Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Health and Safety
• Social Responsibilities
• Supply Chain Management
• Anti-corruption
• Community Investment

Environmental Achievements

• Some battery factories gained Zero Waste to Landfill validation from UL, achieving approximately 95% waste conversion rate.
• Initiated a project to install solar equipment for green energy and to reduce carbon footprint.
• Launched battery packs with new no-plastic packaging to facilitate material recycling.

Social Achievements

• GP Batteries received the “CSR Advocate Mark” from Hong Kong Quality Assurance Agency for the sixth year.
• Organized and participated in various social caring events.
• Provided special leave arrangement to employees who were required for compulsory quarantine during the pandemic.

Governance Achievements

• Established a whistle-blowing policy to report misconduct.
• GP Batteries was awarded “Privacy-Friendly Awards Gold Certificate” by Office of the Privacy Commissioner for Personal Data, Hong Kong.

Climate Goals & Targets

Environmental Challenges

• Economic slowdown and market recovery dependent on COVID-19 containment.
• Increase in GHG emissions, waste produced, electricity consumption, water consumption and packaging material usage due to revenue increase and new operation bases.

Mitigation Strategies

• Simplifying structure, focusing on customers, controlling costs, and improving financial strength.
• Setting up new centers of excellence to expand talent base and respond to consumer trends.
• Implementing energy-saving plans, using electricity efficiently, and encouraging video conferencing to reduce emissions.

Supply Chain Management

Supplier Audits: Regular audits

Responsible Procurement

• Suppliers are qualified based on their capability to meet the product’s technical and quality requirements, health, safety and environment standards and business ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO 14001, ISO 45001

Certifications: ISO 14001, ISO 45001, UL Zero Waste to Landfill Gold and Silver Validations, “EcoPartner”, “3 Years+ EcoPioneer” or “5 Years+ EcoPioneer” of the BOCHK Corporate Environmental Leadership Awards, “Hong Kong-Guangdong Cleaner Production Partner (Supply Chain)”, “Hong Kong-Guangdong Cleaner Production Excellent Partner (Manufacturing)”, UL Environmental Claim Validation (“ECV”) certificate for recycled content (UL ECVP 2809), UL recognized components based on UL217, CQC mark in China, UR mark in the USA, BIS mark in India, and MC mark in Malaysia, IEC 62133-certified, UN38.3 certification, ISO 9001:2015 and IATF 16949:2016

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Battery packs with new no-plastic packaging
• Nickel Metal Hydride rechargeable batteries

Awards & Recognition

• “CSR Advocate Mark”
• “EcoPartner”, “3 Years+ EcoPioneer” or “5 Years+ EcoPioneer” of the BOCHK Corporate Environmental Leadership Awards
• “Hong Kong-Guangdong Cleaner Production Partner (Supply Chain)”
• “Hong Kong-Guangdong Cleaner Production Excellent Partner (Manufacturing)”
• “Privacy-Friendly Awards Gold Certificate”
• Caring Company Logo

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibilities
• Governance

Environmental Achievements

• Reduced hazardous waste produced from 2,514 tonnes in 2021 to 1,885 tonnes in 2022.
• More than 80% of non-hazardous waste is recyclable.
• Four plants in Malaysia and Vietnam received UL Zero Waste to Landfill Gold Validation, and one plant in China obtained Silver Validation.
• Launched Recyko Charge10, the fastest Nickel Metal Hydride (NiMH) rechargeable battery system in the world, with plastic-free paper packaging.

Social Achievements

• Established Equal Employment Opportunities Policy, Harassment-free Workplace Policy, Human Rights Policy, and Fair Labour Practices.
• Provided approximately 40,600 hours of training (excluding orientation programs) in 2022.
• Implemented preventive measures associated with COVID-19, including flexible working hours and rapid test kits.
• No work-related fatality in the past three years.

Governance Achievements

• Established a comprehensive Sustainability and ESG governance framework.
• Established a Whistle-Blowing Policy for reporting misconduct.
• Complied with all relevant laws and regulations relating to bribery, extortion, fraud, and money laundering.

