Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social

Environmental Achievements

• Phasing out coal-fired boilers in Futian Oasis
• Switching from combusting coal to gas in Yancheng Fuhui
• Extended coverage area of dust control sprinkler system in coal storage yards
• Adopting purifying equipment, dust removal and desulfurization process
• Saving over 72,000 tonnes of steam
• Saving over 925,000 kWh of electricity
• Saving more than 371,000 m3 of water through streamlined procedures and new installations
• Reusing over 2,324,000 m3 of water
• 100% recycling rates for scrap fabric, plastic, scrap metal, boiler slag, coal ash, gypsum and food waste
• Alkali recovery from high-concentration waste alkali liquor

Social Achievements

• Renovation of Fitness Room at Yancheng Fuhui
• Mental Health Workshop at Jiangyin Fuhui
• Rainbow Classroom Summer Courses at Jiangyin Fuhui and Yancheng Fuhui
• Various recreational facilities provided to employees
• Various festive events organized for employees
• Annual medical check-ups for employees

Governance Achievements

• Established an Industrial Safety Committee to review overall safety management
• Strict internal anti-corruption guidelines and a corporate social responsibility management system implemented
• Whistle-blowing policy implemented to combat corruption

Climate Goals & Targets

Environmental Challenges

• Reducing emissions from commercial activities and production
• Conserving water and improving water efficiency
• Increasing the recycling rates of non-hazardous waste

Mitigation Strategies

• Formulated internal environmental protection management procedures and set relevant pollutants emission limits
• Adopted a number of emission reduction measures (detailed in the report)
• Implemented water-saving measures (detailed in the report)
• Increased recycling rates of non-hazardous waste (detailed in the report)

Supply Chain Management

Supplier Audits: 638 suppliers

Responsible Procurement

• Stringent supplier management system on raw material procurement
• Suppliers are evaluated based on their company structure, production capacity, product details, equipment details and the results of on-site inspections
• Multiple quality tests are carried out on the samples provided
• Raw materials must fulfill requirements of certain standards (detailed in the report)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: ISO 50001 (Jiangyin Fuhui), ISO 14001

Sustainable Products & Innovation

• Fleece sweater made of soft stretch fleece fabrics with heat-generating function
• New collection of TCHIBO women underwear made of eco-friendly stretch fabrics
• Polylactic acid fibers
• Cationic cotton fabrics
• High-grade recycled polyester fabric (RPET)

Awards & Recognition

• Oeko-Tex Standard
• Oeko-Tex Standard 100
• Oeko-Tex STeP
• LCMP GOLD
• 2018 Outstanding Unit of Ecological Environmental Protection of Jiangyin High-tech Industrial Development Zone
• Energy Management System Certificate
• Environmental Management System Certificate
• Environment Management System Certification
• 2018 Outstanding Enterprise of Import and Export Trade
• 2018 Key and Major Enterprise of Jiangyin
• 2018 Outstanding Enterprise of Foreign Investment
• 2018 Charitable Enterprise
• Five-star Enterprise in Caring for the Next Generation of Jiangyin City
• 2018 Outstanding Unit of Blood Donation without Compensation
• 2018-2019 Advanced Grass-roots Party Organization of High-tech Industrial Development Zone
• Outstanding Contribution Award of the First National Games of Jiangyin High-tech Zone
• Practice Points of Civilization in New Times of Jiangyin
• Vice Chairman Unit of Jiangyin Printing and Dyeing Industry Green Alliance
• 2018 Corporate High Quality Development Contribution Award
• 2018 Outstanding Three-star Enterprise
• Second Level Enterprise of Standardized Safety Production (Textile)
• China Functional Knitting Products (Multifunctional) Cultivation Recommendation
• China Functional Knitting Products Marketing Application Recommendation

Environmental Metrics

ESG Focus Areas

• Emissions
• Climate Change
• Waste and effluent
• Employment
• Occupational health and safety
• Development and training
• Product quality

Environmental Achievements

• Replacing fuel oil boilers with biomass boilers, saving over 26,000 tonnes of steam and over 3,000,000 kWh of electricity
• Saving more than 73,000 m3 of water through streamlined procedures and new installations
• Reusing over 3,000,000 m3 of water
• 100% recycling rates for coal ash, sludge, boiler slag, industrial waste and wood boards, and scrap metal
• 99% overall recycling rate for all non-hazardous waste
• Phasing out coal-fired boilers in Futian Oasis
• High desulfurization efficiency of 97% and 92% and dust removal efficiency of 99% or above in Futian Oasis and Jiangyin Fuhui boilers respectively.
• Reduction of more than 5,000 tCO2eq of greenhouse gas emission through automation of dyeing auxiliaries application at Shatin Lake Side.

Social Achievements

• Re-established staff wellness club with various activities for employees and their families, supporting minority groups through social enterprises.
• Launched centralized heat supply project reducing air emissions.
• Provided periodic training workshops to staff members regarding environmental protection and pollution controls.
• No material non-compliance with relevant laws and regulations relating to compensation and dismissal, recruitment and promotion, working hours, rest periods, and other benefits and welfare.

Governance Achievements

• Established a “Sustainability Development and Enhancement Committee” to drive sustainability objectives and goals.
• Implemented Anti-Corruption Policy and Whistle-blowing Policy.
• No concluded legal case regarding corrupt practices brought against the Group or its employees and the Group did not have any cases of non-compliance with laws and regulations on money laundering, bribery, extortion, fraud or corruption during the Reporting Period.

Climate Goals & Targets

Environmental Challenges

• Coal-to-gas switching policy in Futian Oasis resulted in increased production costs.
• National requirements for eliminating old equipment in the PRC increased production costs.
• COVID-19 pandemic impacted operations and employee well-being.

Mitigation Strategies

• Investing in new equipment to improve energy efficiency and environmental performance.
• Implementing precautionary measures in line with government guidelines to contain the spread of COVID-19.
• Providing support to employees facing difficulties during the pandemic.
• Developing short-term emission targets and initiatives to reduce waste, conserve energy and water, and enhance environmental awareness.

Supply Chain Management

Supplier Audits: 667 suppliers evaluated

Responsible Procurement

• Stringent supplier management system based on company structure, production capacity, product details, equipment details, and on-site inspections.
• Requirement for relevant test reports or certificates of raw materials.
• Emphasis on child labor, forced labor, and prevention of dissemination of cotton to extremist groups.
• Requirement for suppliers to sign an undertaking to ensure that no cotton from Uzbekistan, Turkmenistan, and Syria has been used in their supplied goods.
• Annual evaluation of suppliers’ environmental performance.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Tightening of policy requirements (e.g., coal-to-gas switching)

Opportunities

• Improving overall energy efficiency and environmental performance through policy changes.

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: ISO 50001 (Jiangyin Fuhui), ISO 14001 (Jiangyin Fuhui, Ocean Lanka), ISO 45001 (Ocean Lanka), Oeko-Tex Standard 100 (Jiangyin Fuhui, Yancheng Fuhui, Shatin Lake Side, Ocean Lanka), Organic Content Standard (OCS) 3.0, 4.0, 6.0 (Ocean Lanka), LCMP Gold Label (Shatin Lake Side)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• RECYCLE COTTON OE, RECYCLE COTTON MODAL SC, GRS SPANDEX fabrics (Jiangyin Fuhui)
• Polylactic acid fibers and cationic cotton fabrics (Yancheng Fuhui)
• Graphene printing technique (Shatin Lake Side)
• Ocean Aqua+ dyeing system (Ocean Lanka)

Awards & Recognition

• Various awards and certifications listed in the report (see pages 14-20)

Environmental Metrics

ESG Focus Areas

• Climate change
• Waste and effluent
• Product Quality
• Occupational health and safety
• Employment
• Development and training

Environmental Achievements

• Reduced over 140,000 tCO2eq. of GHG emissions
• Saving over 54,700 tonnes of steam
• Saving over 540,700 kWh of electricity
• Saving more than 770,230 m3 of water through streamlined procedures and new installations
• Reusing over 4,451,210 m3 of water
• 100% recycling rate of boiler slag, coal ash, general waste, paper, scrap metal, and sludge.
• 98% of overall recycling rate for all non-hazardous waste

Social Achievements

• Re-established staff wellness club with various activities for employees and their families.
• Similar staff wellness programs in all subsidiaries.
• Provided anti-corruption and business ethics training to 212 employees and all directors.

Governance Achievements

• Board oversees ESG matters under the “Sustainable Development and Improvement Committee”

Climate Goals & Targets

Environmental Challenges

• Increased operation cost from increased carbon emission pricing and price of raw materials due to policy changes.
• Increased operation costs and investment costs from substitution of existing equipment and services.
• Increased severity and frequency of extreme weather affects daily operation and may cause damage to equipment.
• Changes in precipitation pattern and climate change affects water security.

Mitigation Strategies

• Constantly monitor local weather conditions and be prepared for sudden weather changes and impacts of extreme weather.
• Pay attention to guidelines issued by local authorities and update internal policies.
• Invest in new equipment to improve energy efficiency and environmental performance.
• Set short-term emission targets.
• Initiatives to reduce waste, conserve energy and water, and enhance environmental awareness.
• Planning to commission a new biomass boiler to reduce dependency on fuel oil and exploring renewable energy projects such as rooftop solar power generation.

Supply Chain Management

Supplier Audits: 709 suppliers

Responsible Procurement

• Stringent supplier management system
• Evaluation based on company structure, production capacity, product details, equipment details and on-site inspections
• Requirement for relevant test reports or certificates
• Emphasis on social responsibilities of suppliers
• High priority on products with eco-labels
• Annual evaluation of suppliers’ environmental performance
• Avoid sourcing raw materials from countries using child labor, forced labor and those involved in terrorism
• Requirement for suppliers to sign an undertaking to ensure that no cotton from Uzbekistan, Turkmenistan and Syria has been used in their supplied goods

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather
• Changes in precipitation pattern

Transition Risks

• Increased operation cost from increased carbon emission pricing
• Price of raw materials may increase due to policy changes
• Increased operation costs and investment costs from substitution of existing equipment and services

Opportunities

• Improve overall energy efficiency and environmental performance

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: ISO 14001, ISO 50001, Oeko-Tex Standard 100, GOTS, OCS, GRS, BCI, RCS, PEFC, FSC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• RECYCLE series fabrics (e.g., UNIQLO RECYCLE POLY, OLD NAVY Lenzing ECOVERO RAYON)
• Polylactic acid fibers
• Cationic cotton fabrics
• Graphene printing technique

Awards & Recognition

• SUPIMA® Certified Licensee
• COTTON USA Certified Licensee
• 2022 China Fabric Star Excellent Award
• “Four-star” grass-roots party organization of COFCO
• 2021 Top 100 Star Enterprise
• Best market application product recommendation
• Protection/smart product recommendation
• 2021 Technology Innovation Award
• Oeko-Tex Standard 100
• Organic Content Standard (OCS) 3.0
• Global Organic Textile Standard (GOTS) 6.0
• 2021 Outstanding Unit of Ecological Civilization
• Sustainable shortlisted green products
• Water-saving benchmarking enterprise in Guangdong Province
• ISO 50001 Energy Management System Certificate
• ISO14001 Environmental Management System Certificate
• Certificate of WWF Low Carbon Manufacturing Programme (LCMP)
• bluesign® SYSTEM PARTNER
• Top 10 Model Workers' Home
• Certificate of Good Manufacturing Practices
• ISO 45001 Occupational Health and Safety Management Systems
• Self-assessment of Higg Facility Social & Labor Module Certification