Climate Change Data

Keysheen (Cayman) Holdings Co., Limited

Climate Impact & Sustainability Data (2018, 2019)

Reporting Period: 2018

Environmental Metrics

ESG Focus Areas

  • Environmental Protection
  • Employee Well-being
  • Corporate Governance

Environmental Achievements

  • Installed sewage treatment equipment and wastewater treatment tank in wastewater treatment. Recycled remaining rattan and powder in the production process.
  • Replaced diesel boilers with air source heat pumps to reduce CO2 and nitrogen oxide emissions.

Social Achievements

  • Organized employee training courses on various topics including orientation, professional training, labor safety, and first aid.
  • Provided employee benefits including insurance, profit sharing, health checks, and various activities.

Governance Achievements

  • Established Corporate Governance Best Practice Principles.
  • Elected a female board member.
  • Evaluated external auditors' independence annually.
  • Purchased directors and supervisors' liability insurance.

Climate Goals & Targets

Long-term Goals:
  • Develop green and environmentally-friendly raw materials, promote energy conservation and carbon reduction, seek internet marketing cooperation channels.
Medium-term Goals:
  • Develop commercial furniture market, enhance overseas logistics, provide comprehensive after-sales service, carry out cross-industry cooperation.
Short-term Goals:
  • Deepen sales channels, develop multi-combination furniture, increase North America market share, expand into UK and other European markets, increase online sales.

Environmental Challenges

  • Unsatisfactory operating performance due to RMB appreciation against USD, Vietnam factory in early stages, and US-China trade war.
  • Rising labor costs in Shanghai.
  • Geopolitical risks associated with overseas plants.
  • Exchange rate fluctuations.
Mitigation Strategies
  • Integrating resources of Shanghai and Vietnam factories to streamline operations and curb expenditures.
  • Lean production, process improvement, automation, and multi-tasking training to increase productivity.
  • Using forward foreign exchange contracts to mitigate exchange rate risks.
  • Establishing a smart factory management system in Vietnam.

Supply Chain Management

Responsible Procurement
  • Long-term relationships with suppliers
  • Compliance with local labor and environmental laws

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Regulations Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standards (IFRS)

Certifications: ISO 14001 (implied)

Third-party Assurance: Deloitte and Touche Taipei, Taiwan

Sustainable Products & Innovation

  • Development of environmentally friendly materials and processes

Reporting Period: 2019

Environmental Metrics

ESG Focus Areas

  • Environmental Protection
  • Labor Relations
  • Ethical Corporate Management

Environmental Achievements

  • Obtained ISO14001 environmental management system certification
  • Introduced paperless work orders in the ERP system in Vietnam, installed sewage treatment equipment and wastewater treatment tank in wastewater treatment
  • Recycled remaining rattan and powder in the production process to reduce environmental load

Social Achievements

  • Established Trade Union Committees in Shanghai and Vietnam factories to handle employee welfare matters
  • Provided market competitive welfare policies and measures, performance bonuses and special awards
  • Implemented safety and health education training for employees

Governance Achievements

  • Established the “Corporate Governance Best Practice Principles”, “Rules for governing the relevant financial and business operations between the company and its affiliated enterprises”, “Internal control system for monitoring and supervising subsidiaries”
  • Established “Regulations governing whistle-blowing system of illegal, immoral, and unethical acts”,
  • Purchased directors and supervisors’ liability insurance

Climate Goals & Targets

Long-term Goals:
  • Continue to deepen the production process, quality, and process, with expanding the scope of automation and labor saving
  • Develop new opportunities for different industries and customers
  • Implement corporate governance and introduce outstanding local and abroad talents
Medium-term Goals:
  • Research and develop high-end furniture market and resort hotel market products
  • Deepen the development of customer customization and improve overseas logistics operations
  • Develop the domestic demand market
  • Actively develop green and environmentally-friendly raw materials and promote energy conservation and carbon reduction
Short-term Goals:
  • Deepen sales channels and cooperate with customers to jointly develop new products
  • Develop multi-combination furniture and create new products to increase market share
  • Deepen regional customers in North America and expand new customers
  • Extend product range to UK and other European markets
  • Segment customer types and develop strategic customer with gross profit
  • Expand the proportion of online sales market
  • Strengthen quality sense for employees and improve production efficiency
  • Implement annual balanced production and expand the scope of automation
  • Improve the management information system and strengthen the internal control mechanism

Environmental Challenges

  • Drop in orders caused by the trade war between the United States and China and changes in the production environment at Shanghai factory
  • Rising labor cost in Shanghai
  • Geopolitical risks in overseas factories
  • Exchange rate fluctuations
Mitigation Strategies
  • Reduced the operation scale of the Shanghai factory and saved costs
  • Integrated resources and reconfigured the production capacities of the two factories in Shanghai and Vietnam
  • Increased capacity of the Vietnam factory
  • Adopted a more conservative strategy in Shanghai factory
  • Actively developed green environmentally-friendly raw materials and optimized the process
  • Used financial instruments for hedging purposes
  • Increased local procurement in Vietnam to reduce exchange rate risks

Supply Chain Management

Responsible Procurement
  • Develop and apply green environmental protection materials

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: Regulations Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standards (IFRSs), International Accounting Standards (IAS)

Certifications: ISO14001

Third-party Assurance: Deloitte and Touche

Sustainable Products & Innovation

  • Green and environment-friendly raw materials
  • Recycled materials