Climate Change Data

Environmental Metrics

ESG Focus Areas

• Green Operations
• Human Capital Investment
• Synergistic Partnerships

Environmental Achievements

• Increased the use of recycled water to 48% (target 50%)
• Reduced carbon footprint per garment by 7%
• Reduced energy consumption per garment by 11%
• Reduced paper consumption by 4% (target 10%)
• Planted 1.7 million trees since 2007
• Developed a new laser washing process for denim jeans with 100% water savings and no chemical use
• Upgraded wet-processing equipment saving 91,100 cubic meters of water annually
• New denim jeans factory in Cambodia reuses 60% of wastewater

Social Achievements

• Launched Skill Certificate Programme (SCP) in Vietnam sweater factory, increasing linkers’ efficiency by 16% and average income by 10%
• Expanded female empowerment initiative (P.A.C.E. Programme) aiming to benefit 40,000 female workers by 2020
• Increased health and safety training hours by 44% compared to 2014
• Improved fire drill evacuation time to 7 minutes (from 15 minutes)
• Implemented various health and well-being initiatives across factories
• China T-shirt factory recognized as “Food and Beverage Service Safety Demonstration Unit”
• Launched the “Sunshine Workshop” project in China T-shirt factory to proactively assist workers
• Cambodia T-shirt factory collaborated with H&M and ILO to improve industrial relations

Governance Achievements

• Established three Board committees: Audit Committee, Executive Committee, and Corporate Development Committee
• Implemented an enterprise risk management (ERM) system
• Updated Corporate Social Compliance Manual

Climate Goals & Targets

Environmental Challenges

• Missed target for recycled water usage (48% instead of 50%) due to wastewater treatment plant upgrades
• Missed target for paper consumption reduction (4% instead of 10%) due to technology constraints in new facilities
• Increase in water consumption (22% more than 2012) due to business expansion

Mitigation Strategies

• Wastewater treatment plant upgrades to be completed in 2016
• Redouble efforts to raise awareness of wise paper use and best practices
• Developing corporate-level waste management guidelines
• Speeding up the process of employing electronic systems in new facilities

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Restricted Substances List (RSL)
• Hazardous substance awareness training for suppliers
• Preference for APEO-free and Oeko-Tex compliant chemicals

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 50001 (China T-shirt and sweater factories), ISO 14001, ISO 9001, OEKO-TEX STANDARD 100, OHSAS 18001, M&S PLAN A ECO FACTORY STANDARDS, GLOBAL RECYCLE STANDARD 2.1, ORGANIC CONTENT STANDARD 1.0

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• National Environment Award (Vietnam T-shirt factory)
• WWF-Hong Kong’s Low Carbon Manufacturing Programme (LCMP) Platinum Label (China T-shirt and sweater factory)
• Hong Kong-Guangdong Cleaner Production Excellent Partners (Manufacturing)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Business Performance
• Innovation
• Health, Safety and Well-being
• Corporate Sustainability Culture

Environmental Achievements

• Reduced carbon footprint per garment by 9% compared to 2017 baseline.
• Reduced per product carbon footprint by 40% since 2007.
• Exceeded freshwater conservation target through water-efficient technologies.
• Recycled 2,617,533 m³ of water for production and non-production uses.
• 100% diversion of production waste from landfill in lifestyle wear factory in China.

Social Achievements

• Empowered 49,500 female employees through CARE program.
• Provided 5,261,670 training hours, averaging 49 hours per employee.
• Contributed US$407,000 and over 32,000 volunteer hours to communities.
• Achieved zero fatalities over the last three years.
• Implemented digital wage payment across all factories.

Governance Achievements

• Established comprehensive grievance mechanism.
• Implemented anti-corruption training for all directors and managers.
• Published updated Group RSL and MRSL incorporating ZDHC MRSL version 2.0.
• No legal cases regarding corrupt practices.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and community engagement.
• Climate change posing physical and transition risks (extreme weather, regulatory changes, market shifts).

Mitigation Strategies

• Implemented stringent precautionary measures in factories.
• Distributed relief materials and supported local communities.
• Digitised training and utilized online platforms for employee communication.
• Committed to net-zero emissions by 2050 with interim target of 35% emission reduction by 2030.
• Developed corporate decarbonisation package and implemented various energy efficiency measures.
• Conducted climate-related risk analysis aligned with TCFD guidelines.
• Incorporated risk considerations into business strategy and risk management system.

