ESG 2021 (4/30)

BEYOND OURNEXT CHAPTER i ndi a

ENVI RONMENT AL, SOCI AL&GOVERNANCE REPORT2021 bangl ades h

c hi na

v i et nam

us a

hongk ong

c ambodi a

i ndones i a

phi l i ppi nes

my a nma r

may anmar

LUEN THAIHOLDI NGSLI MI TED

BEYOND OURNEXT CHAPTER ENVI RONMENT AL,SOCI AL&GOVERNANCE REPORT2021

C O N TE N TS

ASSESSMENTOFENVI RONMENTALANDSOCI ALRI SKS I N THESUPPL YCHAI N

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LuenThaiHol di ngsLi mi t ed( her ei naf t err ef er r edt oas“L uenThai ”,“t heCompany ”,“we”,or “our ”) ,t oget herwi t hi t s s ubs i di ar i es( c ol l ec t i v el y ,t heGr oup)( St oc kc ode:0311) ,endeav or st oi nt egr at ec or por at es oc i alr es pons i bi l i t yi nt oour s t r at egi cpl anni ngandbus i nes sac t i v i t i est hr ought r ans par entmeas ur es ,ai mi ngt omax i mi z ev al uesandex per i enc eof ourc us t omer s ,nur t ur eourempl oy ees ’pot ent i al s ,c ons er v eour env i r onment ,and ex t end c ar et o ourc ommuni t yi n adher enc et oourc or por at ev al ues .

The 2021 Env i r onment al ,Soc i al ,and Gov er nanc e( ESG)Repor t( t he “Repor t ”)demons t r at es ourdedi c at i on and per f or manc ei npur s ui ng s us t ai nabi l i t ydur i ng t heper i od f r om 1J anuar yt o31Dec ember2021( “2021”) ,whi c hi st he s ameast hef i nanc i alper i odoft heGr oup’ s2021AnnualRepor t . Rel ev antc ont ent swer er ef er r edt opr ev i ousper i od whenneeded.

The Repor tpr es ent st he ESG managementappr oac h,s us t ai nabi l i t ymi l es t ones ,and mat er i alt opi c sofourgl obal appar elandac c es s or i esbus i nes s es .

The s c ope oft he Repor tr epr es ent ed t he Gr oup’ sappar eland ac c es s or i esgl obaloper at i ons ,c ov er i ng t he Peopl e’ s Republ i c ofChi na ( “PRC”)i nc l udi ng t he headquar t er si n Hong Kong Spec i alAdmi ni s t r at i v e Regi on ( “HKSAR”) , andt heot her19oper at i ons i t esamongs tBangl ades h,Cambodi a,I ndi a,I ndones i a,My anmar ,Phi l i ppi nes ,Uni t edSt at esof Amer i c a( “USA”) ,and ex c l udi ng one ac c es s or i es manuf ac t ur i ng s i t ei nt he Phi l i ppi nes whi c h was t empor ar i l y c l os edi n2021.

Col l ec t i on,v al i dat i on,andanal y s i sofenv i r onment aldat ahav ebeenc oor di nat edbyourESG T eam wi t hengagement s uppor tf r om at hi r dpar t ys pec i al i s tc ons ul t antf ac i l i t at i ngt hepr oc es s .

5

TheRepor ti spr epar edi nac c or danc ewi t ht heEnv i r onment al ,Soc i al andGov er nanc eRepor t i ngGui deunderAppendi x27 t ot heRul esGov er ni ngt heLi s t i ngofSec ur i t i esont heSt oc kEx c hangeofHongKongLi mi t ed( HKExESGRepor t i ngGui de) .

Aspar toft heGr oup’ songoi ngs us t ai nabi l i t yi ni t i at i v est oal i gnwi t hgl obalESG r epor t i ngi ndi c at or s ,wehav eal s omade r ef er enc et ot heGl obalRepor t i ngI ni t i at i v e( GRI )Sus t ai nabi l i t yRepor t i ngSt andar dsf orenv i r onment al ands oc i al t opi c s ( f ordet ai l s ,r ef ert ot heGRICont entI ndexoft hi sr epor t ) .

TheRepor thasbeenr ev i ewedandappr ov edbyt heBoar dofDi r ec t or soft heGr oupandi spubl i c l yav ai l abl ei nEngl i s hand Chi nes e.Shoul dt her e be any di s c r epanc i esbet ween t he Engl i s h and Chi nes ev er s i ons ,t he Engl i s hv er s i on s hal l pr ev ai l .

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Repor t i ngpr i nc i pl esofMat er i al i t y ,Quant i t at i v e,Bal anc e,andCons i s t enc yunderHKExESG Repor t i ngGui dear ef ol l owed i nt hepr epar at i onoft hi sRepor tt oens ur eunbi as edc ont entandqual i t ydi s c l os ur eandpr es ent at i onper t i nentt ot he Gr oup’ sESG per f or manc eandi ni t i at i v es .

Mat er i al i t y

Bal anc e

The di s c l os ed i nf or mat i on ar e bas ed on t he t hr es hol d atwhi c h ESG i s s ues

The Repor tpr ov i des an obj ec t i v e and unbi as ed pi c t ur e oft he Gr oup’ s

det er mi ned by t he boar d ar e s uf f i c i ent l yi mpor t ant t o i nv es t or s and

s us t ai nabi l i t yper f or manc e dur i ng t he r epor t i ng per i od,av oi di ng s el ec t i ons ,

ot hers t ak ehol der st hatt heys houl dber epor t ed.

omi s s i ons ,orpr es ent at i onf or mat st hatmayi nappr opr i at el yi nf l uenc eadec i s i on orj udgmentbyt her epor tr eader .

Quant i t at i ve

Cons i s t enc y

Al ldi s c l os edi nf or mat i onar eor gani z edandc al c ul at edac c or di ngt oas er i esof

The Repor t us es c ons i s t ent met hodol ogi es t o al l ow f or meani ngf ul

i nt er nat i onal l ys t andar di z edmet hodol ogi es .

KPI si nr es pec tofhi s t or i c al dat aar e

c ompar i s onsofESG dat aov ert i me.

meas ur abl e.TheCompany ’ st ar get sar es ett or educ eapar t i c ul ari mpac tand t her ebyt heef f ec t i v enes sofESG pol i c i esandmanagements y s t emsc anbe ev al uat edandv al i dat ed.Quant i t at i v ei nf or mat i oni sac c ompani edbynar r at i v es ex pl ai ni ngi t spur pos e, i mpac t s , andgi v i ngc ompar at i v edat awher eappr opr i at e.

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I N PHOTO: RAYMONDT AN ( CEO PARTNEROF L UEN THAIHOL DI NGS)

Sus t ai nabi l i t yi s gat her i ng moment um wor l dwi de wi t ht he i nc r eas i ng at t ent i on t owar ds v ar i ous i s s ues r el at ed t o c l i mat ec hange,humanr i ght sands oc i alj us t i c e.Theongoi ngpandemi ci shei ght eni ngenv i r onment alawar enes sand dr i v i ngc hangesnotonl yatt hegov er nmentandc ompanyl ev el s ,butal s oatt hei ndi v i duall ev el .ForusatL uenThai , s us t ai nabi l i t yi snot hi ng new.I ti sani mpor t antpar tofourhi s t or yand ac r i t i c alel ementofourf ut ur e.Wer ec ogni z e t he i mpor t anc e ofembeddi ng s us t ai nabi l i t yatt he hear tofourc ul t ur e aswe l ookbey ond t he her e and now t o c r eat eas us t ai nabl ebus i nes st hatc ant hr i v ec ommer c i al l yt hr oughpos i t i oni ng s oc i alv al uec r eat i onatt hec ent erof ourbus i nes ss t r at egy .We ar e al s o awar et hatwe need t o do muc h mor et han f ol l owi ng t he r oadmap ofr adi c al dec ar boni z at i on t o ac hi ev et he ambi t i ous s us t ai nabi l i t y goal s .T o max i mi z e ouri mpac t ,we mus twor k wi t h our c us t omer s and par t ner s who s har e ourambi t i on,t ak e bol d ac t i ons t or ei nv entourbus i nes s es ,and i mpl ement br eak t hr ought ec hnol ogi est os hapet hei ndus t r yt r ans i t i ont owar dadec ar boni z edf ut ur e.

Reaf fir m LuenThai ’ sc ommi t mentt ot heUni t edNat i onsGl obalCompac t( UNGC) Iam pl eas edt or enewLuenThai ’ sc ommi t mentt ot heUNGCand,i npar t i c ul ar ,r eaf f i r mt heal i gnmentofouroper at i ons andbus i nes ss t r at egywi t hi t sT enpr i nc i pl esonHumanRi ght s ,Labour ,Env i r onmentandAnt i Cor r upt i on.Wewer ean ear l ys i gnat or yt ot heUNGCs i nc e2003,whenoneofourkeybus i nes suni t smadeac ommi t mentt os uppor tt he i ni t i at i vest obui l damor epeac ef ulandpr os per ouswor l df oral l .Ont heGr oupl ev el ,ourannualCommuni c at i onon Pr ogr es s

t hat det ai l s t he ac t i ons i mpl ement ed by L uen Thai i s made

att heGCAdv anc edl ev elf orf ourc ons ec ut i v ey ear ss i nc e2018.Mov i ngf or war d,wewi l l c ont i nue t o ac tr es pons i bl y ,r ef i ne our t ar get s and mak e bi gger s us t ai nabi l i t y

W ESUPPORT

c ommi t ment st os uppor tt he meas ur est ot ac k l e env i r onment aldanger sand s oc i et al c hal l enges ,f ur t herc ont r i but et ot he Uni t ed Nat i on’ sSus t ai nabl e Dev el opmentGoal s .

Ourpur pos et odr i vepos i t i vec hangesf orpeopl e,c ommuni t y ,andenvi r onmenti s bui l tf r om ourr oot sofeXt r aOr di nar y( XO)c ul t ur e,and c ar r i esa l ongs t andi ng l egac yofSus t ai nabl eShar edSuc c es swi t hourpar t ner si nt ot hef ut ur e.

F OROURPEOPL E

Wel l bei ngandhappi nes sofourpeopl ear et hef oundat i onofas uc c es s f ulbus i nes s .

Wehavear es pons i bi l i t yt odoever yt hi ngwec ant oas s ur et hatever yonei ss af ewhi l ewor ki ngatoronbehal f ofLuenThai .Whi l et heCOVI D19out br eakhasputust ot het es t ,Iam gr at i f i edbyt her es pons i bl eac t i onsofal lt hos e ac r os souror gani z at i onandt heabi l i t yt oadj us tt or api dc hangesi nt hewor k i ngenv i r onment .

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Apar tf r om f ol l owi ngs t r i ngentgui del i nest opr ev entt hes pr eadoft hev i r usami ds tt hepandemi c ,weenc our agedand i nc ent i v i z edal l el i gi bl eempl oy eest ogetv ac c i nat edbyof f er i ngt hem anex t r adayofpai dl eav eandpr i z esdonat edbyt he t op managementt eam.AsofMar c h 2022,ov er99% ofourempl oy eesgl obal l yr ec ei v ed f i r s tdos e oft he hi ghl y ef f ec t i v eCOVI D19v ac c i nes ,and96% ofempl oy eesr ec ei v edt hes ec onddos eoft hev ac c i ne,wi t h53% r ec ei v i ngat hi r d boos t erdos e.Weac t eds wi f t l yi nmanagi ngt henew wor k pl ac et r ans f or mat i ont oi nc r eas ef l ex i bi l i t ybyi mpl ement i ng r emot ewor k i ngandf l ex i bl ewor khour spol i c i es .Weal s odi gi t i z edl egac ypr oc es s esandof f er edappbas eds ol ut i onsf or ev er y dayt as k s .Thes uc c es s f uli mpl ement at i onofourr es pons es t r at egi esi sahuges t epf or war di nbr i ngi ngt hi spandemi c underc ont r olandens ur i ngt hec ont i nui t yofbus i nes s .

OurXO c ul t ur ewasex empl i f i edwhenoneofourpr oduc t i onf ac i l i t i esi nCebu,Phi l i ppi neswashi tbyT y phoonRaii n Dec ember2021.Iam s ot hank f uland pl eas ed t os eet hededi c at i onand l ong hour sourl eader s hi pt eam wor k ed i n handl i ngt hes i t uat i onbot hons i t eandr emot el yt opr ov i det i mel ys uppor tf oral lwor k er swhower eaf f ec t ed.Weac t i v at ed ourXO Car epr ogr am i mmedi at el yandr ai s edanex t r aUSD 300, 000i nl es st hant woday sf r om ourShar ehol derOr i ent I nt er nat i onalHol di ngs ,ourGr oupf ounderDr .T anSi uLi n,andmy s el ft oaddr es st hei mmedi at eneedsofourwor k er sand t hei rf ami l i es .Iam gr at ef ult hatnoonewashur t ,andourf ac i l i t ywasabl et or es umeoper at i onst woweek sl at erandbac k t of ul loper at i onsonemont haf t ert het y phoon.

T oenabl epeopl et ot hr i v eatLuenThai ,wewor kt obui l dapos i t i v epl ac ewher eev er yempl oy eei sr es pec t ed,v al ued, and c onnec t ed t hr ough pr omot i ng di v er s i t yand i nc l us i on i n ourwor k f or c e.Ourac hi ev ement sar er ef l ec t ed i nt he GRA( gender ,r ac e,andage)dat awhi c hs howswehav eabal anc edt eam wi t hamal ef emal er at i oof5842per c entatt he di r ec t or s ’l ev elandabov e.Thedat aal s or ev eal st hatourc ul t ur eofdi v er s i t yhasat t r ac t edt al ent edpeopl ef r om ov er20 di f f er entc ount r i esar oundt hewor l d.Weal s os t r i v et or emov eagebi ast owar dy oungerempl oy eest hr oughpr omot i ngt he r ev er s ement or i ngpr ogr am wher es eni orex ec ut i v esar ement or edbyay oungerormor ej uni orpr of es s i onal .It r us tt hi s woul dbeanef f ec t i v ewayt oc l os egener at i onalgapsandal l ow ours eni ormanagementt eam t ol ear nandl ev er aget he f r es hper s pec t i v es ,i nnov at i ons ,andc r eat i v i t yofy oungl eader s .

F OROURCOMMUNI T Y

I ti sourr es pons i bi l i t yt odoours har et omeett heneedsofs oc i et yas i def r om ourown.

Luen Thaihasa l ong hi s t or y ofs uppor t i ng ourc ommuni t i est hr ough c ol l abor at i on and c ommuni t y engagement .

OurXO Car ef orCommuni t y Pl an f oc us eson pr omot i ng empl oyee awar enes sand vol unt eer i s mt os er ve and c ont r i but et o a br oader c ommuni t y .Dur i ng t he pandemi c ,t he Gr oup c ont r i but ed a c ombi nat i on ofmonet ar y donat i ons ,medi c i nes ,per s onalpr ot ec t i v e equi pment ,hy gi ene and f ood pr oduc t st o empl oy ees ,i ns t i t ut es and c ommuni t ygr oups .

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Apar tf r om t he ongoi ng pr ogr amss uc h as“XO Ki ds ”t o uphol dc hi l dr en’ sr i ght sand “Donat e an Hour ”t o boos t peopl e’ spar t i c i pat i oni nc ommuni t ywor k ,weal s odev el op new pr ogr amseac hy eari ndi f f er entl oc at i onsar ound t he wor l dt odeepenourengagementands t r engt henourc ont r i but i ont os oc i et y .

Hel pi ng c hi l dr enbec omeXO Ki dsi sapr i or i t yofLuenThai .Undert he “XO Ki ds ”i ni t i at i v es ,wehav edev el oped pr ogr amst hatpr ov i deac c es st os por t s( s uc hasf oot bal l ) ,per f or mi ngar t s ,s k i l l sdev el opmentt r ai ni ng,ands c hol ar s hi ps f orunder pr i v i l eged c hi l dr en t hr ough ourl ongt er m c ol l abor at i on wi t hT ul oy Foundat i on i n Phi l i ppi nes and ot her or gani z at i onsi ndi f f er entl oc at i ons .I n2021,wel aunc hedXO Uni t edFoot bal lCl ubi nCambodi at oenabl ec hi l dr ent o l ear nf oot bal l ,s etc l eargoal sand pl ansf orpar t i c i pant st o dev el op t he phy s i c al ,ment al ,and emot i onalgr owt h.

Wewi l lc ont i nuet os t r engt henourc onnec t i onswi t hl oc alc ommuni t i est ounder s t andt hei rneeds .Wel ookf or war dt o f ur t herex pl or eoppor t uni t i est obr i ngt angi bl ebenef i t st ol oc alc ommuni t i est hr oughpar t ner s hi ps ,empl oy eev ol unt eer s anddonat i ons .

F OROURENVI RONMENT

Ec onomi cgr owt handenvi r onment alper f or manc emus tgohandi nhand.

Webel i ev et hebus i nes ss t r at egyt hati nc l udesEnv i r onment al ,Soc i alandGov er nanc e( ESG)f ac t or sandbr oaders y s t emi c i s s uesc anl eadt os us t ai nabl eout c omesandl ongt er mc or por at eheal t h.Wear ec onfidentt hatwewi l ll eadt hec hange f ors us t ai nabi l i t y ,notonl ybas edonourc ul t ur eofgover nanc eands oc i alr es pons i bi l i t y ,butal s obybei ngatt he l eadi ngedgeoft ec hnol ogyi nnovat i onandadopt i on.

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We hav e opened anew c hapt eri nt he c ompany ’ shi s t or ywi t ht he f or mat i on ofj oi ntv ent ur eswi t h NTX™ t o bui l d adv anc ed dy ei ng and pr i nt i ng pr oduc t i onc ent erf eat ur ed wi t hCool t r ans ™ c ol or at i ont ec hnol ogi esi nCambodi aand Vi et nam.The us e ofec of r i endl y wat er l es st ex t i l ec ol or at i on t ec hnol ogy s i gni f i c ant l yr educ es wat er ,ener gy ,and c hemi c alus e,as wel las f ur t herc ut t i ng ourc ar bon f oot pr i ntand ov er al lwas t ed mat er i al s whi l ek eepi ng hi ghl y c ompet i t i v e ec onomi c s .We ar e al s o wor k i ng t o getChi napr oduc t i on s i t esup and r unni ng f orCool t r ans ™ i nt he c omi ngy earwi t hi nc r eas i ngc us t omerdemand.

We hav e al s o ac c el er at ed t he pac e ofdi gi t alt r ans f or mat i on t o dev el op an AIs y s t em t hatwi l lhel p opt i mi z e t he pr oduc t i onandmanuf ac t ur i ngpr oc es sf orouri ndus t r y .Ourdi gi t als ol ut i onswer eawar dedwi t ht heSof t war e–Appar el t r ophyatHongKongBus i nes sT ec hnol ogyEx c el l enc eAwar ds .

Weal s owont heBes ti nDi gi t alManuf ac t ur i ngawar df r om ourmaj orc us t omerf ort hi r dy eari nar ow r ec ogni z i ngusas t hel eaderi ndi gi t al i z at i onamongt hemanyel i t emanuf ac t ur i ngpar t ner sac r os st hegl obe.

The f ul l s ui t e ofouri nnov at i v es ol ut i ons( s uc h asNTX™ nanof i bert ec hnol ogy ,NTX™ wat er l es sf abr i cc ol or i ng and pr i nt i ng t ec hnol ogy ,Heat T r anx pr oduc tc ol or i ng and pr i nt i ng t ec hnol ogy ,manuf ac t ur i ng pr oc es s esaut omat i on,AI and di gi t als ol ut i ons )enabl esf abr i c / mat er i ali nnov at i on,ondemand manuf ac t ur i ng and pr i nt i ng,and s mar tr et ai l , s i gni f i c ant l yi mpr ov equal i t y ,s peed,c os t ,f l ex i bi l i t y ,ands us t ai nabi l i t yac r os st hes uppl yc hai n.Ouref f or t si ndel i v er i ng ondemandmanuf ac t ur i ngc apabi l i t i est oourpar t ner swi l lr educ ei nv ent or yl ev el sandhel ps ol v eoneoft hec os t l i es t env i r onment alpr obl emsi nt hef as hi ons uppl yc hai nt hati sc aus edbyov er pr oduc t i on.

I nt hef i ghtagai ns tCOVI D19,wees t abl i s hed aper s onalpr ot ec t i v eequi pment( PPE)bus i nes sand dev el oped hi ghl y pr ot ec t i v e,br eat habl e,medi c al gr ade,r eus abl ef ac emas k st hatl ev er ageourmat er i ali nnov at i onc apabi l i t i esandNTX™ nanof i bert ec hnol ogy .Ourai mi st oc r eat eas us t ai nabl eandhi ghl ypr ot ec t i v epr oduc tt hatnotonl yhel pst opr ev entt he s pr eadoft hev i r us ,butal s or educ espl as t i cwas t ec r eat edbyt hedi s pos al ofmas k s .Wewi l l c ont i nuet owor kwi t hourj oi nt v ent ur epar t ner sandex pandouref f or t st odev el opot hers us t ai nabl eandhi ghl yf unc t i onalPPEss uc hasmedi c algowns andgl ov est hatar ei nhi ghdemandar oundt hewor l d.

We hav es uc c es s f ul l yr es t r uc t ur ed ourmanuf ac t ur i ng modelt owar dsademandf oc us ed v al ue c hai n wi t h Chi naand NonChi naoper at i onst oc apt ur et he oppor t uni t ybr oughtby near s hor i ng/ ons hor i ng s our c i ng t r ends .Near s hor i ng/

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ons hor i ng hol ds a huge oppor t uni t yt or educ el ead t i mes ,i nv ent or i es ,and was t e pr oduc t i on,t her eby dr i v i ng t he i mpor t ants us t ai nabi l i t ymi s s i onwhi l enav i gat i nggeopol i t i c al r i s k s .

T or educ et he was t e mat er i al s and t ur n was t ei nt o as our c e ofnew v al ue,we bui l tan ec ommer c e pl at f or m wi t h di r ec t t oc ons umer ,bui l dt oor derbus i nes s model .The new bus i nes s modell ev er ages t he Gr oup’ st ec hni c alex per t i s e i n dev el opi ng hi ghqual i t y gar ment pr oduc t s ,c oupl ed wi t h adv anc ed s us t ai nabl e pr i nt i ng t ec hnol ogi es t o of f er an endt oend s ol ut i on f ori nf l uenc er st oc r eat e new,uni que c l ot hi ng us i ng ex c es sf abr i c sand mat er i al sder i v ed f r om our manuf ac t ur i ng pr oc es s .Thepl at f or mi sr eadyt os c al ef ol l owi ng t hes uc c es s f ulpr oduc tl aunc heswi t ht opt i erf i t nes sand l i f es t y l ei nf l uenc er si n2021.

Mov i ng f or war d,we wi l lbr oaden ourof f er i ngsand s c al et he depl oy mentofi nnov at i v e wat er l es sf abr i cc ol or i z at i on and pr i nt i ngt ec hnol ogy , dr i v eourondemandmanuf ac t ur i ngpl at f or m, i nc r eas et heus eofec of r i endl ymat er i al sands ol arener gyf ac i l i t i esf orr educ t i onofemi s s i ons ,was t e,ener gy ,andwat erc ons umpt i on.T opr omot eenv i r onment alawar enes st hr oughoutt he ent i r eor gani z at i on,wewi l ll aunc has er i esofac t i v i t i esandc ampai gnss uc has“Cl earY ourPl at e”f orc ut t i ngbac kf oodwas t e, “Ear t h Hour ”t os wi t c h of fl i ght sf oran hourt o pr omot e ener gys av i ng,and “Wor l d Env i r onmentDay ”t o enc our age paper l es sandnopl as t i c swor k i ngenv i r onment ,amongot hert hi ngs .

Cl os i ng Si nc es t ar t i ngours us t ai nabi l i t yj our neyi n1970s ,wehav ebui l taf i r mf oundat i ont hathasmadeourbus i nes sr es i l i entt ot he s us t ai nabi l i t yandec onomi cc hal l engesf ac edbyouri ndus t r y .Iam gl adt hatours us t ai nabi l i t yef f or t sr ec ei v edpos i t i v ef eedbac k f r om ourc us t omer sandi ndus t r ypar t ner s .I n2021,wewont hes us t ai nabi l i t yawar df r om oneofourc us t omer sf ors howi ngt he bi gges tc ommi t mentt os us t ai nabi l i t yamongourpeer s .Wewer er at edast heMVP-Mos tVal uabl ePar t nerbyoneofour c us t omer sac k nowl edgi ngusast hebes tv endori nCambodi a.OurChi napr oduc t i onf ac i l i t yr ec ei v edt hehi ghes tr at i ngf or per f or manc ei nanas s es s mentandaudi tt ot es tourabi l i t yt ooper at eaf ai r ,heal t hy ,andenv i r onment al l y s oundwor k pl ac e.

Weal s or eac hedt hehi ghes ts c or eandr ank i ngi nanas s es s mentt ar get i ngt or at eper f or manc ef r om per s pec t i v esofqual i t y , s peed,c os t ,s us t ai nabi l i t y ,l eader s hi p,c ul t ur e,andmanuf ac t ur i ngex c el l enc e.

Asweheadi nt o2022,wer emai nc ommi t t edt oc r eat i ngval uef orourpeopl e,c ommuni t y ,andenvi r onment .Wewi l l dr i v e t angi bl ei mpr ov ement sbys et t i ng c l eart ar get sand k eyper f or manc ei ndi c at or s ,whi l ec ont i nui ng c ol l abor at i on wi t h our par t ner s ,c us t omer s ,andc ommuni t yt or unourbus i nes swi t hpur pos eandwi t hanunder pi nni ngc ommi t mentt os us t ai nabi l i t y .

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CEO PARTNEROFLUEN THAIHOLDI NGS

LUEN THAI ,AN OVERVI EW LuenThaii saneXt r aOr di nar yCompany .

Ourc ul t ur e,ourpeopl e,andv i s i onoft hef ut ur emak euseXt r aOr di nar y !

Wemak equal i t ypr oduc t s .Wepr ov i deex c el l ents er v i c es .

Wear eagl oball eaderi nappar elandac c es s or i esmanuf ac t ur i ngandi ns us t ai nabl ef as hi ont ec hnol ogy .

Wear ec ommi t t edt ogi v et hebes tc ar et oourpeopl e,ourc ommuni t i es , andt heenv i r onmenti nal lt hes el oc at i ons .

Wes t r i v et obebet t erdai l y .

Ar ound43, 400empl oyeesgl obal l y Manuf ac t ur i ng/ Sour c i ngCount r i es CHI NA| PHI LI PPI NES| CAMBODI A| I NDONESI A MYANMAR| I NDI A| BANGL ADESH| VI ETNAM*

SALES/ DESI GN OFFI CE USA HEADQUARTERS HONG KONG SAR * J oi ntVent ur e

1 3

NEW YORK

Luen Thaibel i ev es t hats y ner gy r es ul t i ng f r om wor k i ng t owar ds s us t ai nabl es har ed s uc c es s wi t h ourpar t ner s– s har ehol der s ,c us t omer s ,s uppl i er s ,ourpeopl e,and ourc ommuni t i es–wi l lc r eat emor epos i t i v eand l as t i ng benef i t s t oendc ons umer s ,t hei ndus t r y ,andt hewor l d.

Att hef or ef r ontofourr ei nv ent i onar equal i t y ,s peed,f l ex i bi l i t y ,s us t ai nabi l i t y ,andc os t .

Luen Thai c ar es f or i t s peopl e and

F OROURPEOPL E

bel i ev es t hat t hei r wel l bei ng and happi nes sar et hef oundat i onofex c el l ent s er v i c esandgr eatpr oduc t s .

Luen Thai c ar es f or t he c ommuni t y

F OROURCOMMUNI T Y

bec aus ewebel i ev ei ti sourr es pons i bi l i t y t o do ours har et o meett he needsof s oc i et yas i def r om ourown.

Luen Thai c ar es f or t he env i r onment

F OROURENVI RONMENT

bec aus e we bel i ev e t hat ec onomi c pr os per i t yandenv i r onment als t ewar ds hi p c angohandi nhand.

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1970s

1980s

1990s

2000s

Phi l ant hr ophy ’ s ear l ybegi nni ngs

T anSi uL i n Foundat i on i nChi na

Env i r onment al Compl i anc ei n ot hermanuf ac t ur i ng f ac i l i t i es

“GoGr een”Campai gn

Env i r onment al Compl i anc ei n Manuf ac t ur i ng

Ec oPr of i tCer t i f i c at i on Cl eanerPr oduc t i on

Uni f i edPr i nc i pl esof Soc i al Res pons i bi l i t y andPr ac t i c e( UPSRP)

“i Ser v e.i Gi v eBac k ”

1F ul lver s i onc anbef oundi nht t ps : / / i s s uu. c om/ l t c or por at ec ommuni c at i ons / doc s / l t _ s us t ai nabi l i t y _ book? e=33532779/ 65934258.

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Si nc e 2018,t he Gr oup t ookamaj ors t ep f or war d wi t ht he pr epar at i on ofas us t ai nabl e dev el opmentr oadmap f or t henex tf i v ey ear s .T os ec ur et hatt hes es us t ai nabi l i t ydev el opmentgoal sc anbeef f ec t i v el yi nt egr at edwi t hi ni t sday t oday bus i nes s oper at i ons ,f ac t or ss uc h as t he Gr oup’ sc ur r ent dev el opment s t age, r es our c e pl anni ng and bes t av ai l abl et ec hnol ogyhav ebeenhol i s t i c al l yc ons i der edi nt het ar gets et t i ngpr oc es s .TheGr oupbel i ev est hats t ar t i ngout wi t hapl annedandgr aduali mpl ement at i onwi l lal l owi mpr ov ementac t i onst obec ont i nual l yr ef i neddur i ngt hepr oc es s , andf orr el at edpr i or i t i est oal s obes eti nani nc r ement almannerov ert i met oens ur eef f i c i entr es our c epl anni ng.

2010s

2018

2022

HERPr oj ec t

L aunc hi ngofL uenThai Sus t ai nabi l l i t yPr ogr am

Ac hi ev ementofXO Car eT ar get s ( OurPeopl e,OurCommuni t y , andt heEnv i r onment )

“BeXO Dai l y ” T ul oyFoundat i on Par t ner s hi p

St ar tofFi v eY ear Sus t ai nabi l i t yMoni t or i ng ESG Compl i anc e Repor t i ng

1 8

I nc r eas edengagementwi t h L uenThai empl oy ees andot hers t ak ehol der s

HKExESG KPI :A1.

5 COMMI TTEDTARGETS I nc r eas e t he s ubs t i t ut i on of c oal f i r ed power t o r educ e gener at i on of“ener gy i ndi r ec tgr eenhous e gas ( Sc ope 2 GHG)emi s s i on” i nc ur r ed f r om c ons umpt i onofpur c has edel ec t r i c i t y PROGRESSBYENDOF2021 I nc r eas edt heus eofs ol arener gyasc ompar edt ot hebas el i ney ear( 2018) andav oi dedt heSc ope2GHG emi s s i onsf ort heequi v al entamount

HKExESG KPI :A2.

3 COMMI TTEDTARGETS I nc r eas et heus eofs el f gener at edr enewabl eener gyt o r educ eus eofpur c has ed( muni c i pal )el ec t r i c i t y PROGRESSBYENDOF2021 I ns t al l eds ol arpanel sorphot ov ol t ai cs y s t em f orpr ov i s i onofel ec t r i c i t y atownedf ac t or i esi nCambodi a,Chi na,andPhi l i ppi nes

1 9

HKExESG KPI :A2.

4 COMMI TTEDTARGETS Lowerwat erc ons umpt i onandi nc r eas ei nus eofwat er l es st ec hnol ogyf orf abr i c PROGRESSBYENDOF2021 At t ai neds uc c es si nwat erus eef f i c i enc yandwat err educ t i ons i nc e2018, asr ev eal edf r om r educ edwat erc ons umpt i oni nt ens i t yf r om 2019t o2021

HKExESG KPI :A1.

