about this report€¦ · about this report editor’s remarks ... ims about leo paper group...

About this Report Editor’s RemarksThis is our 10th environmental and social/sustainability report. The report covers standard disclosures defined in the Global Reporting Initiative (GRI) Sustainability Reporting Standards and the Hong Kong Exchanges (HKEX) Environmental, Social and Governance Reporting Guide (ESG). Data in this report is reviewed and assured by the independent 3rd party verification body HKQAA (For more details, please refer to the VERIFICATION STATEMENT section of the report). Leo Paper is committed to the reporting of global best practices on sustainability initiatives.

Reporting PeriodThis report covers the 2018 calendar year. It also includes background information and activities conducted up to the time of publication.

Frequency of ReportingAnnual

Reporting OrganizationsLeo Paper Group Headquarters – Hong Kong Office, Heshan Astros printing plant. Unless specified, the figures in this report show the information for the Heshan Astros printing plant.

PublicationCurrent Issue: April 2019 (Next issue scheduled April 2020)

ReferenceGlobal Reporting Initiative (GRI*) G4 reporting guidelinesISO 26000: 2010 Guidance on Social ResponsibilityUnited Nations Global Compact PrinciplesAA1000 AccountAbility Principles Standard 2008Hong Kong Exchanges (HKEX) Environmental, Social and Governance Reporting Guide*GRI is an international organization for developing globally applicable guidelines for corporate sustainability reporting.

Green FinanceGreen MaterialsEnergy Management

Occupational Health and SafetyCorporate Governance

External Recognitions 2018

Air Emissions

Staff Training and Education

Stakeholders Engagement and Material Aspects

Water ManagementWaste Reduction

Integrity and Anti-Corruption

GRI Content Index

Participation and Industry Engagement

Community Engagement

Verification Statement

Supplier Assessment and Collaboration

Working and Living in Contentment

HKEX ESG Guide Index

Smart Manufacturing

Environmental Indicators

Social and Economic Indicators

Research, Development and InventionIndustrial Collaboration

97

3

4

11

2221

44

13

25

47

13

29

50

14

31

61

41

1415

35

64

42

18

38

43

Chairman’s Message

About Leo Paper Group

Environmental Initiatives

Social Responsibility

Forward-thinking Excellence

Contents

3

Chairman’s MessageAt Leo we are proud to consider ourselves a responsible corporate citizen and as such, we are committed to upholding the philosophy of sustainable development. We embed the requirements of environmental, social, product and service responsibilities into our corporate operating principles as we continuously develop and implement sustainability initiatives for our entire value chain.

Leo strives for perfection and goes the extra mile to excel in all areas of our operations. Leo’s environmental management was extended to the new area of Green Finance this year. Through a third-party Green Finance assessment and certification, Leo has not only enhanced the credibility and stakeholder confidence in green financial instruments, but also promoted development of environmental projects from more comprehensive aspects.

Leo’s goal of “zero negative impact” has driven all Leonians to relentlessly innovate safe and green products as we continuously explore ways to improve the use of sustainable materials, products, packaging and processes. Leo’s manufacturing base in Heshan was accredited with the “National Green Factory” recognition in 2018 for our leading green manufacturing performance.

By integrating sustainability into policies, Leo carries out high standards of corporate governance practices. Leonians uphold the same values and commitment to attaining our shared goals. The board of directors promotes sustainability as one of our core values through effective leadership. This year, our executive team was reaffirmed with the receipt of the Directors of the Year Award 2018, which acknowledges our dedication, hard work and achievements over the years.

As a responsible corporate citizen, our goal is to continually outperform and exceed the expectations of all our valued global stakeholders. Leo aspires to lead the industry toward the realization of zero negative impact operations. We will continue our efforts to make our green and responsible operations even more sustainable.

Samuel Leung Chairman of Leo Paper Group

3

4

About Leo Paper GroupAt Leo we strive for perfection and go the extra mile to excel in all areas, including our sustainability initiatives. It is

a goal by all Leonians to exceed expectations and compliance benchmarks. With our research and development

capabilities and our expertise in sustainable printing, we take the initiative to promote sustainable development of

the industry.

5

IMS

About Leo Paper Group

Sustainability GovernanceLeo’s sustainability initiatives are integrated into our business through a comprehensive framework divided among

seven core areas - organizational governance, human rights, labor practices, environment, fair operating practices,

consumer issues, community involvement and development – pertaining to international standard ISO 26000 social

responsibility. The framework consists of 35 standards and management systems for Quality, Environment, Social

Responsibility and Risk Management are overseen by 15 committees led by Leo’s top management representatives

to ensure monitoring and compliance.

Green Finance

Green Materials

Energy Management

Water Management

Air Emissions

Waste Reduction

Participation and Industry Engagement

Supplier Assessment and Collaboration

Environmental Indicators



7

As a responsible global green printer, Leo is committed to offering the best green solutions that meet stakeholders’

expectations. To achieve this goal, we endeavor to continuously improve our environmental performance and

challenge ourselves to further our goals every year.

In 2018, stringent environmental policies and legislation were implemented globally. We embraced this challenge

seizing the opportunity to explore better ways to manage our operation in energy conservation, air emissions, and

waste reduction. We continue to facilitate investment in essential infrastructure and green technologies.

Our mission is to care for the environment and community while driving efficiency in our operations. We have set

challenges to run a factory which minimizes energy and resource usage and maximizes use of recycled or renewable

replacements as much as possible. Our efforts have proved successful - in 2018 we received two accreditations

the “Green Finance Certificate” and the “Green Loan” for supporting our green initiatives, which is the first one of

its kind in Hong Kong.

Green FinanceThis year, we extended our integrated environmental management to a new aspect - Green Financing. With our

good understanding of sustainability issues and experience in implementation of environmental projects, we successfully

integrated financial investment factors into new development projects, which promotes financial support for more

sustainable growth.

The First Manufacturer to attain HKQAA Green Finance CertificateIn 2018, Leo received the Green Finance certificate from the Hong Kong Quality Assurance Agency (HKQAA). We are

the first manufacturer to attain the certificate.

The Green Finance Certification Scheme provides third-party conformity assessments for Green Finance issuers.

8

Green Finance

Green LoanOn September 3, 2018, Leo signed a HKD350 Million Four-Year Green Loan Term and Revolving Credit Facility

(“Green Loan”) with a group of seven leading banks in Hong Kong. The participating banks included The Bank

of East Asia, BNP Paribas, Citibank, N.A., Hang Seng Bank, The Hongkong and Shanghai Banking Corporation

(HSBC), Mizuho Bank, and MUFG Bank.

The loan will be used in accordance with Leo Paper Green Loan Framework, which covers 7 project categories,

financing 20 green projects in the coming years.

1. Energy saving & carbon reduction

2. Air pollution prevention and control

3. Waste prevention and control

4. Wastewater control

5. Green building

6. Resource utilization

7. Natural resource management

The Green Finance Certificate enhances the credibility and stakeholder confidence in green financial instruments,

and helps connect Leo with potential green finance investors.


9

Paper 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Recycled paper (%) 0.50% 5.99% 16.41% 19.22% 16.70% 20.47% 21.50% 18.53% 18.09% 15.95% 16.14% 6.17%

Paper from Certified

Well-Managed

Forests (%)

0.13% 2.72% 10.70% 32.23% 27.39% 33.75% 45.60% 56.36% 63.94% 66.44% 69.64% 79.47%

Total (%) 0.63% 8.71% 27.11% 51.45% 44.09% 54.22% 67.10% 74.89% 82.04% 82.39% 85.78% 85.64%

Green MaterialsLeo is committed to reducing the environmental impact of our products. We take a proactive approach in the earliest

phase of product development through procuring, using and developing eco-friendly materials with the aim of improving

the overall environmental performance of our products.

Purchasing and Use of Certified and Recycled PaperPaper is one of the major components of printed products and thus we work hard to ensure its compliance with

applicable timber laws and regulations as well as meeting market needs. In 2018, Leo continued to enact our

responsible procurement strategy for paper sourcing including:

• Promoting the use of certified paper and recycled paper to customers. In 2018, we procured 79.4% certified

paper and 6.17% recycled paper of the total volume of paper purchased.

• Conducting due diligence on paper sourcing. We have developed and implemented a well-managed ERP database

system containing species information to verify against our sourced paper. We also conduct sample paper

fiber testing regularly.

• Verifying paper information such as country of origin, mill details, and its grading through the Publisher’s Database

for Responsible Environmental Paper Sourcing (PREPS).

Percentage of Eco-friendly Paper Procurement

10

Environmental Products Labelling SchemeThe environmental label or logo printed on products can directly promote

environmental awareness to end consumers as it affirms that the product

comes from reliable environmental sources and green manufacturing

process. Over the years, we have adopted three well recognized certification

labelling schemes - The Forest Stewardship Council™ (FSC™) scheme,

the Programme for the Endorsement of Forest Certification™ (PEFC™)

scheme, and the China Environmental Labelling scheme. The labelling

schemes facilitate the achievement of our customers’ and market needs.

It also demonstrates our commitment as a responsible manufacturer to

reduce our environmental impact throughout the products’ entire life cycle.

Projects for Improving Materials Result

1 Low VOCs Ink Developed low-VOC ink that resolves wrinkle problems caused by solvent ink by changing of the ink’s refining method.

2 Low VOCs Silkscreen UV Ink Developed low-VOC UV ink by replacing its VOCs ingredient with alternatives.

3 Low Temperature Hot-melt Glue

Develop hot-melt glue with a low melting point that helped reduce energy consumption in the heating process.

Development of Environmental MaterialsLeo values and encourages innovation. We have a research and development team paying close attention to

advanced technology for developing green products and production practices that help improve product quality and

its environmental performance. In 2018, our research team collaborated with business partners in the development

of 3 types of materials, including low Volatile Organic Compounds (VOCs) ink, low VOCs silkscreen ink, and low

temperature hot-melt glue. These developments have improved product quality and reduced energy consumption

and VOC emissions in production.

Environmental Products Labelling Scheme


11

Energy ManagementEnergy use in factory operations contributes a large portion to our overall carbon footprint. Early in 2005, Leo had

begun to focus on energy management integrated into our environmental actions. Since then, we established an

Energy Management Committee to oversee and monitor various measures and actions implemented. In 2018,we

enhanced the ISO 50001 Energy Management System by implementing energy efficiency optimization programs

in the following 5 areas.

Air Conditioning System Optimization at Production WorkshopsThis system uses a multi-stage cooling system with drying and temperature control. It lowers the humidity of the fresh

air intake before transmitting it into the indoor production area. The system maintains the volume of fresh air intake

at a higher level than its output to ensure a supply of positive air pressure in indoor area, so as to minimize entry of

uncontrolled outdoor air. This program will result in electricity reduction by the air-conditioner and dehumidifier of up to

247,000 kWh annually.

Upgrade of Central Air-conditioning SystemLeo has installed air-conditioning in most areas in factory to providing a good working environment for our

employees. The operation efficiency of the air-conditioning system has a direct impact on the improvement of

energy use. In 2018, we upgraded water pumps in the production building of Phase 6 with more efficient water

pumps. This initiative will result in 67,200 kWh of energy reduction annually.

Seasonal Use of Central Air-conditioning Systems at Designated WorkshopsThe ambient temperature control in the printing area is important for flexographic printing. For this reason, our

flexographic printing workshop is facilitated with central air-conditioning supply all year round. To reduce unnecessary

energy waste in winter, in 2018 we installed air-conditioning terminal units to maintain the temperature control

during winter, meanwhile the central air-conditioning was only used in summer. This initiative will result in 50,400

kWh energy reduction annually.

12

Use of LED lampsLED lamps consume less energy than conventional lamps. Every year, we

follow our phase out plan to replace conventional lamps with more energy

efficient LED lamps. In 2018, we replaced the conventional lamps in our

warehouse. A total of 2235 pieces of conventional lamps were replaced

with LED lamps. High pressure sodium (HPS) lamps used for road lighting

were also replaced with LED lamps. This program will result in 225,700

kWh energy reduction annually.Energy Management-LED lamps

Before After

Air Blowing Pattern Continuous compressed air supply Conditional pattern

Daily compressed air consumption 16 hours 4.4 hours

Improvement 29,500 kWh Annual Energy Reductions

Modification of Air Blowing Pattern of Punch MachinesOur punch press machines were originally designed with a continuous supply of compressed air to blow away waste

or debris that remained in the machine. In 2018, we modified 35 sets of punch press machines located in the Phase

7 Production Workshop. The machine was newly installed with a module that changed the continuous pattern of

air-supply to a conditional pattern only when the die faced upwards. This modification enhanced energy efficiency.

The machine now consumes only approximately 4.4 hours of compressed air each day in 16-hours of operation. This

initiative will result in 29,500 kWh energy reduction annually.


13

Waste ReductionSludge drying system for wastewater treatmentSludge is a by-product generated at our waste water treatment processing facility in

large amounts. We have been working on various ways to reduce sludge

volume over the last few years. In 2018 we developed and installed a close

loop Heat Pump Drying (HPD) System for sludge drying which successfully

used heat pump technology to reduce the water content in the sludge from 83%

to 30%. This initiative has brought us practical benefits including the following:

Water Consumption 2012 2013 2014 2015 2016 2017 2018

Fresh water (tons) 1,926,534 1,693,881 1,702,729 1,702,729 1,555,264 1,578,532 1,967,052

Total water (tons) 2,248,728 2,069,077 1,859,838 2,037,527 2,119,133 2,135,792 2,677,318

Reclaimed water (tons) 322,194 375,196 375,196 334,798 563,869 557,260 710,266

Reclaimed water (%) 14.33% 18.13% 8.45% 16.43% 26.61% 26.09% 26.53%

Water Management

Sludge drying system

Water ManagementWe manage our waste water responsibly. We use our waste water treatment facilities to

recycle and reuse wastewater produced from our factory. Our waste water treatment is

strictly monitored to ensure that the quality of the treated water 100% meets the Standard

B of the national Discharge Standard of Pollutants for Urban Wastewater Treatment Plant

(GB18918-2002) and the 1st class Standard of Guangdong Discharge Standard of Waste

Water (DB44/26-2001).

In 2018, the use of reclaimed water from wastewater increased steadily and took up 26.53% of total water consumption.

14

• Sludge waste volume was reduced, which reduces hauling and disposal costs and labor.

• Risk of environmental pollution was minimized as there is less chance of wet sludge leakage during transportation.

We forecast that sludge waste will be reduced by up to 500 tons in 2019.

Air EmissionsIn 2018, we launched our Blue Sky Campaign to enhance our efforts on

Volatile Organic Compounds (VOCs) control. We installed new VOCs

treatment facilities on the roof of the factory’s buildings to collect and treat

VOCs emitted from printing, screening and lamination processes before

discharging to the environment. To ensure VOCs emissions comply with

standards, we employ an external testing center to monitor VOCs emissions

at each of our exhaust ports. These initiatives resulted in up to a 70%

reduction in VOCs emissions.Air Emissions

Supplier Assessment and CollaborationAs an effective tool to engage our suppliers on best practices and performance that are in line with Leo’s sustainable

policy and customer’s expectation, we continued to carry out supplier assessment audits and collaboration over the

past year. In 2018, we conducted 128 audits for both existing and potential suppliers at their manufacturing sites.

These audits ensure suppliers adhere to our requirements for environmental performance, product safety, labor and

human rights and other social responsibility requirements, as well as identify improvement opportunities.


15

Participation and Industry EngagementLeonians Participation• Promotion of Environmental Awareness at LeoIn 2018 our Green Harmony® Committee encouraged

Leonians to adopt environmentally responsible practices

in all aspects of daily life by beginning a promotional campaign

with a series of 19 topics on themes such as “Beat the

plastic pollution”, “Leo’s environmental management”,

“Leo’s one square meter”, “Cleaner production”, “Green

Printing” and others via email circulars and posters at the

factory.

• Organic Farm Experience and Volunteer DayOn November 3, 2018, Leonians joined hands with business partners and their families when a total of 60 people

participated in the Organic Farm Experience and Volunteer Day organized by the Produce Green Foundation. The

event was designed to allow participants to work on the farm and experience organic farming.

All participants were engaged in voluntary farming work on the farm, and learned to use different kinds of farming

tools, remove weeds, and apply fertilizers. Some of the harvest

was sent to welfare organizations, underprivileged families and

the elderly.

The Produce Green Fund is a registered non-profit Organization.

It was formed in 1988 by a group of people who care about modern

agriculture and care for the environment. It established the first

Promotion of Environmental Awareness at Leo

Organic Farm Experience and Volunteer Day

16

organic education farm in Hong Kong to promote organic farming, environmental technology and a green lifestyle.

Through this event, participants developed a deeper understanding of ecological conservation. It inspired Leonians

to cherish rsources and live in harmony with nature.

Sharing at Industrial Conferences• The 2018 Sedex China Responsible Supply Chain ConferenceThe 2018 Sedex China Responsible Supply Chain Conference was held in May

2018 in Guangzhou under the theme “Green and Sustainable Supply Chains”.

Participants from more than 35 industries attended the conference, including the

Chinese government, global brands, suppliers and third-party audit companies,

who all shared their valuable experience on sustainability management. Leo was

invited as a guest speaker at the conference to share our sustainability initiatives.

Over the course of the day, Leo shared our experience with the topics of “9

Fundamentals to Sustainable Management” and “New Environmental Innovations”

undertaken at factory.

• The 28th National Book ExpoThe 28th National Book Expo was held in Shenzhen from July 19 to

22 in 2018. The exhibit called “Green and Innovative Printing” under

the theme “New Era, New Printing, New Publishing Dynamic” had

participants from more than 10 renowned enterprises sharing their

views and experience on latest development of technologies, materials

and processes, aimed at promoting development between publishers

and printers. Leo was invited as a guest speaker to share our experience

on environmental management with industry peers.

Sharing at Industrial Conference

The 28th National Book Expo


17

Supporting and Leading Green DevelopmentOver the years, Leo has been actively engaging in environmental development initiatives with local government and

peer organizations, participating in different regional projects and promoting regional green initiatives. In 2018, our

initiatives included:

• Supporting the Heshan government to participate in the National Printing Industry Base programme;

• Participation in a training session for “Enhancement on Energy Efficiency and Asset Management” organized by

The Economic & Information Technology Commission of Guangdong Province;

• Participation in the forum “Guangdong Green Development and Cleaner Production” organized by Guangdong

Cleaner Production Association;

• Participation in the symposium “2018 VOCs Treatment and Technology in Printing and Packaging Industry”;

• Guided tour on environmental projects of our factory for university students.

Leo is recognized as a National Green FactoryAfter a series of comprehensive and strict assessments, including independent third party audits and evaluations

from environmental experts, Leo’s manufacturing plant in Heshan, China was accredited with the National Green

Factory recognition by the Ministry of Industry and Information Technology of the People’s Republic of China (PRC)

in November 2018.

Leo’s pioneering initiatives in motivating green manufacturing are well affirmed. We have been taking proactive

environmental initiatives over the years, promoting energy-efficient technologies in our operations, increasing

sourcing and use of more environmentally friendly materials. We also conduct periodic energy performance reviews

and carry out upgrades when necessary.

We are committed to promoting cleaner production in the industry, and encouraging more organizations to join us on

the path to sustainable and green manufacturing.

18

Water Consumption 2012 2013 2014 2015 2016 2017 2018

Fresh Waste (tons) 1,926,534 1,693,881 1,702,729 1,702,729 1,555,264 1,578,532 1,967,052

Total Waste (tons) 2,248,728 2,069,077 1,859,838 2,037,527 2,119,133 2,135,792 2,677,318

Reclaimed Water (tons) 322,194 375,196 157,109 334,798 563,869 557,260 710,266

Reclaimed Water (%) 14.33% 18.13% 8.45% 16.43% 26.61% 26.09% 26.53%

* Total water consumption is sum of fresh water consumption and reclaimed water consumption

Waste Generation and Reduction

Indicator Units 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Waste

Generation

Tons 54,885 56,555 45,345 43,325 41,395 41,378 44,323 44,720 45,993 51,337 53,468 54,566

Improvement since

2007 (%)0.00% -3% 13% 21% 24.60% 24.60% 19.2% 18.5% 16.2% 6.5% 2.6% 0.59%

Hazardous Waste

Generation

Tons 2,306 1,979 1,132 1,060 952 990 799 421 828 838 1,227 597

Improvement since

2007 (%)0.00% 17.10% 48.50% 54.00% 58.70% 57.10% 65.4% 81.7% 64.1% 63.6% 46.8% 74.1%

Environmental Indicators(Heshan Astros Printing Plant)

Water Consumption and Recycling


19

Recycled Paper and Paper from Certified Well-Managed Forests

Greenhouse Gas (GHG) Emissions 2018

Indicator 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Percentage of Recycled Paper (%) 0.50% 5.99% 16.41% 19.22% 16.70% 20.47% 21.50% 18.53% 18.09% 15.95% 16.14% 6.17%

Percentage of Paper from Certified Well-

Managed Forests (%)0.13% 2.72% 10.70% 32.23% 27.39% 33.75% 45.60% 56.36% 63.94% 66.44% 69.64% 79.47%

Total (%) 0.63% 8.71% 27.11% 51.45% 44.09% 54.22% 67.10% 74.89% 82.04% 82.39% 85.78% 85.64%

Indicator GHG Emissions

Direct Carbon Dioxide Equivalent (CO2e)Emissions (Fuel, LPG, Waste Water Treatment Plant, etc.) (ton): 3,983

Indirect Carbon Dioxide Equivalent (CO2e) Emissions (Purchased Electricity Consumed) (ton): 62,662

Indirect Carbon Dioxide Equivalent (CO2e) Emissions (Air Travel) (ton): 61

Total(ton): 66,706

Energy Consumption 2018

Indicator Energy Consumption*

Total fuel consumption within the organization (GJ): 15,426

Total energy consumption within the organization (GJ): 427,494

* Energy consumption within Heshan Astros Printing Plant

Corporate Governance

Occupational Health and Safety

Staff Training and Education

Integrity and Anti-Corruption

Community Engagement

Working and Living in Contentment

Social and Economic Indicators


21

Leo’s social responsibility initiatives focus on corporate governance, wellbeing and the capabilities of our Leonians.

To facilitate development of the community and society as a whole, we are also engaged in education and

development of the next generation and social inclusion of underprivileged communities.

In 2018, we continued our efforts on staff wellbeing and development. Significant progress was also made for

school development in higher education.

Corporate GovernanceBy integrating sustainability aspects into corporate governance strategies, Leo has improved best practices to act

in a responsible and sustainable manner, and responded to stakeholder expectations effectively.

Directors of the Year AwardIn 2018, we were awarded with the Directors of The Year

Award, presented by The Hong Kong Institute of Directors, to

honor our outstanding performance in corporate governance.

Leo Paper is the only private company to gain this award

since 2002. This award was launched in 2001 as the first of its

kind in Asia. It is organized annually by the Hong Kong Institute

of Directors and co-organized by the Financial Services and the

Treasury Bureau of Hong Kong Government, and Hong Kong

Exchanges and Clearing Limited.

The participating companies are assessed based on strict and comprehensive criteria, including board composition,

competencies of directors, effectiveness in strategic corporate business functions, compliance and accountability,

risk and succession management, business ethics, and so on.

Directors of the Year Award


22

Leo has been well recognized for its corporate governance philosophy over the years. The excellent management

skills, experience and perspective of Leo’s board of directors has been reaffirmed by the judging panel.

Occupational Health and SafetyOccupational health and safety considerations take the highest priority in all aspects of our business operations.

In line with the policy of “Safety first, Prevention a must”, we strive to ensure a healthy and safe working environment

through different initiatives, such as, safety training for our employees, conducting drills to enhance emergency

preparedness, and implementing more safeguards for facilities and equipment. All of these elements help us improve

and reinforce capabilities on risk prevention and preparedness, as well as strive to achieve an accident-free operation.

Safety TrainingOne of the best ways to cultivate health and safety awareness is through training and promotional campaigns.

Leo’s training programs provide comprehensive coverage on all related operation processes for our employees,

including a 3-level basic safety training course for new employees and on-the-job training such as safe machine

operation and chemical handling. In 2018, we launched a total of 98 training seminars and workshops for 18,000

participants which are detailed below.

Safety Training - Leo’s Volunteer Fire Safety TeamLeo’s Volunteer Fire Safety Team has been operating for more than 18 years. Currently more than 2000 well-trained

volunteers have joined in the team, responsible for providing day-to-day support to periodic fire safety inspection

and monitoring, fire equipment use and maintenance, and assistance of evacuation during incidents. We conduct

periodic training and drills to enhance knowledge and skills proficiency for the participants, such as use of personal

protective clothing and equipment, fire hose, ladders, small tools, handling of actual fire scenarios, and daily safety

inspection. In March 2018, we carried out a total of 40 training sessions for 2,819 volunteers.

23

Safety Training - Workplace Incidents Prevention for Managers and SupervisorsTo enhance incident prevention capabilities and workplace safety, our safety department organized 20 training

sessions on topics relating to workplace potential hazards and preventive measures for 2,500 frontline managers

and supervisors in 2018.

Safety Training - Machine Safety As Leo moves towards automated production, more automatic machines were

installed, which require new skills to operate the machine and new safety measures

for each type of machine. It is essential to have full understanding of how to operate

the machines to ensure safety and operation effectiveness. In 2018, we conducted

5 training workshops on safety topics relating to different types of machines for 214

participants from different departments.

Safety Training - First-Aid Once an accident occurs, immediate and proper first-aid action can reduce recovery time and save lives. Particularly

when there are serious injuries, it is critical to take immediate action. To provide quick response to injury, Leo designates

first-aiders to standby on each floor of production workshop for readiness of immediate emergency treatment. In

2018, we organized a practical first-aid training session given by external instructors from a hospital. A total of 437

employees attended and passed the training assessment with first-aid qualification.

Safety Promotion- Contest on Safety Knowledge and SkillsIn 2018, a safety knowledge contest was held to enhance awareness on

production workplace safety. The contest was divided into two parts - safety

practices and theories about topics of firefighting, proper use of protective

personal equipment, and potential hazards from machines and chemicals.

The event attracted 26 teams comprising a total of 78 employees. Throughout

the activities, participants were enhanced with safety knowledge and skills

related to their own responsibility at the workplace.

Safety Training - Machine Safety

Safety Promotion- Contest on Safety Knowledge and Skills


24

Risk Management – Monthly Internal EHS Audit Leo has established the Environmental-Health-Safety (EHS) committee to oversee all aspects of environmental,

health and safety issues arising from our operations, as well as to decide on and drive the EHS strategy implementation.

In 2018, to further enhance our on-site EHS execution, an internal EHS Audit Team was established by the committee.

The audit team is comprised of members from Internal Audit Division, Management System Division, Safety

Department, and Lean Manufacturing Department, and they are responsible for carrying out internal on-the-spot

audits monthly. In 2018, the team conducted 8 internal audits, with audit results informed to the related departments

for follow up and improvement in a timely manner.

Risk Management – Upgrade on Fire Alarm SystemIn 2018, we upgraded our infrastructure of the fire alarm system to enhance our capability of

risk prevention. The automatic fire alarm system includes new smoke detectors, sound

and lighting alarms. The system was installed in production areas, warehouses, and

employee dormitories. When smoke is detected it will automatically trigger the sound

and lighting alarm on the spot and the alarming signal will then be transmitted back to

the control center. The new system not only facilitates a stronger effect of visual and

audial alarm signals, but also enables faster response to fire emergencies.

Health Programme - Physical Health Check and ConsultationLeo strives to provide medical and health supports to Leonians. We offer regular

medical checkups. We also organize regular health seminars and activities on topics

relating to physical and emotional well-being given by health experts from hospitals

and professional organizations. In 2018, the following health programmes were organized:

• 2018 March – Seminar for women’s health and well-being, by Guangdong Provincial

Mental Health Association

• 2018 April – Seminar for a healthy pregnancy, by Department of Obstetrics and

Gynecology of Heshan People’s Hospital

• 2018 November – Free medical checkup for female employees, by the Heshan

Women and Children’s Healthcare Center

Risk Management – Upgrade on Fire Alarm System

Health Programme - Physical Health Check and Consultation

25

Staff Training and EducationThe continuous enhancement of employability is crucial to both Leo and Leonians for development that drives us

toward future success. In line with our value of “People as our Foundation”, we have a specialized training team to

support our employees’ career advancement and personal growth, as well as organizing well-structured learning

and development programs in accordance with job roles. In 2018, we delivered training programs over 180,000

training hours for 12,783 participants.

Health Programme - Soul Health CentreThe Soul Health Centre has been in place since 2014 to offer psychological services for Leonians. Today the

center is supported with 22 counselors and volunteers, who provide various types of counselling services on emotional

and psychological health. In 2018, we organized a total of 87 seminars and activities, including emotional management

for frontline supervisory employees, probationary career and personal development planning, communication

skills, and other related seminars and activities.

Incident CasesLeo continues to strive to pursue our ultimate goal of zero-accidents for our health and safety performance. In 2018,

there were 12 cases of work-related incidents reported, and the number of fatal cases remains zero.

Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of work-related incidents 27 20 21 19 15 15 15 16 10 12

Injury rate per 1000 workers 1.54 1.15 1.19 1.06 0.89 0.99 0.98 1.19 0.78 0.94


26

Structured Training Every year, Leo develops a training plan that targets business needs and job-skill development objectives. In 2018,

we launched a total of 244 specific training programs and workshops for over 700 training hours.

Month Monthly Core Training Programmes Training Objectives

Jan TWI-JR (Training Within Industry - Job Relations) To enhance job-relation handling ability, build a team with positive work attitude.

Feb Strategic Planning and Leadership

To enhance theoretical and practical knowledge in strategic planning and implementation for management staff.

Mar Critical Thinking To develop reflective and independent thinking skills for rational decision- making and problem solving.

Apr Wolf tribes – Sales Development Program

To inspire our sales team to be more pro-active and flexible in a challenging business environment.

MaySales and Operations Plans (SOP) and Material Products Balance System (MPS)

To learn how SOP and MPS can be used to drive production planning to shorter lead time/ delivery time.

Jun LEAN Automation To master LEAN Automation principles and its operations through theories and practices.

Jul Big Data Analysis and Data Integration Management

To develop mindsets on comprehensive business analysis, and abilities in data analysis and integration for business solutions and discovering business trends for strategic business planning.

Aug Fundamentals of Trainer Skills To develop basic knowledge and skills on training.

Sep LEAN Practices To apply critical thinking and problem-analysis tools to daily production issues.

Oct Leadership Scenarios To enhance leadership skills during specific situations.

Nov Teamwork and Collaboration To enhance interpersonal and communication skills in teamwork scenarios working towards common goals.

Dec Advanced LEAN Training To better understand advanced LEAN concepts, techniques and skills.

27

Specialized Training – Strategy ImplementationEvery year, we provide training programs for our management staff members. To further enhance the knowledge

and skills in effective strategy implementation for leaders, in 2018, we organized two training seminars on topics of

“Regular Review of Results” and “Strategic Planning” for 50 participants.

Specialized Training - “Spirit of the Craftsman” Leo advocates a working attitude that is inspired from craftsmanship,

which requires the pursuit of perfection, concentration and patience.

To cultivate this quality to all our technicians and workers at factory, we

organized a series of training sessions called “Spirit of the Craftsman”,

of which the first series had been launched in 34 sessions for 1,400

participants in 2018.

Specialized Training – Strategy Implementation

Specialized Training - “Spirit of the Craftsman”


28

Specialized Training – Outward Development

Specialized Training - LEAN ManufacturingThe LEAN Manufacturing training program is designed mainly for our LEAN and Manufacturing Department, which

has been integrated with theory and practice. The program not only helped participants to better grasp the concepts and

skills, but also how to apply these skill and concepts to our existing production operation.

Specialized Training - LEAN Manufacturing

Specialized Training – Outward DevelopmentTo inspire our Sales teams, in 2018, we launched an

activity called “Urban Survival Skills Development”.

This initiative motivated each participant to work with

their full potential as well as strengthened teamwork

spirits towards the same goal.

Career and Professionalism DevelopmentTo enhance skill sets and career management, as well as the development of human capital, we have established

a system to manage skills requirements, assessments, and training that aims to support technical staff with career

development and professional growth. Through our continuous efforts, it is now a more sophisticated system. The

system also includes a skills contest that aims at enhancing engagement and communication among technical

staff members. The “LEAN Skills Contest” was organized in 2018 and lasted for about 2 months for contestants to

compete in technical theory and practice their skills. 90 technical staff members won the contest with outstanding

performances.

29

Frontline Management Excellence Award 2018In recognition of the contributions of our frontline managers and leaders, we

present “Frontline Management Excellence Award” to reward outstanding

frontline management members every quarter. The staff members awarded

come from different departments. The initiative encourages award winners

to further excel in their work together with their co-workers.

Library RenovationTo further foster a learning culture, in 2018, we renovated

the library located in the living area of our Heshan Astros

plant.We installed new bookshelves, rearranged the floor

plan, and accommodated more book collections and resources.

The initiative provided a more comfortable and resourceful

environment to encourage Leonians to embrace their self-initiative

and lifelong learning in the pursuit of knowledge.

Career and Professionalism Development

Frontline Management Excellence Award 2018

Library Renovation


30

Integrity and Anti-CorruptionLeo is committed to upholding high standards of business ethics in line with our governance policy. Since 2009, our

Anti-Corruption Governance Committee has developed and maintained comprehensive policies and measures to

ensure effective integrity management.

Such measures include:

• Employee’s Code of Conduct Handbook;

• Employee’s Declaration of Compliance to Anti-Corruption Requirements;

• Disclosure and Declaration of Acceptance of Gift and Hospitality;

• Disclosure and Declaration of Conflict of Interest;

• Corporate Information and Property Control;

• Tendering Management;

• Periodic Ethical and Integrity Training;

• Monitoring and Reporting of Possible Improprieties;

• Cooperation with External Anti-Corruption Organizations.

Tendering ManagementLeo is committed to maintaining transparent operations for entrepreneurial integrity. Since the establishment of the

Tendering Center in 2009, we have continued to enhance tendering management, so as to achieve fair, open and

just tendering processes.

In 2018, we established new procedures for contract monitoring and retendering activities to refine the existing

bidding and tendering mechanism. The Tendering Center and audit department conduct regular audits to different

departments to evaluate their compliance to contractual agreements and tendering practices in accordance with our

set requirements.

Over the last year, the Tendering Center collaborated with the audit department and conducted audits for 78 tendering

projects including the purchase of raw materials, testing services, and infrastructure construction.

31

Training and EducationTo enhance the culture of ethics, honesty and accountability, in 2018 the Anti-Corruption

Governance Committee published a series of monthly articles through emails and posters, on

topics related to ethical conduct and ways to prevent bribery and corruption.

Industrial and Community EngagementTo mitigate the risk of improprieties from the source, we promoted to all related departments

the use of our shared platform developed by the “China Enterprise Anti-Corruption Alliance”,

to ensure employee recruitment, hiring of services, purchases or sales of goods were all

safeguarded in the early stages against corruption and bribery risks.

We have actively engaged in activities organized by “China Enterprise Anti-Corruption Alliance” since we became

a member. In 2018, we participated in the “China Enterprise Anti-Corruption Alliance 2018 cum New Era Corporate

Development on Anti-Corruption Governance Summit” where we shared our experience on the development of ethical

culture and implementation of anti-corruption measures.

Leo is committed to upholding business ethics. We also drive industrials peers to make the same progress. In 2018,

we participated in the conference of “Ethical System Development in Jiangmen City” to share our governance

experience and promote ethical practices to our industrial peers for building an honest and fair business environment.

Working and Living in ContentmentWith a strong belief in “People as Our Foundation”, Leo is committed to providing a proper working and living

environment to support our employees to lead healthy and happy lives. Over the year, we have made continuous

efforts to improve our dormitory and recreation facilities, and organized various leisure activities for employees,

their families and neighboring community.

Industrial and Community Engagement

Training and Education

廉


32

Art Performance by the Dancing Club and Astros Art and Culture AssociationLeo has formed different recreation groups over years to enrich Leonians’ leisure lives and provide fuller spiritual

support. In 2018, we organized an art performance given by our Dancing Club and Astros Art and Culture Association

for both Leonians and the neighboring community.

Art Performance by the Dancing Club and Astros Art and Culture Association

Sports, Arts and Traditional ActivitiesThe 14th “Leo Cup” Sport DaysLeo encourages employees to actively participate in sports and exercises for physical

wellness. In 2018, the 14th “Leo Cup” Sport Days were held from October to November

which included traditional sports such as basketball, soccer, running, and recreational

sports such as a cheer team contest. Through the games, Leonians learn how to overcome

obstacles and achieve success with teamwork and perseverance.

Martial Arts of Wing ChunOur factory of Heshan Astros is located in Gulao Town of

Heshan City, where the former residence of Wing Chun Kung

Fu Master of Leung Jan is situated in. In 2018, to promote

physical health, enrich leisure activities of Leonians and pass

on traditional Chinese martial arts to the next generation, Leo

organized a free Kung Fu Class and specially invited Leung

Jan’s disciples to be the coaches which attracted a total of

99 participants.

The 14th “Leo Cup” Sport Days

Martial Arts of Wing Chun

33

DIY Festive FoodWhen it comes to festival holidays, Leo arranges celebration activities for Leonians who stay at the dormitory

to share seasonal joy and happiness. During the Dragon Boat Festival and Mid-Autumn Festival in 2018, we

organized activities for Leonians to make traditional festive foods such as rice dumpings and moon cakes to

promote festive food traditions.

DIY Festive Food

Mid-Autumn Festival CelebrationMid-autumn festival is an important cultural tradition. Every year, we organize

a festival night to celebrate the Mid-Autumn Festival with Leonians and

their families. We set up booths for a lantern riddle game, puzzle solving,

dancing and other activities. The initiative provides participants an

opportunity to experience the culture of the traditional festival. Mid-Autumn Festival Celebration

520 caring day

Families Caring Activities520 Caring Day“520 Caring Day” is set on May 20 for passing care and love to friends

and families. Leo took the opportunity and set May 20 to be “Leo

Caring Day”. The “Leo Caring Day” demonstrates our commitment

to build a happy and harmonic environment not only for Leonians,

but also in the same way we expect Leonians pass on the caring

to customers, suppliers and other stakeholders, to promote a caring

culture. We organized an event called “520 Leo Caring Day, you are

always in our hearts” on 2018 May 20 to celebrated the “Leo Caring

Day” for all Leonians.


34

Married Couples Suite To resolve housing problems for married couples, in 2018, Leo renovated and reconstructed dormitories to provide

special accommodation of 48 apartment suites for married couples who have served Leo for more than 10 years. Such

accommodation arrangements not only resolve housing problems but also improve living quality for the couples, as we

strive to make our Leonian’s dormitories feel like home.

Home Visits to Leonians FamiliesDuring 2018 New Year Holidays, Leo management

members made visits to Leonian families. Our

Managing Director and senior management

members visited 3 Leonian families in Longzhou

County of Guangxi province, and invited their

families and relatives for a dinner to celebrate

New Year 2018.

Holding Hands with Little Leonians – Summer Holiday ActivitiesEvery year, Leo organizes activities to enrich our little Leonians’ lives.

In 2018, the Corporate Cultural Department and Leo Volunteer Team

(LVT) organized teaching activities during the summer holiday for our little

Leonians. We arranged classes on interesting recreation topics such as

arts and crafts for developing children’s artistic and creative ability and

fostering creative thinking and problem-solving abilities, which is important

in their long-term growth.

School Visit to Little Leonians In 2018 July, Leo’s Managing Director led a team to visit the

Greenfield Garden Nursery School and expressed gratitude and

care to the teachers and our employees’ children.

School Visit to Little Leonians

Holding Hands with Little Leonians – Summer Holiday Activities

Home Visits to Leonians Families

35

Community EngagementEducational SupportsThe First Tertiary Education Institute in HeshanLeo has spent about two years preparing the launch of a tertiary education jointly organized by Jinan University and

Hanyuan Education Group. The launch and signing ceremony was successfully held on April 26, 2018 at the Astros

Vocational and Technical School, under the witness of Jiangmen Municipal Government and Heshan Municipal

Government. The Astros Vocational and Technical School is the first institute to offer tertiary education in Heshan.

It now provides a path for students to continue higher education and continual studies, which offers Diplomas and

Undergraduate courses on diversified subjects. This initiative marks a new milestone in our commitment and efforts

to promote education development in the community, as well as nurture a talented workforce to be ready for the

development of the Guangdong-Hong Kong-Macao Greater Bay Area.

The First Tertiary Education Institute in Heshan

Scholarships to Local Primary and Secondary SchoolsEvery year, Leo provides scholarships to support education development in the local community in Heshan. In 2018,

we offered scholarships for outstanding students in primary and secondary schools and visited the schools to express

our appreciation to teachers on Teacher’s Day.

Scholarships to Local Primary and Secondary Schools


36

Leo Volunteer Team ActivitiesLeo Volunteer Team (LVT) has expanded since its establishment

in 2006. There are currently 190 volunteers in the team. In

2018, LVT contributed a total of 728 volunteering hours to serve

diversified community services including:

• River Protection

• Road Safety Activities

• Home Visits during New Year Holiday

• Food Rescue

• Organic Farm Experience

• Elderly Visit

Food Angel ActivitiesLeo’s volunteers, together with representatives from

our business partners, participated in food preparation

activities at the central kitchen of Food Angel in May

and June 2018.

Leo Volunteer Team Activities

Food Angel

Books DonationOn May 23, 2018 we organized a book donation event. In the event, a total

of 10,000 used books were collected from Leo and Heshan Red Cross and

donated to Heshan Public Library. The donated books were mainly on subjects

related to corporate management and other mainstream industries. Our next

donation will be on subjects related to academics and literature. We select

used books from our library so as to make full use of our library resources,

while at the same time, promoting and advocating for a resource sharing

practice in the community. Books Donation

37

Food Angel is a food rescue and food assistance program with the mission of “Waste Not, Hunger Not, With Love” in

Hong Kong. The program rescues surplus food from the food industry that would otherwise be disposed of as waste.

The food items are prepared as nutritious hot meals and then redistributed to serve underprivileged communities.

This activity has further inspired Leonians with the virtue of cherishing food and caring for the community. It has

also raised awareness for food wastage, elderly poverty, and underprivileged communities’ issues in Hong Kong.

Elderly Visit and Rice DistributionOn October 6, 2018, the Leo Volunteers Team participated

in the “Well-fed, Well-clothed” elderly visit and rice distribution

event organized by the Elder Charity Foundation in Hong

Kong.

A total of 30 Leo volunteers and family members participated

in the event and visited elderly persons living alone in the

community. Each participant carried and sent 3 kilograms

of fragrant rice to their homes for food support, as well as

alleviating the danger and burden of lifting weights.

The event aims to promote respect and care for the elderly. With regular home visits and communication, the Well-fed,

Well-clothed program provides ongoing supports to disadvantaged elderly who are living alone. Leo supports initiatives

that facilitate the harmonious development of the community.

Elderly Visit and Rice Distribution


38

Social and Economic Indicators(Heshan Astros Printing Plant)

Employment

IndicatorAverage Number of Employee

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Male 8,813 7,643 7,733 8,015 8,692 8,287 7,903 8,274 7,285 7,296 7,204

Female 11,510 9,923 9,663 9,682 9,292 8,608 7,230 7,023 6,183 5,503 5,528

Total 20,323 17,566 17,396 17,697 17,985 16,895 15,133 15,297 13,468 12,799 12,732

Indicator 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Annual Injury Case 27 20 21 19 15 15 15 16 10 12

Injury Case per 1000 Employees 1.54 1.15 1.19 1.06 0.89 0.99 0.98 1.19 0.84 0.94

Occupational Health and Safety

Market Presence

IndicatorProportion of Senior Management Hired from the Local Community

2012 2013 2014 2015 2016 2017 2018

Local 45% 45% 45% 46% 47% 48% 49%

Manager or above is regarded as senior management; Individuals who indefinitely reside in the Heshan region are regarded as from the local community.

Age Group 2018

Below 30 30-50 50 and above

Number 5,898 6,467 367

Percentage 46% 51% 3%

39

Training and Education

*No measurement conducted, #Including all employees of Heshan Astros Printing Plant and Hong Kong Headquarters.

Employee CategoryAverage Training Hours per Employee#

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Frontline Staff/ Workers * * 24 17 11 10 13 9 11 12

Management (Grade 1-4) 45 21 17 16 21 23 18 18 24 24



Senior Management/Top Management 19 39 18 11 37 33 32 24 37 38

Diversity and Equal Opportunity

IndicatorProportion of Managing Staff

2012 2013 2014 2015 2016 2017 2018

Male 44% 44% 69% 69% 68% 67% 66%

Female 56% 56% 31% 31% 32% 33% 34%


Smart Manufacturing

Research, Development and Invention

Industrial Collaboration


41

Smart ManufacturingIn 2018, we continued our journey to move Leo towards smart and technology-based operations, so as to further

modernize the way we work. Through automation and digitalization deployment, development and purchase of

machinery and facilities, and the development of smarter systems, our goal is to increase operation efficiency and

provide greater value-adding products and services to our customers.

Automation Machine Development and ProcurementOver the past year, we further reduced our labor intensive operations with automation by developing and purchasing

285 sets of new high-efficiency automatic machines for overall productivity enhancements.

Modification and Optimization of Automatic MachinesMachinery efficiency is crucial for productivity enhancements. In 2018, Leo continued to put effort into exploring

better solutions for machine and operation processes. Over the last year, we improved productivity of 26 production

lines by re-engineering the manufacturing workflows and the machinery. Machinery efficiency of 15 lines was

increased by an average of 11.6%, and production efficiency of 11 lines was increased by an average of 31.7%.

Kick-off of ERP 2.0 The upgraded system ERP 2.0 project kick-off ceremony was launched in November

2018. The new system will integrate all data into one platform and standardizes

the system’s processes. It implies that digital transformation will be embedded

into our business operations. A series of trainings are being given to technical

support teams and system users for the system upgrade.Kick-off of ERP 2.0


42

Smart Energy ManagementOur real-time energy monitoring system was developed in 2014, to monitor our production

facilities and the electricity network for more effective management of energy use. The

system was upgraded and improved. In 2018 we received the certification of the Integration

of Informationization and Industrialization Management System for our technology-based

systematic operations.

Research, Development and InventionOur Research and Development Team is committed to providing industry-leading solutions through research and

innovation. Over years, we have developed new materials and technologies that add value to product safety, health

and safety, environment protection, and operation productivity.

New TechnologyIn recognition of our achievements in new technology development

and dedication to innovation, 2 of our newly developed products were

recognized as a “Guangdong New-Technology Product”in 2018.

Invention and PatentsWe have 1 technology and 3 product successfully patented in 2018.

Smart Energy Management

New Technology

43

Industrial CollaborationIn September 2018, Leo was invited to attend the 2018 Printing Innovation

Conference in Beijing, and share our experience in smart manufacturing during

the event. The 2018 China Printing Smart Development Report was released

at the conference. It reported Leo’s outstanding capability in production

automation, and reported our successful case of automation deployment on

post-press processes of card products which resulted in a 70% reduction of

labor-tasks and production capacity improvement. Replacing labor tasks by

means of automation and digitization has become a direction toward a smarter

and more sustainable future for the printing industry.

On September 9th, 2018 the Chinese Smart Printing and Manufacturing

Alliance was established during the 2018 Printing Innovation Conference, where

Leo’s factory Heshan Astros was elected to be the Vice Chairman Unit, and our Managing Director was elected to

be Vice Chairman of the Alliance. Leo was also invited to participate in the development of the National Standard

of Smart Printing and Manufacturing System, which is a standard initiated by the National Printing Standards and

Technology Committee and the National Printing Automation and Technology Committee, aiming to provide a solid

framework on smart manufacturing for the printing industry.

With our expertise in printing and quality management, we continued to get involved

in drafting international/national standards to support the development of the industry.

In the past several years, we participated in developing the national standard of

GB/T 36060 Process Control and Testing Methods on Water-based Adhesives Use in

Hardcover Book Binding Production, which was successfully published in March 2018.

Sharing at the 2018 Printing Innovation Conference


44

External Recognitions 2018Selected Environmental Awards/Recognitions 2018

Heshan Association for Environmental Protection - Member• Presented by Heshan Association for

Environmental Protection

2018 Q-Mark Elite Brand Award – Environmentally-friendly Brand Category• Awarded by Hong Kong Q-Mark Council for 4 consecutive years

Hong Kong-Guangdong Cleaner Production Excellent Partner• Awarded by The Environment Bureau of the Hong Kong Government and the

Department of Industry and Information Technology of Guangdong Province

National Green Factory• Awarded by the Ministry of Industry and Information

Technology of the People’s Republic of China

45

Directors of The Year 2018• Awarded by The Hong Kong

Institute of Directors

Faithful and Trustful Enterprise in Guangdong• Awarded by the Guangdong Provincial Administration

for Industry and Commerce for 16 consecutive years

ERBN Manpower Developer 1st

2010-2020• Presented by the Employees

Retraining Board (ERB)

Jiangmen Caring Company Demonstration Enterprise• Awarded by Jiangmen Social Morality

Development Committee

Occupational Safety Standardization (Grade 2 Enterprise)• Awarded by National Occupational

Safety Monitoring Bureau

Selected Social Awards/Recognitions 2018

10+ years Caring Company Award• Presented by the Hong Kong Council of Social Service

46

Top 100 Printers in China 2018• Presented by Keyin

Media and Printing Manager

Premier Print Awards 2018 • Awarded by Printing Industries

of America

Gold Ink Awards 2018• Awarded by the North

American Publishing Company

Outstanding Import & Export Enterprise – Corporate Achievement Award• Presented by The China Print Awards Committee

Hong Kong Print Awards 2018 • Organized by the Graphic Arts

Association of Hong Kong, the Hong Kong Publishing Professionals Society and the Hong Kong Trade Development Council

Other Selected Awards/Recognitions 2018

47

Stakeholders Engagement and Material AspectsStakeholder engagement is an ongoing process of our operations, which helps to identify the issues that matter most

to our stakeholders. Stakeholders of Leo mainly include customers, staff members, suppliers, government/authorities,

non-governmental organizations, and the society and community.

Stakeholders Approach to Stakeholder Engagement

Key Topics and Concerns Raised

Response to Stakeholder Concerns (Cross-reference/

Comments)

Customers

- Regular newsletters/e-news- Annual customer survey- Handbooks and other

documents from customers- Client visits and meetings- Regular website communication- Participation to seminars

organized by our customers

- Ethics/code-of-conduct performance

- Environmental performance (materials, operation processes, etc.)