Climate Goals & Targets

Environmental Challenges

• Global climate change and the need to minimize and avoid carbon emissions.
• COVID-19 pandemic, stagflation, and global trade and supply chain disruptions.
• Increased packaging material usage due to revenue growth.

Mitigation Strategies

• Strategic sustainability-focused hires and a General Manager serving as Head of Group ESG Initiatives.
• Manufacturing facility modernization plan in China and Southeast Asia to improve safety, efficiency, and quality assurance.
• Zero Waste to Landfill scheme and product packaging redesign to avoid plastics.
• Investment in R&D and product innovations, such as Recyko Charge10.
• Relocation to modern facilities to provide better working and living conditions for workers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier evaluation process including questionnaire on environmental, safety, and social responsibility.
• Supplier audits according to supplier audit checklist.
• Environmental and social awareness training for strategic suppliers.
• Selection policy for waste recycling and disposal service providers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and sustainable energy storage systems.

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 45001, UL Zero Waste to Landfill Gold Validation (4 plants), UL Zero Waste to Landfill Silver Validation (1 plant), UL Environmental Claim Validation (ECV) for recycled content (UL ECVP 2809) for six battery models

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Recyko Charge10 rechargeable battery system
• NiZn batteries

Awards & Recognition

• 100% HK Branding Award 2021 – Outstanding Corporate Social Responsibility
• Hong Kong-Guangdong Cleaner Production Partner (Supply Chain)
• Hong Kong-Guangdong Cleaner Production Excellent Partner (Manufacturing)
• BOCHK Corporate Environmental Leadership Awards (EcoPartner, 5 Years + EcoPioneer, or EcoChallenger)
• Advanced Enterprise to Support Poverty Alleviation

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibilities
• Governance

Environmental Achievements

• Six plants achieved Zero Waste to Landfill Gold Validation.
• Increased use of recycled materials in products.
• Launched re-branded Alkaline batteries with paper packaging.
• Reduced Scope 1 and Scope 2 GHG emissions to 49,490 tonnes CO2-e (from 62,400 tonnes CO2-e in 2022).

Social Achievements

• Received the “100% HK Branding Award 2022 – Outstanding Corporate Social Responsibility”.
• Organized sports activities and distributed gifts to employees.
• Implemented Equal Employment Opportunities Policy and Harassment-free Workplace Policy.
• Offered diverse range of work-related and wellness learning activities and trainings.

Governance Achievements

• Established a robust sustainability and ESG governance framework.
• Implemented a thorough supplier evaluation process.
• Established a whistle-blowing policy.
• Complied with all relevant laws and regulations relating to bribery, extortion, fraud, and money laundering.

Climate Goals & Targets

Environmental Challenges

• Rapidly rising interest rates, high material costs, and softened consumer demand.
• Geopolitical events and economic challenges.

Mitigation Strategies

• Focus on core businesses with new product introductions, distribution channel enhancements, efficiency refinements, cost reduction, and corporate streamlining.
• Investments to minimize waste and emissions.
• Wider adoption of solar energy in facilities.

Supply Chain Management

Supplier Audits: Regular supplier audits conducted based on an audit checklist.

Responsible Procurement

• Supplier evaluation process assessing environmental, safety, and social responsibility; environmental and social awareness training to strategic suppliers.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products; promoting the use of renewable energy sources.

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 45001, UL Zero Waste to Landfill Gold Validation, UL Environmental Claim Validation (UL ECVP 2809), Energywi$e Certificate – Good Level, Wastewi$e Certificate – Good Level, Hong Kong-Guangdong Cleaner Production Partner (Supply Chain), Hong Kong-Guangdong Cleaner Production Excellent Partner (Manufacturing)

Sustainable Products & Innovation

• GP Recyko rechargeable batteries and chargers (paper packaging, recyclable materials)
• GP Recyko Charge10 (fastest NiMH rechargeable battery system)

