Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Invested in solar power since 2018 and measure emissions, electricity savings, and recycled water annually. Set a target of increasing the rate of recycled plastic and electricity norms for each product.
• Factory and products are designed to be green.

Social Achievements

• Organized sports activities and celebrated Mid-Autumn Festival to boost employee morale during social distancing.
• Ensured income and welfare for employees, creating favorable conditions and maintaining benefits even during 100% work-from-home periods.
• Launched programs such as green schools turning waste into scholarships, and recycling Thien Long's products.

Governance Achievements

• Board of Directors held 17 meetings in 2021 to approve key guidance on the Company’s development orientation.
• Independent Board members provided managerial guidance for risk mitigation and prevention.
• Restructured committees under the Board of Directors to enhance their advisory role.

Climate Goals & Targets

Environmental Challenges

• Covid-19 outbreaks significantly impacted production and business activities, leading to stagnant production periods and increased costs.
• Supply chain disruptions due to the pandemic.

Mitigation Strategies

• Proactive supply of raw materials to meet internal production needs.
• Building a complete Supply Chain, supporting warehouse operation management, and transportation.
• Implementing improvement activities to enhance productivity, reduce costs, and improve product quality.
• Upgrading the SAP4HANA system for cost optimization and business upgrading.
• Investing in digital technologies like Microsoft Teams for remote work and communication.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• New products using green, recycled, environmentally friendly materials, safe for children.
• Hygiene products such as hand sanitizer gel and soap included in combo packages for students.

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Increased automation rate of the factory to 81.4% in 2022 from 78.9% in 2021
• Increased use of recycled plastics, renewable energy, and material/energy saving initiatives.

Social Achievements

• Organized various programs for employees, including sports activities, a book station, D&I activities, personal development planning, and coaching sessions.
• Implemented feedback mechanisms and recognition programs for employees.

Governance Achievements

• Complied with legal regulations regarding remuneration for the Board of Directors, Supervisory Board, and General Directors.
• Implemented a transparent and compliant process for disclosure of information to investors and shareholders.

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruptions affecting raw material supply.
• Economic challenges due to the Russia-Ukraine conflict and record-high inflation.

Mitigation Strategies

• Developed alternative sourcing strategies for scarce raw materials.
• Built a complete supply chain, optimized warehouse management, and improved logistics to ensure timely and cost-effective delivery.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: PwC (Vietnam)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Environmental Achievements

• Reduced plastic waste by reusing scrap plastic, accounting for 17.4% of plastic use in the first six months of 2023 (compared to 27% in 2022).

Social Achievements

• Ranked 53/100 Best Workplaces in Vietnam by Anphabe and 85/500 Top Employers by Investment Newspaper; implemented Culture and Sports programs; provided 42,997 training hours (12.73 hours per person).

Governance Achievements

• Independent board members fully participated in board meetings and actively discussed issues; Board of Directors held 10 meetings; compliance with AGM Resolutions, the Charter, Corporate Governance regulations, and applicable laws.

Climate Goals & Targets

Environmental Challenges

• Lower economic growth rates worldwide; challenging year in 2023 due to economic fluctuations, reduced consumer spending, and increased competition; export of OEM products heavily affected by tightening monetary policy in American and European markets.
• Difficulties in the 2023 job market.

Mitigation Strategies

• Increased productivity across all stages of production, purchasing, logistics, and sales; strengthened distribution system by optimizing traditional channels, strengthening existing channels, and investing in e-commerce; developed a set of operating indicators for factories to monitor operational efficiency; implemented large-scale sales campaigns; developed a five-year development strategy in the Philippines; expanded distribution network in the Middle East, Russia, and South Asia; invested in research activities to become self-reliant and replace scarce materials; developed recruitment brand; implemented many Culture and Sports programs; focused on environmental protection initiatives; digitized processes and created automated cash flow management solutions; developed MES software; established a Thien Long Shop channel on TikTok.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Ranked 53/100 Best Workplaces in Vietnam by Anphabe
• Ranked 85/500 Top Employers by Investment Newspaper