Climate Change Data

Environmental Metrics

ESG Focus Areas

• Workplace Quality
• Environmental Protection
• Operating Practices
• Community Involvement

Environmental Achievements

• Used natural gas to substitute heavy fuel oil in the process of boiler heating in 2011, resulting in cleaner energy and reduced emissions.
• Implemented green lighting in the workplace to reduce electricity usage.
• Conducted a separation and treatment process for solid waste, selling reusable waste to third parties for recycling.

Social Achievements

• Maintained a relatively low staff turnover rate (1.3% in 2015) due to initiatives like free quality accommodation, a child care center, travel subsidies, and various recreational activities.
• Achieved OHSAS 18001 certification for occupational health and safety management system. No fatalities or work-related injuries in the last three years.
• Conducted various staff development programs, recreational activities, and competitions to encourage staff integration and boost team spirit.
• Provided 1,622 hours of staff training in 2015 covering various topics.

Governance Achievements

• Established and strictly implemented internal safety guidelines and operation procedures.
• Established its “Self-Discipline Regulations” and conducted seminars on anti-corruption for senior management and directors.
• Established a written whistle-blowing policy and reporting procedures.

Climate Goals & Targets

Environmental Challenges

• Intense competition in the menswear industry.
• Fluctuations in fashion trends and consumer preferences.
• Macroeconomic changes affecting consumer spending.
• Potential supply chain disruptions.
• Credit risk from distributors.
• Reputational risk from negative publicity.

Mitigation Strategies

• Focus on brand building, product design and quality, and consolidation of retail outlet network.
• Speed up the installation process of the ERP system and close down under-performing retail outlets.
• Developed long-standing relationships with vendors to minimize supply disruptions.
• Make provisions for bad and doubtful debts based on aging, payment history, and other specific criteria.
• Multichannel marketing campaign to maintain and strengthen brand identity.

Supply Chain Management

Supplier Audits: Annual evaluation of suppliers

Responsible Procurement

• Raw material quality compliance with GB18401 and other industry standards.
• On-time delivery and transportation of ordered products.

Climate-Related Risks & Opportunities

Awards & Recognition

• Quality Award by China National Garment Association (2014)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Complied with relevant PRC laws and regulations governing emissions control.
• Used natural gas to substitute heavy fuel oil in boiler heating since 2011, drastically reducing emissions.
• Implemented solid waste separation and recycling program.
• Implemented green lighting in the workplace to reduce electricity usage.

Social Achievements

• Established and strictly implemented internal safety guidelines and operation procedures, achieving OHSAS 18001 certification.
• Provided free quality accommodation to 1,921 employees.
• Established a child care centre.
• Offered an average contribution above RMB1.0 million each year as round-trip travel subsidies for staff.
• Organized various staff development programs, recreational activities and competitions.
• Joined the Business Social Compliance Initiative (BSCI).

Governance Achievements

• Upholding a high standard of corporate governance and business ethics.
• Established a written whistle-blowing policy and reporting procedures.
• Adopted the Model Code for Securities Transactions by Directors of Listed Issuers.

Climate Goals & Targets

Environmental Challenges

• China’s retail consumer market affected by macroeconomic slowdown, overcapacity, and low consumption sentiment.
• Slow payment from some distributors.
• Intense competition with local and international brands.
• Potential disruptions in the supply of fabrics, raw materials, and products from suppliers.
• Credit risk of distributors.
• Reputational risk.
• Extreme weather conditions.

Mitigation Strategies

• Adopted a cautious view and suspended expansion plan in 2016.
• Consolidated retail outlets and closed under-performing shops.
• Terminated distribution relationships with distributors with slow repayment history.
• Increased the number of distributors to reduce reliance on a small number.
• Increased the number of sales fairs to speed up market reaction.
• Developed long-standing relationships with vendors to minimize supply disruptions.
• Made provisions for bad and doubtful debts.
• Maintained and strengthened brand identity through multichannel marketing campaigns.
• Established stringent criteria for selecting suppliers.

Supply Chain Management

Supplier Audits: All suppliers are subject to annual evaluation.

Responsible Procurement

• Raw materials quality in compliance with GB18401 and other industry standards.
• On-time delivery and transportation.

Climate-Related Risks & Opportunities

Awards & Recognition

• Quality Award by China National Garment Association (2014)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Switched to natural gas for heating, drastically reducing emissions including nitrogen oxides and carbon dioxide since 2011.
• Implemented green lighting in the workplace to reduce electricity usage.
• Established a solid waste separation and recycling program.
• Established an environmental management system conforming to the ISO 14001 standard.

Social Achievements

• Established a child care center to support employees with caregiving responsibilities.
• Offered round-trip travel subsidies for staff during Chinese New Year holidays.
• Organized regular staff development programs and recreational activities.
• Provided occupational safety education and training to enhance employees’ safety awareness.

Governance Achievements

• Established a written whistle-blowing policy and reporting procedures.
• Established “Self-Discipline Regulations” to combat corruption.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly decreased production quantity in 2020, impacting energy consumption and GHG emissions.

Mitigation Strategies

• Adopted a series of energy conservation and emission reduction measures, including green lighting and waste recycling.
• Adopted measures to protect employee health during the COVID-19 pandemic, including establishing a pandemic prevention and control team and releasing guidelines for returning to work.

