Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental discharges
• Use of resources
• Employment and labour standards
• Operating practices
• Community outreach

Environmental Achievements

• Over 85% of commercial vehicles in Hong Kong are Euro IV or more efficient models.
• Deployed three hybrid trucks for logistics projects.
• Installed solar panels on the rooftop of warehouses in Beijing, saving approximately 40,000 kWh of electricity per month.
• Replaced over 7,400 light tubes with more energy-efficient models or LED lamps since 2009.
• PC 3 warehouse and Kerry Tampines Logistics Centre attained LEED (Gold) recognition.

Social Achievements

• Recruited 9 management trainees, 29 graduate trainees, and 22 interns through the Young Executive Academy (YEA) in 2017.
• Participated in Work-Life Balance Week for the ninth consecutive year.
• Named a “Caring Company” by the Hong Kong Council of Social Service for the seventh consecutive year.
• Raised funds for UNICEF and engaged employees in various charitable activities.
• Provided free cold storage and distribution services for families in need in Taiwan.
• Provided free logistics services for disaster relief in Hunan Province, China.

Governance Achievements

• Complied with the Corporate Governance Code.
• Received two wins at The Directors Of The Year Awards 2017.
• Established and implemented an effective risk management and internal control system.

Climate Goals & Targets

Environmental Challenges

• Rising competition and costs in Mainland China.
• Impact of new labor law in Taiwan (mitigated in 2H 2017).
• Margin contraction in International Freight Forwarding due to rising freight rates (expected to stabilize in 2018).
• Uncertainties over political and economic situations worldwide.
• Integration obstacles from mergers and acquisitions.
• Succession planning and potential loss of key talents.
• Concerns over key information systems.
• Credit risk in relation to counterparties.

Mitigation Strategies

• Business restructuring in Mainland China to streamline operations and lower costs.
• Improved operational efficiency in Taiwan through optimized route planning and cost management.
• Expanding network and coverage in International Freight Forwarding.
• Diversifying business portfolio, markets, and customer pools.
• Robust due diligence process and integration checklists for acquisitions.
• Smart integration playbook and internal audit checks.
• MT Programme, competitive salaries, short-term incentives, and succession plans.
• Periodic disaster recovery plans and drills, outsourcing/relocating systems development/maintenance, system integration, and automated data flows.
• Tightening account receivables, credit monitoring controls, holding customer stocks, and requesting deposits.

Supply Chain Management

Supplier Audits: Over 650 suppliers in Hong Kong underwent performance evaluation in 2017; over 98% retained acceptable or above performance.

Responsible Procurement

• Stringent supplier selection and management process; supplier qualification assessments; regular performance evaluations; Social Responsibility Policy requiring strong ESG commitments.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide under Appendix 27 of the Main Board Listing Rules

Certifications: ISO 14001, OHSAS 18001, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Supply Chain Asia Awards 2017: Care & Positive Work Environment of the Year
• Quamnet Outstanding Enterprise Awards 2017: Outstanding Global 3PL
• Numerous other awards listed on page 32-36

Environmental Metrics

ESG Focus Areas

• Environmental discharges
• Use of resources
• Employment and labour standards
• Operating practices
• Community outreach

Environmental Achievements

• Replaced over 6,500 T8 fluorescent light tubes with more energy-efficient LED lamps
• Installed solar panels on the rooftop of warehouses in Beijing, saving approximately 40,000 kWh of electricity per month
• PC3 and Kerry Tampines Logistics Centre attained LEED (Gold) recognition and PC3 received HK-BEAM (Gold) certification for eco-designs.

Social Achievements

• Recruited 1 management associate, 8 management trainees, 13 graduate trainees, and 18 interns through the Youth Employment Academy (YEA) programs.
• Participated in Asia Employee Wellbeing Week for the tenth year.
• Implemented a Global Equal Opportunities Policy prohibiting harassment and discrimination.
• Received four awards at the Supply Chain Asia Awards 2018, including “Asian 3PL of the Year” and “Care & Positive Work Environment of the Year”.

Governance Achievements

• Implemented a Global Anti-bribery Policy with zero tolerance for bribery, corruption, and fraud.
• Established a Whistleblowing Policy to enable confidential reporting of misconduct.