- ICTI Code of Business Practices System certification

- Regular Sedex assessment- Comprehensive Social Responsibility

and Environmental Management system

- Sustainability Governance- Occupational Health and Safety- Integrity and Anti-corruption- Green Initiatives

Staff Members

- Staff meeting- Regular corporate news- Email and telephone

communication- Suggestion boxes- Employees survey- Policy conference by the

Chairman

- Personal growth and development

- Decent working and living environment

- Staff Training, Education, and Development

- Working and Living in Contentment

Suppliers

- Supplier meetings- Regular on-site supplier audits- Supplier questionnaire- Supplier visits - Coaching for process

improvements- Provision of supplier guidelines

- Effective communication and collaboration

- Supplier Assessment and Collaboration

48

Government / Authorities

- Co-organizing of community activities/events

- Direct communication with local authorities

- Enquiries to regional/global authorities

- Participation in seminars presented by local, regional, and global organizations

- Engagement in community/society development

- Promoting development of the industry

- Participation and Contribution in Environmental Protection

- Community Engagement- Participation and Industry

Engagement

Non-Governmental Organizations

(NGOs)

- Participation in seminars organized by NGOs

- Invitation to from NGOs to give training/presentation

- Meetings with NGOs

- Promoting green practices of the industry

- Provision of supports to underprivileged groups

- Green Materials- Participation and Industry

Engagement- Community Engagement

Society and Community

- Participation in development of national/international standard

- Jointly organizing activities with the local communities

- Speaking at seminars to share our sustainability philosophy with the public

- A designated division responsible for communication with the local communities

- Organizing activities that aim at community inclusiveness

- Website in local language for communication

- Engagement and participation in community/society development

- Community Engagement

49

The content of this report was prepared in accordance with the GRI reporting principles of stakeholder

inclusiveness, sustainability contexts, materiality, and completeness. Material aspects are identified based

on regulatory requirements, stakeholder expectations, and Leo’s own concerns and commitment. We develop

Initiatives to manage impacts of the prioritized material aspects. The boundary for each material topic is also

identified. The table below demonstrates material aspects and key topics that reflect significant impacts.

Materials Aspects/ Key Topics and Concerns

Cross-reference for Response to Materials Aspects/ Key Topics and

Concerns

Aspects Boundary

Leo* Outside Leo#

Materials• Green Materials • Environmental Indicators

√ √

Energy • Energy Management √ √

Water• Waste Management• Environmental Indicators √ √

Air Emissions and Waste• Air Emissions• Waste Management• Environmental Indicators

√ √

Occupational Health and Safety• Occupational Health and Safety• Social and Economic Indicators

√

Training and Education• Staff Training, Education, and Development• Social and Economic Indicators

√

Anti-Corruption • Integrity and Anti-Corruption √ √

Local Communities • Community Engagement √ √

Product Responsibility • Green Materials √ √

* Staff Members inside Leo

# Customers/ Suppliers/ Government/Authorities/ NGOs/ Local Communities/ Other Organizations outside Leo

50

GRI Content IndexThis report has been prepared in accordance with the GRI Standards: Core option.

GRI Standards Disclosures

GRI Standards Disclosures Cross-reference/Comments ExternalAssurance

FoundationGRI 101: Foundation GRI 101 does not include any disclosures / √

General DisclosuresOrganizational profile

GRI 102: General Disclosures

102-1 Name of the organization About Leo Paper Group √

102-2 Activities, brands, products, and services About Leo Paper Group √

102-3 Location of headquarters About Leo Paper Group √102-4 Location of operations About Leo Paper Group √102-5 Ownership and legal form About Leo Paper Group √102-6 Markets served All over the world √

102-7 Scale of the organization• About Leo Paper Group• 2018 Annual Report

√

102-8 Information on employees and other workers

• Social and Economic Indicators Table• All employees are under full-time

employment.• 31% of employees come from the

local community in 2018. Individuals who indefinitely reside in the Heshan region are regarded as from the local community.

√

102-9 Supply chain• Supplier Assessment and Collaboration• Leo’s supply chain mainly involves

suppliers who provide paper and ink.√

102-10 Significant changes to the organization and its supply chain

None √

51




102-11 Precautionary Principle or approach Green Materials √

102-12 External initiatives China Enterprise Anti-Corruption Alliance √

102-13 Membership of associations

• Guangdong Cleaner Production Association - Vice President of the 2nd Committee

• Member of China Green Development Union

• Member of China Enterprise Anti-Corruption Alliance

• Member of Sedex • Member of PREPS

√

Strategy


102-14 Statement from senior decision-maker Chairman’s Message √

Ethics and integrity


102-16 Values, principles, standards, and norms of behavior

About Leo Paper Group √

GovernanceGRI 102:General Disclosures

102-18 Governance structure About Leo Paper Group √

Stakeholder engagement


102-40 List of stakeholder groupsStakeholders Engagement and Material Aspects

√

102-41 Collective bargaining agreementsAll employees covered by collective bargaining agreements.

√

102-42 Identifying and selecting stakeholdersStakeholders Engagement and Material Aspects

√

102-43 Approach to stakeholder engagementStakeholders Engagement and Material Aspects

√

52




102-44 Key topics and concerns raisedStakeholders Engagement and Material Aspects

√

Reporting practice


102-45 Entities included in the consolidated financial statements

About this Report √

102-46 Defining report content and topic Boundaries

Stakeholders Engagement and Material Aspects

√

102-47 List of material topicsStakeholders Engagement and Material Aspects

√

102-48 Restatements of information None √

102-49 Changes in reporting None √

102-50 Reporting period About this Reportt √

102-51 Date of most recent report April 2018 √

102-52 Reporting cycle About this Report √

102-53 Contact point for questions regarding the report

EDITORIAL POSTSCRIPTS √

102-54 Claims of reporting in accordance with the GRI Standards

This report has been prepared in accordance with the GRI Standards: Core option

√

102-55 GRI content index GRI Content Index √

102-56 External assurance

• Verification Statement by the third party independent verifier HKQAA

• Our sustainability reporting is verified by external assurance organization each year

• External assurance is endorsed by Leo top management

√

53



Topic-specific DisclosuresGRI 200: Economic TopicsTopic: Anti-corruption

GRI 103: Management Approach

103-1 Explanation of the material topic and its Boundary

Anti-Corruption √

103-2 The management approach and its components

Anti-Corruption √

103-3 Evaluation of the management approach Anti-Corruption √

GRI 205: Anti-corruption

205-1 Operations assessed for risks related to corruption

All operations assessed for risks related to corruption.

√

205-2 Communication and training about anti-corruption policies and procedures

• Anti-Corruption• All employees and business partners

have been communicated with Leo’s anti-corruption policies and procedures.

• All employees have received training on anti-corruption.

√

205-3 Confirmed incidents of corruption and actions taken

None √

GRI 300: Environmental TopicsTopic: Materials



Green Materials √


Green Materials √

103-3 Evaluation of the management approach Green Materials √

GRI 301: Materials301-1 Materials used by weight or volume

• Green Materials• Environmental Indicators Table

√

301-2 Recycled input materials used• Green Materials• Environmental Indicators Table

√

54



GRI 301: Materials301-3 Reclaimed products and their packaging materials

No reclaimed products and their packaging materials from our customers.

√

GRI 300: Environmental TopicsTopic: Energy



Energy Management √



103-3 Evaluation of the management approach Energy Management √

GRI 302: Energy

302-1 Energy consumption within the organization

• Environmental Indicators Table• No fuel consumption from renewable

sources.• GWP data from IPCC Fifth Assessment

Report

√

302-2 Energy consumption outside of the organization

Information unavailable because of no adequate data source in 2018.

√

302-3 Energy intensity

• Environmental Indicators Table• 0.503 tons of CO2 emissions of fuel

consumption and electricity consumption within the organization per production unit in 2018.

√

302-4 Reduction of energy consumption Energy Management √

302-5 Reductions in energy requirements of products and services

Not Applicable √

55



GRI 300: Environmental TopicsTopic: Water

GRI 303: Water

303-1 Interactions with water as a shared resource

Waste Management √

303-2 Management of water discharge-related impacts

Our on-site wastewater treatment plant has been in place since 1993 to ensure that the treated water meets the Standard B of the National Discharge Standard of Pollutants for Urban Wastewater Treatment Plant (GB18918-2002) and the First Class Standard of Guangdong Discharge Standard of Waste Water (DB44/26-2001).

√

303-3 Water recycled and reused• Waste Management• Environmental Indicators Table

√

303-4 Water discharge 563374 tons in 2018 √

303-5 Water consumption Environmental Indicators Table √

GRI 300: Environmental TopicsTopic: Air Emissions and Waste



• Air Emissions• Waste Management

√



√

103-3 Evaluation of the management approach


√

56



GRI 305: Emissions

305-1 Direct (Scope 1) GHG emissions

• Environmental Indicators Table• No biogenic CO2 emissions.• Base year for the calculation is 2007

because of the available of data.• GWP data from IPCC Fifth Assessment

Report• Consolidation approach for emissions:

operational control.

