cubic meters.
• Water recycling rate maintained at over 98%.

Social Achievements

• Provided 3,944 hours of voluntary service.
• Maintained a male-to-female employee ratio of 57:43.
• Implemented various safety and occupational health efforts, resulting in 28 lost-time accidents and 2,378 lost days from accidents.

Governance Achievements

• Implemented a set of anti-corruption measures, including training for 9,438 participants.
• Established a whistleblowing mechanism.
• Conducted 60 internal audit cases.

Climate Goals & Targets

Environmental Challenges

• Labor shortage
• Clean technology requirements
• Online consumption shift
• Climate change (extreme weather events)
• Suppliers' environmental and social responsibility risks

Mitigation Strategies

• Exploring digital technology to improve work efficiency.
• Increasing use of clean energy and implementing reclaimed water reuse projects.
• Actively developing new channels and models to achieve sustainable development.
• Formulating relevant emergency plans and conducting regular drills to address extreme weather events.
• Gradually adding information about suppliers’ environmental performance and social responsibility initiatives into the SRM system.
• Adopting a multiple source procurement strategy and increasing the proportion of local supply.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizing suppliers with ISO 14001 certification
• Supplier Incentive and Elimination Mechanism
• Scheme to Strengthen On-site Management of Domestic Suppliers
• Pest Management Requirements for Suppliers
• Supplier Factory Facilities Assessment Regulations

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Extreme weather events impacting warehouse safety

Transition Risks

• Tightening government regulations and laws
• Increased stakeholder concern for sustainability
• Changes in consumer preference

Opportunities

• Investment in climate change mitigation, such as renewable energy and energy conservation

Reporting Standards

Frameworks Used: Stock Exchange of Hong Kong Limited’s ESG Reporting Guide, TCFD recommendations

Certifications: ISO 9001, ISO 14001, ISO 45001, OHSAS 18001 (Malaysia)

Third-party Assurance: SGS-CSTC Standards Technical Services Co. Ltd. (for GHG emissions data)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Drypers Wee Wee Dry and Drypers Drypantz (baby diapers with toluene-free ink)
• Libresse plant extraction sanitary napkins (with plant-based layer)
• Vinda’s moist flushable tissue (made from plant-derived fibres)
• Reusable, washable menstrual pants

Awards & Recognition

• Outstanding Award for Green and Sustainable Loan Issuer
• Pioneering Organisation in ESG Disclosure Enhancement
• Certificate of Excellence in Environmental, Social and Governance Reporting
• ESG Best Partner
• ESG Corporate Award – Platinum Award
• Best ESG Award
• Leading Environmental Initiative Award
• Honorable Mentions of the 7th Quality Award of Guangdong Provincial Government
• Quality Award of Jiangmen Municipal Government
• Leader in Energy Efficiency
• 2022 National-level Industrial Internet Platform Innovation Piloting Application Model Project
• Smart Factory
• Demonstration Enterprise of Intellectual Property Right of Zhejiang Province
• Excellent Team of Provincial Ankang Cup
• Certificate of High-Tech Enterprise
• Clean Production Enterprise of Yangjiang City
• Caring Enterprise
• AA Level “Contractual Performance and Creditworthiness” Enterprise of Zhejiang Province
• Top Human Resources Management Awards
• Best Employer Brand
• KNX Rising Award Top 50 of Human Resources Digitalisation Cases of the Year
• Favorite Employer Award
• Malaysia Best Employer Brand Awards
• Sustainable Product Recognition
• MSOSH (Malaysian Society for Occupational Safety & Health) Gold Class
• Advanced Home for Workers of Yangjiang City
• Award for Excellent Cases of Talent Development in Digital Intelligence
• Workers’ Pioneer of Deyang City
• Preferred Employer

Environmental Metrics

ESG Focus Areas

• Product quality and safety
• Occupational health and safety
• Business ethics and anti-corruption
• Emissions management
• Energy management
• Water resources
• Waste recycling
• Sustainable procurement
• Community service
• Fair employment

Environmental Achievements

• Reduced use of standard coal in energy consumption by 357,600 tons.
• Reduced carbon emissions by 889,600 tons.
• 100% packaging made of renewable/recyclable materials.
• Approximately 95% of waste was recycled or used for energy or material recovery.
• 100% of hazardous waste was managed by qualified third parties for disposal.
• Reduced water consumption by 70,500,000 cubic meters.
• Water recycling rate maintained at over 98%.

