Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Workplace
• Operating Practices
• Community

Environmental Achievements

• Adopted energy-efficient LED light bulbs in most stores
• Some showrooms joined the “Charter on External Lighting”, switching off external lighting after midnight
• Certain stores received “Gold Award” in the “Charter on External Lighting Award Scheme”
• Implemented paperless leave applications processing
• Adopted duplex printing and copying, reducing paper consumption

Social Achievements

• Provided comprehensive benefits such as employer’s voluntary MPF contributions, medical coverage, life insurance and extra paid annual leave
• Each employee is entitled to one day of birthday leave
• Established a designated private space in the office building to support breastfeeding female employees
• Arranged AED awareness training course for staff
• Organized various employee engagement activities (Mid-Autumn Festival Delicacies, Christmas Lucky Draw, Chinese New Year Online Celebration)

Governance Achievements

• Established policies and procedures for anti-corruption, anti-money laundering and counter-terrorist financing
• Established guidelines on giving and receiving gifts, interacting with government officials
• Adopted a whistleblowing policy and procedures

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to Covid-19 lockdowns and prolonged production lead times
• Covid-19 pandemic impacting training and operations

Mitigation Strategies

• Kept more stock to cater for contingencies
• Implemented flexible working hours, work from home arrangements, and provided lunch boxes during the pandemic
• Provided surgical masks, disinfectant hand sanitisers and vitamin products to frontline staff
• Shortened business hours of showrooms when the pandemic was severe
• Required all staff to undergo a Covid-19 test every month starting January 2021
• Granted two leave days for each employee after receiving the Covid-19 vaccination

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Selection of suppliers based on quality, price, delivery timeliness, supplier's capability and experience

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Caring Company Logo by the Hong Kong Council of Social Service
• Quality Service Programme – Seasonal Quality Service Leader (Furniture & Home Accessories Category), Apr – Jun 2020 and Jul – Sep 2020
• Quality Service Programme – 2020 Quality Service Retailer of the Year (Furniture & Home Accessories Category)
• Service Talent Award 2020 – Anti-Pandemic Award (Bronze)
• Market Leadership Award

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• Reduced energy consumption intensity by 0.01 GJ/m2 from 0.09 to 0.08 GJ/m2 in selected locations.
• Reduced total GHG emissions by 16,944 kgCO2e from 123,971 to 107,027 kgCO2e in selected locations.
• Implemented energy-efficient LED light bulbs in most showrooms and energy-saving LED fluorescent tubes in the Head Office.
• Participation in the “Charter on External Lighting”, resulting in some showrooms receiving “Gold Award”.

Social Achievements

• Maintained a high level of employee satisfaction and engagement, with 42% of staff having worked for the Group for five years or more.
• Reduced lost days due to work injuries from 197 to 30.
• Organized various employee engagement activities such as Mid-Autumn Festival celebrations and Winter Solstice events.
• Implemented a comprehensive training system covering corporate culture, personal competencies, management skills, and induction training for new hires.

Governance Achievements

• Established policies and procedures for anti-corruption, anti-money laundering, and counter-terrorist financing.
• Implemented a whistle-blowing policy and procedures.
• Complied with relevant laws and regulations, including the Employment Ordinance, Personal Data (Privacy) Ordinance, and Prevention of Bribery Ordinance.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to Covid-19, including lockdowns of suppliers’ factories, prolonged production lead-times, and delayed shipments.
• Potential risks of climate change, including increased energy consumption and potential disruptions to operations and customer visits due to extreme weather.

Mitigation Strategies

• Increased stock levels to cater for contingencies.
• Continued monitoring of climate change risks and implementation of preventive and emergency measures.
• Continued efforts to control energy consumption and carbon emissions.
• Set a target to reduce energy consumption by 5% in selected locations by FY2026/2027.

Supply Chain Management

Responsible Procurement

• Preference given to suppliers who demonstrate their environmental commitment.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather may affect the Group's supply chain and operation of showrooms, and deter customers from visiting its showrooms.

