Climate Change Data

Environmental Metrics

ESG Focus Areas

• Staff Caring
• Training and Development
• Caring for the Environment
• Corporate Governance
• Caring for the Community
• Product Responsibility
• Supplier Management

Environmental Achievements

• Obtained ISO 14001 Environment Management System Certificate in 2001 and conducted annual internal and external audits.
• Established Cleaner Production and Energy-saving Committee.
• Implemented energy-saving measures, including phasing out old lighting fixtures and replacing with LED lights.
• Implemented Sewage Treatment Center in Yuquan Plant for wastewater reuse.
• Received Gold Class and Silver Class labels of “FoodEver WasteNever Awards — WasteNever Award”.

Social Achievements

• Average training hours per employee increased to 26 hours.
• Established “Education Fund for Staff and Their Children”.
• Established the Castfast Family Planning Association.
• Organized various recreational activities for staff.
• Maintained a low rate of serious work injuries.

Governance Achievements

• Established Executive Committee to improve decision-making efficiency.
• Adopted Shareholder’s communication policy.
• Issued “Ethical Disciplinary Requirements” to prevent fraudulent activities.
• Established internal audit function and adopted risk management policy.

Climate Goals & Targets

Environmental Challenges

• Energy consumption
• Waste management
• Maintaining high standards of food safety and hygiene

Mitigation Strategies

• Implemented energy-saving initiatives and energy management systems.
• Implemented waste reduction and recycling programs.
• Implemented strict hygiene standards and obtained hygienic supervision certificates for Central Kitchen.

Supply Chain Management

Responsible Procurement

• Compliance with ISO 9001 and ISO 14001 standards.
• Requirement for suppliers to comply with RBA code of conduct.
• Confirmation that suppliers do not use “Conflicting Minerals” from DRC.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, Hong Kong Stock Exchange’s ESG Reporting Guide

Certifications: ISO 14001, ISO 9001, ISO 13485, FSC Forest Management Certification

Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA)

Awards & Recognition

• Best Supplier Award 2017 (Inventec)
• Working Partner of the Year 2017 (NEC)
• Hong Kong Smart Gifts Design Award 2017 — Household Gift Merit Award (Big Big Bird Colander)
• Hong Kong Sustainability Award 2016/17 Certificate of Excellence (Medium-sized organizations)
• Outstanding Import and Export Enterprise Awards 2017
• 2016 –17 Good MPF Employer
• Creditable Enterprise” of Guangdong Province (Yuquan Plant)
• Certificate in the Partner Employer Award Scheme
• 10 Years Plus Caring Company Logo for 2005 –2018

Environmental Metrics

ESG Focus Areas

• Climate Change
• Employee Well-being
• Corporate Governance
• Responsible Procurement
• Community Engagement
• Product Responsibility
• Supply Chain Sustainability

Environmental Achievements

• Annual energy savings of 300,000 kilowatt-hours through various energy-saving projects.
• Reduced water consumption to 221,255 m3.
• Achieved a B- rating from CDP Climate Change survey.
• Collaborated with customers on trials using recycled steel and plastics.

Social Achievements

• Average training hours per employee reached 13.3 hours (15% increase year-on-year).
• 76% of employees received training during the year.
• Organised diverse employee activities to promote physical and mental well-being.
• Established connections with vocational colleges for internships, supplementing manpower needs.

Governance Achievements

• Established a cross-departmental Corporate Sustainable Development Committee.
• Implemented a KPI management system reporting monthly to the Board of Directors.
• Implemented an integrity and anti-corruption system with no violations during the year.
• Established a whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Increase in greenhouse gas emission intensity (6.7% increase compared to the previous year) due to market factors affecting revenue.
• Increase in energy consumption intensity (10.2% increase year-on-year) due to market factors.
• Supply chain disruptions due to external factors (not explicitly stated, but implied).

Mitigation Strategies

• Setting medium-term and long-term emission reduction targets in accordance with SBTi, aiming for net-zero emissions by 2050 or earlier.
• Implementing various energy-saving projects and administrative optimization measures.
• Collaborating with customers and suppliers on using recycled materials.
• Developing equipment energy-saving projects and utilizing on-site renewable energy.

Supply Chain Management

Supplier Audits: 100% of new suppliers; existing suppliers every two years.

Responsible Procurement

• RBA Code of Conduct
• Environmental protection standards
• REACH, RoHS compliance
• Conflict Minerals Reporting Template (CMRT)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme weather events

Transition Risks

• Carbon tariffs
• Increased electricity costs
• Reduced orders due to insufficient emission reduction

Opportunities

• Growing demand for energy-saving technologies
• Growing demand for renewable energy

Reporting Standards

Frameworks Used: GRI Standards, HKEX Appendix C2 ESG Reporting Guide, UN SDGs

Certifications: ISO 9001, ISO 14001, RBA VAP audit

Third-party Assurance: TÜV Rheinland

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 7
• Goal 8
• Goal 9
• Goal 12
• Goal 13
• Goal 16
• Goal 17

The report maps 11 SDG goals to Karrie's CSR missions and business operations.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EcoVadis Bronze Sustainability Rating
• CDP Climate Change Rating B-
• Hong Kong — Guangdong Cleaner Production Excellent Partners
• TÜV Rheinland Sustainable Carbon Reduction Strategic Partner Award
• BOCHK Corporate Environmental Leadership Award 2022
• Caring Company 15+ Logo
• Industry Cares Recognition — Outstanding Caring Awards
• Certificate of Appreciation for Over 15 Years of Donating Scholarships
• Good MPF Employer Award 5 Years+
• MPF Support Award
• e-Contribution Award
• UNICEF Hong Kong Certificate of Appreciation
• ZTE Outstanding Quality Award
• DELL EMC Quality Excellence Award