6 COMMI TTEDTARGETS i ) Reduc eemi s s i onofnonhaz ar douswas t est hr oughdi v er s i oni ns t eadofdi r ec tdi s pos al i i )Zer odi s c har geofhaz ar dousc hemi c al si ni ndus t r i al ef f l uentt ot heenv i r onment i i i )I nc r eas ei nus eofs us t ai nabl emat er i al s PROGRESSBYENDOF2021 i ) Di v er s i onofwas t esamount edt o1, 516t onnesbyendof2021 i i )Compl i anc ewi t hREACHr egul at i onsf ormoni t or i ngandc ont r ol of was t ewat erdi s c har ge i i i )Us edec of r i endl ymat er i al si npr oduc tdes i gnt or educ ewas t egener at i on, i nc l udi ngt heus eofor gani cc ont entmat er i al s( y ar n) ,Rec y c l edCl ai m St andar ds( RCS) f abr i c s ,andr ec y c l edpr ec ons umerpol y ami deny l onaswel l asr ec y c l edpos t c ons umer pol y es t erf orpr oduc t i on

20

21

22

Wear ec ommi t t ed t ot hehi ghes ts t andar dsofgov er nanc e,c ons i s t entwi t hr egul at or yex pec t at i ons andbes tpr ac t i c es .Webel i ev et hatr es pons i bl egov er nanc ei sanes s ent i alc omponentofanet hi c al c or por at ec ul t ur e.Gov er nanc ec ont r i but est oef f ec t i v eandt r ans par entov er s i ghtbyes t abl i s hi ngt he pr oc es s es ,pr ac t i c es ,ands t r uc t ur esweus ei nourwor kt omeetours t r at egi cobj ec t i v esandopt i mi z e l ongt er mv al uef orours t ak ehol der s .

Our c or por at e gov er nanc e pr ac t i c es c ompl y wi t h al lappl i c abl e pr ov i s i ons of t he Cor por at e Gov er nanc e Code ass etouti nt he Appendi x14oft he Li s t i ng Rul esand t he det ai l shav e been s etouti nt he“Cor por at eGov er nanc eRepor t ”i nt heGr oup’ s2021AnnualRepor t .

01

BOARD LEADERSHI P ON ESG STRATEGI ES

03

STRUCTURE

02

SUSTAI NABI LI TY COMMI TTEE

04

I NTEGRI TY AND ANTI -CORRUPTI ON

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TheBoar dofDi r ec t or s( ”TheBoar d”)oft heGr oupi sc ommi t t edt ouphol di ngt heEnv i r onment al ,Soc i alandGov er nanc e ( ESG)obj ec t i v esi nt hec ont ex tofc ur r entbus i nes ss t r at egi es .Thi sens ur est hatoper at i onsar ec ons i s t ent l yi nc ompl i anc e wi t hl oc all awsandr egul at i onsi nt her egi onswher et hebus i nes si soper at i ng,t her ebys af eguar di ngt hei nt er es t soft he Gr oupands t ak ehol der saswel l asenhanc i ngt hec or por at ebr andi mage.

The Boar di sr es pons i bl ef oref f ec t i v e gov er nanc e and ov er s i ghtofmaj orESG i s s ues ,aswel lasas s es s mentand managementofmat er i al ,env i r ont ment al ands oc i alr i s k si mpac t i ngt hegr oup.

TheBoar das s ur esr el ev antpol i c i esi npl ac eont heawar enes sandt i mel yr es pons et ot her el ev antenv i r onment al , s oc i al and gov er nanc ei nf or mat i ont hr oughdi f f er entmec hani s msandc ommuni c at i onswi t hbot hi nt er nalandex t er nals t ak ehol der s .

Del egat eddepar t ment sandwor k i nggr oupsar er es pons i bl ef ort hepr oc es s esonc ons ol i dat i on,anal y s i s ,andev ent ual l y publ i cdi s c l os ur eoft heESG per f or manc e.I naddi t i ont ot her egul armanagementboar dmeet i ngs ,wehav ees t abl i s heda Sus t ai nabi l i t yCommi t t eewi t hi nourManagementBoar df orov er s eei ngt heESG mat t er sper t i nentt ot hepol i c i esand pr ac t i c esi nt heoper at i ons .TheBoar dandt hedes i gnat edt eam member sr ev i ewt heESG per f or manc edi s c l os edi nt he annualSus t ai nabi l i t yRepor tt oas s ur ei ti sal i gnedwi t hourbus i nes ss t r at egyandi sc ompl y i ngt ot hel awsandr egul at i ons , andt oi dent i f ys us t ai nabi l i t yt opi c st hatar ei mpor t antt ot heGr oupands t ak ehol der sf ormak i ngappr opr i at edec i s i onsand adj us t i ngt her el ev ants t r at egi esasneeded.

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TheBoar d ev al uat est hepot ent i alr i s k sasr ef l ec t ed i nt heESG i nf or mat i oni nor dert opr i or i t i z et heESG t opi c st hat hav eamor es i gni f i c anti mpac t ,andt odev el opef f ec t i v epr ev ent i onandc ont r ols t r at egi esf oras s ur anc eoft heGr oup' s s us t ai nabl edev el opment ,whi c hmayi nc l ude,butar enotl i mi t edt o: I ns t al lt hes ui t abl ef ac i l i t i esf orr es our c es av i ngandus eofr enewabl eener gy Adoptandi mpl ementadv anc edec of r i endl yt ec hnol ogi esandmac hi nes Ex pl or eanddel i v ernewbus i nes sormanuf ac t ur i ngmodel st hatwi l lhel pt or educ eex c es si nv ent or yand was t eder i v edf r om t hepr oduc t i on Lookf ors ol ut i onst hatc ant ur nwas t ei nt oas our c eofnewv al ue Pr omot eawar enes sandv ol unt eer i s mt os er v eandc ont r i but et oabr oaderc ommuni t y Pur s uet hedi r ec t i onofpr oduc tdes i gnus i ngenv i r onment al f r i endl ymat er i al sathi gherpr i or i t y St r engt hent hes uppl i erpar t ner s hi pf orex pl or i nggr eent ec hnol ogyandappl i c at i on Dev el opappr opr i at egoal sandt ar get sf ormoni t or i ngandenhanc ementofs us t ai nabi l i t yper f or manc e

Fori dent i f y i ngt heoppor t uni t i esofi mpr ov ement ,t heBoar dr ev i ewsannual l yt heESG s t r at egi esagai ns tt hebus i nes s c hal l engesoft hec ur r enty ear .Al s o,r el ev antdec i s i onwi l lbemadet os t r engt henempl oy eet r ai ni ngf orac hi ev i ngt he c ont i nuali mpr ov ementoft hes us t ai nabi l i t yper f or manc e.Fr om t heBoar d’ sas s es s mentoft hi sr epor t i ng y ear ,i twas c onf i r med t hatwehav eov er c omet hei mpac t si nc ur r ed byt henov elc or onav i r uspandemi cand t hatt heGr oup has s t r engt henedt heoc c upat i onal heal t hands af et ymeas ur esf orpr ot ec t i ngempl oy ees .

Thes eenabl edt heGr oupt or es ume oper at i onsataf as t erpac eandt ot ak et hel eadi nmeet i ngmar k etdemand.

The Companybel i ev esi nc r eat i ng t he r i ghtdy nami c bal anc e bet ween uni taut onomyand aut hor i t yt hr ough t he f or mat i on oft he ManagementBoar d.The ManagementBoar d meet satl eas tt hr ee t i mesay ear ,k eepsal ls eni or ex ec ut i v esawar e ofhow t he Company i spr ogr es s i ng and adapt i ng,and hel psgener at e new oppor t uni t i esf or get t i ngoutofor gani z at i ons i l osandc r eat i ngnewmeansf orc ol l abor at i on.

Li k emanyot heri ndus t r ys ec t or s ,t heBoar dbel i ev est hatt hemai nf ac t or saf f ec t i ngt heGr oup’ sESG per f or manc ei n t he c omi ng y earr emai nt he heal t hr i s k sand s uppl yc hai ns t r ai nsas s oc i at ed wi t ht he nov elc or onav i r uspandemi c .

Conc ur r ent l y ,f ormanagi ng t he env i r onment aland ot herc ompl i anc er i s k spos ed byt he gl obalt r end agai ns tt he c l i mat ec hange,t he Boar d wi l ldev el op s t r at egi esorpol i c i esand r egul ar l yr ev i ew pr ogr es sand per f or manc ef or al i gnmentwi t ht heGr oup' sdi r ec t i onofs us t ai nabl edev el opment .

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Asaf or ement i oned,t oens ur eef f ec t i v eex ec ut i onofL uenThai ’ sSus t ai nabi l i t ySt r at egyf oc us i ngont hr eec or ear easonour peopl e, ourc ommuni t i es , andt heenv i r onment , as pec i al Sus t ai nabi l i t yCommi t t eewi t hi nL uenThai ’ sManagementBoar d hasbeent as k ed t oov er s eeandadv i s eont heGr oup’ ss us t ai nabi l i t ys t r at egi es ,wor kpl ansandper f or manc et ar get st o adv anc et heCompany ’ sESG l eader s hi p.I ti snotonl yr es pons i bl ef ori dent i f y i ng,as s es s i ng,managi ngandc ommuni c at i ng ESGr el at ed r i s k s ,buti tal s omoni t or st hei mpl ement at i onpr ogr es sand per f or manc eofs us t ai nabi l i t ypr ogr amsofal l SBUs ar ound t he wor l d.The c ommi t t ee i sc hai r ed by ourChi efPeopl e Of f i c erand s uppor t ed by des i gnat ed ex ec ut i v eswi t hi nt hegr oup.

Aspar toft heGr oup’ songoi ngr i s kmanagementas s es s ment ,t hec ommi t t eeal s oens ur ess i gni f i c ants us t ai nabi l i t yi s s ues andr i s k sar ei nt egr at edi nt oourr i s kmanagements y s t em andar edul yc ons i der edi nouroper at i onandbus i nes ss t r at egy .

I n addi t i on, ESGr el at ed r i s k s and oppor t uni t i es whi c h may hav e pot ent i al i mpac t on t he Gr oup and i t s s us t ai nabi l i t yper f or manc ear er epor t edt ot heBoar donar egul arbas i s .

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TheCompanyhasut i l i z edt hegr eat err es our c ec apabi l i t ypr ov i dedbyt heOr i entI nt er nat i onal/Shangt exac qui s i t i ont o gr ow t he or gani z at i on wi t hv al ueenhanc i ng mer ger sand ac qui s i t i onsofs ubs i di ar i es ,as s oc i at es ,orj oi ntv ent ur es .

LuenThai wi l ldy nami c al l yadj us ti t ss t r uc t ur east hes enewent i t i esar eac t ual i z ed.

Ther ewasnomat er i alac qui s i t i onordi s pos alofs ubs i di ar i es ,as s oc i at es ,orj oi ntv ent ur esdur i ng t hey earended 31 Dec ember2021.Des pi t et heex i s t i ngdi f f i c ul tandc hal l engi ngi ndus t r yc ondi t i ons ,LuenThaiwi l lc ont i nuet ol ookf or v al ueenhanc i ng i nv es t ment swhi c h meetours t r i ngentr equi r ement si n or dert of ur t herex pand ourpr oduc tr ange, pr oduc t i onc apac i t yanddi v er s i f yourgeogr aphi c alr i s k .

Ot heror gani z at i onaladj us t ment si nc l ude c r eat i ng a f or mals t r uc t ur e and r es pons i bi l i t yf oc us ed on t he c ont i nui ng s ear c h,ac qui s i t i on,adapt at i on,anddepl oy mentofnew manuf ac t ur i ngandpr oduc t i ont ec hnol ogy ,enabl i ngust obe atf or ef r ontofnewt ec hnol ogyadopt i oni nappar el andac c es s or i es .

LuenThai c ompl i eswi t ht hel oc al ant i c or r upt i onr ul esandr egul at i ons , i nc l udi ngbutnotl i mi t edt oCap. 201Pr ev ent i onof Br i ber yOr di nanc ei nHongKong, Cr i mi nal Lawoft hePeopl e’ sRepubl i cofChi na, andAnt i Gr af tandCor r uptPr ac t i c esAc t i nt hePhi l i ppi nes ;amongot herc ount r ys pec i f i cgui del i nes .TheGr ouphasf or mul at edant i c or r upt i onpol i c y ,r ul esand r egul at i onsf orourempl oy ees ,c ont r ac t or s ,and s uppl i er st o mi ni mi z et he pos s i bi l i t y ofbr i ber y ,ex t or t i on,f r aud, and moneyl aunder i ng.Anyc ont r av ent i on t ot he pol i c y ,r ul es ,and r egul at i onsi dent i f i ed wi t hs ol i d ev i denc e,t he c ont r av enedpar t i esofs er v i c eswi l lbes epar at edf r om t heCompany .Wehav eaz er ot ol er anc epol i c yr egar di ngbr i ber y andc or r upt i oni nanyf or m oratanyl ev eli nas s oc i at i onwi t hanyas pec toft heGr oup’ sac t i v i t i es .Wehav ec er t ai npol i c i es onbr i ber y , gi f t s , andent er t ai nmentwhi c hpr es c r i bet hemi ni mum s etofr ul esadopt edt opr ev ent , i dent i f y , andaddr es sany i ns t anc esofal l egedorac t ual br i ber yorc or r upt i on.

The empl oy ee i nduc t i on pr oc es sf ornew hi r esi nc l udesex t ens i v e gui danc e on ant i c or r upt i on meas ur es .Rel ev ant wor k i ngpol i c y ,r ul es ,r egul at i ons ,andpr oc edur esar ebei ngr ev i ewedf r om t i met ot i me.A whi s t l ebl owi ngmec hani s m i sal s oi npl ac ef ors t af fr epor t i ngonanys us pec t edorac t uali nc i dentper t i nentt oc or r upt i onormi s c onduc t .Thedet ai l ed ant i c or r upt i ongui del i nesandpr oc edur esar ec ommuni c at edt ot heempl oy ees ,c ont r ac t or s ,ands uppl i er s .

27

Appr opr i at ei nv es t i gat i onpr oc es si si nc l udedi nt heant i c or r upt i onpr oc edur eands eni ormanagementr epr es ent at i v esar e i nv ol v ed i nt he pr oc es s .Ther ei sal s o adequat e and ef f ec t i v e pr oc edur et o pr ot ec templ oy eesf r om r et al i at i on of whi s t l ebl owi ng. By t he end of 2021, t her e was no c onc l uded l egal c as e r egar di ng c or r upt pr ac t i c es .

ForBoar dofDi r ec t or s ,wear r angedat ai l or edt r ai ni ngs es s i ondel i v er edbyI ndependentCommi s s i onAgai ns tCor r upt i on ofHongKongSpec i alAdmi ni s t r at i v eRegi on( HKSARI CAC)ont opi c sr el at edt or ol esandr es pons i bi l i t i esofc ompany di r ec t or si net hi c algov er nanc e,whi c hwoul dupdat et hei rk nowl edgeonPr ev ent i onofBr i ber yOr di nanc eandr egul at i ons i nr el at i ont ot hec or por at egov er nanc eofl i s t edc ompani es ,aswel last hei rawar enes st ot hec or r upt i onr i s k sandr el at ed f r audr el at i ngt ot hedai l yoper at i onsofl i s t edc ompani es .Al ldi r ec t or soft heBoar dat t endedwi t h100% at t endanc e.

Fr om t heGr oup’ sov er al l per s pec t i v ei n2021, at ot al of3, 848empl oy eespar t i c i pat edi nt het r ai ni ngsr el at edt ot het opi c s ofi nt egr i t yandant i c or r upt i on,whi c hamount edt o7, 490t r ai ni nghour s .Thet r ai ni ngsc ov er edt hes el ec t edt opi c s : Empl oy eec odeofpr ac t i c e,handbookbr i ef edatt i meofonboar di ng Pr ev ent i v emeas ur esagai ns tbr i ber y ,ex t or t i on,f r audandmoneyl aunder i ng Ant i c or r upt i onc ont entr el at edt ot hepr ev ent i onofof f i c i alc r i mesandc or por at egov er nanc e St andar dsofc onduc tf orpr oc ur ementper s onnel ,i nt egr i t yt r ans ac t i onc l aus esi npr oc ur ementc ont r ac t s Pr oc edur esf ordec l ar at i onofc onf l i c t sofi nt er es t Pr oc edur esf orr epor t i ngv i ol at i onsofi nt egr i t yors us pec t edv i ol at i onsoft hel aw Rel ev antl awsandr egul at i onst r ai ni ng

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STAKEHOLDER MANAGEMENT The Gr oup al s oc ons i der st he v i ews ofi t si nt er naland ex t er nals t ak ehol der st os t r engt hen i t s s us t ai nabi l i t ygov er nanc e.I tr egul ar l yengagesabr oads etofk eys t ak ehol der st oi dent i f ys us t ai nabi l i t y i s s uesofi mpor t anc et ot hem aswel lasi dent i f i esbus i nes soppor t uni t i esandaddr es s esac k nowl edged r i s k st of ur t heri t ss us t ai nabl edev el opmentef f or t s .

I ti sv i t al f ort heGr oupt oc apt ur eandunder s t andhow t hei rv i ewsc hangeandul t i mat el yhowi tc anr es pondandi mpl ementi mpr ov ement sappr opr i at el yt oi t s bus i nes ss t r at egyt odayandi nf ut ur e.