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Awards & Recognition

• Quality Service Programme – Seasonal Quality Service Leader (Furniture & Home Accessories Category) Apr – Jun 2021 and Oct – Dec 2021
• Quality Service Programme – 2021 Quality Service Retailer of the Year (Furniture & Home Accessories Category)
• Certificate of Outlet Anti-epidemic Measures Recognition
• Yahoo Asia Big Idea Chair Awards 2021 – Best Search Campaign Merit
• Hong Kong Top Brand Mark
• Caring Company Logo

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• Reduced total GHG emissions from 123,971 kgCO2e to 107,027 kgCO2e.
• Reduced energy consumption from 1,058 GJ to 857 GJ.
• Improved energy consumption intensity from 0.09 GJ/m2 to 0.08 GJ/m2.
• Reduced general refuse disposed to landfills from 5,255 kg to 5,270 kg.
• Maintained a low water consumption intensity of 0.03 m3/m2.

Social Achievements

• Maintained a high employee retention rate with 42% of staff working for the Group for five years or more.
• Reduced lost days due to work injuries from 197 to 30.
• Implemented various employee wellbeing initiatives, including birthday leave, breastfeeding support, and flexible working hours.
• Provided comprehensive training programs, resulting in an increase in average training hours per employee from 6 to 10.

Governance Achievements

• Established an ESG Policy and delegated responsibility to the ESG Work Team and Executive Committee.
• Implemented strict compliance with relevant laws and regulations, including the Employment Ordinance, Personal Data (Privacy) Ordinance, and Prevention of Bribery Ordinance.
• Adopted a zero-tolerance approach to corruption and bribery, with regular anti-corruption training.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to Covid-19 lockdowns and prolonged production lead times.
• Potential impacts of climate change on energy consumption, supply chain, and showroom operations.

Mitigation Strategies

• Increased stock levels to cater for contingencies.
• Continued monitoring of climate change risks and implementation of preventive and emergency measures.
• Active efforts to control energy consumption and carbon emissions.

Supply Chain Management

Supplier Audits: Frequent visits to supplier workplaces to promote proper labor standards.

Responsible Procurement

• Criteria for supplier selection include quality, price, delivery timeliness, supplier’s capability and experience, with preference given to suppliers who demonstrate their environmental commitment.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather affecting supply chain and showroom operations.

Transition Risks

• Increased energy consumption due to rising global temperatures.

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Awards & Recognition

• Gold Award in the “Charter on External Lighting Award Scheme”
• Quality Service Programme – Seasonal Quality Service Leader (Furniture & Home Accessories Category)
• Quality Service Programme – 2021 Quality Service Retailer of the Year (Furniture & Home Accessories Category)
• Certificate of Outlet Anti-epidemic Measures Recognition (Ulferts & atghome)
• Yahoo Asia Big Idea Chair Awards 2021 – Best Search Campaign Merit
• Hong Kong Top Brand Mark (Ulfenbo)

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• Reduced GHG emissions from 107,027 kgCO2e to 102,601 kgCO2e
• Reduced GHG emissions intensity from 9.5 kg/m2 to 7.9 kg/m2
• Reduced energy consumption from 857 GJ to 804 GJ
• Reduced energy consumption intensity from 0.08 GJ/m2 to 0.06 GJ/m2
• Reduced general refuse disposed to landfills from 5,270 kg to 5,217 kg
• Increased total recycled waste from 533 kg to 634 kg
• Reduced water consumption from 368 m3 to 216 m3
• Reduced water consumption intensity from 0.03 m3/m2 to 0.02 m3/m2
• Implemented energy-saving initiatives in head office, showrooms, and warehouse (LED lights, energy-saving appliances, etc.)
• Participated in a green deposit program

Social Achievements

• Maintained a relatively low staff turnover rate among managerial positions
• 47% of staff worked for the Group for five years or more (2023)
• Organized staff activities to promote work-life balance (stretching classes, massage services, yoga classes, etc.)
• Provided comprehensive training to enhance employee skills and knowledge
• Implemented a breastfeeding-friendly workplace
• Established grievance procedures for staff complaints
• Complied with the Employment Ordinance and other statutory requirements

Governance Achievements

• Established an ESG Committee and an Executive Committee to oversee ESG matters
• Adopted an ESG Policy
• Complied with the provisions of the HKEX ESG Reporting Guide
• Implemented anti-corruption and anti-money laundering policies and procedures
• No legal cases regarding corrupt practices were brought against the Group or its employees during the reporting period
• No whistle-blowing concerning a criminal offense or misconduct was reported

Climate Goals & Targets

Environmental Challenges

• Potential risks of climate change (increased energy consumption, supply chain disruptions, etc.)
• Managing environmental and social risks in the supply chain