√

305-2 Energy indirect (Scope 2) GHG emissions

• Environmental Indicators Table• Base year for the calculation is 2007




√

305-3 Other indirect (Scope 3) GHG emissions

• Environmental Indicators Table• Base year for the calculation is 2007




√

GRI 306: Effluents and Waste

306-2 Waste by type and disposal method

• Air Emissions• Waste Management• Environmental Indicators Table• Waste is disposed by designated

qualified waste disposal contractors

√

306-3 Significant spills No significant spills. √

57



GRI 400: Social TopicsTopic: Occupational Health and Safety

GRI 403: Occupational Health and Safety

403-1 Occupational health and safety management system

Occupational Health and Safety √

403-2 Hazard identification, risk assessment, and incident investigation

External specialists are invited to conduct identification, monitoring, and evaluation of health hazards at workplaces. The assessment includes VOCs (Benzene, Toluene, and Ethylbenzene, n-hexane, styrene), dust, noise, ambiance environments and others. Based on the assessment results, Health hazards are identified, with risk assessed. Continuous improvement plans are then developed and implemented to provide a safer work environment for every Leonian.

√

403-3 Occupational health services • Health Programme √

403-4 Worker participation, consultation, and communication on occupational health and safety

• Safety Training/Safety Promotion √

403-5 Worker training on occupational health and safety

• Safety Training √

403-6 Promotion of worker health • Safety Promotion √

403-7 Prevention and mitigation of occupational health and safety

• Occupational Health and Safety• In 2018,11 emergency response drills

were carried out to enhance emergency preparedness

√

403-8 Workers covered by an occupational health and safety management system

All Workers √

58



GRI 403: Occupational Health and Safety

403-9 Work-related injuries

• Social and Economic Indicators Table • There are totally 12 work-related injuries

in 2018, which are classified as minor injuries based on the “Occupational Safety Incidents Classification”. The number of high-consequence work-related injuries is zero.

√

403-10 Work-related ill health None √

GRI 400: Social TopicsTopic: Training and Education



Staff Training, Education, and Development √





GRI 404: Training and Education

404-1 Average hours of training per year per employee

• Social and Economic Indicators Table• Training is provided regardless of gender

√

404-2 Programs for upgrading employee skills and transition assistance programs

• Staff Training and Education √

404-3 Percentage of employees receiving regular performance and career development reviews

All staff members receive performance appraisal annually.

√

GRI 400: Social TopicsTopic: Product Responsibility



Green Materials √


Green Materials √

59





Green Materials √

GRI 417: Marketing and Labeling

Disclosure 417-1 Requirements for product and service information and labeling

Green Materials √

Disclosure 417-2 Incidents of non-compliance concerning product and service information and labeling

No incidents of non-compliance concerning product and service information and labeling.

√

Disclosure 417-3 Incidents of non-compliance concerning marketing communications

No incidents of non-compliance concerning marketing communications.

√

GRI 400: Social TopicsTopic: Local Communities



Community Engagement √





GRI 413: Local Communities

Disclosure 413-1 Operations with local community engagement, impact assessments, and development programs

• Community Engagement• All operations are implemented with

local community engagement, impact assessments, and/or development programs.

√

Disclosure 413-2 Operations with significant actual and potential negative impacts on local communities

• Community Engagement• Air Emissions• Waste Management

√

60



GRI 400: Social TopicsTopic: Supplier Assessment



Supplier Assessment and Collaboration √





GRI 308: Supplier Environmental Assessment

308-1 New suppliers that were screened using environmental criteria

All new suppliers have been screened using environmental criteria.

√

308-2 Negative environmental impacts in the supply chain and actions taken

All suppliers have been assessed for environmental impacts. No supplier has been identified as having significant actual or potential negative environmental impacts.

√

GRI 414: Supplier Social Assessment

414-1 New suppliers that were screened using social criteria

All new suppliers were screened using social criteria.

√

414-2 Negative social impacts in the supply chain and actions taken

All suppliers were assessed for social impacts. No supplier has been identified as having significant actual or potential negative social impacts.

√

61

HKEX ESG (Environmental, Social andGovernance) Guide Index

Subject Areas, Aspects, General Disclosures and KPIs

KPIs Cross-reference/Comments ExternalAssurance

A. EnvironmentalAspect A1: EmissionsA1.1 The types of emissions and respective emissions data

Environmental Indicators Table √

A1.2 Greenhouse gas emissions in total and, where appropriate, intensity


A1.3 Total hazardous waste produced and, where appropriate, intensity


A1.4 Total non-hazardous waste produced and, where appropriate, intensity


A1.5 Description of measures to mitigate emissions and results achieved

• Air Emissions• Waste Managementy

√

A1.6 Description of how hazardous and non-hazardous wastes are handled, reduction initiatives and results achieved

• Air Emissions• Waste Managementy• Environmental Indicators Table

√

A. EnvironmentalAspect A2: Use of Resources

A2.1 Direct and / or indirect energy consumption by type in total and intensity

• Environmental Indicators Table• 0.009 tons of CO2 emissions of fuel consumption from

non-renewable sources per production unit in 2018.• 0.494 tons of CO2 emissions of electricity consumption

per production unit in 2018.• 0.503 tons of CO2 emissions of fuel consumption and

electricity consumption within the organization per production unit in 2018.

√

A2.2 Water consumption in total and intensity Environmental Indicators Table √

62



A2.3 Description of energy use efficiency initiatives and results achieved


A2.4 Description of whether there is any issue in sourcing water that is fit for purpose, water efficiency initiatives and results achieved

• Air Emissions• Waste Managementy• Environmental Indicators Table

√

A2.5 Total packaging material used for finished products and, if applicable, with reference to per unit produced

Total packaging material used for finished products are 38,481 tons

√

A. EnvironmentalAspect A3: The Environment and Natural Resources

A3.1 Description of the significant impacts of activities on the environment and natural resources and the actions taken to manage them

• Green Materials• Air Emissions Control• Waste Management• Environmental Indicators Table

√

B. SocialAspect B1: Employment

B1.1 Total workforce by gender, employment type, age group and geographical region

Social and Economic Indicators Table √

B. SocialAspect B2: Health and Safety

B2.1 Number and rate of work-related fatalities No Fatality √

B2.3 Description of occupational health and safety measures adopted, how they are implemented and monitored

Occupational Health and Safety √

B. SocialAspect B3: Development and Training

B3.2 The average training hours completed per employee by gender and employee category

• Social and Economic Indicators Table• Training is provided regardless of gender

√

63



B. SocialAspect B5: Supply Chain ManagementB5.2 Description of practices relating to engaging suppliers, number of suppliers where the practices are being implemented, how they are implemented and monitored


B. SocialAspect B6: Product Responsibility

B6.1 Percentage of total products sold or shipped subject to recalls for safety and health reasons

No recalls for safety and health reasons √

B. SocialAspect B7: Anti-corruptionB7.1 Number of concluded legal cases regarding corrupt practices brought against the issuer or its employees during the reporting period and the outcomes of the cases

Governance and Anti-Corruption √

B7.2 Description of preventive measures and whistle-blowing procedures, how they are implemented and monitored

Governance and Anti-Corruption √

B. SocialAspect B8: Community InvestmentB8.1 Focus areas of contribution (e.g. education, environmental concerns, labour needs, health, culture, sport)

• Working and Living in Contentment

• Community Engagement√

B8.2 Resources contributed (e.g. money or time) to the focus area

• Working and Living in Contentment

• Community Engagement√

EDITORIAL POSTSCRIPTS

The cover of this report incorporates pictures of part of our sustainability initiatives and environ-mental facilities. Some involve large-scale projects, while others are more minor daily improve-ment activities. By challenging ourselves to continuously improve our performance in different aspects, we make our operations even more sustainable in every area.

This report is available on the Environment and Society page of Leo Paper Group’s website: ww-w.leo.com.hk

We look forward to receiving your feedback.

Feedback or inquiries on this report:

Integrated Management DepartmentTel: +852-2884-1374Email: [email protected]

For online feedback or inquiries, please send us a message at:http://www.leo.com.hk/contact.html

Date of Issue: April 2019 © Leo Paper Group 2019

Group Head Office:LEO PAPER GROUP (HONG KONG) LTD. Tel: (852) 2884-1374Fax: (852) 2513-0698Email: [email protected]

U.S.A. Head Office:LEO PAPER USATel: (425) 646-8801Fax: (425) 646-8805 Email: [email protected]

New York Sales Office:LEO PAPER USATel: (917) 305-0708Fax: (917) 305-0709 Email: [email protected]

U.K. Sales Office:LEO PAPER PRODUCTS (UK) LTD.Tel: 44 (0) 118-9165450Email: [email protected]

Bologna, Italy:Tel: +39 051 09226 10Fax: +39 051 09226 30Email: [email protected]

Europe Sales Office:LEO PAPER PRODUCTS (EUROPE) B.V.B.A.Antwerp, Belgium:Tel: +32 (0) 360 968 10Fax: +32 (0) 360 968 30 Email: [email protected]

about this report€¦ · about this report editor’s remarks ... ims about leo paper group...

Documents