Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employee development
• Community investment
• ESG areas

Environmental Achievements

• Reduced NOx emissions to 20.9kg, SOx to 0.9kg, and PM to 1.5kg.
• Reduced greenhouse gas emissions to 8,095.6 tons of carbon dioxide equivalent (tCO2e).

Social Achievements

• Improved employee turnover rate to approximately 24%, a 6 percentage point improvement from the previous year.
• Recorded zero accidents and no work-related fatalities in 2017.
• 66% of the workforce received training, accumulating approximately 11.6 hours of training per employee.

Governance Achievements

• Maintained compliance with the Code Provisions in the Corporate Governance Code.
• Established a comprehensive set of rules to govern whistleblowing within the Group.
• No instigated legal cases regarding corrupt practices brought against the Group or its employees in 2017.

Climate Goals & Targets

Environmental Challenges

• Drop in turnover of the Singapore apparel business.
• Major refurbishment of investment property at No. 3 Yuk Yat Street, To Kwa Wan resulting in reduced rental income.
• Higher amount of sales return offset against sales due to more favorable inventory return and exchange arrangement for distributors.
• Disappointing apparel performance in Singapore and Malaysia with overall sales decrease of approximately 15%.

Mitigation Strategies

• Readjustment of operational strategies, restructuring of management teams, and enhancement of management of key aspects including products and marketing in Singapore and Malaysia.
• Additional steps to clear off-season stocks from factory outlets to avoid excessive inventories.
• Continued efforts to enhance the leasing potential of properties to maintain stable rental income.
• Refurbishment of the property at No. 3 Yuk Yat Street, To Kwa Wan, Hong Kong.

Supply Chain Management

Supplier Audits: 87 suppliers in total, 72 from China Mainland and Hong Kong, 15 from Southeast Asia

Responsible Procurement

• Social and environmental considerations in choosing suppliers (child labor, forced labor, safety).

Climate-Related Risks & Opportunities

Reporting Standards

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

Awards & Recognition

• Corporate Partner with The International Institute of Management

Environmental Metrics

ESG Focus Areas

• Product quality and safety
• Customer service and satisfaction
• Ethical business compliance
• Supply chain management
• Occupational health and safety
• Training and development
• Equal opportunity, diversity and non-discrimination
• Environmental compliance
• Climate change
• Community Investment

Environmental Achievements

• Received the “Platinum Award” from the Environmental Bureau for its charter on External Lighting.
• Installed photovoltaic (PV) panels to generate approximately 385,000 kWh of electricity annually, resulting in cost savings of around HK$35,000 per year.
• Replaced old central air conditioning units with more efficient models, resulting in a significant reduction in electricity consumption.
• Received recognition from the Environmental Campaign Committee (ECC) and Certificate of Merit on Source Separation of Commercial and Industrial Waste from Environmental Protection Department (EPD) for sustainable waste management practices.
• Achieved 23.7% paper recycling rate across its offices and apparel business.

Social Achievements

• Conducted various staff engagement activities, including Chinese New Year Festival condolences, a fun sports day, and celebrations of various festivals.
• Contributed HK$42,815,000 to retirement funds for employees.
• Implemented an Internal Referral Reward Policy to improve recruitment efficiency.
• Provided a range of channels for employees to voice their opinions.
• Donated RMB1,010,000 and HK$108,000 to support community projects, including sports sponsorships and clothing donations.

Governance Achievements

• Established a comprehensive governance framework to drive strategic development and sustainable business growth.
• Implemented internal policies to foster an ethical work culture and facilitate effective management, including an Anti-bribery Policy, Conflict-of-Interest Policy, and Whistleblowing Policy.
• Provided annual anti-corruption training to board members and staff in Hong Kong and PRC.
• Organized a face-to-face anti-corruption seminar conducted by ICAC for board members and senior management.

Climate Goals & Targets

Environmental Challenges

• Weak domestic economy and difficult operating environment.
• Sluggish real estate market and external adverse factors.
• Decrease in orders placed by distributors.
• Decreased income from property sales.
• Decreased rental income and building management fees due to a lower RMB exchange rate.
• Climate change related risks (physical and transition risks).

Mitigation Strategies

• Strengthening self-operated retailing capabilities, improving product quality, and optimizing sales channels.
• Promoting the branding concept of “Goldlion 3388” lifestyle stores and constructing a brand museum in Meizhou.
• Improving local operations, strengthening sales networks, and improving product quality and functionality in Singapore.
• Installing photovoltaic facilities in the Meizhou factory and Guangzhou Yuan Village property.
• Establishing a new energy company engaging in photovoltaic business in China Mainland.
• Improving the leasing of Goldlion Digital Network Centre and other properties by reducing vacancies and exploring leasing potential.
• Striving to sell the remaining units of “Goldlion Garden” in Meixian based on actual market conditions.
• Developing operational protocols to ensure employee safety during extreme weather events.
• Implementing property insurance and public liability insurance.
• Implementing climate-resilient features in buildings and properties.
• Establishing comprehensive Contingency Plans for Emergencies.
• Actively pursuing opportunities to transition operations into low-carbon practices (e.g., installing solar-powered lights).

Supply Chain Management

Supplier Audits: Regular monitoring and evaluation of suppliers’ performance to ensure adherence to the Supplier Code of Conduct.

Responsible Procurement

• Sustainable Procurement policy
• Sub-contracting Policy
• Green Procurement Policy
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoon, heavy rainfall, floods)
• Sustained high temperature and change in precipitation patterns

Transition Risks

• Stringent policy requirements towards decarbonisation
• Increasing public expectation on lower-carbon economy transition

Opportunities

• Development of energy-efficient products and services
• Expansion into renewable energy business

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide

Certifications: ISO 9001:2015 (Meizhou Factory), ISO 14001 (Meizhou Factory), ISO 45001:2018 (Meizhou Factory)

Third-party Assurance: PricewaterhouseCoopers

Sustainable Products & Innovation

• Incorporating biodegradable packaging materials into some products.

Awards & Recognition

• Platinum Award from the Environmental Bureau
• Recognition from the Environmental Campaign Committee (ECC)
• Certificate of Merit on Source Separation of Commercial and Industrial Waste from Environmental Protection Department (EPD)