Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labor Practices
• Operating Practices
• Community Investment

Environmental Achievements

• Zhongshan and Qinhuangdao plants were accredited ISO 14001:2015 Environmental Management System Certification.
• GB/T 23331-2012 / ISO50001:2011 Energy Management System Certification achieved.
• Reduced chromium levels in sewage.
• Recycled recyclable wastes.
• Implemented measures to reduce energy consumption (e.g., replacing high-energy consuming equipment, promoting energy-efficient lighting).

Social Achievements

• Established a comprehensive human resources management mechanism.
• Provided various recreational activities and team building activities for employees.
• Provided pre-employment training and various other training programs for employees.
• Accredited OHSAS 18001:2007 Occupational Health and Safety Management System Certification.
• Implemented policies to comply with labor laws and regulations (e.g., preventing child and forced labor, ensuring fair compensation).

Governance Achievements

• Established a whistle-blowing channel to report violations of laws or regulations.
• Implemented policies to avoid bribery and corruption.
• Provided business ethics training to employees.

Climate Goals & Targets

Environmental Challenges

• Managing sewage, exhaust air, wastes, and noise generated during operation.
• Meeting emission standards for sewage and exhaust air.
• Managing the disposal of solid wastes (hazardous and non-hazardous).
• Reducing energy and water consumption.

Mitigation Strategies

• Implemented policies and procedures to monitor emissions and ensure compliance with environmental standards.
• Engaged local accredited companies for waste disposal and testing.
• Improved production techniques and implemented sewage recycling mechanisms.
• Implemented various resource-saving measures and energy efficiency initiatives.

Supply Chain Management

Supplier Audits: at least once a year

Responsible Procurement

• Strict procurement management system for tinplate business; qualified suppliers for fresh and live foodstuff business.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange’s Environmental, Social and Governance Reporting Guide

Certifications: ISO 14001:2015, GB/T 23331-2012 / ISO50001:2011, ISO 9001:2015, FSSC 22000, OHSAS 18001:2007

Awards & Recognition

• Top 100 China Packaging Enterprises
• The Most Socially Responsible Enterprise in Guangdong Province 2017
• Quality and Credit Enterprise in China
• Environmental Protection and Credit Enterprise of Guangdong Province
• Advanced Family for Workers
• The Outstanding Organization of The Seventh Cultural and Art Festival in Qinhuangdao Economic & Technological Development Zone
• The Outstanding Organization of The Third Occupational Skills Competition in Qinhuangdao Economic & Technological Development Zone

Environmental Metrics

ESG Focus Areas

• Environmental Compliance
• Air Pollutant Management
• Wastewater Management
• Waste Management
• Energy Consumption
• Use of Water Resources
• Employment Compliance
• Employees’ Remuneration and Benefits
• Labour Standards
• Occupational Health and Safety
• Operational Compliance
• Supply Chain Management
• Product Quality and Safety
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced sludge amount by about 70% through sludge reduction project at Zhongyue Posco.
• Reused 185,722 cubic meters of water resources in the production process.
• Implemented energy-saving measures in offices, including regulating air-conditioning temperature and encouraging the use of natural light.
• Adopted an environmentally friendly furnace treatment device in metal printing, effectively reducing natural gas use and greenhouse gas emissions.

Social Achievements

• Established a comprehensive human resource management mechanism, striving to work under the principle of people-oriented.
• Provided competitive remunerations and benefits, including high-temperature subsidies, social insurance, and housing provident funds.
• Organized various recreational activities to enrich employees’ lives and enhance team cohesiveness.
• Implemented a training management system to improve employees’ knowledge and management skills.
• Established a comprehensive set of safety management systems to prevent and avoid occupational hazards and production safety accidents.

Governance Achievements

• Established stringent procedures in a procurement management system for the tinplating business.
• Implemented a sound product quality management system for the tinplating business.
• Established a strict process on quality control for providing customers with fresh and live foodstuffs of high-quality, safety and up to hygiene standards.
• Upholds the values of integrity, ethics and honesty, and strictly prohibits all forms of bribery.
• Organized various types of anti-corruption training.

Climate Goals & Targets

Environmental Challenges

• Potential environmental incidents in various production steps.
• Excessive discharge of wastewater due to operational errors or emergencies.
• Potential risks of loss due to extreme weather.