I nt er nalSt akehol der s

Ext er nalSt akehol der s

ManagementBoar d

St r at egi cCus t omer s

I ndependentEx ec ut i v eDi r ec t or s

Cor eSuppl i er sandBus i nes sPar t ner s

Shar ehol der sandI nv es t or s

Gov er nmentRegul at or s

Sus t ai nabi l i t yCommi t t ee

Medi a

Empl oy ees

NGOs

TheGr ouphasi dent i f i edk eys t ak ehol dergr oupswhi c hhav ec onc er nsabouti s s uest hatmayhav eas i gni f i c anti mpac ton i t sbus i nes sort hos ewhoc oul dbes i gni f i c ant l yaf f ec t edbyi t soper at i ons ,andal s omai nt ai nsr egul arc ommuni c at i onwi t h t hes egr oupst hr oughv ar i ousc hannel s .

Communi cat i onChannel s Regul armeet i ngs( i nc l udi ngbutnotl i mi t edt os har ehol dermeet i ng)

Communi t ywor k

Si t ev i s i t s

I nt er net

Pr es sr el eas es

Di r ec tmai l s

Bus i nes sCommuni c at i on

Publ i cdi s pl ay s

Regul at or yc ompl i anc e

Publ i cnewsonCompanyandHKExwebs i t es

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MATERI ALI TYASSESSMENT The Gr oup r ev i ewss t ak ehol derf eedbac kr egul ar l yt o under s t and t he mat er i al i t yofi s s uest ot he Gr oup’ sbus i nes s oper at i onandt oi t ss t ak ehol der s .ESG i s s uesar epr i or i t i z edi nac c or danc ewi t ht her el ev anc eandi mpor t anc et ot he Gr oupands t ak ehol der s ;s uc hr es ul thasbeenv al i dat edbyt heSus t ai nabi l i t yCommi t t ee.Si xk eys us t ai nabi l i t yt opi c s ar ec ons i der edasmat er i alac r os st het hr eec or ear easofpr ov i di ngeXt r aOr di nar y( XO)CAREf orpeopl e,c ommuni t y , andenv i r onment : empl oy ees at i s f ac t i on;

v ol unt eer i s m;

oc c upat i onalheal t hands af et y ;

env i r onment alac t i v i t i es ;

c hi l dr en’ swel f ar e;

emi s s i onandus eofr es our c es .

Amongs tours t ak ehol der s ,wepr i or i t i z eourex t er nals t ak ehol der s ’c onc er nsf r om c us t omer sands uppl i er s .

Fort hi spur pos e,wehav egonet hr ought hef ol l owi ngpr oc es s est oi dent i f yt hemat er i alt opi c swi t ht hei rc onc er ns :

1.Dev el ops ur v eyques t i onnai r eons us t ai nabi l i t yt opi c swi t hr ef er enc et ot heas pec t sment i onedi nt heHKEx .

TheEnv i r onment al ,Soc i alandGov er nanc eRepor t i ngGui de,aswel last het opi c sf r om mar k etandi ndus t r y t r endsaf f ec t i ngt heGr oup’ sbus i nes ss t r at egi es .

2.Cons ol i dat es ur v eyf i ndi ngsr el at edt oourpr i or i t i z edex t er nals t ak ehol der s ’c onc er nont hes us t ai nabi l i t yt opi c s .

3.Anal y z et heex t er nals t ak ehol der s ’c onc er nsagai ns tt hepr i or i t i esoft heGr oup’ sbus i nes ss t r at egi esbymappi ng wi t ht hes ur v eyf i ndi ngsoft heGr oup’ smanagementr epr es ent at i v esont hes ames us t ai nabi l i t yt opi c s .

4.Mat er i al i t ymat r i x( s hownbel ow)hasbeenpr epar edbas edont heaf or es ai danal y s i sar oundt he18 s us t ai nabi l i t y t opi c si nt hef ol l owi ngf ouras pec t s ,wher et het opi c shi ghl i ght edi nr edwer et hemat er i alt opi c si dent i f i edbyt he mat er i al i t yanal y s i s : Envi r onment alPr ot ec t i on

HumanRes our c ePr ac t i c es

Bus i nes sOper at i ngPr ac t i c es

Communi t yRel at i ons

Ener gymanagement

Empl oy mentand empl oy eebenef i t s

Qual i t y

Car i ngf orCommuni t y

Wat erc ons er vat i on Exhaus tgasandc ar bon emi s s i ons Sol i dwas t emanagement

Cus t omers er v i c e

Fai rRec r ui t ment

Res pons i bl epr oduc t i on

Saf et y

Pr oc ur ementands uppl y c hai nmanagement

Compr ehens i v eT r ai ni ng

Cor por at egover nanc e

Cl i mat ec hange

I nt el l ec t ual pr oper t y r i ght spr ot ec t i on I nf or mat i ons ec ur i t yand per s onaldat apr ot ec t i on Ant i c ompet i t i v epr ac t i c es

30

Bas ed on t he out c ome of t he mat er i al i t y anal y s i sc onduc t ed i n 2021 as i l l us t r at ed i nt he mat r i x abov e, wehav ec onc l udedt hatt het opt hr eepr i or i t i esofourESGt opi c sar e:Pr oduc tQual i t y ,Empl oyeeSaf et y ,andCus t omer Ser vi c e,whi c hal lbel ongt ot hes oc i al as pec t sofouroper at i ons .

31

SUPPLYCHAI N MANAGEMENT Luen Thaiv al uest he l ongt er mr el at i ons hi pswi t h ours uppl i er sand we deepl ybel i ev es uppl i er sc ons t i t ut e one of t he es s ent i alel ement soft he Gr oup’ ss uc c es s .Fors us t ai nabl e bus i nes sgr owt h,we hav ef or mul at ed t he s uppl i er managementpol i c y whi c hc ommuni c at est os uppl i er soft he Gr oup’ sex pec t at i onsand t he r equi r ement sf ort hi s ac hi ev ement .A s uppl i ers el ec t i onand ev al uat i ons y s t em i si npl ac eand t hec r i t er i ac oul dc ov eras pec t sofpr oduc t qual i t y ,s oc i alr es pons i bi l i t y ,andbus i nes set hi c s ,i naddi t i ont oel ement sofc ommer c i ali nt er es t .

Mechani sm f orSuppl i erSel ect i onandMoni t or i ng TheGr oupgener al l ymoni t or si t sex i s t i ngs uppl i er sonanongoi ngbas i si nt er msoft hei rpr oduc tqual i t y ,t i mel i nes sof del i v er y ,r es pons i v enes st of eedbac k ,andot her s .TheGr oupas s es s est heper f or manc eofs uppl i er s ,ot hert hant hos e des i gnat edbyc us t omer s ,gener al l ybywayofpr oduc ts ampl e,r ev i ewofqual i t yi ns pec t i onr ec or ds ,andot hermet hods deemeds ui t abl ef orgaugi ngt hei rc ompl i anc ewi t ht heappl i c abl el oc alr egul at i onsper t i nentt oenv i r onmentands oc i al as pec t s .Aspar toft hegr oup’ ss uppl i ermanagementpr ogr am,al lt hec or eex i s t i ng s uppl i er sar es ubj ec tt o annual ev al uat i onr ev i ewandonl yt hos es uppl i er sac hi ev i ngpas s i ngs c or er es ul t s( wi t hc ont i nuousi mpr ov ementar easi dent i f i ed) wi l lbequal i f i edasac c r edi t eds t at ust obeengagedi nbus i nes s .

Dur i ngt hes el ec t i onofanews uppl i er , t hes uppl i er ’ sper f or manc ei nenv i r onment al pr ot ec t i onands oc i al r es pons i bi l i t yar e r ev i ewed athi gherpr i or i t y .Pert heGr oup’ spr oc ur ementpol i c y ,al lnew s uppl i er swi l lhav et ounder gonew s uppl i er ev al uat i onpr oc es s , whi c hi nc l udesar ev i ewoft hes uppl i er s ' bas i ci nf or mat i on, t axc ompl i anc e, pr oduc tands er v i c equal i t y andpr i c i ng.

AssessmentofEnvi r onment alandSoci alRi sksi nt heSuppl yChai n Di f f er ents uppl i edmat er i al sar eas s i gnedwi t hdi f f er entr i s kr at i ngs ,c ons equent l y ,t hedept hofs uppl i erev al uat i onwi l lv ar y ac c or di ngl yi nr es pons et ot her i s kr at i ngs ;f orex ampl e,f r equenc yofs ampl es ubmi s s i onf ort es t i ngandt her equi r edr epor t c ont entofhaz ar douss ubs t anc est es t i ngmayv ar yac c or di ngt odi f f er entr i s kr at i ngs .

Ac c or di ng t ot he r i s kas s es s mentc r i t er i a,s uppl i er sar ec at egor i z ed i nt o di f f er entr i s kl ev el sand as s es s mentr at i ngs .

I nr es pons et ot hedef i nedr i s kl ev el , annual ev al uat i onpl ani sdev el opedf ort hes uppl i er .

Ev al uat i onc oul dpr oc eedt hr ough phone,doc umentandr ec or d,orons i t ev i s i t ,amongot her s .Fors uppl i er st hathav es i gni f i c anti mpac t st ot hes uppl yc hai n, t he Gr oup wi l lc ar r y out ev al uat i on c ov er i ng t he r el ev ant as pec t s of s oc i al r es pons i bi l i t y ,s uc h as t hos e gov er ni nget hi c albehav i our ,empl oy mentpr ac t i c es ,heal t hands af et y ,andt hepr oduc tr es pons i bi l i t y .

32

Ac c or di ngt ot henat ur eandl oc at i onoft hes uppl i ed mat er i al sands er v i c es ,t hes c opeofs uppl i erev al uat i onc r i t er i ac oul d bef ur t herenl ar gedt oi nc l udeenv i r onment alheal t h& s af et y ,t hepr es enc eofhaz ar dousmat er i al sandc hemi c al ss af et y , l abor and wages , empl oy ee r el at i ons , educ at i on and t r ai ni ng t o empl oy ees as and when nec es s ar y .

Gr eenPr ocur ement Ex c eptf orpr oduc t i onmat er i al sandequi pmentdes i gnat edbyc us t omer s , LuenThaipr ef er st opr oc ur eequi pmentandr aw mat er i al s c ont ai ni ng env i r onment f r i endl y c omponent s and pr i or i t i z es t he s uppl i er s who ar e c ompet ent t opr ov i det hes eorhav eac hi ev edenv i r onment al managementorpr ot ec t i onc er t i f i c at es( e. g.

I nt er nat i onal Or gani z at i onf or St andar di z at i on( I SO)14001,For es tSt ewar ds hi pCounc i l( FSC) ,et c . ) .Forex ampl e,s el ec t i onandpr oc ur ementpr i or i t yi s gi v en t ot he us e ofener gy ef f i c i ent mac hi ner y ,ai rc ondi t i oner s us i ng ec of r i endl yr ef r i ger ant s ,ener gy ef f i c i ent equi pment( s uc hasl i ght emi t t i ngdi odeorL ED l i ght i ng)andr aw mat er i al sf r om ec of r i endl ys our c i ng.TheGr oupai ms t os uppor tenv i r onment alc ons er v at i ont hr ought hegener alpr ac t i c eofgr eenpr oc ur ement .Byt heendof2021,t her ear e c er t ai nc or es uppl i er sac t i v el yengagi ngi nt heGr oup’ sgr eenpr oc ur ementpr ogr am andwi l lbef ur t herpr omot edt oot her k eys uppl i er si ndi f f er entr egi ons .

Suppl i erPr ofil e Luen Thaihasbeen managi ng a di v er s ei nt er nat i onals uppl i erbas e ofar ound 1, 125 c ompani esf orpr ov i s i on of mat er i al s and s er v i c es es s ent i alt ot he Gr oup’ s pr oduc t i on pr oc es s es . The geogr aphi c aldi s t r i but i on of t he Gr oup' ss uppl ybas easof31Dec ember2021i ss ummar i z edasf ol l ows :

T ai wan 5%

Mai nl andChi na 45%

Cambodi a 8%

HongKong 24%

* Ot her si nc l udeThai l and, I ndones i a, I ndi a, Mac au, Si ngapor e, Swi t z er l and, Sr i Lank a, Br az i l , Canada, Ger many , Fr anc e, UK, My anmar ,Mal ay s i a,Net her l ands ,Panama,Por t ugal ,andSamoa

33

CUSTOMERSERVI CE AND PRODUCT MANAGEMENT LuenThaibel i ev est hatmanuf ac t ur i nghi ghqual i t ypr oduc t si sanes s ent i alel ementf ors us t ai ni ngl ongt er m bus i nes s gr owt h.Thr ought heempl oy mentofs t at eof t hear tt ec hnol ogi esandef f ec t i v equal i t yc ont r olt ec hni ques ,t heGr oup ens ur est hatev er ypr oduc tmanuf ac t ur ed f ul f i l l st he f unc t i onalr equi r ement sofourc us t omer son r el ev antpr oduc t s af et y / qual i t ys t andar dsaswel lasl awsandr egul at i onsper t i nentt opr oduc tr es pons i bi l i t y .

PRODUCTCOMPLI ANCE I nourpr oduc t i onands our c i ngc ount r i es ,t heGr oups t r i c t l yabi desbyl oc alr egul at i onsaswel last hos er egul at i onsi nt he c us t omer ’ shomet er r i t or y .I naddi t i ont or egul at or yc ompl i anc e,t heGr oupadher est ot hec us t omer s ’s t andar dst oas s ur e pr oduc tc ompl i anc ewi t hc us t omerr equi r ement sdur i ng t hes t agesf r om r ec ei ptofr aw mat er i al st opr oduc tdel i v er y .

Mor eov er ,wes t r i v et oc ompl ywi t ht heCodeofConduc tf r om ourc us t omer sf orf ul f i l l mentofs oc i alr es pons i bi l i t yand c ont r i but et ot hemi t i gat i onofenv i r onment alands oc i al r i s k sal ongt hes uppl yc hai n.

Theex c el l enc eofourpr oduc t shasbeenr ec ogni z edwi t hdi f f er entawar dswor l dwi de.Ourpr oduc t sar emanuf ac t ur edi n c ompl i anc ewi t ht heappl i c abl ei nt er nat i onal s t andar ds ,l awsandr egul at i ons .Ourpr oduc t sar eal s ov er i f i edi nac c or danc e wi t ht hev er i f i c at i ons t andar dsagr eedwi t hourc us t omer s .

ASSURANCEPROCESS Ourmanuf ac t ur i ngpr oc es si sc ont r ol l edac c or di ngt ot hes pec i f i edi ns pec t i onandt es t i ngpl an.Al lr aw mat er i al sf r om s uppl i er s mus t under go i nc omi ng qual i t yc ont r olc onduc t ed by t he qual i t yr es pons i bl e depar t ment ,and ar e di s t r i but edf orus ei nt hemanuf ac t ur i ngpl ant sonl yaf t ert hequal i t yhasbeenv er i f i edandpas s ed,whi l enonc onf or mi ng mat er i al swi l lbepr oc es s edandhandl edac c or di ngt odes i gnat edpr oc edur es .

34

Fi ni s hed pr oduc t smus tpas st hr ought hes pec i f i ed pr oduc ti ns pec t i onand t es t i ng bef or edel i v er yt ot hec us t omer s .

Whenev err equi r ed,f i ni s hedpr oduc t sar es entt oex t er nalt es t i ngagenc i esorc us t omer appr ov edi nt er nall abor at or i esf or v er i f i c at i onoft hei rs af et yandqual i t yr equi r ement s .Dat aofnonc onf or mi ngpr oduc t sar eanal y z edandi mpr ov ement st o pr oduc tqual i t yar ec ons i s t ent l ymadeus i ngr el i abl equal i t yc ont r ol i ns t r ument s .

Thr oughpr oduc tdes i gn,s el ec t i onofr aw mat er i al s ,andpr oc es sc ont r ol ,haz ar douss ubs t anc esar es t r i c t l yc ont r ol l edt o ens ur et hepr oduc t sar ei nc ompl i anc ewi t ht heenv i r onment al andpr oduc ts af et yr equi r ement s .

