Environment Sustainability

The Lai Yih Group is committed to addressing the issue of environmental sustainability to maintain natural resources and uphold the principles of sustainable business operations. We are dedicated to improving resource efficiency and reducing the environmental impact of our industry development. We integrate concepts related to environmental protection, renewable energy, and material recycling into our operational management framework. Additionally, we promote concrete environmental protection and energy-saving management programs to achieve the company's sustainability goals.

Carbon Reduction Goals

Achieving net-zero emissions is an ongoing commitment of the Lai Yih Group. To actively enhance energy efficiency, we continually promote energy-saving initiatives and expand the use of green energy strategies. We set annual overall energy-saving management goals and follow the commitments for annual greenhouse gas emission reductions established by our major brand customers. These commitments align with the standards of the Science-Based Targets initiative (SBTi). As a result, the Lai Yih Group has set carbon reduction goals to reduce approximately 64,982 t CO2e by 2030, using 2022 as the baseline year, in line with controlling greenhouse gas reductions and maintaining global warming below 1.5°C.

As global climate change intensifies, the Lai Yih Group remains vigilant about energy conservation and carbon reduction. We have made continuous efforts in carbon reduction initiatives, such as the implementation of solar energy projects in response to local regulations in Vietnam. Since 2020, our Vietnamese factories have provided rooftops for solar energy construction contractors, planning and purchasing green energy. In 2022, approximately 15% of the Lai Yih Group's total electricity consumption came from solar green energy. We also continue to promote the replacement of energy-efficient equipment within our factories. For example, we target LED energy-saving bulbs for lighting upgrades in our headquarters and factories, as well as implement energy-saving improvements for equipment such as cutting machines and compressors to reduce heat loss. In the future, the Lai Yih Group will continue to refine its goals in energy conservation, water conservation, and waste reduction to achieve the goal of net-zero emissions factories.

Environmental Management System Certification

All of our global factories comply with local government regulations, customer requirements, and company policies to prevent environmental impact during the production process. As of 2023, approximately 50% of the Lai Yih Group's related entities have implemented ISO 14001:2015 environmental management systems. The remaining factories have implemented similar environmental management mechanisms to meet various requirements and ensure compliance with local and national regulations.

Subsidiaries with "ISO 14001 Environmental Management System" and "ISO 50001 Energy Management System" Certification

Climate Change Risk Management

The Lai Yih Group responds to the United Nations' 17 Sustainable Development Goals (SDGs) with a specific focus on climate action indicators to ensure sustainable production practices and address operational risks and impacts associated with environmental issues.

The Lai Yi Group produces over 80% of its footwear products in Southeast Asia, a region that has experienced an increasing likelihood of natural disasters and climate variations due to climate change in recent years, including heavy rainfall and drought. These environmental changes pose risks to our production and operations. Therefore, in addition to closely monitoring international trends in climate change and regulatory requirements, we engage in ongoing discussions regarding the impact of relevant environmental risks on our supply chain. Our aim is to mitigate the effects of climate change on our operations to achieve the sustainability goals of the Lai Yih Group.

Environmental Impact Disclosure

Greenhouse gases

Laiyi Group adopts a truth-seeking and pragmatic attitude in the greenhouse gas inventory data statistics. In order to better understand its specific role in greenhouse gas emissions, it will inventory the greenhouse gas emissions of Category 3 for the first time in 2022, and will do so in the future. We will continue to work hard on the road to carbon reduction with the goal of net zero emissions.

Water resources

Laiyi's use of water resources mainly comes from the daily operations and process needs of each production base. The water used mainly comes from tap water supplied by third parties. Laiyi pays attention to the principles of resource sustainability and resource efficiency maximization. Some factories The recycled water that has been recycled internally is used in non-operating projects.

Waste

Laiyi starts from the inside in waste management, taking into account local regulatory requirements, customer needs and the rights and interests of all stakeholders to establish qualified company policies and treatment procedures, and develop management strategies that are in line with the concept of sustainable development, including waste Reduce, properly dispose, and recycle, and strive to implement effective management of various wastes to reduce the impact it may have on the external environment.

Energy Saving and Carbon Reduction Plan