Mitigation Strategies

• Formulated emergency plans for handling environmental incidents.
• Held environmental pollution incident drills.
• Implemented the “Guidelines for Environmental Suspension Operations”.
• Formulated emergency plans for possible extreme weather incidents.

Supply Chain Management

Responsible Procurement

• Stringent procedures in procurement management system; evaluation and review mechanism for new suppliers; annual reviews of existing suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons and floods

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 14001:2015, ISO 50001:2018, ISO 9001:2015, FSSC 22000, ISO 22000, ISO 45001:2018

Awards & Recognition

• Contract Honouring and Creditworthy Enterprise in Guangdong Province
• Environmental Integrity Enterprise
• Hong Kong-Guangdong Cleaner Production Partner (Manufacturing)
• Advanced Family for Workers

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Operating Practices
• Community Investment

Environmental Achievements

• GDH Zhongyue and GDH Zhongyue Posco obtained ISO 14001:2015 environmental management system certificates.
• GDH Zhongyue built an acid regeneration facility to reduce acidic gaseous waste emission.
• GDH Zhongyue Posco installed a low-temperature sludge dryer, reducing sludge amount by about 70%.
• Reused 201,316 cubic meters of water resources in the production process.

Social Achievements

• Established a comprehensive human resource management mechanism.
• Provided competitive remunerations and benefits to employees.
• Organized multiple recreational activities to enrich employees’ lives and enhance team cohesiveness.
• Implemented a training management system to improve employees’ knowledge and management skills.
• Obtained ISO 45001:2018 Occupational Health and Safety Management System Certifications (GDH Zhongyue and GDH Zhongyue Posco).

Governance Achievements

• The Board of Directors is responsible for overseeing the ESG management and the Report's compilation.
• Conducted a materiality assessment to identify significant ESG issues.
• Established stringent procedures in procurement management system for the tinplating business.
• Established stringent procedures for the procurement process, supplier selection and evaluation for the fresh and live foodstuffs business.
• Implemented a product recall control procedure for food safety.

Climate Goals & Targets

Environmental Challenges

• Potential risks and impacts from climate-related risks, such as extreme weather events affecting production costs and capacity.
• Market trends towards low-carbon commodities increasing operating costs.

Mitigation Strategies

• Formulated emergency plans for extreme weather incidents.
• Strengthened staff’s ability to respond to natural disasters through training and emergency drills.
• Implemented various measures to reduce the risk of disease and protect the safety of its employees during the COVID-19 pandemic.

Supply Chain Management

Supplier Audits: Annual reviews of existing suppliers; evaluation and review mechanism for new suppliers.

Responsible Procurement

• Verification of suppliers and purchased products
• On-site assessments of new suppliers
• Review of management system certifications, product safety certificates, business licenses

Climate-Related Risks & Opportunities

Physical Risks

• Worsening extreme weather events
• Extreme changes in rainfall and weather patterns

Transition Risks

• Market trend to replace existing products and services with low-carbon commodities

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 14001:2015, ISO 50001:2018, ISO 9001:2015, ISO 22000:2018, ISO 45001:2018

Awards & Recognition

• Contract Honouring and Creditworthy Enterprise in Guangdong Province
• Environmental Integrity Enterprise
• Hong Kong-Guangdong Cleaner Production Partner (Manufacturing)
• Standardised Occupational Safety and Health Enterprise
• Enterprise with Good Ecological and Environmental Trustworthiness in Hebei Province

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Operating Practices
• Community Investment

Environmental Achievements

• Reduced sludge amount by about 70% at GDH Zhongyue Posco by installing a low-temperature sludge dryer.
• Implemented various energy-saving measures, including centralized fuel procurement, route optimization for vehicles, and regular vehicle maintenance.
• Reused 170,493 cubic meters of water resources in the production process.
• Modified existing ink metal printing machine to reduce volatile air pollutants.

Social Achievements

• Established a comprehensive human resource management mechanism, including talent selection, remuneration, training, and occupational health and safety.
• Organized various training courses, including training related to the Civil Code of the People’s Republic of China and sales techniques training.
• Reduced total working days lost due to injured employees from 339 days in 2020 to 187 days in 2021.
• Implemented various measures to reduce the risk of COVID-19 and protect employee safety.