HANDLI NG OFCUSTOMERFEEDBACK Ef f ec t i v ec ommuni c at i oni soneoft hec or ev al uesoft heGr oup.Thi si ss hownbyr egul ar l yc ol l ec t i ng and anal y z i ng c us t omer s ’f eedbac k on ourpr oduc t sand s er v i c es .We hav ek epts t r ong t i eswi t hc ur r entpar t ner s ,c l i ent s ,and s t ak ehol der sandwi l lc ont i nuet or ai s epr oduc tawar enes sandbus i nes spar t ner s hi pt or eac hmax i mum c l i ents at i s f ac t i on.

Ac ompr ehens i v e mec hani s mf orhandl i ng c ompl ai nt shasbeen es t abl i s hed.The mec hani s mr equi r esr es pondi ng t o t hec us t omeri nt hes pec i f i edt i mef r amewi t hr es ul t soft heanal y s i sandt hef ol l owupac t i ons .I tpr oc eedsi nv es t i gat i on onc us t omer s ’s at i s f ac t i onandi dent i f i esoppor t uni t i esf ori mpr ov ementi nt hec us t omers er v i c e.Bas edont heanal y z ed r es ul t sf r om i nv es t i gat i on,t he Gr oup des i gnat est he r es pons i bl e depar t ment st of ol l ow up t he c ompl ai ntc as esf or c or r ec t i v e and pr ev ent i v e s ol ut i ons , as wel l as i ni t i at i on of pr oduc tr ec al l pr oc edur es when nec es s ar y .

I n2021,t heGr ouphasi dent i f i ednomaj orpr oduc tr ec al l sduet oheal t hands af et yi s s ues .Dur i ng2021,t heGr oupr ec ei v ed at ot alof17and3c as esofc ompl ai nt sr el at i ngt opr oduc t sands er v i c es ,r es pec t i v el y .Al lt hos ec ompl ai ntc as eshadbeen s at i s f ac t or i l yr es ol v edandc or r ec t i v eac t i onshav ebeeni mpl ement edt or ec t i f yt hedef ec t si dent i f i edandpr ev entf ut ur e r ec ur r i ngi nc i dent s .

35

PROTECTI ON OFCONFI DENTI ALI NFORMATI ON The Gr oup r es pec t sand pr ot ec t sourc us t omer s ’i nt el l ec t ualpr oper t yr i ght sand ot hert r ade s ec r et s .L uen Thai obs er v est hel oc all awsand r egul at i onspr ot ec t i ng i nt el l ec t ualpr oper t yr i ght s ,i nc l udi ng butnotl i mi t ed t oCap.528 Copy r i ghtOr di nanc ei nHongKong,Pr ot ec t i onofCus t omerRi ght sandI nt er es t sL awoft hePeopl e’ sRepubl i cofChi na, andI nt el l ec t ualPr oper t yCodeoft hePhi l i ppi nes ,amongot herc ount r ys pec i f i cgui del i nes .Foranypr oduc t st hatar e r el at edt oi nt el l ec t ualpr oper t yr i ght sandt r ades ec r et s ,t heGr oupwi l lt ak eappr opr i at emeas ur est ok eept hem i ns t r i c t c onf i denc eandpr ev entunaut hor i z eddi s c l os ur eofs uc hi nf or mat i on.

LuenThaihasf or mul at edpol i c i esandpr oc edur est opr ot ec ti nf or mat i onr ec ei v edf r om di f f er ents t ak ehol der si nc l udi ng s uppl i er sand c us t omer s .Anaut hor i z at i onmec hani s m hasbeenes t abl i s hed t o ens ur et heac c es sand di s c l os ur eof r el ev anti nf or mat i onbyaut hor i z edper s onnelonl y .Noc ompl ai ntr el at edt ot hebr eac hofc us t omerpr i v ac ywasi dent i f i ed i nt her epor t i ngper i od.

The Gr oup s t r i c t l yabi desbyt he appl i c abl er egul at i onsoft he r egi onswher et her e ar e bus i nes soper at i ons ,e. g.

Per s onalDat a( Pr i v ac y )Or di nanc e( Chapt er486)oft heL awsofHongKongandEur opeanUni onGener alDat aPr ot ec t i on Regul at i on.Mor eov er ,r es t r i c t i onshav ebeens etf oremai land f i l eac c es st o al l ow c or r es pondenc ewi t hdes i gnat ed c us t omer sands uppl i er sonl y .Ac c es si sgr ant ed,t ot heex t entappr opr i at e,t oper s onnelofs pec i al i z eddepar t ment son anas neededbas i s .

36

PEOPLEAND COMMUNI TY L uenThaiempower sar ound 43, 400empl oy eesar ound t hegl obeand enhanc est hequal i t yofl i f e ofc ommuni t i esi nourar easofoper at i on.

Ar ound93% ofourempl oy eesar eunder46y ear sol dandnear l y98% oft ot alwor k f or c ear eempl oy ed f ul l t i me.Wi t h ourwor l dwi de oper at i ons ,we hi r e empl oy eesofdi f f er entr ac esand nat i onal i t i es of f er i ngequalandf ai roppor t uni t i es .

Empl oyeesbyGender

Empl oyeesbyGeogr aphi calRegi on

Femal e 69%

Cambodi a

44%

Mal e

Phi l i ppi nes

34%

My anmar

13%

PRC

8%

Ot her s *

1%

31%

Empl oyeesbyAgeGr oup 1825

29%

2635

41%

3645

23%

4665

6%

≥66

1%

* Ot her si nc l udeUSA,Bangl ades h,I ndi a,andI ndones i a.

Empl oyeesbyNat i onal i t y Cambodi an

44%

Fi l i pi no

34%

My anmar i/Bur mes e

13%

Chi nes e( Mai nl andChi naandHongKong)

8%

Ot her s *

1%

* Ot her si nc l udeAmer i c an,Bangl ades hi ,Ger man, I ndi an,I ndones i an,Mal ay s i an,Mex i c an,Si ngapor ean, Sr i Lank an,andVi et names e.

37

EMBRACI NG DI VERSEVI EW POI NTS AND PERSPECTI VES Luen Thai bel i ev es t hat equal i t yi n gender ,r ac e, and age i si mper at i v e. We bel i ev e i n t he power of di v er s i t yac r os sc ul t ur es ,l oc at i ons ,andf unc t i onsi nal l c ount r i esweoper at ei n.

Wehav eanant i di s c r i mi nat i onpol i c yandpr ot ec t i onoff emal eempl oy eepol i c yi npl ac et oens ur ef ai rwage,t r eat ment , benef i t s ,and wel f ar e.Ther ewasno di s c r i mi nat i onc as ei nL uenThaiagai ns tr ac e,r egi on,gender ,nat i onal i t y ,age, pr egnanc y ,ordi s abi l i t yi nr es pec tofr ec r ui t ment ,t r ai ni ng,s al ar yandpr omot i oni ny ear2021.

OurManagementBoar di sc ompos edofl eader sor i gi nat i ngf r om v ar i ousc ount r i es .I n2021,ourempl oy eesatdi r ec t or orabov el ev elc ons i s tof58% mal eand42% f emal e,wi t h14di f f er entnat i onal i t i esandi nf i v eagegr oups .

Empl oyeesatDi r ect or

Empl oyeesatDi r ect or

orAboveLevelbyGender

orAboveLevelbyAgeGr oup

Mal e

58%

1825

2%

Femal e 42%

2635

14%

3645

28%

4665

47%

≥66

9%

PRACTI CI NG FAI RBUSI NESS AND EMPLOYMENTPRACTI CES LuenThais t r i c t l yadher est of ai rl aborpr ac t i c esandl awsi nal lt hec ount r i esweoper at ei n.Wef ol l owt hel oc all awsand r egul at i onsr el at i ngt oequaloppor t uni t yandant i di s c r i mi nat i oni nempl oy ment ,i nc l udi ngbutnotl i mi t edt oCap.57 Empl oy mentOr di nanc ei nHongKong,t heLaborL aw oft hePeopl e’ sRepubl i cofChi na,andTheL aborCodeoft he Phi l i ppi nes ,amongot herc ount r y s pec i f i cgui del i nes .

38

Pol i c i esondi s mi s s al ,r ec r ui t ment ,and pr omot i onar ei mpl ement ed and al i gned wi t hl oc all egalr equi r ement s .The Companyhaspol i c i esonov er t i meandhol i dayc ompens at i on,bonus ,al l owanc e,i nc ent i v es c heme,whi c har eal i gned wi t hl oc all egal r equi r ement s .Al l owanc es ,i nc l udi ng butnotl i mi t ed t ol egalr equi r ed benef i t s ,s eni or i t y ,i nc ent i v es , hos pi t al i z at i onas s i s t anc e,meal s ,andt r ans por t at i onar egi v enac c or di ngt onec es s i t y ,pos i t i on,orper f or manc e.Some f ac t or ys i t espr ov i deac c ommodat i onsl i k ebabybr eas t f eedi ngf ac i l i t i est of emal eempl oy ees .L uenThaic ompl i eswi t h l oc all aborl awsandr egul at i onsandar r angest her es tt i me,wor k i ngt i met abl es ,andhol i day ss t r i c t l yi nac c or danc ewi t h nat i onalr equi r ement s .Empl oy ees ar e pr ov i ded wi t h mandat ed mealand r es tbr eak s ,l eav e per i ods ,hol i day s , andv ac at i onday s .

I n2021, ourgl obal wor k f or c ewass l i ght l yr educ edbyar ound1.

4% f r om ov er44, 000empl oy eesl as ty eart oappr ox i mat el y 43, 400asofDec ember2021.Thi sdec r eas ei nwor k f or c es i z ei sl ar gel yat t r i but edt ot hehi ndr anc eofec onomi esdur i ng t hepandemi cwher ewehav es eent empor ar ys hut downsandper manentc l os ur esofs omeofouroper at i ons .Thes ear e v er ydi f f i c ul tbutnec es s ar yac t i onst oc r eat eaheal t hyands us t ai nabl ef ut ur ef ort heGr oupandt her emai ni ngempl oy ees .

Empl oyeesTur noverRat eby

Empl oyeesTur noverRat eby

2 Gender( %)

2 Geogr aphi calRegi on( %)

Femal e 31% Mal e

27%

Empl oyeesTur noverRat eby 2 AgeGr oup( %)

Peopl e’ sRepubl i cofChi na( i nc l udi ngHongKong) 42% Cambodi a

37%

I ndi a

33%

My anmar

24%

Uni t edSt at esofAmer i c a

23%

1825

38%

Phi l i ppi nes

20%

2635

31%

I ndones i a

11%

3645

22%

Bangl ades h

2%

4665

17%

≥66

33%

2T hef or mul af orc al c ul at i onoft heempl oyeet ur noverr at ewast het ot alnumberofempl oyeesl eavi ngi nt her epor t i ngyear

di vi dedbyt ot alwor kf or c eofeac hc at egor yperyear endfigur es

39

TREATI NG OURPEOPLEW I TH DI GNI TYAND RESPECT LuenThaic ons i der sf or c edl abor ,humant r af f i c k i ng,ands l av er yasz er ot ol er anc ei s s ues .TheCompanyf ol l owst he r equi r ement sandi ns t r uc t i onsoft heI nt er nat i onalLabourOr gani z at i onc onv ent i onsandt heUni t edNat i onsUni v er s al Dec l ar at i onofHumanRi ght s .Ourf oc usi sonens ur i ngf ai r ,s af e,andheal t hywor k i ngc ondi t i onsf ort hewor k er swho mak eourpr oduc t si nal i gnmentwi t hi nt er nat i onal s t andar dsandnor ms .Wehav ees t abl i s hedamanagements y s t em on human r i ght s ,i nc l udi ng butnotl i mi t ed t o pol i c i es and pr oc edur es ,per i odi ci nt er nalmoni t or i ng,and wor k er s ur v ey s .Al s o,t he Gr oup hases t abl i s hed c ommuni c at i on c hannel sf orempl oy eeswho mayf i l ec ompl ai ntt ot he c ompanyi nev entofanygr i ev anc e,and t heGr oup wi l lhandl eand i nv es t i gat et hec as ei nc onf i dent i al i t y .Byt he endof2021,t heGr ouphasnoti dent i f i edanyl egalnonc ompl i anc eonempl oy menti s s ues ,i nc l udi nganyi nc i dent ofdi s c r i mi nat i on.

UPHOLDI NG CHI LDREN’ SRI GHTS Luen Thaimai nt ai ns a z er ot ol er anc e appr oac ht oc hi l dl abor and i sas t r ongadv oc at ei nuphol di ngc hi l dr en’ sr i ght s .

We adher e t o t he l oc al l aws and r egul at i ons pr ohi bi t i ng t he empl oy ment of c hi l d l abor and f or c ed l abor ,i nc l udi ng but not l i mi t ed t o Cap.57 Empl oy mentOr di nanc ei n Hong Kong,t he L abor Cont r ac tL aw oft he Peopl e’ sRepubl i cofChi na,and The L aborCode of t he Phi l i ppi nes , among ot her c ount r y s pec i f i c gui del i nes .

St r i c tpol i c i esagai ns tc hi l dl aborar ei npl ac e.

Wehav er ec r ui t mentandhi r i ngpr oc edur esi npl ac e, whi c hi nc l udesbutnot l i mi t ed t oi dent i f i c at i on ofdoc ument s pr es ent ed t ov er i f y age and s ubmi s s i onofmos tr ec entphot oandgov er nmenti dent i f i c at i on.Weal s o s t r i c t l yf ol l ow l oc all egalr equi r ement sdur i ng t he v er i f i c at i on pr oc es s .

Noc hi l dl abourwasf oundi nt hey earof2021.

40

PROTECTI NG THERI GHTSOFOURPEOPLE L uen Thais t r i c t l yf ol l owsl oc all egalr equi r ement son as s oc i at i on,c ol l ec t i v e bar gai ni ng,and uni on es t abl i s hment .Wer es pec tt her i ghtofwor k er st of or m orj oi ni nat r adeuni on,ort or ef r ai nf r om doi ng s o.Ther ei spol i c yonf r eedom ofas s oc i at i onandc ol l ec t i v ebar gai ni ng,whi c hens ur esempl oy eeswho par t i c i pat ei nanyl egalac t i v i t i es ,i nc l udi ngbutnotl i mi t edt ouni ons ,c ol l ec t i v ebar gai ni ng,peac ef ul as s embl i es ,ands t r i k es ,ar enott ober et al i at ed.Noi nc i dentoff or c edl abouri nanyf or m wasf ound i nt hey earof2021.

EMPOW ERI NG XO PEOPLE We ar ec ommi t t ed t ot he l ear ni ng and dev el opmentofourXO peopl e.Webel i ev et hatgi v i ngt hem t het ool sandr es our c est hey needt odot hei rj obswel l notonl yenc our agesac ul t ur eofex c el l enc e, butal s oc ont r i but est oL uenThai ’ ss uc c es s .

The7XO Habi t s( i ns pi r edandpar t ner edwi t hSt ephenCov ey ’ s The7Habi t sofHi ghl yEf f ec t i v ePeopl e) ,agui def orempl oy eesi n bec omi ngef f ec t i v eandt r uet eam pl ay er s ,wasl aunc hedi n2019and pr oduc edi t spi oneerbat c hofc er t i f i edt r ai ner sof “7Habi t sofHi ghl y Ef f ec t i v ePeopl e”t hatar enowc al l ed“XO Mas t erT r ai ner s ”and“7XO Habi t sAmbas s ador s . ”Des pi t et hepandemi ci n2021,wehav e“10 XO Mas t erT r ai ner s ”and“427XO Habi t sAmbas s ador s ”t opr omot e ac ul t ur eofowner s hi p,t eamwor k ,andc ont i nuousl ear ni ngdes pi t e t hepandemi c . .

41

Weal s opr ov i deourpeopl ewi t ht henec es s ar yt r ai ni ngandequi pt hem wi t hs k i l l st oper f or mt hei rwor ki nawayt hati ss af e f ort hem andt hei rc owor k er s .Wehav ededi c at edt r ai ni ngpol i c i esandpr oc edur esanddev el opt r ai ni ngpl anseac hy ear bas edont henec es s i t y ,pos i t i on,wor khi s t or y ,ands k i l l smat r i xofourempl oy ees ,aswel last her eques t edt r ai ni ngneeds .

Byt heendof2021,t heGr oup’ st r ai ni ngpr ogr amswer ec onduc t edf or8, 475par t i c i pant samount i ngt o62, 312t r ai ni ng hour s .