Supply Chain Management

Supplier Audits: 18 major suppliers assessed for social and environmental performance.

Responsible Procurement

• Code of Conduct
• Social Compliance Policy
• Environmental Policy
• Anti-corruption Policy
• RSL
• Quality Policy
• Brand Protection Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Extreme heat
• Rising sea levels
• Increased salinity
• Drought

Transition Risks

• Policy and legal changes
• Technology shifts
• Market disruptions
• Carbon pricing
• Industry transition
• Reputational risks

Opportunities

• Development of energy-efficient products
• Expansion of renewable energy use
• Adoption of green technologies

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, UN Fashion Industry Charter for Climate Action, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001, EDGE, LCMP Gold & Platinum

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 5 (Gender Equality)
• Goal 8 (Decent Work and Economic Growth)

Initiatives align with UN SDGs through environmental protection, women empowerment, and community engagement.

Sustainable Products & Innovation

• 4Zero Collection (reduced water and chemical consumption)
• Second Life – Closed-loop Denim (recycled content)

Awards & Recognition

• Best ESG Report – Mid-cap Commendation (Hong Kong ESG Reporting Awards 2021)
• Various awards for individual factories (see report)

Environmental Metrics

ESG Focus Areas

• Climate change
• Business performance
• Manufacturing excellence
• Health and safety
• Ethical business practices

Environmental Achievements

• Reduced absolute carbon emissions by 4.7% vs 2022
• Reached 12 MW group-wide solar PV capacity, reducing emissions by at least 8,200 tCO2e per year
• Two factories achieved zero operational waste to landfill
• Increased recycled water usage to over 40% in garment factories
• Reduced freshwater intensity per garment by 23% vs 2022
• Average verified Higg FEM score of 84.1, well above the industry median of 53.8

Social Achievements

• 59,000 women empowered through CARE programme since 2014
• 60% of factories implemented worker voice programmes
• Employee wellness programmes in all operating countries
• 6,500 volunteering hours
• US$580,000 contribution to communities

Governance Achievements

• Compliance with all provisions of the Corporate Governance Code
• Established a Board-level Sustainability Committee
• Implemented robust ESG risk management system

Climate Goals & Targets

Environmental Challenges

• Economic slowdown and reduced orders
• Climate change with frequent extreme weather events
• Supply chain disruptions

Mitigation Strategies

• Proactive cost control and automation advances
• Net zero roadmap with energy efficiency measures and renewable energy deployment
• Vertical integration to strengthen supply chain resilience
• Climate-related risk management and scenario analysis

Supply Chain Management

Supplier Audits: 21 major suppliers

Responsible Procurement

• Code of Conduct
• Restricted Substances List
• Social Compliance Policy
• Quality Policy
• Environmental Policy
• Brand Protection Policy
• Anti-corruption Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Extreme heat
• Rising sea levels
• Increased salinity in freshwater
• Persistent and severe drought

Transition Risks

• Heightened policies and regulations
• Low-carbon technologies
• Market shifts
• Voluntary carbon pricing mechanisms
• Industry transition
• Reputation risks

Opportunities

• Development of energy-efficient products
• Investment in low-emissions production
• Shift to on-demand production

Reporting Standards

Frameworks Used: GRI Standards, TCFD framework

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 9001

Awards & Recognition

• Hong Kong Sustainability Award 2023 – Distinction Award
• Excellence in Social Positive Impact – Grand Award (Hong Kong ESG Reporting Awards 2023)
• Commendation for the Best ESG Report – Mid-cap (Hong Kong ESG Reporting Awards 2023)
• Commendation for Excellence in Environmental Positive Impact (Hong Kong ESG Reporting Awards 2023)
• Commendation for Carbon Neutral Award (Hong Kong ESG Reporting Awards 2023)
• 2023 Best Annual Reports Awards – Certificate of Excellence in Environmental, Social and Governance Reporting
• Top 100 Sustainable Enterprises in Vietnam 2023
• 2023 Corporate Social Responsibility Recognition Award
• Best Companies to Work for in Asia 2023
• Diversity, Equity & Inclusion Awards 2023
• Carbon Neutral Label
• Green Office and Eco-Healthy Workplace Awards Labelling Scheme
• Hong Kong Green Organisation, Wastewise Certificate and Energywise Certificate
• BOCHK Corporate Environmental Leadership Awards 2022
• Low Carbon Manufacturing Programme (“LCMP”) Gold Label
• Second prize – Energy Efficiency Award in Industry-Construction 2023