Governance Achievements

• Established stringent procedures in the procurement management system, including supplier verification, evaluation, and annual reviews.
• Implemented a product recall control procedure to timely recall products that may pose a hazard to food safety.
• Established guidelines for the management of whistleblowing on integrity practices.
• Organized various types of anti-corruption trainings.

Climate Goals & Targets

Environmental Challenges

• Stringent environmental requirements leading to increased capital investment in low-carbon technologies and higher compliance costs.
• Potential risks and impacts from climate-related risks, such as extreme weather events.
• Maintaining a stable and good relationship with suppliers.

Mitigation Strategies

• Formulated emergency plans for possible extreme weather incidents.
• Strengthened staff’s ability to respond to natural disasters through training and emergency drills.
• Established stringent procedures for the procurement process, supplier selection, and evaluation.
• Regularly reviews its own supply chain to identify potential risks.

Supply Chain Management

Supplier Audits: Annual reviews of existing suppliers; on-site assessments for new suppliers.

Responsible Procurement

• Supplier verification, evaluation, and annual reviews.
• Prioritizing suppliers providing energy-saving and environment-friendly products.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons and floods

Transition Risks

• More stringent environmental requirements

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 14001:2015, ISO 50001:2018, ISO 9001:2015, ISO 22000:2018, ISO 45001:2018

Awards & Recognition

• Contract Honouring and Creditworthy Enterprise in Guangdong Province
• Environmental Integrity Enterprise
• Standardised Occupational Safety and Health Enterprise
• Qinhuangdao Federation of Trade Unions Safe Enterprise
• Enterprise with Good Ecological and Environmental Trustworthiness in Hebei Province

Environmental Metrics

ESG Focus Areas

• Emissions
• Waste
• Energy Consumption
• Use of Water Resources
• Employment Compliance
• Working Hours and Rest Period
• Occupational Health and Safety
• Prevention of Child Labour and Forced Labour
• Anti-corruption

Environmental Achievements

• Reduced greenhouse gas emissions and electricity consumption
• Proper waste disposal to reduce pollution
• Added thinner recycling equipment and improved RO water purification equipment to reduce hazardous wastewater discharge
• Implemented various noise reduction measures

Social Achievements

• No violation cases related to employment, health and safety and labour guidelines during Year 2022
• Provided competitive remuneration and benefits packages
• Organized various safety trainings
• Reduced total number of lost-days by employees as a result of work injuries from 187 days in 2021 to 124 days in 2022

Governance Achievements

• Established an internal compliance management system
• Formulated Compliance Management Measures
• Cultivated compliance culture
• Established a Risk Control Management Committee and Risk Control Management Team at GDH Zhongyue and GDH Zhongyue Qinhuangdao

Climate Goals & Targets

Environmental Challenges

• Increased water consumption due to the commencement of operation of a meat processing plant in Nanhai District, Foshan City in the second quarter of 2022
• The fifth wave of the COVID-19 epidemic in Hong Kong and Mainland China impacting business operations and supply chains

Mitigation Strategies

• Continued review of target progress and adjustment when appropriate
• Worked with partners to ensure the supply of live pigs and other fresh food to Hong Kong
• Assisted relevant authorities to develop a marine fresh food supply channel to Hong Kong
• Launched a plan to fight against the epidemic and ensure supply at GDH Food Foshan
• Improved operational efficiency of the supply chain
• Communicated with relevant government epidemic prevention departments

Supply Chain Management

Supplier Audits: Annual assessment of existing suppliers on their environmental, energy and occupational health and safety system performance.

Responsible Procurement

• Legal compliance, openness and transparency, fair competition, fairness and integrity, integrity and efficiency, and protection of corporate rights and interests

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, floods, and other sudden natural disaster events

Reporting Standards

Frameworks Used: Appendix 27 of the ESG Reporting Guide

Certifications: ISO 14001:2015, ISO 50001:2018, ISO 9001:2015, ISO 22000:2018, ISO 45001:2018

