Howkingtech International Holding Limited
Climate Impact & Sustainability Data (2022)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:158.12 tCO2e/year
Scope 1 Emissions:13.28 tCO2e/year
Scope 2 Emissions:144.84 tCO2e/year
Total Energy Consumption:35.48 tons of standard coal/year
Water Consumption:1767.17 tons/year
Waste Generated:12.87 tons/year
Carbon Intensity:0.49 tons of CO2e/RMB million of revenue
ESG Focus Areas
- Environmental Protection
- Social Responsibility
- Corporate Governance
Environmental Achievements
- Reduced hazardous waste generation to 2.33 kg in 2022.
- Reduced non-hazardous waste generation to 10.54 kg in 2022.
- Total GHG emissions (Scope 1 and 2) were 158.12 tons of CO2e in 2022.
- Obtained ISO14001:2015 (Environmental Management System) certification.
Social Achievements
- 100% of employees received training in 2022, averaging 6.79 hours per employee.
- No work-related injuries or fatalities in the past three years.
- Employee turnover rate was 11.96% in 2022.
- Donated RMB100,000 to the Match Sticks Organization for rural education.
- Obtained certifications of “2022 Specialized, Sophisticated, Unique and Innovative Small and Medium-Sized Enterprises in Jiangsu Province” and “2022 Nanjing Gazelle Enterprise”.
Governance Achievements
- Established an ESG governance structure including the Board, ESG Working Group, and business departments.
- Established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee.
- Complied with all applicable code provisions set out in part 2 of the CG Code except for code provision C.2.1 (separation of Chairman and CEO roles).
Climate Goals & Targets
Environmental Challenges
- Reliance on a limited number of customers (51.3% of revenue from top 5 customers in 2022).
- Credit risk related to customer defaults.
- Potential risks from business activities with entities subject to international sanctions.
- Rapidly evolving industry and need for continuous technology upgrades.
- Dependence on senior management and key personnel.
- Climate change related physical risks (extreme weather) and transition risks (technological changes).
Mitigation Strategies
- Actively improving after-sales service and diversifying business models.
- Strengthening management of trade receivables and daily supervision.
- Establishing a dedicated overseas risk control team and ceasing business activities in Russia.
- Strengthening anti-corruption training and implementing a whistleblowing mechanism.
- Increasing investment in R&D and expanding talent pool.
- Establishing business continuity plans (BCPs) for extreme weather, monitoring ESG regulatory changes, and optimizing energy consumption.
Supply Chain Management
Supplier Audits: Annual
Responsible Procurement
- Procedures for Procurement Payment
- Supplier evaluation
- Guarantee agreements with suppliers
- Howkingtech Technical Standards for Environmentally Hazardous Substances
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather (storms and floods)
Transition Risks
- Technological transformation
- Changing customer preferences
Reporting Standards
Frameworks Used: Appendix 27 to the Listing Rules of the Stock Exchange of Hong Kong
Certifications: ISO 14001:2015, ISO 45001:2018, ISO 9001:2015
UN Sustainable Development Goals
- 3
- 4
- 5
- 8
- 9
- 10
- 12
- 13
- 16
The Company's actions in various areas contribute to these SDGs, as detailed in Section 8 of the ESG Report.
Awards & Recognition
- 2022 Specialized, Sophisticated, Unique and Innovative Small and Medium-Sized Enterprises in Jiangsu Province
- 2022 Nanjing Gazelle Enterprise