Numberof Empl oyees Tr ai ned

% Pr opor t i on ofEmpl oyees Tr ai ned

Ave.Tr ai ni ng Hour sper Empl oyee

Tot al Tr ai ni ng Hour s

Femal e

5, 864

20%

266 49,

8

Mal e

2, 611

19%

046 13,

5

TOT AL

8, 475

Rank&Fi l e

7, 129

18%

988 46,

7

Super v i s or s

1, 021

45%

387 5,

5

Mi ddl el ev el

301

23%

023 9,

30

Seni orLev el

24

28%

915

38

TOT AL

8, 475

312 62,

312 62,

Asi nt hepas ty ear s ,weal s oc ont i nuet oi mpl ementpr ogr amst oi mpr ov eempl oy ees ’happi nes sandj obs at i s f ac t i on.We us e

t he

empl oy ee

Net

Pr omot er

Sc or e

( eNPS) ( as

i l l us t r at ed

i n

t he

di agr am

bel ow) ,

a s y s t emat i c empl oy ee engagement s ur v ey t o as c er t ai n l ev el of s at i s f ac t i on and engagement of our empl oy eesbyas k i ngr es pondent showl i k el yt heywoul dr ec ommendt heCompanyasapl ac et owor konas c al eof0t o10.

The eNPS was f ul l y r ol l ed out i n al l L uen Thai f ac i l i t i es s i nc e 2019 and t he s ur v ey was s uc c es s f ul l yc ompl et edi n2021.

42

ENSURI NG THEHEALTH AND SAFETY OFOURPEOPLE LuenThaic ar esaboutt heoc c upat i onalheal t hands af et yofourpeopl e.Wepr ov i deawi der angeofr el at edt r ai ni ngs , i nc l udi ngbutnotl i mi t edt of i r es af et y ,emer genc ypr epar ednes s ,c hemi c als af et y ,us eofPPE,mac hi neandhandt ool s handl i ngandf i r s tai d.

TheCompanyhasheal t hands af et yc ommi t t eeswi t hwor k ermember st hatc onduc tper i odi ci nt er nali ns pec t i onsand audi t s ;dev el op c or r ec t i v e and pr ev ent i v e ac t i ons .Theyar e al s or es pons i bl ei n ens ur i ng c or r ec t i v e and pr ev ent i v e ac t i onsf oranyf i ndi ngsnot eddur i ngi nt er nal c hec k .

I n2021,t heGr ouphaspr ov i deds i gni f i c antr es our c est oheal t hands af et yt r ai ni ngsf orempl oy ees ,whi c hac c ount edf or mor et hanhal foft ot al par t i c i pant sandt r ai ni nghour s .

Heal t h&Saf et yTr ai ni ng

Tot al s

%t oTot alTr ai ni ngPopul at i on

Par t i c i pant s

12, 140

59%

Ac t i v i t yHour s

83, 289

57%

COMPLI ANCEMANAGEMENT Weadher et oi nt er nat i onal l y r ec ogni z eds t andar dsonoc c upat i onals af et yandheal t h.

Wef ol l owt hel oc aloc c upat i onalheal t hands af et yl awsandr egul at i ons ,i nc l udi ngbut notl i mi t ed t o Cap.509Oc c upat i onalSaf et yand Heal t hOr di nanc ei nHong Kong, Pr ev ent i on and T r eat mentofOc c upat i onalDi s eas esLaw oft he Peopl e’ sRepubl i c ofChi na,and Oc c upat i onalSaf et y and Heal t h St andar dsAc ti nt he Phi l i ppi nes , amongot herc ount r y s pec i f i cgui del i nes .

Pol i c i es and pr oc edur es on di f f er ent oc c upat i onal heal t h and s af et y as pec t s , i nc l udi ng butnotl i mi t ed t of i r es af et y ,emer genc ypr epar ednes s ,c hemi c als af et y , PPE,oc c upat i onalheal t hc hec k ,f i r s tai d,andac c i denthandl i ngar ees t abl i s hedand moni t or edonanongoi ngbas i sbyr es pons i bl emanagementt eams .Regul ari nt er nal and ex t er nalc ompl i anc eaudi t shav ebeenc onduc t ed t o ens ur et hes epol i c i esand pr oc edur esar e pr oper l yc onf or med wi t ht he r equi r ed c ompl i anc es t andar dsand pr ac t i c es .

Aspar toft he gr oup’ sr i s k managementand i nt er nalc ont r ols y s t ems ,managementt eamsofbus i nes suni t sal s o c onduc t edar egul arheal t hands af et yc ompl i anc es el f as s es s mentofbus i nes soper at i onswi t hc or r ec t i v eac t i onpl ans t oaddr es sanynonc ompl i anc eorc ont r ol weak nes si s s ues .

43

T woofourf ac i l i t i es , l oc at edi nt hePhi l i ppi nesandCambodi ahav eobt ai nedI SO 45001orOc c upat i onal Heal t hand Saf et y As s es s mentSer i es18001c er t i f i c at ef oroc c upat i onalheal t hands af et y .

Byend of2021,t her e wasno maj orl egalnonc ompl i anc e on oc c upat i onalheal t h& s af et yi s s uesper t i nentt ot he r egul at i onsoft her egi onswher et heGr oupoper at esi t sbus i nes s es .

EMERGENCY PREPAREDNESS I ni ns t anc eswher ewor k er sar ef ac edwi t hl i f et hr eat eni ngr i s k s ,t heyc anr ef us et owor kandl eav et hewor k s t at i onatany t i mewi t houtneedf orappr ov al .Anemer genc ypr epar ednes spl anunderear t hquak e,f i r e,s t or m orf l ood,t er r or i s m,bomb t hr eat ,c hemi c als pi l l age,anddi s eas eout br eakar ei npl ac e.TheCompanyal s or egul ar l yc onduc t semer genc ydr i l l sf or empl oy ees .

I nt hepas tt hr eey ear sf r om 20192021,LuenThai di dnothav eanywor k r el at edf at al i t i es .I n2021,t her ewer es omemi nor i nc i dent swhi c hi nc ur r edappr ox i mat el y1, 600day sl os tamongal lofours i t es ,asac ons equenc eofwor ki nj ur i esor oc c upat i onaldi s eas es

PROMOTI NG HEALTH AND W ELLNESS Luen Thais uppor t s a bal anc ed,heal t hy l i f es t y l ef ori t s empl oy ees .I thol ds r egul arheal t hr el at ed ac t i v i t i ess uc h asdi s eas e awar enes s ,t al k s ,c ons ul t at i ons , and pr ov i s i on ofs er v i c es by heal t h pr of es s i onal si nc l udi ng doc t or s ,wel l nes s c oac hes ,andnut r i t i oni s t s .

Pr i ort ot hepandemi c ,f i t nes sands por t sev ent swer ec onduc t edbyf i t nes sex per t s t ohel pempl oy eesr eapt hebenef i t sofaheal t hyl i f es t y l e.Rec r eat i onf ac i l i t i esl i k e bas k et bal lc our t ,v ol l ey bal lc our t ,t abl et enni sand c hes sboar d ar epr ov i ded f or empl oy ees ’us e.Meanwhi l e,weal s o ar r angec ul t ur alac t i v i t i esi nc l udi ng butnot l i mi t edt oy ear endpar t i es ,Chr i s t maspar t i es ,Chi nes eNew Y earandKhmerNew Y earc el ebr at i ons ,s por t s f es t s ,empl oy ee s howc as es ,t eambui l di ng ac t i v i t i esand depar t ment out i ngs ,t o ens ur e empl oy ees ’ wel l bei ng and i nc r eas e t hei r bel ongi ngnes s .Ac t i v i t i eswer emi ni mi z edorputonhol ddur i ngt hepandemi cf or heal t hands af et ypur pos es .Weobs er v el oc alCov i d19r es t r i c t i onpr ot oc ol ss uc has s oc i aldi s t anc i ng,wear i ng ofmas k s ,ant i gen t es t i ng,et cf oranyev entt hatwe c el ebr at et oget her .

44

GI VI NG BACKTO OURCOMMUNI TI ES LuenThaigi v esbac kt hr oughourXO Car ef orCommuni t yPl anwhi c hf oc us esonpr omot i ngempl oy eeawar enes sand v ol unt eer i s mt os er v eandc ont r i but et oabr oaderc ommuni t y .I n2021,wemanagedt oor gani z ev ol unt eer i ngs es s i ons underper mi s s i bl ec i r c ums t anc esdur i ngCov i d19t hr oughas mal l ers c al ec ompar edt opr ev i ousy ear s .

Vol unt eer i ngAct i vi t i es

Benefici ar i es

Ev ent s 22

Fami l i es 834

Hour s 42

I ndi v i dual s 823 3 Char i t abl eor gani z at i ons

Par t i c i pant s( i nc l udi ngnons t af f ) 166( 20)

210

Apar tf r om t heongoi ngpr ogr amss uc has“XO Ki ds ”t ouphol dc hi l dr en’ sr i ght s ,“Donat eanHour ”t oboos tpeopl e’ s par t i c i pat i oni nc ommuni t ywor k ,weal s odev el opnew pr ogr amseac hy eari ndi f f er entl oc at i onsar oundt hewor l dt o deepenourengagementands t r engt henourc ont r i but i ont os oc i et y .

I n2021,wel aunc hed XO Uni t ed Foot bal lCl ub i nCambodi at oenabl ec hi l dr ent ol ear nf oot bal l ,s etc l eargoal sand pl ansf orpar t i c i pant st odev el opt hephy s i c al , ment al , andemot i onal gr owt h.

XO Uni t edFoot bal l Cl ubi sanex t ens i onoft he c har i t abl es pi r i tf r om ourl ongt er mc ol l abor at i onwi t ht heT ul oyFoundat i oni nt hePhi l i ppi nest hatof f er sf r eef oot bal l t r ai ni ngt ounder pr i v i l egedc hi l dr en.

Luen Thaihasmade c har i t abl e and ot herdonat i onsi nc as h and i nk i nd dur i ng 2021 amount i ng t o appr ox i mat el y US$325, 000.

3T hes t at i s t i c sonbenefic i ar i esofc har i t abl eor gani z at i onsi nc l udedt hos eofyout hpr ogr ams .

45

EXPANDI NG OURCAUSE Luen Thaii sc ommi t t ed t o doi ng bus i nes sr es pons i bl y and hel pi ng c ommuni t i es t hr i v e.We par t nerwi t h ot her s t ak ehol der s–c us t omer s , v endor s , nongov er nmentor gani z at i ons , andac ademi ci ns t i t ut i ons–whos har et hes amepas s i on f ors er v i ngandgi v i ngbac kt ot hec ommuni t y .

TheGr oup al s oendor s ess eni orex ec ut i v esac c ept i ng bus i nes sand publ i cof f i c er ol eswhi c hc ur r ent l yi nc l udev ar i ous gov er nmentand nongov er nmentadv i s or y boar dsand i ndus t r y as s oc i at i onspr omot i ng i nt er nat i onalex por tt r ade, i ndus t r i alandt ex t i l es ec t or sandt ec hnol ogi est r ans f er .Ex ec ut i v es ’par t i c i pat i oni n2021 i nc l udess er v i ngont heboar ds oft heFeder at i onofHongKongI ndus t r i es , Conf eder at i onofWear abl eEx por t er soft hePhi l i ppi nes , Amer i c anAppar el and Foot wearAs s oc i at i on,Conf eder at i on ofPhi l i ppi ne Manuf ac t ur er sofPPE;asc ounc i lmemberoft he Hong Kong Pr oduc t i v i t yCounc i l ;and asmemberon t he T r ade and I ndus t r yAdv i s or yBoar d oft he Commer c e and Ec onomi c Dev el opmentBur eauofHongKongSpec i alAdmi ni s t r at i v eRegi on.

I nDec ember2021,oneofours eni orex ec ut i v eshasbeenel ec t ed asal egi s l at i v ec ounc i lmemberr epr es ent i ng t he Func t i onalCons t i t uenc yofT ex t i l esandGar ments ec t ori nHongKong.Thes ai dex ec ut i v ewi l lc ont i nuet os er v et hegr oup asas eni oradv i s oraf t err el i nqui s hi nghi sf ul l t i meoper at i onaldut i esatt hec ompanybyt heendof2021.

Weac t i v el ywor kwi t hl oc algov er nment st opr ov i degener alheal t hc hec k st ol oc alc ommuni t y ,s uppor tr ubbi s hc ol l ec t i on andi nf r as t r uc t ur ec ons t r uc t i on,monet ar ydonat i ons ,ar r angebl ooddonat i onac t i v i t i es ,s pons orands uppor tgov er nment l ed t r ai ni ngsand s uppor tl oc alc ommuni t yt of i ghtagai ns tCOVI D19,i nc l udi ng donat i ng mas k sand PPE gownst o di f f er entgov er nmentuni t sandi ns t i t ut i ons .

46

AWARDSAND RECOGNI TI ONS

CAMBODI A

MOSTVAL UABL EP ARTNERAWARD DI GI TAL I ZATI ON AWARD SUSTAI NABI L I TYAWARD Dec ember2021

PHI LI PPI NES

47

GRI TAWARD J anuar y2022

AWARDSAND RECOGNI TI ONS

HONG KONG

MANUFACTURI NG EXCEL L ENCE MEDI CALCATEGORY Dec ember2021

CHI NA

48

5CPERFORMANCEON SOCI ALCOMPL I ANCE Dec ember2021

SUSTAI NABI LI TY I nL uenThai ,env i r onment als us t ai nabi l i t yi snotj us tagoal ,butanes t abl i s hedt ar getandi ni t i at i v et oac hi ev ewi t hi nour f i v ey earpl an.I ti s an i nt egr alpar tofourbus i nes ss t r at egy t ot r ac e ourf oot pr i ntand l eav e mor e handpr i nt .

Thr oughourdi gi t alt r ans f or mat i onef f or t sandgr eeni ni t i at i v es ,wei mpl ements us t ai nabl emanuf ac t ur i ngbys t r i ngent l y meas ur i ng,moni t or i ngandmi ni mi z i nggr eenhous egas( GHG)andai remi s s i onsaswel lasc r eat i ngef f i c i ents t r at egi eson nat ur al r es our c esandener gyc ons umpt i on.

Wei nv es theav i l yi nt ec hnol ogyandequi pmentt hatnotonl yi mpr ov eouref f i c i enc yandf l ex i bi l i t y , butal s ohel psr educ eour c ar bondi ox i de( CO2)emi s s i onsandmi ni mi z et heneedf ors omer es our c es .

A numberofourappar elf ac t or i esi nt he Phi l i ppi nesand Cambodi a ar ec er t i f i ed wi t hi nt er nat i onalenv i r onment al s t andar ds s uc h as I SO 14001 Env i r onment al Management and I SO 45001 Oc c upat i onal Heal t h and Saf et y .

I n2021,t heGr ouphasnoti dent i f i edanyl egalnonc ompl i anc eagai ns tt her el ev antl awsandr egul at i onsi nouroper at i ng r egi onsper t ai ni ngt oemi s s i onsorot herenv i r onment al i s s ues , s uc has , butnotl i mi t edt o, t heEnv i r onment al Pr ot ec t i onL aw oft he PRC,Pr ev ent i on and Cont r olofAt mos pher i c Pol l ut i on/ Wat er Pol l ut i on oft he PRC,t he Env i r onment al Pr ot ec t i onT axL awoft hePRC, Dec r eeonTheCont r ol ofAi rPol l ut i onandNoi s eDi s t ur banc e( Cambodi a) , Cl eanWat erAc t and Cl ean Ai r Ac t of t he Phi l i ppi nes , and Ec ol ogi c al Sol i d Was t e Management Ac t of 2000 ( Phi l i ppi nes ) .

49

AI REMI SSI ON CONTROL The Gr oup’ smaj ors our c e ofai remi s s i onsi sf r om mobi l ec ombus t i on ofc ompany owned v ehi c l es .T oc ur t ai lt he i dent i f i ed emi s s i on s our c es ,r egul ar env i r onment al i ns pec t i on i sc onduc t ed i n manuf ac t ur i ng f ac i l i t i es . St r i c t hous ek eepi ngs t andar dsar emai nt ai nedi nmanuf ac t ur i ngf ac i l i t i esandex t er nal c anopyai rex t r ac t i ons y s t emsar ei ns t al l ed i nf ac t or i es .

Ai remi s s i onss uc hasNi t r ogenOx i des( “NOx ”) ,Sul phurOx i des( “SOx ”) ,andPar t i c ul at eMat t er( “PM”)ar es hownbel ow.

Asc ompar edt o2020,t her ewass i gni f i c antdec r eas ei nt heemi s s i onsofNOx ,SOx ,andPM ofar ound30%,25% and25% r es pec t i v el y .Thedr opi nemi s s i onswasat t r i but edt ov ar i ousc ount r i ess t ar t i ngt oeas el oc k downsf r om ant i pandemi c meas ur es ,ass uc h,ourf ac t or i esdec r eas edt henumberofr ent edbuss er v i c esf orempl oy eet r ans por t at i on.Ther ef or e, t her ewasl es sdi es elc ons umpt i oni n2021whi c hr es ul t edi nl es sai remi s s i ons .