Climate Goals & Targets

Environmental Challenges

• Managing environmental footprint, especially for self-owned logistics facilities
• Reducing air and GHG emissions from logistics business
• Optimizing waste management and managing discharges to land and water

Mitigation Strategies

• Managing emissions through efficient vehicle models and green driving practices
• Implementing energy-efficient devices and installations (LED lighting, etc.)
• Promoting responsible material use and waste management (reuse, recycling)
• Reducing water use through rainwater harvesting

Supply Chain Management

Supplier Audits: Over 700 suppliers evaluated in Hong Kong in 2018; around 90% retained acceptable or above performance.

Responsible Procurement

• Stringent supplier qualification assessments
• Social Responsibility Policy requiring strong commitments to good ESG practices

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide under Appendix 27 of the Main Board Listing Rules issued by the Stock Exchange

Certifications: ISO 9001, ISO 22000, ISO 27001, OHSAS 18001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Asian 3PL of the Year
• Care & Positive Work Environment of the Year
• Overall Supply Chain Partner of the Year
• Outstanding Global 3PL

Environmental Metrics

ESG Focus Areas

• People
• Customers
• Supply Chain
• Anti-corruption
• Community
• Environment

Environmental Achievements

• Installed solar panels on the rooftop of one of our buildings in Hong Kong and warehouses in Beijing, saving about 40,000 kWh of purchased electricity per month and avoiding the associated GHG emissions.
• Similar solar panel installation efforts were also underway for nine logistics centres in Taiwan, which will provide approximately 3,000,000 kW of electricity in 2020 and reduce nearly 3,000 kg of carbon emissions every year.
• In Hong Kong, we own and operate a fleet of 282 commercial vehicles, with all of them being Euro IV or more efficient models.
• State-of-the-art logistics facilities in Hong Kong and Singapore attained LEED (Gold) recognition.

Social Achievements

• Employed people with disabilities in Thailand.
• Organised various hard and soft skill training classes.
• Employee Assistance Programme provides a 24-hour counselling hotline.
• Corporate sport events such as Kerry Challenge Cup were held.

Governance Achievements

• Established an Integrated Management System Committee to manage risks across operations.
• Global Anti-bribery Policy is well conveyed to employees through mandatory induction training.
• Whistleblowing Policy enables employees and third parties to report observed and suspected misconducts.

Climate Goals & Targets

Environmental Challenges

• Global economic growth weakened considerably as international trade disputes dragged on and Mainland China’s GDP growth slowed down.
• Social unrest in Hong Kong further impacted the local economy and affected consumer confidence.
• The COVID-19 outbreak is causing severe disruptions to production, mobility and the financial markets globally.
• Integration obstacles from mergers and acquisitions.
• Succession planning and potential loss of talents.
• Concerns over key information systems (both operational and financial).
• Credit risk in relation to counterparties.

Mitigation Strategies

• Diversifying its business portfolio, markets and customer pools.
• Robust due diligence process for mergers and acquisitions.
• Integration checklists in all aspects including human resources, finance, information technology, legal and compliance.
• MT Programme to nurture staff with high potential.
• Hiring remuneration consultant to benchmark salary level of management.
• Re-organising the management structure with more short-term incentives.
• Periodic disaster recovery plan and drill tests.
• Outsourcing or relocating part of the development or maintenance of the systems.
• Tightening account receivables and setting up credit monitoring controls.
• Holding customers’ stocks stored in the Group’s facilities before payments are settled.

Supply Chain Management

Supplier Audits: Over 700 suppliers of our headquarters in Hong Kong have gone through our performance evaluation and more than 90% of them retained acceptable or above performance.

Responsible Procurement

• Stringent supplier selection and management process.
• Supplier pre-qualification assessments.
• Social Responsibility Policy.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide under Appendix 27 to the Main Board Listing Rules

Certifications: ISO14001, OHSAS 18001, ISO9001, ISO22000, HACCP

Awards & Recognition

• Asian 3PL of the Year
• Outstanding Global 3PL
• Platinum Award, The Asset ESG Corporate Awards 2019
• Best Investor Relations Team Award
• ESG Leading Enterprises 2019 award
• Junzi Corporation Award 2019