Supply Chain Management

Supplier Audits: Annual evaluation of suppliers’ performance

Responsible Procurement

• Raw materials quality compliance with GB18401 and other industry standards
• On-time delivery and transportation
• Consideration of suppliers’ qualifications, business scale, production capacity, product quality, environmental measures, ethical standards and industry reputation

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Rules Governing the Listing of Securities of The Stock Exchange of Hong Kong Limited)

Certifications: ISO 14001 (Environmental Management Systems), OHSAS 18001 (Occupational Health and Safety Management System), ISO 9001 (Quality Management Systems)

Sustainable Products & Innovation

• trousers with anti-theft pockets
• wellness trousers
• trousers using new zipper sewing technology
• tops using new chest liners sewing technology
• comfort and fit trousers
• comfort and fit blazers
• trousers with buttons concealed

Awards & Recognition

• Quality Award by the China National Garment Association (2014)

Environmental Metrics

ESG Focus Areas

• Emissions Management
• Resource Use
• Employee Rights
• Supply Chain Management
• Product Responsibility
• Anti-Corruption
• Community Investment

Environmental Achievements

• Reduced non-hazardous waste by approximately 32% and non-hazardous waste intensity by 33%
• Reduced electricity consumption from 2,238,415 kWh in 2020 to 2,000,000 kWh in 2021
• Reduced water consumption from 77,693 m3 in 2020 to 70,000 m3 in 2021
• Replaced all diesel vehicles with petrol vehicles
• Fordoo (China) Industrial Ltd. obtained ISO 14001 certification

Social Achievements

• Implemented various training courses for employees on loyalty, occupational safety, sales, quality control, customer service, and product knowledge.
• 100% of staff attended training, with an average of 5-7 hours completed per employee.
• Established an anti-discrimination policy and complied with relevant laws.
• Implemented measures to protect employee health during the COVID-19 pandemic.

Governance Achievements

• Established a written whistle-blowing policy and reporting procedures.
• Senior management attended anti-corruption training.
• Established stringent criteria for supplier and subcontractor selection.

Climate Goals & Targets

Environmental Challenges

• Significant GHG emissions from electricity consumption.
• Air and GHG emissions from mobile combustion sources.
• Maintaining a sustainable supply chain.
• Managing employee turnover (28.3%).

Mitigation Strategies

• Implementing energy-saving measures in the workplace (e.g., green lighting, switching off idle appliances).
• Planning and adjusting transportation routes to maximize cost-effectiveness and prevent emissions.
• Annual evaluation of suppliers and subcontractors.
• Offering competitive remuneration and training to attract and retain staff.

Supply Chain Management

Supplier Audits: Annual performance evaluation of 76 suppliers and subcontractors.

Responsible Procurement

• On-time delivery and transportation
• Consideration of qualifications, business scale, production capacity, product quality, environmental measures, ethical standards and industry reputation.

Climate-Related Risks & Opportunities

Physical Risks

• Longer seasons and sharper rise and fall in average temperature

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Rules Governing the Listing of Securities of The Stock Exchange of Hong Kong Limited)

Certifications: ISO 14001 (Fordoo (China) Industrial Ltd.), OHSAS 45001 (Fordoo (China) Industrial Ltd.)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emission intensity (Scope 2) to 3,137 kgCO2e per million RMB revenue from 3,494 kgCO2e per million RMB revenue in 2022.
• Completed target for total amount of non-hazardous waste.
• Completed target for energy consumption.
• Completed target for water consumption.
• Completed target for packing materials consumption.

Social Achievements

• Organized various regular staff development programs and recreational activities to encourage staff integration and boost team spirit.
• Maintained OHSAS 45001 certification for occupational health and safety.
• No product returns due to safety or quality issues in 2023.
• No concluded legal cases regarding corrupt practices against the Group and its employees in 2023.

Governance Achievements

• Conducted annual materiality assessment to identify material ESG issues.
• Established a written whistle-blowing policy and reporting procedures.
• Complied with relevant laws and regulations related to products, including product quality, consumer rights, advertising, trademarks, and personal information protection.

Climate Goals & Targets

Environmental Challenges

• Air and GHG emissions from mobile combustion due to product distribution and sales visits.
• Potential impacts of climate change, including physical risks (typhoons, heavy rains) and transition risks (policy and regulatory changes).

Mitigation Strategies

• Planning and adjusting transportation routes to maximize cost-effectiveness and prevent emissions.
• Increasing overall portfolio energy efficiency and reducing energy consumption.
• Minimizing vehicle emissions by optimizing transportation routes and encouraging electric vehicle use.
• Establishing risk management systems and procedures to identify, monitor, and control climate change impacts.
• Enhancing building design, structures, and facilities to withstand extreme weather.
• Developing contingency plans to maintain daily operations and reduce employee injury risks during extreme weather.
• Regularly reviewing relevant policy updates and assessing their potential impact on operations.

Supply Chain Management

Supplier Audits: Annual evaluation of suppliers and sub-contractors.

Responsible Procurement

• On-time delivery and transportation
• Supplier qualifications, business scale, production capacity, product quality, environmental measures, ethical standards, and industry reputation.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons and heavy rains causing power loss, property damage, and employee casualties.

Transition Risks

• Policy and regulatory changes.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix C2 to the Rules Governing the Listing of Securities of The Stock Exchange of Hong Kong Limited)

Certifications: ISO 14001 (Fordoo Industrial), OHSAS 45001 (Fordoo Industrial), ISO 9001 (Fordoo Industrial)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed