Environment

Our stance:
  • Strictly abide by the environmental laws and regulations where we operate and try our best to avoid making damage to the environment;
  • We have the responsibility to promote the importance of environmental protection amongst the industry and society;
  • Pay close attention to how environmental changes might have an impact on us and prepare accordingly;
  • Try our best to eliminate elements that cause negative impacts on the environment through different kinds of administrative and operational means, as well as to regulate all types of suppliers.

Risks and responses
Risks Impacts Responses
Tightening national environmental regulations
  • The tightening of environmental regulations has eliminated many smallscale factories that followed outdated environmental protection measures, which affected the upstream section of the overall supply chain, such as dyed fabric. It becomes difficult for the brand to ensure stability in source of materials and production timeline
  • Increasing production costs
  • Adjust internal procurement procedures and schedule. The focus will be on order placement, which ensures priority will be given to bulk orders, so that the OEMs can have more time for production
  • Provide support for partnering suppliers, ensuring their facilities, manufacturing process and measures are in line with the national requirements
  • Integrate the demand from various brands of the Group to place order at the suppliers in order to lower the cost
Increasing emission caused by old production machines
  • Old or malfunctioning production machines may increase the emission in production or even exceed the legal limit
  • Increasing production costs due to increasing emissions
  • Regularly inspect and maintain machines in the factories to ensure the operation is normal
  • Upgrade the existing production system regularly
  • Pay close attention to the development of environmental laws and regulations, ensure the production and emission performance comply with the regulations
Environmental pollution cases in the supply chain
  • Green groups exert pressure on the Group
  • Affect the brand’s image in the community
  • Affect product quality
  • Develop internal control and crisis management policies and provide training to the staff
  • Formulate stricter supply chain management policies and monitor the performance of the suppliers
Increasing pressure of developing environmentally friendly products
  • Increase development and manufacturing costs
  • Green materials may fail to meet certain requirements for functional products
  • Integrate the demand of various brands under the Group to streamline production model and lower the cost
  • Sponsor suppliers to establish “R&D Laboratory” for co-developing new materials
Changes in consumer preference and habits
  • Consumers are paying more attention to environmental protection issues and they are having a higher standard towards the manufacturing requirement of a brand
  • Climate change has made it difficult to predict consumers’ demand. It is difficult for the Group to grasp the sales focus of a season
  • Develop more variety of products and provide more responsibly produced products to the consumers
  • Use cloud technology to improve the way of working and efficiency of retail data extraction and analysis, so as to understand consumers’ preferences in a more timely and accurate manner