Ai rEmi ssi on4

Uni t

FY2021

FY2020

Ni t r ogenOx i des( NOx )

k g

5, 700

8, 131

Sul f urDi ox i des( SOx )

k g

6.

59

8.

73

Par t i c ul at eMat t er( PM)

k g

297.

34

394.

98

GREENHOUSEGASEMI SSI ON CONTROL Pr ogr es s i v er educ t i onofGHG emi s s i oni soneofours t r at egi cgoal s ,wi t ht het ar gett ot r i m downt heemi s s i onsper pr oduc t i onf oreac hf ac t or ybas edoni t spr oduc t i onc apac i t y .L uenThaimanagesandr educ esGHG emi s s i ont hr ough di gi t al t r ans f or mat i onandi mpl ement at i onofgr eeni ni t i at i v es .

Weadoptener gy ef f i c i entequi pmentandr enewabl eener gy s our c est or educ eener gyc ons umpt i onand emi s s i on.Regul aras s es s mentonGHG emi s s i oni sc onduc t ed t o ens ur e c ompl i anc ewi t hr el ev antnat i onals t andar dsandev al uat et heef f ec t i v esoft hei ni t i at i v es .

Thedi r ec tGHGemi s s i on( Sc ope1) oft heGr oupi sobt ai nedf r om t hec ombus t i onofs t at i onar yboi l erf uel s , i nc l udi ngdi es el and bi omas sand mobi l ef uel s ,whi l et he i ndi r ec tGHG emi s s i on ( Sc ope 2)i sat t r i but ed t ot he c ons umpt i on of pur c has edel ec t r i c i t y . remi s s i oni sc al c ul at edbas edon“How t opr epar eanESG Repor t .

4Ai

Appendi x2:Repor t i ngGui danc eonEnvi r onment alKPI s ”publ i s hedbyHKEx.

50

Asc ompar ed t o2020,t heGr oup hasr ec or ded ani nc r eas ei nGHG emi s s i onand i nt ens i t yofar ound 27% and 23% r es pec t i v el y .The i nc r ementwasmai nl yt he c ons equenc e ofr ec ov er yf r om t he COVI D19 i mpac t si ns ome ofour oper at i ons ,whi c hl edt oi nc r eas ei nel ec t r i c i t yc ons umpt i onandhenc eener gyi ndi r ec tGHG emi s s i on.

GHG Emi ssi on

2021

2020

Sc ope15

4, 811

3, 659

Sc ope26

27, 162

21, 503

T ot alGHG

31, 973

25, 162

7 Tot al

Scope1

Scope2

2021 2020

2021 2020

2021 2020

Appar el

468 18, 799 15,

847 4, 363 2,

621 14, 436 12,

Ac c es s or i es

694 13, 175 9,

448 812

882 12, 726 8,

Ov er al l

162 31, 973 25,

659 4, 811 3,

503 27, 162 21,

Tot al

Scope1

Scope2

2021 2020

2021 2020

2021 2020

Appar el

4379 0.

5197 0.

0806 0.

1206 0.

0.

3991

0.

3573

Ac c es s or i es

0008 1.

2667 1.

0838 0.

0431 0.

1.

2236

0.

9169

Ov er al l9

5590 0.

6865 0.

0813 0.

1033 0.

0.

5832

0.

4778

GHG Emi ssi on( t CO2e)

GHG Emi ssi onI nt ensi t y ( kgCO2eperuni tofpr oduct i on)

8

ENERGYUSAGE LuenThaial way ss eek st o enhanc ei t sener gyef f i c i enc yt hr ought heus eofener gyef f i c i entequi pmentand r egul ar as s es s ment .Weus eLED l i ght i ngs y s t emsi npr oduc t i onandof f i c ear eas .Weus eener gys av i ngequi pment ,s uc has ai rc ondi t i oni ngs y s t emsands t eamdr y i ngr ooms .Wear ec ont i nuous l y ex pl or i ngway st out i l i z er enewabl eener gyand educ at eours t af ft omak emanuf ac t ur i ngpr oc es s esenv i r onment al l yf r i endl y .

Fac i l i t i es ’ pol i c i esandpr oc edur es , pr ac t i c es , ex pec t at i ons , and per f or manc e ar e c l ear l yc ommuni c at ed wi t h our empl oy ees ,s uppl i er s , and c us t omer s .

5Sc ope1emi s s i oni sc al c ul at edbas edont hepubl i s hedemi s s i onf ac t or sf r om “How t opr epar eanESG Repor tAppendi x2:Repor t i ng

Gui danc eonEnvi r onment alKPI s ”publ i s hedbyHKExand“UKGover nmentGHG Conver s i onFac t or sf orCompanyRepor t i ng”.

6Sc ope2emi s s i onc al c ul at i oni sbas edont hepubl i s hedemi s s i onf ac t or sf r om “Emi s s i onFac t or s2021”byt heI nt er nat i onalEner gyAgenc y .

7T ot alGHG emi s s i oni sc al c ul at edbyt hes ummat i onofSc ope1andSc ope2GHG emi s s i on.Sc ope3emi s s i onwasnoti nc l udedf ordi s c l o-

s ur ei nt hi sas pec t .

8Over al lGHG i nt ens i t yc al c ul at i oni sbas edonSc ope1andSc ope2GHG emi s s i on.Sc ope3emi s s i onwasnoti nc l udedf ordi s c l os ur ei n

t hi sas pec t .

9T ot alGHG emi s s i on( Sc ope1&2)overt ot alpr oduc t i onuni t s .

51

Reduc t i oni nener gyc ons umpt i onandi nc r eas ei nt heus eofr enewabl eener gyar ees t abl i s hedf oreac hf ac t or ybas edon oper at i ons and c us t omer r equi r ement s and annualr ev i ew i s per f or med t o as s es st he

ef f ec t i v enes s of t he

i ni t i at i v esandadj us tt het ar get sandmeas ur esac c or di ngl y .

As c ompar ed t o 2020, t he Gr oup has r ec or ded i nc r eas e i n el ec t r i c i t y c ons umpt i on and i nt ens i t y ofar ound13% and9% r es pec t i v el y .Thei nc r ementwasmai nl yt hec ons equenc eofr ec ov er yf r om t heCOVI D19i mpac t si n s omeofouroper at i ons ,par t i c ul ar l yc ommi s s i oni ngofaddi t i onalmac hi ner yi n Ac c es s or i esDi v i s i oni nCambodi af ac t or y .

Al lt hes eac t i v i t i esc ont r i but edt oi nc r eas ei nmanpowerandpr oduc t i onout putandev ent ual l yl edt oi nc r eas ei nel ec t r i c i t y c ons umpt i ondur i ng2021.

El ect r i ci t yConsumpt i on

Uni t

2021

2020

Appr ar el

k Wh

23, 876, 387

22, 900, 212

Ac c es s or i es

k Wh

21, 977, 335

17, 554, 373

Ov er al l

k Wh

45, 853, 723

40, 454, 585

Uni t

2021

2020

El ect r i ci t yConsumpt i onI nt ensi t y Appr ar el

k Whperuni tofpr oduc t i on

0.

66

0.

65

Ac c es s or i es

k Whperuni tofpr oduc t i on

2.

11

1.

81

10 Ov er al l

k Whperuni tofpr oduc t i on

0.

98

0.

90

Asc ompar edt o2020, t heGr ouphasr ec or dedas i gni f i c anti nc r eas ei nboi l erf uel c ons umpt i onandi nt ens i t yofar ound51% and15% r es pec t i v el y .Thei nc r ementwasmai nl yt hec ons equenc eoft hef ol l owi ngc hangesi nCambodi af ac t or ydur i ngof 2021: i .

Addi t i onalwas hi ngar eawhi c hwasc onnec t edwi t hs t eam boi l er .

i i . Swi t c hi ngf r om t heus eoff or es tt r eest oc as hewt r eesaswoodf uels i nc et heus eoff or es tt r eeswasdi s al l owedbya c us t omer .Howev er ,t hi sr es ul t edi nl oweref f i c i enc yt hatc aus edhi gherf uelc ons umpt i on.

Boi l erFuel

Uni t

2021

2020

Cons umpt i on

k g

14, 219, 174

9, 421, 105

I nt ens i t y

k gperuni tofpr oduc t i on

0.

31

0.

27

10T ot alel ec t r i c i t yc ons umpt i onovert ot alpr oduc t i onuni t s

52

W ATERCONSERVATI ON Wat eri sapr ec i ousandaf i ni t er es our c et hati si nc r eas i ngl yundert hr eat .I nLuenThai ,wear eawar eofourr es pons i bi l i t y t owar dst hes us t ai nabl eus eoff r es hwat er .Adopt i onofwat eref f i c i entappl i anc es ,r eus eofwat eri nf ac t or yoper at i ons ,and s et t i ngofannualt ar get si nwat erc ons umpt i onar epar tofours t r at egy .Pl umbi ngdev i c eswi t hbui l t i nf l owr es t r i c t or sar e i ns t al l ed i nk i t c hen and was hi ng ar east or educ e wat erc ons umpt i on.Wat erpur i f i c at i on pl ants y s t emsand s t andar d pr oc edur eshav e been s et up and c ons t ant l yupgr aded t ot r eatand r eus ei ndus t r i alwat erand c ol l ec t ed r ai nwat er .

Cons umpt i ont ar get sonr educ t i oni nf r es hwat erc ons umpt i onpergar mentandi nc r eas ei nt heus eofr ec y c l edwat erar e f or mul at edf oreac hf ac t or ybas edonoper at i onsandc us t omerr equi r ement s .Anannualr ev i ewi sc onduc t edt oas s es st he ef f ec t i v enes soft hei ni t i at i v esandadj us tt het ar get sandmeas ur es .

Asc ompar ed t o 2020,t heGr oup hasr ec or ded adec r eas eof5% i nwat erc ons umpt i onwhi l ei nt ens i t ywasr educ ed byar ound7% mai nt ai ni ngat0.

03c ubi cmet er speruni tofpr oduc t i on.I tdemons t r at edt heGr oup’ ss us t ai nabi l i t yef f or ti n mi ni mi z i ngwat erc ons umpt i ont oas t eadyl ev el dur i ngt he3y earper i odf r om 2019t o2021.

W at erConsumpt i on

Uni t

2021

2020

Appar el

c ubi cmet er s

929, 168

974, 387

Ac c es s or i es

c ubi cmet er s

280, 646

299, 831

T ot al

c ubi cmet er s

1, 209, 814

1, 274, 218

W at erConsumpt i onI nt ensi t y

Uni tperuni tofpr oduct i on

2021

2020

Appar el

c ubi cmet er s

0.

026

0.

028

Ac c es s or i es

c ubi cmet er s

0.

027

0.

031

11 T ot al

c ubi cmet er s

0.

026

0.

028

11T ot alwat erc ons umpt i onovert ot alpr oduc t i onuni t s

53

CHEMI CALAND W ASTEW ATERMANAGEMENT Zer odi s c har geofhaz ar dousc hemi c al si sours t eadf as tgoal .Wepos es t r i c tc ont r ol ov erhar mf ul c hemi c al s ubs t anc esus ed i n pr oduc t sbyr es t r i c t i ng t he us e ofv ol at i l e or gani cc ompound and c ompl i anc e wi t ht he Regi s t r at i on,Ev al uat i on, Aut hor i z at i onand Res t r i c t i onofChemi c al s( “REACH”) .T o ens ur ewor k pl ac es af et y ,haz ar dousc hemi c al sar epr oper l y s t or edi nl oc k edwar ehous esawayf r om empl oy ees .

Weal s omoni t orwat erdi s c har gesbas edont heoper at i onalc r i t er i aes t abl i s hedbyl oc alr egul at i onsi nt hear easwher e weoper at e.Sewaget r eat mentpl ant sandr el ev antoper at i onalc r i t er i ahav ebeenes t abl i s hedt oc har ac t er i z e,moni t or , c ont r ol ,andt r eatwas t ewat ergener at edf r om oper at i ons ,i ndus t r i alpr oc es s es ,ands ani t at i onf ac i l i t i espr i ort odi s c har ge.

I n2021,ef f l uentdi s c har gewasr ec or dedat466, 080c ubi cmet er s .

W ASTEMANAGEMENT Wear ec ommi t t edt odi v er t i ngwas t ef r om l andf i l ldi s pos al .Weadv oc at et he4RPr i nc i pl esofReduc e,Reus e,Rec y c l e, and Repl ac e.Weal s omax i mi z er es our c eef f i c i enc y .Was t eofal lt y pes ,i nc l udi ng wat erand ener gy ,ar er educ ed and el i mi nat edats our c et hr oughpr oduc t i onandf ac i l i t ypr oc es smodi f i c at i on,r egul armai nt enanc eofequi pment ,mat er i al s ubs t i t ut i on,c ons er v at i on,r ec y c l i ng and r eus i ng.Sol i d was t e managementpr oc edur eshav e been f or mul at ed t hat was t ehast obes egr egat edi nt or ec y c l abl e,nonr ec y c l abl eandt ox i cwas t ebef or ehandl i ng.Wehav es etupel ec t r oni c appl i c at i ons y s t emsandf i l i ngs y s t emst oav oi dunnec es s ar ypaperus ageandpr i nt i ng.

Was t er educ t i ont ar geti sac hi ev edt hr oughi nc r eas ei noper at i onal was t edi v er s i ones t abl i s hedwi t hr egul armoni t or i ngon t heef f ec t i v enes soft hei ni t i at i v e.I n2021,t heGr oup hass uc c es s f ul l ydi v er t ed 1, 516t onnesofwas t esf r om di s pos al t or ec y c l i ng,i nc l udi ngc ar t onbox es ,ac r y l i cpl as t i c s ,c hemi c alc ont ai ner smadeofpl as t i cormet al s ,andmet als c r aps .

Theor i gi nsoft hes ewas t eswer emai nl yf r om war ehous es ,di emol d mak i ng,c ut t i ng and s ewi ng wor k s hops ,et c .We hav e des i gnat ed c hannel sf ors epar at i ng t hes e was t esatdi f f er ents our c es ,f orex ampl e,c ol l ec t i ng empt yc hemi c al c ont ai ner sf r om haz ar douswas t ear eas ,di s c ar dedc ar t onbox esf r om mat er i alpac k i ngandgener alwas t ear eas ,met al s c r apsf r om pr oper t yf abr i c at i ons c r apar ea.

54

W ast eReduct i onAppr oach

Uni t

2021

2020

Was t eDi v er t edf r om Di s pos al

t onnes

1, 516

2, 291

Asc ompar edt o2020,t her ewasadr opofar ound775t onnesi nwas t edi v er s i on.Themai nr eas onwasoneoft hek ey was t edi v er s i onc ont r i but or s ,ac c es s or i esf ac t or yi nMy anmarwasundert empor ar yc l os ur ef or4mont hsi n2021,whi c h i nc ur r edadec r eas ei nwas t edi v er s i onof1, 145t onnes ,ac c ount i ngf orar ound73% dec r eas easc ompar edt o2020.

Apar tf r om r educ i ngats our c e,wehav eappl i edr i gor ouss t andar dsi nhandl i ng,mov ement ,s t or age,us e,r ec y c l i ngand di s pos al ofbot hhaz ar dousandnonhaz ar douswas t e.

Nonhaz ar douswas t ei smai nl yc l as s i f i edi nt ot hef ol l owi ngc at egor i es :c utt r i mmedt hr eadsandc utends ,s uc hasl i ni ngs , f abr i c sandot hernonl eat hermat er i al s ;domes t i cwas t e,i nc l udi ngs ani t ar yandf oodwr aps ,c l eani ngs uppl y ,wor nout pl as t i c s ,paper s ,di s pos abl ewat erbot t l es ,c ar t ons ,empt yc ansandpai l s ,woods c r apsands awdus t ,ands omebr ok en orr epl ac edmac hi nepar t s .I n2021,t heamountofnonhaz ar douswas t eswasl ar gel yr educ ed.Thek eyr eas onf ors uc h s i gni f i c antdec r eas ewasmai nl yat t r i but abl et ot hec ons equenc eofhous ek eepi ngac t i v i t i esf ors or t i nganddi s pos alof unnec es s ar yi t emsduet ot her educ t i onoft ot al bui l di ngsoc c upi edwi t hi nt heac c es s or i esf ac t or yc ompoundi nPhi l i ppi nes i n2020.Asc ompar edt ot henonhaz ar douswas t eamounti n2019( 18, 921t onnes ) ,i ndeedt hewas t egener at i oni n2021 wass t i l l l es st hanhal foft heamounti n2019.

