Climate Change Data

Hifood Group Holdings Co., Limited

Climate Impact & Sustainability Data (2018-04 to 2019-03, 2019-04 to 2020-03, 2021-04 to 2022-03)

Reporting Period: 2018-04 to 2019-03

Environmental Metrics

Total Carbon Emissions:108.5 tCO2e/year
Scope 1 Emissions:64.1 tCO2e/year
Scope 2 Emissions:44.4 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:1082 GJ/year (87,100 kWh electricity + 24,114 liters petrol)
Water Consumption:53 m3/year
Waste Generated:800 kg/year (Hong Kong office), hazardous waste in China (volume reduced by half)
Carbon Intensity:3.02 tCO2e/person

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced paper packaging materials usage by 122 kg (from 1400kg to 1228kg) and plastic packaging materials by 10kg (from 20kg to 10kg) in Hong Kong office.
  • Reduced waste disposal volume by half in China operations.
  • Implemented green office initiatives in Hong Kong, meeting Level 2 standard of Integrated Emission Standard of Air Pollutants of the PRC in China operations.

Social Achievements

  • Employs 4 individuals with disabilities in China.
  • Established a labour union and Equality Working Group to safeguard employee rights and promote diversity.
  • Reduced staff costs by approximately HK$10.3 million in selling expenses and HK$5.6 million in administrative expenses.

Governance Achievements

  • Complied with all provisions of the Corporate Governance Code.
  • Established a whistleblowing policy.
  • Maintained directors’ liability insurance.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Significant decrease in sales in Americas due to weaker-than-expected market condition.
  • Decrease in sales in Europe and Russia due to sluggish European economy.
  • Decrease in sales in the PRC due to slower economic growth and changes in consumer expectations.
  • Intense online competition.
Mitigation Strategies
  • Applied stringent controls over capital expenditures, reducing administrative expenses by 19.1% and selling expenses by 32.9%.
  • Exploring new business opportunities in the food and beverage industry.
  • Strengthening sales and marketing force, solidifying presence in existing markets, and reinforcing market recognition of its brand name globally.
  • Enhancing management resources and cost efficiency to optimise production capacity.

Supply Chain Management

Supplier Audits: Semi-annual appraisal

Responsible Procurement
  • Supplier Selection Standards based on fair and just principles; removal of suppliers with unacceptable performance.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2019-04 to 2020-03

Environmental Metrics

Total Carbon Emissions:542.27 tCO2e/year
Scope 1 Emissions:472.28 tCO2e/year
Scope 2 Emissions:69.99 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:6,137.05 GJ/year
Water Consumption:4,051.57 m3/year
Waste Generated:Not disclosed
Carbon Intensity:17.49 tCO2e/person

ESG Focus Areas

  • Environmental Protection
  • Product Responsibility
  • Talent Management
  • Business Ethics
  • Community Involvement

Environmental Achievements

  • Implemented green office initiatives, including LED lighting, reduced energy consumption during lunch breaks, and optimized air conditioning usage.
  • Prioritized waste recycling in production plants.
  • Closely monitored emissions to ensure compliance with regulatory standards.

Social Achievements

  • Provided competitive remuneration packages and comprehensive benefits to attract and retain talents.
  • Implemented a standardized customer complaint handling procedure.
  • Established an Equality Working Group in China to monitor anti-discrimination policies.

Governance Achievements

  • Adopted a conflict of interest declaration policy.
  • Established a whistleblowing policy.
  • Maintained directors’ liability insurance.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Global economic slowdown due to trade frictions, geopolitical tensions, and the COVID-19 pandemic.
  • Significant decrease in sales in Mainland China, Europe (including Russia), and the Americas.
  • RMB depreciation pressure and uncertain economic environment in Mainland China.
Mitigation Strategies
  • Exploring new business opportunities in the food and beverage industry.
  • Improving business efficiency by streamlining operations and optimizing resource allocation.
  • Strengthening sales and marketing capabilities, deepening market penetration, and broadening customer base.

Supply Chain Management

Supplier Audits: Semi-annual assessment of 49 suppliers

Responsible Procurement
  • Fair, ethical, and equitable screening process for suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
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

  • Not disclosed

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:42.41 tCO2e/year
Scope 1 Emissions:0.85 tCO2e/year
Scope 2 Emissions:41.56 tCO2e/year
Total Energy Consumption:196.95 GJ/year
Water Consumption:1219 m3/year
Waste Generated:425 kg/year (paper only, other waste data unavailable)
Carbon Intensity:7.07 tCO2e/person

ESG Focus Areas

  • Environmental Protection
  • Product Responsibility
  • Talent Management
  • Supply Chain Management
  • Business Ethics
  • Community Involvement

Environmental Achievements

  • Continued to implement green-office initiatives
  • 100% compliance with sewage treatment procedures

Social Achievements

  • Provided various development opportunities to employees
  • No cases of work-related accidents

Governance Achievements

  • Adopted the new Corporate Governance Code
  • Established a whistleblowing policy

Climate Goals & Targets

Medium-term Goals:
  • Full switch to electric vehicles by 2030
Short-term Goals:
  • 100% of electrical appliances to have energy-saving labels by 2025

Environmental Challenges

  • Complex and challenging business environment due to US monetary policy tightening, Sino-US trade conflicts, COVID-19 pandemic, and geopolitical tensions
  • Significant decrease in revenue from Americas and European markets
  • Slumping consumption demand for jewellery products
Mitigation Strategies
  • Timely adjusted strategy and reallocated resources to gold products, materials, and luxury watches in the Hong Kong market
  • Stringent controls over expenditures
  • Strengthened position in Hong Kong market
  • Actively optimising resource allocation and streamlining operation model

Supply Chain Management

Supplier Audits: At least once a year

Responsible Procurement
  • Stringent supplier selection criteria including price, product and service quality, delivery performance, quality consistency and competitiveness

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (typhoons and floods)

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001:2015