Corporate Governance

Sustainability

Yue Yuen, as a responsible leader in the industry, is a member of World Federation of Sporting Goods Industry (WFSGI) and supports the principles of the WFSGI Code of Conduct since 2016. The Group's parent company Pou Chen also joined Fair Labor Association (FLA), a non-profit organization dedicated to protecting workers' rights around the world, as its participating supplier since 2011, and the social compliance program of Pou Chen has been accredited by the FLA since 2018, making the Group the first and only FLA-accredited footwear supplier globally. The accreditation together with the latest audited reports recognized the Group’s commitment to “FLA Workplace Code of Conducts” and “Principles of Fair Labor & Responsible production”.

The Group follows a sustainable development strategy that provides employees with a safe and healthy working environment, while also safeguarding its sustainable development and operations. This strategy also covers talent training and development, the promotion and implementation of supply chain management policies, and the administration of a set of comprehensive policies, mechanisms and measures for environmental protection, community involvement and participation. A sustainable development team established by the Group is responsible for the consolidation and provision of strategic studies and proposals, as well as managing corporate social responsibility issues that affect sustainable production at the Group’s manufacturing plants across different regions. These include addressing codes of conducts from brand customers for sustainable operations, complying with the laws and regulations imposed by local regulatory authorities, managing labor relations, and responding to audits and inspections of the Group’s factories undertaken by non-government organizations. The sustainable development team regularly reports to the management on the performance of the aforesaid affairs and provides recommendations.

Our Employees

The Group upholds the idea of “Focus on People, for the People”. It believes that employees are important assets and takes a holistic approach towards recruitment, employment, training and retention. Team events are frequently organized to build a sense of belonging, as well as to increase employees’ understanding of the Group and identification with its core values of “Professionalism, Dedication, Innovation and Service”. The Group provides comprehensive training, competitive compensation and diversified communication channels with an aim to improve professionalism and enthusiasm, as well as to attract talent. A performance management system has also been introduced to effectively motivate employees, assist with their continuous development and help with their career planning – in line with the Group’s objective to achieve sustainable operations. The Group is also committed to providing employees with an equal, safe and healthy work environment; to complying with local laws and regulations; and to enhancing constructive labor relations. The Group complies with applicable labor laws and regulations regarding dismissal, recruitment and promotion, equal opportunities, diversity and anti-discrimination. It has not received any complaint or notifications from governmental authorities for materially contravening any of the employment practices referred to above.

2020 Manpower Structure

Manpower Statistics by Region
Others Mainland China Indonesia Vietnam
Manpower
Manpower
Manpower
Manpower
0%
25%
50%
75%
100%
Focus on People For the People R e c r u i t m e n t Recruitment Diversified recruitment channels Bringing together talents of diverse backgrounds Equal opportunity and human rights E d u c a t i o n & T r a i n i n g Education & Training Professional training courses Functional knowledge training Self-development training o C m m u n i c a t i o n M e c h a n i s m Communication Mechanism Employees' suggestions Complaint mechanism R e m u n e r a t i o n S y s t e m Remuneration System Competitive remuneration system Profit sharing bonus system E m p l o y e e s B e n e fi t s Employees' Benefits Group insurance; and daily life caring Health management activities Employees' Family day

Caring For Our People

Caring of Our People - Kindergarten

The Group has set up a number of kindergartens for employees’ children. One example is the “Petites Fleurs Kindergarten” (Farming Kindergarten) in Bien Hoa City, Dong Nai province in Vietnam, which was opened with assistance from a brand customer and local politicians.

The “Petites Fleurs Kindergarten” features a green building design that reflects the Group’s commitment to corporate social responsibility. The design features include low energy consumption, planted green roofs for lowering temperature, water-saving measures and environmentally-friendly building materials.

