Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employee well-being
• Sustainable supply chain
• Product quality and safety
• Anti-corruption

Environmental Achievements

• 100% compliance rate on waste disposal, wastewater discharge, air pollutants emission and noise generation
• 100% hazardous waste treatment
• Zero chemical leakage
• GHG intensity dropped by nearly 20% from 2009 to 2020

Social Achievements

• No work-related fatalities in 2020
• 2,578 person times of training, with a total of 35,832.5 hours of training in 2020
• Actively responded to clients’ products requests in an effort to fight the virus during the COVID-19 pandemic

Governance Achievements

• Established risk management and internal control system
• Regular probity training for management and general staff
• No legal cases regarding corrupt practices brought against the Group nor our employees during the reporting period

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and global recession
• Managing GHG emissions

Mitigation Strategies

• Lean management methods and unremitting effort of all employees
• Phasing out fossil fuel-based boilers and using purchased steam
• Implementing carbon emissions review and neutrality certification for twelve years

Supply Chain Management

Responsible Procurement

• Corporate production safety licenses, certificates in quality, environment as well as occupational health and safety are mandatory documents in the process of supplier screening.
• Suppliers are requested to commit their products be in compliance with the Restriction on Hazardous Substances Directive and Registration, Evaluation, Authorization and Restriction of Chemicals standards.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 14064, ISO 9001, GB/T 19001, GB/T 28001, OHSAS 18001, GB/T 24001

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Management
• Waste Management
• Energy Efficiency
• Water Resource Management
• Employee Well-being
• Employment and Human Rights
• Occupational Health and Safety
• Responsible Supply Chain
• Anti-Corruption
• Community Investment

Environmental Achievements

• Reduced GHG emissions by 12.59% compared with 2020.
• Reduced energy consumption intensity by 2.12% compared with 2018.
• Reduced water consumption intensity by 32.82% compared with 2018.
• 100% hazardous waste properly disposed.
• 60.10% usage proportion of FSC and recycled paper raw material.
• Achieved zero coal fired across all 13 plants after Dalian Plant upgrade in August 2022.
• 2,590,517 kWh of photovoltaic electricity generation, increased by 83.91% compared to 2021.

Social Achievements

• Held the 1st “Artisan Cup” packaging innovation competition.
• 28,443 hours of training completed, covering 95.29% of total employees.
• RMB267,407.5 spent on employee support during the COVID-19 pandemic.
• No cases of employment non-compliance.

Governance Achievements

• Established Environment Committee to oversee ESG issues.
• Implemented Anti-Corruption and Anti-Bribery Management Procedures.
• Conducted anti-corruption training covering 816 person-time and 1,018 hours.

Climate Goals & Targets

Environmental Challenges

• Extreme weather events impacting production.
• Drought and sea level rise posing long-term threats.
• Need to comply with evolving low-carbon policies.
• Market preference for green products.
• COVID-19 pandemic impacting operations and employee well-being.

Mitigation Strategies

• Developed disaster management procedures.
• Improved automated capabilities and remote operation.
• Obtained ISO 14001 certification.
• Expanded use of solar energy and natural gas.
• Continued carbon offsetting.
• Upgraded production facilities.
• Enhanced R&D capabilities.
• Implemented “Carbon Neutral” and “Recycling” marks on products.
• Provided anti-epidemic materials and accommodations for employees.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• ESG performance evaluation of suppliers
• Social responsibility audits for high-risk suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Floods
• Drought
• Sea level rise

Transition Risks

• Low-carbon policies
• Technology transformation
• Market preference for green products

Opportunities

• Renewable energy
• Energy efficiency
• Green production

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 9001, GB/T 28001

Sustainable Products & Innovation

• Net-zero carbon products

Awards & Recognition

• 2021 Top 100 Packaging Enterprises in China
• 2021 Top 100 Paper Packaging Enterprises in China
• 2022 Green Manufacturing in Liaoning Province
• 2022 Suzhou City Intelligent Workshop Demonstration

Environmental Metrics

ESG Focus Areas

• Climate Change Management
• Governance
• Sustainability
• Supply Chain Management
• Employee Well-being
• Community Investment
• Compliance and Integrity

Environmental Achievements

• Significant reductions in air emissions, wastewater, and solid waste from the previous year.
• Transitioned to zero coal usage, embracing cleaner energy sources across all facilities.
• GHG emissions reduced by 16.76% (2020 as the base year).
• Water consumption intensity was reduced by 30.96% (2018 as the base year).

Social Achievements

• Hosted the 2nd “Artisan Cup” within the Group and collaborated with universities for the 12th “PMPGC Cup” Packaging Structure Design Competition.
• Intensified commitment to social contributions, focusing on care for the local community, the elderly, and vulnerable groups.
• Employee turnover rate decreased by 4.52% compared to the previous year (22.41% in 2023).

Governance Achievements

• Established a dedicated internal control unit responsible for developing and periodically updating key procedures.
• Established an Anti-Corruption Management Unit and implemented Anti-Corruption and Anti-Bribery Management Procedures.
• Implemented a comprehensive quality control and management system, certified under ISO 9001.

Climate Goals & Targets

Environmental Challenges

• Extreme weather events disrupting plant operations.
• Chronic natural disasters (drought, sea level rise) threatening manufacturing facilities and impeding business expansion.
• Escalating carbon costs within the raw material supply chain.
• Increased direct operational costs if facilities fall under carbon tax or cap and trade regulations.
• Growing demand for environmentally friendly products from customers.
• Reputational risks from failing to comply with regulations or meet consumer preferences.

Mitigation Strategies

• Established disaster management procedures, improved automated capabilities, adopted remote operation and daily ventilation.
• Paid work-related injury insurance for employees; Set up a financial support fund.
• Implemented a comprehensive system for monitoring and reporting carbon emissions.
• Planned to expand the use of solar energy; Invest in energy-saving technologies and processes.
• Shift towards natural gas instead of coal for production; Continued to process carbon offsetting.
• Engaged with stakeholders to understand their expectations and preferences related to sustainability.
• Made use of new media to release the Group’s “Carbon Neutral” series of short videos.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Sustainability Commitment Letter

Climate-Related Risks & Opportunities

Physical Risks

• Extreme Weather and Disaster
• Drought and Sea Level Rise

Transition Risks

• Emerging regulation (Carbon pricing mechanisms)
• Technological risks (Transitioning to lower emissions technology)
• Market risks (Changing customer behaviour)
• Reputational risks (Shifts in consumer preferences)

Opportunities

• Resource efficiency opportunities (Use of more efficient production process)
• Energy source opportunities (Use of lower-emission sources of energy)
• Products and services opportunities (Shift in consumer preferences)
• Market opportunities (Access to new markets)

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 50001, ISTA

Sustainable Products & Innovation

• Recyclable, Lightweighting, and Harmless packaging solutions

Awards & Recognition

• 40 Years of Development of Paper Packaging Industry in China “Digital Intelligence Construction Advanced Enterprise Award”, 2023 Global Corrugated Industry Award — Business Transformation of the Year, Yi Cai China Green Point Sustainable Practice Case of the Year 2023, 2022 Top 100 Packaging Enterprises in China, 2023 Top 100 Printing & Packaging Enterprises in China, JD Logistics Green Stream Initiative” Excellent Partners