Awards & Recognition

• “100% HK Branding Award 2022 – Outstanding Corporate Social Responsibility”
• “Dongguan Safe Enterprise Award”
• “Hong Kong-Guangdong Cleaner Production Partner (Supply Chain)”,
• “Hong Kong-Guangdong Cleaner Production Excellent Partner (Manufacturing)”
• “Energywi$e Certificate – Good Level”
• “Wastewi$e Certificate – Good Level”
• Caring Company Logo for 21 consecutive years

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibilities
• Governance

Environmental Achievements

• Two Malaysian factories achieved UL Zero Waste to Landfill Platinum Validation (100% waste diversion), four others achieved Gold Validation (over 95% waste diversion).
• Huizhou audio factory transitioned to water-based paint, saving water.
• Increased use of solar energy in factories.
• GP Energy Tech achieved carbon neutrality in Scope 1, 2, and 3 (business air travel) emissions.
• GP Batteries awarded Bronze Medal in EcoVadis sustainability assessment.
• GP Batteries received the “100% HK Branding Award – GBA ESG Sustainable Corporate Award” and the “BOCHK Low-Carbon Environmental Leadership Awards 2022 – EcoPartner”.

Social Achievements

• Implemented Equal Employment Opportunities Policy and Harassment-free Workplace Policy.
• Organized sports activities and distributed gifts to employees during festivals.
• Offered 60,803 hours of training (excluding orientation).
• Fewer workplace injury cases (13 in 2024 vs 20 in 2023).
• GP Batteries awarded “Gold Award, 2023 Privacy-Friendly Awards”.

Governance Achievements

• Established a comprehensive Sustainability and ESG governance framework.
• Secured a HK$740 million syndicated sustainability-linked loan facility.
• Implemented a rigorous supplier evaluation system within its Responsible Supplier Management System.
• All suppliers must adhere to the Group’s Supplier Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Rising geopolitical tensions and higher interest rates.
• Climate-related risks (physical: extreme weather, sea level rise; transition: carbon pricing, regulatory changes).
• Supply chain disruptions due to climate events.

Mitigation Strategies

• Disciplined cost efficiency measures.
• Infrastructure resilience upgrades.
• Employee health and safety measures.
• Diversification of manufacturing locations and supply chains.
• Investment in renewable energy and energy efficiency.
• Long-term strategic partnerships.
• R&D in sustainable materials.
• Adoption of circular economy practices.
• Regular monitoring and compliance.
• Stakeholder engagement and transparency.
• Climate risk assessment and planning.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Supplier evaluation system
• Environmental and social responsibility training for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Increase in highest temperature
• Increase in extreme rain days
• Extreme sea level
• Increase in longest dry spell days
• Increase in annual mean temperature
• Increase in total annual rainfall
• Relative sea level rise

Transition Risks

• Increased production costs due to carbon pricing
• Reliance on non-renewable electricity sources
• Costs of raw materials may rise
• Fluctuating electricity costs

Opportunities

• Opportunities in energy efficiency improvements and renewable energy adoption
• Opportunities to transition to renewable electricity sources
• Opportunities in supply chain optimisation, circular economy practices, and developing alternative materials
• Opportunities in capturing new market segments and investor interest through sustainability initiatives

Reporting Standards

Frameworks Used: HKEX’s ESG Reporting Guide, IFRS S1 and S2, TCFD

Certifications: ISO 14001, ISO 45001, UL Zero Waste to Landfill

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• GP Recyko rechargeable batteries
• KEF audio products

Awards & Recognition

• EcoVadis Bronze Medal
• 100% HK Branding Award – GBA ESG Sustainable Corporate Award
• BOCHK Low-Carbon Environmental Leadership Awards 2022 – EcoPartner
• Hong Kong ICT Awards 2023: Smart Mobility (Smart Logistics) Award – Bronze Award
• 13th Guangdong-Hong Kong Internet of Things (IoT) Award – The Best IoT Application Award
• Transform Awards Asia – Best Use of Sustainable Packaging (Gold)
• Hong Kong Green Organisation
• Energywi$e Certificate – Good Level
• Wastewi$e Certificate – Good Level
• Gold Award, 2023 Privacy-Friendly Awards