The kindergarten received a green building certificate issued by the chief executive of the Vietnam Green Building Council (LOTUS) on 1 March 2014. It was also awarded by Designboom as one of the “World’s Top Ten Cultural Buildings” and was further endorsed by the Vice President of Vietnam who officially opened the kindergarten.

Other accolades include:

  • FuturArc Prize, Professional category 2nd Prize / Farming Kindergarten 2014
  • World Architecture Festival (WAF) /Shortlist / Farming Kindergarten
  • Building of the year 2014 on Archdaily, Educational Architecture category winner /Farming Kindergarten
  • National Architectural Prize (Vietnam), Jury award / Farming Kindergarten 2015
  • Green Good Design, USA / Farming Kindergarten
  • IAA (International Architecture Awards) / Farming Kindergarten 2015
  • AR school, finalist / Farming Kindergarten
  • ARCASIA Award 2016, Hong Kong / Farming Kindergarten
  • 30 finalists of RIBA international award (UK) 2016
  • Honorable mention of Zumtobel Award, Switzerland 2017

Environment

Footwear manufacturing is closely tied to environmental protection and the use of natural resources, and the Group has established a set of management policies, mechanisms and measures to ensure sustainable development and operations. It is continuously striving to enhance efficiency in the use of energy, water and materials and complying with local environmental regulations, including those that have a significant impact on its operations such as regulations governing greenhouse gas (“GHG”) emissions, discharges into water and land, and the generation of hazardous and non-hazardous waste. The Group’s efforts in this area align with international standards, such as allowing regular GHG emission inspections; properly treating effluent and air emissions; reducing, classifying and recycling waste; and obtaining consultations on energy conservation and carbon reduction at factories with high energy consumption levels, among others.

Climate Change Risk Management

In response to the UN's Climate Action – one of the 17 Sustainable Development Goals (SDGs) and Paris Agreement, the Group actively takes measures to ensure sustainable production for energy conservation and carbon reduction that takes place, in order to shed operational risks and impacts caused by climate anomalies.

In addition to paying attention to the trends of climate change as well as the international policy and legal requirements, the Group will, in terms of energy management, carry out various continuous improvement action plans for energy conservation and carbon reduction, leverage sustainable production process technology to improve energy efficiency of the factories, as well as facilitate the solar energy project, with the target of effectively reducing GHG emissions caused by energy consumption, and thereby mitigating climate change risks.

Energy Saving and Carbon Reduction Target

Energy saving and carbon reduction is the direction of the Group's sustainable efforts. Through the establishment of EMS(Energy Monitoring System), and the introduction of energy-saving equipment and system, including lighting system, compressed air system, cooling water system, steam system, chilled water system and processed equipment, such initiatives enhanced the overall energy efficiency and reduced energy consumption. This also resulted in a decline of the GHG emissions. The Group also sets its energy-saving target so as to improve energy efficiency proactively. With continuous commitment to the strategy to enhance energy saving and usage of renewable energy, the Group expects to achieve the net-zero increase target in GHG emissions by 2025, as compared with the base year of 2019.

Use and Pocurement of Raw Materials and Packing Materials Use and  Pocurement of Raw Materials and Packing Materials
Effective Use of Resources Effective Use of Resources
Use of Energy Use of energy
Climate Change Risk Management
Environmental Management Policy Environmental Management Compliance
Water Resources Utilization Water Resources Utilization
Greenhouse Gas and Carbon Emission
Environmental Management Compliance
Air Pollution Source Management Air Pollution Source Management
Pollution Prevention and Control Management
Green Office
Waste Management Waste Management

Social Engagement

The Group adheres to a belief of “taking from society and giving back to society”. In line with its core value of ‘Service’, the Group actively organizes and participates in community activities related to education, health and medical care, and local public relations.

The Group upholds the idea of “Co-prosperity with the Community” in each community where it has production bases, so as to achieve its objective of sustainable operation. The Group is committed to enhancing its social value and maintaining relationships with interest groups that are relevant to its business operations.