Awards & Recognition

• Contract Honouring and Creditworthy Enterprise in Guangdong Province
• Environmental Integrity Enterprise
• Standardised Occupational Safety and Health Enterprise
• Enterprise with Green Label in Environmental Trustworthiness in Guangdong Province
• Qinhuangdao Federation of Trade Unions Safe Enterprise
• Enterprise with Good Ecological and Environmental Trustworthiness in Hebei Province
• Advanced Unit in Fire Control
• Received Provincial Funding to Support Cities and Counties in Science and Technology Innovation and Technology Popularisation
• Advanced Unit (Guangdong Meat Association)
• HACCP, Quality Management System, Environmental Management System, Food Safety Management System, Occupational Health and Safety Management System certification (China Quality Certification Centre)

Environmental Metrics

ESG Focus Areas

• Product Quality and Safety
• Waste Management
• Occupational Health and Safety
• Business Ethics
• Responsible Marketing
• Energy Management
• Management of Water Resources
• Noise Management
• Sustainable Supply Chains
• Customer Services
• Responding to Climate Change
• Operational Compliance
• Remuneration and Benefits
• Diversity and Equal Opportunity
• Training and Development
• Use of Raw Materials and Packaging Materials
• Information Security and Privacy Protection
• Intellectual Property Protection
• Biodiversity Protection
• Promotion of Community Development
• Charity
• Technology Innovation

Environmental Achievements

• No violations concerning pollutant emissions and resource utilisation.
• GDH Zhongyue (Zhongshan) Tinplate Industrial Co., Ltd. obtained A rating in the Classification Management Rating Results of Zhongshan City’s 2023 List of Key Enterprises Involving VOCs.
• GDH Zhongyue was awarded the provincial environmental credit evaluation green card enterprise.
• Reduction in water consumption of workshops of pigs, cattle and sheep in GDH Food (Foshan) Company Limited.
• GDH Zhongyue reused nearly 142,000 cubic metres of wastewater throughout all production lines.

Social Achievements

• No product recalls for safety and health reasons in the Group’s fresh and live foodstuffs business and tinplating business.
• Complaint response rate of products and services and complaint resolution rate were both 100%.
• No violation cases related to employment, health and safety and labour guidelines.
• No incident concerning the employment of child labour under the legal working age or forced labour.

Governance Achievements

• Group’s compliance management system was operating effectively and met the requirements of the on-site assessment.
• Group’s compliance management work meets the requirements of GB/T 35770 –2022 and ISO 37301:2021 compliance management system and operates effectively.
• No significant level of compliance risk among the identified compliance risks.
• No litigation of corruption involving the Group or its employees, or the involvement in or occurrence of any violations related to anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Acute climate risks: severe extreme weather events disrupting transportation and supply chains, damaging infrastructure, and threatening safety.
• Chronic climate risks: rising temperatures increasing employee safety risks, animal disease susceptibility, and operational costs.
• Supply chain disruptions

Mitigation Strategies

• Formulated Three Prevention Work Plan and Emergency Response Plan for acute climate risks.
• Established an emergency response working group and regularly conducted emergency skills training and drills.
• Provided employees with heatstroke prevention measures during hot weather, reduced animal living area temperatures, and gradually replaced ventilation and refrigeration equipment.
• Comprehensive analysis and evaluation of supply volumes, guidance for suppliers on scientific deliveries, clarified fresh food supply policies, smoothed transportation channels, and developed contingency plans.

Supply Chain Management

Supplier Audits: 342 major suppliers for fresh and live foodstuffs business; 298 major suppliers for tinplating business

Responsible Procurement

• Strictly check the qualifications of suppliers; consider the environmental impact of products or raw materials.

Climate-Related Risks & Opportunities

Physical Risks

• Increasingly severe extreme weather events (typhoons, floods, natural disasters)
• Rising global temperatures causing prolonged heat waves

Reporting Standards

Frameworks Used: Appendix C2 — Environmental, Social and Governance Reporting Guide of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: HACCP, ISO 9000, ISO 22000, ISO 14001, ISO 45001, OHSMS18000, ISO 50001, GB/T 35770 –2022, ISO 37301:2021, FSSC 22000

Awards & Recognition

• 2023 Foshan Top 10 Digital Agricultural Pioneer Enterprises
• 2023 Advanced Unit (Awarded by Guangdong Meat Association)
• Environmental Credit Evaluation Green Card Enterprise of Guangdong Province
• Enterprise with Good Ecological and Environmental Credit in Hebei Province