2023/24 Bosiden ESG Transcript: Green Footprint Of Continuous Progress

Bosden, July 26, 2024 BOSIDENG (3998. HK) actively released ESG (Environmental, Social and Governance) report for the eighth consecutive year. Founder of Bosiden brand Bosiden Group Gao Dekang, Chairman and President of the Board of Directors, said that Bosiden Group has been focusing on down jackets for 48 years, always adhering to the original intention of "Bosiden China warms the world", pursuing long-term and social value creation, and delivering love and warmth to global consumers and the public. As a leading enterprise in the industry, it actively practices the ESG concept and sustainable fashion, integrates its responsibility for employees, industry, environment and society into the corporate strategy and development practice, and promotes high-quality development by improving "quality" to "new".

ESG (Environment, Society and Governance) is a method to assess the sustainability and ethical impact of enterprises. For investors, it is an important reference index to judge whether it is suitable for long-term investment; For the market, it is an important standard to evaluate the performance of listed companies; For enterprises themselves, it is a strategic tool to help enterprises achieve long-term success and sustainable development. At present, ESG has become an indispensable part for the market and investors to judge the quality of enterprise development.

In fiscal year 2023/24, Bosideng Remarkable achievements have been made, realizing the "double growth" of steady performance and profit for eight consecutive years. In this context, what are the positive achievements of Bosiden on the path of ESG (environment, society and governance) sustainable development?

　　 Build ESG strategic framework and create sustainable fashion ecology

In the 2023/24 fiscal year, Bosiden built a "1+3+X" ESG (environment, society and governance) strategic framework around "one vision, three goals and X initiatives". This framework focuses on consumers and aims to integrate ESG concepts, objectives and core measures into the upstream and downstream supply chain, so as to lead the sustainable fashion development of the whole value chain and promote the industry to achieve net zero emissions.

Bosiden always adheres to the original mission of "China Bosiden, Warming the World", actively practices the ESG concept and sustainable fashion. In the 2023/24 fiscal year, Bosiden has made remarkable achievements in the fields of "efficient governance, natural improvement, product innovation, and people-oriented", effectively improving the social influence and competitiveness of Bosiden brand.

In 2024, Bosiden will work in MSCI ESG rating maintained the industry leading "A" rating, and was upgraded to "B" rating in the 2023 climate change rating of CDP Global Environmental Information Research Center. In addition, Bosiden has also won many honors and recognition, including being selected into the S&P Global Sustainable Development Yearbook (China Version) for the first time; The company was awarded the title of "leader" of China's industrial carbon peak by the China Federation of Industrial Economics; As well as the "2023 ESG New Benchmark Enterprise Award" and "Annual Award for the Most Socially Responsible Listed Company" issued by Securities Star. At the same time, it was rated as "ESG Excellent Enterprise for Sustainable Development" in the annual ESG enterprise and organization selection of the Grunghui Jinge Award.

　　 Multi field development to achieve sustainable fashion ecology

In the field of "ESG efficient governance", Bosiden conducted training on business ethics and anti-corruption for all middle and senior management of the Group. The report shows that in the 2023/24 fiscal year, Bosiden joined more than 1100 stakeholders to participate in the research on important issues of ESG, and all suppliers signed the Supplier Integrity Commitment to ensure the transparency and compliance of business behavior. The Privacy Policy and Privacy Protection Agreement were formulated to ensure the information security of consumers. In addition, Bosiden also formulated the Shareholder Communication Policy to ensure effective two-way communication with shareholders. These measures have comprehensively strengthened the company's management and helped the company develop healthily and stably.

In the field of "nature is better", Bosiden attaches great importance to the safety, sustainability and traceability of raw materials. The report shows that 100% of down has passed the Responsible Down Standard (RDS) certification, and 75% of down has obtained the ecological textile OEKO-TEX ® Certified, 58% of down is Bluesign ® Certification, and the whole process traceability can be achieved through the GIMS system developed by the brand itself. At the same time, Bosiden continues to expand the use of renewable energy. In the 2023/24 fiscal year, the photovoltaic power generation capacity of the logistics park will reach 900 megawatt hours, accounting for about 18% of the total power consumption, and has launched the fourth phase of Alxa Carbon Central Peace Forest project, which plans to reforest 1000 mu. In addition, Bosiden also paid attention to the issue of climate change, formulated the TCFD report for the first time, completed the verification of greenhouse gas emissions ranging from 1 to 3, and obtained the ISO 14064-1:2018 Reasonably guarantee the level certification and effectively protect the green ecology.

In the field of "Product Pioneer", Bosiden has focused on the down jacket field for 48 years, cooperated with upstream and downstream suppliers, and innovated green fashion with ingenuity. By the end of fiscal year 2023/24, 971 patents had been granted and 545 patents had been applied for. At the same time, Bosiden has also formulated the Supplier Chemical Control Manual and the Requirements for the List of Restricted Substances of Bosiden Chemicals, which define the prohibited and restricted substances of chemicals and their restrictions, elimination and substitution requirements; Joined the Zero Emission Alliance of Hazardous Chemicals (ZDHC) and established the Responsible Procurement Policy, which requires suppliers to comply with environmental and social responsibility standards and gradually increase the proportion of sustainable raw materials. In addition, Bosiden has completed the creation of zero carbon products for a variety of down jackets and sun protection clothing products, including environmental protection and zero pressure down jackets that won the German Red Dot Design Award, and new biodegradable fabrics that won the ISPO Global Design Award (environmental protection pioneer), demonstrating Bosiden's technological accumulation and strong ability in fashion innovation.

In the field of "people-oriented", Bosiden provides employees with an option incentive, learning and upgrading, and a humanistic working environment. In fiscal year 2023/24, the seventh equity incentive was granted to 170 core employees, totaling 589.88 million shares; In terms of staff learning, Bosideng Business School has invested more than 10 million yuan in staff training and upgrading, and all regular staff have received more than 178000 hours of training in total; In terms of fairness and anti discrimination, women accounted for more than 50% of Bosden's internal management, an increase of 1.8 percentage points over the same period last year. In addition, Bosiden also has a gym, mother and baby room and other facilities inside the enterprise. It does not regularly hold family activity days, birthday parties, food festivals and other forms of employee care activities, laying a solid foundation for the enterprise to create a win-win future.

Bosiden not only attaches importance to the well-being of employees, but also is keen on social welfare. By the end of fiscal year 2023/24, Bosiden Public Welfare Foundation had donated more than 1.4 billion yuan to the society, benefiting 1.589 million people, demonstrating the role of China's leading brand.

　　 Moving forward and sustainable development

Since 1976, relying on 8 sewing machines and 11 farmers to start from scratch, we have set up "a group of people, a lifetime, one thing" to do a better down jacket. After years of changes, the brand's original intention remains unchanged. On the road of green development, Bosiden has gradually formed a multi-dimensional community building through building an ESG community platform and cooperating with stakeholders to create a sustainable development home.

Standing at a new starting point full of challenges and opportunities, China Service Network believes that Bosiden will continue to develop steadily. On the road of ESG (environment, society and governance) governance, Bosiden will continue to focus on the "1+3+X" ESG strategic framework, continue to adhere to the original intention of "China Bosiden, warm the world", implement the ESG strategic vision of "consumer oriented, leading sustainable fashion", and make contributions to the sustainable development of the global fashion industry. (Image source: Bosideng )