Social Achievements

• Provided 5,834 hours of voluntary service.
• Maintained a male-to-female employee ratio of 57:43.
• Total training hours for employees amounted to 161,323 hours, with a total participation of 10,051 individuals (approximately 88% of permanent employees).

Governance Achievements

• Established a three-layer sustainability governance structure.
• Implemented a comprehensive whistleblowing mechanism.
• Conducted 55 internal audit projects.

Climate Goals & Targets

Environmental Challenges

• Increased costs from rising employee turnover rates and difficulty attracting talent.
• Stricter laws and regulations on energy conservation, carbon reduction, and environmental resource management.
• Climate change risks (extreme weather, flooding, supply chain disruptions).
• Tightening government regulations and laws.
• Increased stakeholder concern for sustainability.
• Changes in consumer preferences towards environmentally friendly products.

Mitigation Strategies

• Improved human resources management system focusing on talent attraction, development, and occupational health and safety.
• Adopted new equipment and technologies to reduce energy consumption and carbon emissions.
• Implemented measures to reduce the effects of physical risks on production, operations, and supply chain (alternative sourcing, warehouse maintenance, employee health measures).
• Developed internal codes of practice beyond basic compliance requirements.
• Actively monitors government regulatory trends, responds to stakeholders’ and consumers’ green initiatives, develops and uses low-carbon equipment, incorporates green raw materials, and launches high-quality green products.

Supply Chain Management

Supplier Audits: 100% of top twenty raw and auxiliary material suppliers (excluding wood pulp suppliers) are ISO 14001 certified.

Responsible Procurement

• Supplier factory facilities assessment regulations.
• Supplier Relationship Management (SRM) system.
• Promotion of local procurement.

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Rising water levels
• High temperatures
• Extreme weather

Transition Risks

• Tightening government regulations
• Increased stakeholder concern for sustainability
• Changes in consumer preferences

Opportunities

• Development of sustainable products
• Sustainable operations
• Sustainable philosophy

Reporting Standards

Frameworks Used: HKEX's ESG Reporting Guide, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 22000, BRC, GMP

Third-party Assurance: SGS-CSTC Standards Technical Services Co. Ltd.

Sustainable Products & Innovation

• Libresse botanical sanitary napkins
• Moist flushable toilet tissue made with plant-derived fibers
• Reusable and washable menstrual pants
• Drypers baby diapers without additives
• Toluene-free ink and water-based ink in packaging

Awards & Recognition

• Outstanding Award for Green and Sustainable Loan
• Asia’s longest-running ESG awards – Platinum Awards
• Advanced Unit of Contribution to Enterprise Economy Development
• 2022 TOP 30 Manufacturing Enterprise of Quzhou City
• 2022 Special Award of the County Chief
• Top 5 Chain Leading Enterprises in the Industry Chain of Longyou County
• Outstanding Enterprises of Quancheng
• 2023 Key “Leading Roles” Enterprise of Deyang City
• Bronze – Pro Bono/Festive/CSR/Govt/Cultural/Entertainment
• Malaysia Manufacturing Innovation of the Year
• 2023 China Talent Management Innovation Award
• Best Practices in Corporate Culture Award
• Favorite Employer Award 2023
• Green Plant
• 2023 “Leader in Energy Efficiency” of the Paper Industry in Guangdong
• 2023 “Leader in Water Efficiency” of the Paper Industry in Guangdong
• Clean Production Enterprise of Jiangmen City
• Demonstration Unit of Industrial Water-saving of Jinan City
• Outstanding Volunteers Services Team
• 2022 Top 10 Basic-Level Trade Unions in the New Era of Jiangmen City
• 2022 Special Award of People’s Government of Quzhou City
• 2022 “Woman Pace-setter Group” of Deyang Economic Development Zone
• National May Forth Red Flag Youth League Branch
• 2020-2022 Charity and Caring Enterprise
• 2023 Singapore Red Cross Award
• Outstanding Employer Branding Award
• Member of Safety Development Union Industrial & Commercial Enterprise of Jinan City
• China Preferred Employer in 2022
• 2022 China Best Employer of the Year Nomination Award