KELFRED published its seventh Environmental, Social and Governance (ESG) Report covering the period 1 January–31 December 2025, detailing progress and targets across environmental, social and governance pillars.
Governance Framework • The Board retains ultimate oversight of ESG strategy, supported by the Audit Committee and an ESG Working Group comprising senior management and departmental heads. • The ESG Working Group reports to the Board semi-annually on performance and target attainment.
Environmental Performance and Targets • Air pollutants: nitrogen oxides (NOx) fell to 52.34 kg (-3.5% YoY); sulphur dioxide (SO₂) down to 0.16 kg (-57.9% YoY); particulate matter stable at 805.63 kg. • Greenhouse gases: total emissions reached 6,477.73 tonnes CO₂e, a 25.46% increase due to first-time inclusion of Scope 3 data (1,543.98 tonnes CO₂e). Scope 1 declined 18.1% to 27.06 tonnes CO₂e; Scope 2 decreased 4.2% to 4,915.46 tonnes CO₂e. • Waste: hazardous waste trimmed to 1.13 tonnes (-4.2% YoY) and non-hazardous waste dipped to 14.36 tonnes (-0.2% YoY). • Resources: total energy consumption decreased 4.7% to 6,008.29 MWh; electricity usage accounted for 98.0% of total energy. Water consumption declined 6.8% to 51,638 m³. • 2026 targets versus 2021 baseline: 3% cuts in air emissions, energy intensity (MWh/sq ft), employee water use, and hazardous/non-hazardous waste disposal.
Social Indicators • Workforce: 752 employees (51.6% male, 48.4% female); 83.4% located in Mainland China. • Turnover rate rose to 33.4%, reflecting operational restructuring; turnover among employees under 30 reached 61.4%. • Training: 82.8% of staff trained, averaging 12.0 hours per employee. • Health & safety: zero work-related fatalities or injuries; production bases certified to ISO 45001. • Labour standards: zero incidents of child or forced labour reported.
Supply Chain and Product Responsibility • Active supplier base: 142 (85% Mainland China, 15% Hong Kong) and seven subcontractors, all managed under a Qualified Supplier List with annual performance assessments. • Product quality: operations certified to ISO 9001; no product recalls recorded; 182 customer complaints were addressed through corrective action protocols.
Ethics and Community Engagement • Anti-bribery framework covers all business partners; no corruption cases reported. • Community initiatives included voluntary optometric assessments and product donations; multiple certificates of appreciation received from local organisations.
Climate Resilience • Scenario analysis based on IPCC RCP 2.6 and RCP 8.5 identified acute weather disruptions and transition policy shifts as key risks; resource efficiency, sustainable products and on-site renewables flagged as opportunities. • Alignment with national carbon-neutrality goals (PRC 2060, Hong Kong 2050) supported by photovoltaic power projects and ongoing data expansion for Scope 3 emissions.
The Board approved the report on 25 March 2026 and maintains that all ESG disclosures adhere to HKEX Appendix C2 guidelines.