Mitigation Strategies

• Monitoring potential risks of climate change and implementing preventive and emergency measures
• Controlling energy consumption and carbon emissions
• Frequently visiting supplier workplaces to promote proper labor standards
• Terminating contracts with suppliers who use child or forced labor

Supply Chain Management

Responsible Procurement

• Preference given to suppliers who demonstrate environmental commitment
• Frequent visits to supplier workplaces to promote proper labor standards

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather affecting supply chain and showroom operations

Transition Risks

• Increase in energy consumption due to rising global temperatures

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Awards & Recognition

• 2022 Best Lifestyle Furniture Brand (iMoney)
• 2022 No. 1 The Best Furniture Brand (Headline Daily)
• Asia Big Idea Chair Awards 2022 – The Best Native Ad Campaign (Yahoo)
• Quality Service Retailer of the Year (Furniture & Home Accessories Category) (Hong Kong Retail Management Association)
• Seasonal Quality Service Leader (Furniture & Home Accessories Category) (Hong Kong Retail Management Association)
• Certificate of Outlet Anti-epidemic Measures Recognition (Hong Kong Retail Management Association)
• Hong Kong Top Brand Mark (Ulfenbo)

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• Reduced energy consumption through various measures in Hong Kong office and showrooms (LED lighting, energy-saving appliances, optimized air conditioning).
• Implemented waste reduction and recycling programs.
• Launched promotion campaigns and warehouse sales to minimize wastage of aging stock.

Social Achievements

• Implemented talent management strategies (competitive compensation, career development, employee engagement initiatives).
• Promoted diversity, equity, and inclusion within the workforce.
• Maintained a low staff turnover rate among managerial positions.
• Organized various employee wellbeing initiatives (seminars, workshops, activities).

Governance Achievements

• Established robust compliance frameworks and internal controls.
• Implemented corporate governance practices (board structure, decision-making processes, transparent financial reporting).
• Developed and implemented ethical business practices (anti-corruption measures, fair competition).

Climate Goals & Targets

Environmental Challenges

• Consumption of resources (wood, metal, raw materials, energy consumption, GHG emissions).
• Waste generation (packaging, damaged/returned products).
• Chemical usage (formaldehyde, flame retardants, VOCs).
• Transportation and logistics (air/noise pollution, GHG emissions).
• Energy efficiency (lighting, heating, cooling).
• Employment (attracting, recruiting, retaining key personnel).
• Workforce diversity and inclusion.
• Product safety and accessibility.
• Responsible marketing and advertising.
• Ethical sourcing and supply chain.
• Regulatory compliance.
• Corporate governance.
• Ethical business practices.
• Data privacy and security.
• Risk management and internal controls.

Mitigation Strategies

• Offering quality, sustainable furniture; educating customers on maintenance.
• Using recycled/sustainable materials; implementing waste reduction and recycling programs.
• Sourcing furniture without excessive hazardous chemicals; promoting eco-friendly materials.
• Optimizing transportation routes and modes.
• Implementing energy-efficient practices and technologies.
• Implementing talent management strategies.
• Promoting diversity, equity, and inclusion.
• Offering furniture products with customer safety in mind; considering accessibility.
• Developing responsible marketing and advertising practices.
• Implementing ethical sourcing and supply chain management practices.
• Closely monitoring compliance with laws and regulations.
• Implementing robust corporate governance practices.
• Fostering a culture of ethical business conduct; implementing anti-corruption measures.
• Implementing data privacy and security measures.
• Implementing risk management and internal control systems.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Criteria for new suppliers (quality, price, delivery timeliness, supplier’s capability and experience, environmental commitment); requesting certifications if necessary; site visits to promote proper labor standards.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions interrupting power supplies; increased energy consumption due to global warming.

Transition Risks

• Stringent environmental policies; increasing customer expectations for environmentally friendly products.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• No. 1 The Best Furniture Brand 2023
• No. 1 The Best Mattress Brand 2023
• Excellence Awards 2023 – Excellent Lifestyle Furniture Brand
• Excellent ESG Recognition Scheme 2002-2023 – Excellent ESG Enterprise 2022-2023
• iMoney Enterprise Brand Awards 2023 – Prestigious Lifestyle Furniture Brand
• Quality Service Programme – Seasonal Quality Service Leader (Furniture & Home Accessories Category), April to June 2023
• Hong Kong Top Brand Mark