Wes t r i c t l yadher et ot hel oc all awsandr egul at i onsr el at i ngt ot hedi s pos al ,t r ans f er ,andhandl i ngofhaz ar douswas t e, i nc l udi ng butnotl i mi t ed t ot he Pr ev ent i on and Cont r olofEnv i r onment alPol l ut i on bySol i d Was t esoft he PRC, Ec ol ogi c alSol i dWas t eManagementAc tofPhi l i ppi nesandT ox i cSubs t anc es ,Haz ar dousandNuc l earWas t eCont r ol ofPhi l i ppi nes .Wehav eobt ai nednat i onalhaz ar douswas t egener at i onandt r ans por tper mi t st hatl i mi tt hedi s c har ge c apac i t yandr equi r er egul aras s es s mentf orhaz ar douswas t es uc haswas t eorus edmac hi neoi l ,bus t edf l uor es c entbul b, t r eat eds l udge,was t egl ueandwas t ei nk .Gener at i onofhaz ar douswas t esf or2021wass l i ght l yl es st hant hati n2020.

Thi si sduet ot het empor ar yc l os ur eofanac c es s or i esf ac t or yi nt hePhi l i ppi nesi n2021.

W ast eGener at i on

Uni t

2021

2020

Haz ar dous

t onnes

56

60

NonHaz ar dous

t onnes

8, 588

22, 926

T ot al

t onnes

8, 644

22, 986

I nt ens i t y

k i l ogr amsperuni tofpr oduc t i on

0.

19

0.

51

55

NATURALAND RAW MATERI ALS CONSUMPTI ON AND THEENVI RONMENT LuenThair es pons i bl ymanagesnat ur alandr awmat er i alc ons umpt i onandpot ent i alr i s k st hr oughoutt heoper at i onc y c l e.

Wemai nt ai nc l os ec ommuni c at i onwi t hc us t omer sandmat er i als uppl i er si nt hec our s eofmat er i als el ec t i onandf ol l ow c us t omer s ’qual i t yr equi r ement sands t andar dsi ns el ec t i ngmat er i al s .Thepac k agi ngmat er i al sf orourgar mentandbag pr oduc t si nc l udec ar t onbox es ,pl as t i cbags ,andot heraux i l i ar yi t ems .

I n2021,t het ot alc ons umpt i onofpac k agi ngmat er i al swasappr ox i mat el y7, 449t onnes ,( 2020:5, 265t onnes;2019:8, 558 t onnes ) ,bec aus eas i gni f i c antpor t i on ofpr oduc t i on ac t i v i t i es was hi nder edi n 2020 by t he COVI D19 pandemi c .

Packagi ngMat er i al s

Uni t

2021

2020

Car t onBox

t onnes

4, 132

3, 635

Pl as t i c

t onnes

1, 870

1, 136

Ot her s *

t onnes

1, 447

494

T ot alCons umpt i on

k i l ogr amsperuni tofpr oduc t i on

7, 449

5, 265

T ot alCons umpt i onI nt ens i t y12

k i l ogr amsperuni tofpr oduc t i on

0.

16

0.

12

* Ot her si nc l udel abel s ,pl as t i cs t r i ngs ,t i s s ue

Wec ont i nuet or ol loutt he#Br i ngY our OwnBot t l ec ampai gn,whi c hwasl aunc hedi n2018aspar tofouref f or t sagai ns t s i ngl eus e pl as t i c s ,i n ourof f i c es and f ac t or i es .We pr ov i de r eus abl ec ups f orv i s i t or s ,whi l e ourempl oy ees ar e enc our agedt obr i ngt hei rownr eus abl ewat erc ont ai ner s .

Fr om 2019 t o 2021, we hav e r ec or ded obs er v ed an i nc r eas e i n wat er bot t l es s av ed, des pi t e t he dr opi n2020duet or educ edempl oy eesandv i s i t or si nf ac i l i t i esundert heCOVI D19pandemi c .

Wat erbot t l es av ed

Uni t

2021

2020

201 9

pi ec e13

2, 270, 070

65, 378

133, 156

13 T hec al c ul at i onwasbas edont hees t i mat i onandf or mul aasnumberofempl oyeesx2bot t l esperdayxnumberofwor kdays

56

CLI MATECHANGE Regul ari dent i f i c at i on ofenv i r onment ,heal t h,s af et y ,and c l i mat er i s k si sourf i r s ts t ep ofr i s kmanagementf oreac h pr oduc t i onf ac i l i t y ,f ol l owedbyi mpl ement at i onofappr opr i at epr oc edur alandphy s i c alc ont r ol sf ort hei dent i f i edr i s k st o ens ur er egul at or yc ompl i anc e.

T y phoons ,f l oods ,heat wav es ,anddr ought sar oundt hewor l dhappenf r equent l yi nr ec enty ear s .Thes eev ent sc anc aus e phy s i c al damagest oouras s et sandoper at i onal di s r upt i on,es pec i al l yf orouroper at i ngr egi onsnearc oas t al ar eas ,s uc has t hePhi l i ppi nes ,whi c hi nt ur n,c anr es ul ti nr educ edpr oduc t i onc apac i t y ,del ay edpr oduc t i onc y c l e,r i s kofnotmeet i ng c ompl et i ont ar get s ,i nc r eas ed l i qui di t yr i s k s ,and i nc r eas ed r epai rand mai nt enanc ec os t s .Wi t hi nc r eas i ng r egul at or y r equi r ement st oc opewi t ht hec hal l engesbr oughtbyc l i mat ec hange,t heunc er t ai nt yont hec hangeofpol i c ymaypos e pol i c yandl egalr i s konourbus i nes s .Thus ,wes t r i v et or emai nc l i mat er es i l i entt owi t hs t andex t r emec l i mat ec ondi t i ons i nc l udi ngi nc or por at i ngc l i mat er el at edr i s k si nt oourr i s kmanagementpr oc es s , r educ i ngourc ar bonf oot pr i ntt hr oughpr omot i ngenv i r onment alawar enes st oourempl oy ees ,c us t omer sands uppl i er sandc ont i nuousmoni t or i ngouroper at i ons .

Wear eal s oc ur r ent l yex pl or i ngoppor t uni t i esont heus eofl ower emi s s i ons our c esofener gyandnew t ec hnol ogi est o r educ eoper at i onalc os t sandenj oyr eput at i onal benef i t s .

Wet ak eamul t i pr onged appr oac ht oc ombatt hei dent i f i ed c l i mat er el at ed r i s k s ,i nc l udi ng engagi ng qual i f i ed t hi r d par t yt oas s es sbui l di ngs af et yandi nt r oduc emeas ur est os t r engt hent hebui l di ngs t r uc t ur esofourpr oduc t i onf ac i l i t i es , c ar r y i ngoutr egul arai rv ent i l at i onas s es s ment sperWor kEnv i r onmentMeas ur esorot herl egalr equi r ement s ,i nv es t i ng i ni mpl ement at i onofmi t i gat i onmeas ur es ,pur c has ei ns ur anc et oc ov erf i nanc i all os si nc ur r edf r om nat ur aldi s as t eror ex t r emeweat her ,al l oc at i ng annualf undsf ornew bes tav ai l abl et ec hnol ogy ,mat er i al sand empl oy eet r ai ni ng c l i mat e c hange,andes t abl i s hi ngemer genc ypr epar ednes sandr es pons epl an.

Thec ont i ngenc ypl ans er v esasgui danc eonr epor t i ng,r es pondi ng,and i nv es t i gat i ng pot ent i alemer genc ys i t uat i ons andev ent sar i s i ngf r om manmadedi s as t er ,andnat ur alweat herdi s t ur banc es ,i nc l udi ngf l oodi ng,t y phoon,c i v i lunr es t , s t r i k esand f i r e.Emer genc ydr i l l sf orf i r e,ear t hquak e,c hemi c als pi l l ,l oc k downs i mul at i onand f l oodi ng s i mul at i onar e hel dr egul ar l yt oens ur eempl oy eesar ef ami l i ar i z edwi t hev ac uat i onr out es ,s k i l l sofev ac uat i on,andpr operappl i c at i on ofr el ev antequi pmentt ohandl ev ar i ousemer genc ys i t uat i ons .T os af eguar dourempl oy eesunderemer genc yc ondi t i ons , we pr ov i de adequat e emer genc yt r ai ni ng.Ourwor k pl ac ei swel lequi pped wi t h emer genc yappl i anc es ,s uc h asf i r e det ec t i onands uppr es s i onequi pment , adequat eex i tf ac i l i t i esandr ec ov er ypl ans , addi t i onal f i r epumps , andaut omat i cf i r e ex t i ngui s her s .

57

GREEN I NI TI ATI VES Luen Thaiempower si t s empl oy ees t owar ds env i r onment all eader s hi p.As a s us t ai nabi l i t yl eader ,we pr omot e env i r onment alawar enes sand or gani z eenv i r onment alc ons er v at i onand pr es er v at i onpr ogr amsand ac t i v i t i eswi t hour empl oy eesand c ommuni t i es .We ac t i v el y par t i c i pat ei nt r ee pl ant i ng,c ol l abor at e wi t h ot heri ns t i t ut i ons ,pr ac t i c e t r ans par entr epor t i ng,s uppor tgr eeni nnov at i ons oc i alent er pr i s es ,andi nc or por at et heUni t edNat i onsSDG wi t hi nour f i v ey earpl an.

LuenThai hasi mpl ement edat r eepl ant i ngpr ogr am t ohel pi ni mpr ov i ngai rqual i t yandaddr es s i ngdef or es t at i on.I n2021, t heGr ouphasnewl ypl ant edar ound3, 000t r eesi ni t i at edbyaPhi l i ppi nef ac t or y ,andac c umul at edt hepl ant i ngofar ound 11, 440t r eesgr oupwi des i nc e2018.Wi t ht heex pec t ed r ec ov er yf r om COVI D19f or2022,t heGr oup hases t abl i s hed i ni t i at i v esofpl ant i ngmor et r eesi nr egi onswher et heGr oupoper at es .

TheCompanyhasc ul t i v at edas ens eofawar enes sandr es pons i bi l i t yi nt hehear tofourempl oy eest oc ont i nuous l yf os t er aneXt r aOr di nar yc ar ef ort heenv i r onmentwi t hv ar i ousgr eenev ent sac t i v i t i ess uc hasc l eanupdr i v es ,was t emanagement pr ogr ams ,annualr ec y c l i ng ev entf orr es al e ofr ec y c l abl e mat er i al s .Mov i ng f or war d,we ar es et t i ng t ar get sand k ey per f or manc ei ndi c at or s( KPI s )f ort heenv i r onment al awar enes spr ogr amsandonv ol unt eer i s m.

SUMMARY EMPLOYEESBY NATI ONALI TY

EMPLOYEESBYAGEGROUP

1825

29%

Cambodi an

44%

2635

41%

Fi l i pi no

34%

3645

23%

My anmar i/Bur mes e

13%

4665

6%

Chi nes e( Mai nl andChi na

≥66

1%

andHongKong)

8%

Ot her s *

1%

EMPLOYEESATDI RECTOR ORABOVELEVELBYGENDER

* Ot her si nc l udeAmer i c an,Bangl ades hi ,Ger man, I ndi an,I ndones i an,Mal ay s i an,Mex i c an,Si ngapor ean,

Mal e

58%

Vol unt eer i ngAct i vi t i es

Sr iL ank an,andVi et names e.

Femal e 42%

Ev ent s 22

EMPLOYEESBY GEOGRAPHI CALREGI ON EMPLOYEESATDI RECTOR ORABOVELEVELBYAGEGROUP

25 18-

2%

35 26-

14%

45 36-

28%

65 46-

47%

≥66

9%

Hour s 42 Par t i c i pant s( i nc l udi ngnons t af f ) 166( 20)

Cambodi a

44%

Phi l i ppi nes

34%

Benefici ar i es

My anmar

13%

Fami l i es 834

PRC

8%

I ndi v i dual s 823

Ot her s *

1%

Char i t abl eor gani z at i ons 210

* Ot her si nc l udeUSA,Bangl ades h, I ndi a,andI ndones i a.

69%

EMPLOYEES BYGENDER

31%

59

Numberof Empl oyees Tr ai ned

% Pr opor t i on ofEmpl oyees Tr ai ned

Femal e

5, 864

20

266 49,

8

Mal e

2, 611

19

046 13,

5

Rank& Fi l e

7, 129

18

988 46,

7

Super vi s or s

1, 021

45

387 5,

5

Mi ddl el evel

301

23

023 9,

30

Seni orLevel

24

28

915

38

Tot al Tr ai ni ng Hour s

Ave.Tr ai ni ng Hour sper Empl oyee

El ect r i ci t y Consumpt i on

2021 23, 876, 387k Wh 21, 977, 335k Wh 45, 853, 723k Wh

Appr ar el Ac c es s or i es Ov er al l

El ect r i ci t yConsumpt i on I nt ensi t yperuni tofpr oduct i on Appr ar el Ac c es s or i es Ov er al l

W at er Consumpt i on

22, 900, 212k Wh 17, 554, 373k Wh 40, 454, 585k Wh

2021

2020

0.

66k Wh 2.

11k Wh 0.

98k Wh

0.

65k Wh 1.

81k Wh 0.

90k Wh

2021

2021

2020

Appar el Ac c es s or i es T ot al

0.

026 0.

027 0.

026

0.

028 0.

031 0.

028

Uni t

Cons umpt i on

k g

14, 219, 174

9, 421, 105

I nt ens i t y

k gper uni tof pr oduc t i on

0.

31

0.

27

2021

Uni t

FY2021

FY2020

Ni t r ogenOx i des( NOx )

k g

5, 700

8, 131

Sul f urDi ox i des( SOx )

k g

6.

59

8.

73

Par t i c ul at eMat t er( PM)

k g

297.

34

394.

98

Car t onBox Pl as t i c Ot her s T ot alCons umpt i on T ot alCons umpt i oni nt ens i t y

ubi cmet er s 974, 387 c ubi cmet er s 299, 831 c ubi cmet er s 1, 274, 218 c

W at erConsumpt i onI nt ensi t y peruni tofpr oduct i on

Boi l erFuel

Packagi ngMat er i al s

2021

2020

4, 132t onnes 3, 635t onnes 1, 870t onnes 1, 136t onnes 1, 447t onnes 494t onnes 7, 449t onnes 5, 265t onnes 0.

16 0.

12

2020

ubi cmet er s 929, 168 c ubi cmet er s 280, 646 c ubi cmet er s 1, 209, 814 c

Appar el Ac c es s or i es T ot al

Ai rEmi ssi on

2020

Wat erbot t l es aved 270, 070pi ec e 2021 2, 65, 378pi ec e 2020 156pi ec e 201 9 133,

2020

GHG Emi ssi on( t CO2e) Appar el Ac c es s or i es Ov er al l

GHG Emi ssi onI nt ensi t y ( kgCO 2eperuni tofpr oduct i on)

Appar el Ac c es s or i es

60

Ov er al l

Tot al

Scope1

Scope2

2021 2020

2021 2020

2021 2020

468 18, 799 15,

847 4, 363 2,

621 14, 436 12,

694 13, 175 9,

448 812

882 12, 726 8,

162 31, 973 25,

659 4, 811 3,

503 27, 162 21,

Tot al

Scope1

Scope2

2021 2020

2021 2020

0.

5197 0.

4379

0806 0.

1206 0.

0.

3991

0.

3573

1.

2667 1.

0008

0838 0.

0431 0.

1.

2236

0.

9169

0.

6865 0.

5590

0813 0.

1033 0.

0.

5832

0.

4778

2021

2020

SUSTAI NABLETECHNOLOGY New Manuf act ur i ngModelwi t h Chi naandNonChi naSuppl yChai n LuenThais t r at egyr emai ned s t eadyf ort hepas tf ew y ear s , f oc us i ng on ac hi ev i ng l ongt er m gr owt ht hr ough bui l di ng anewmanuf ac t ur i ngmodel andt r ans f or mi ngt hes uppl yc hai n f unc t i onsc ent er edar ounds us t ai nabi l i t y .

Weas pi r et ol eadour i ndus t r yt o a gr een ec onomy by pr ov i di ng br eak t hr ough t ec hnol ogys ol ut i onst oourc us t omer s .

LTH’ sNew Manuf act ur i ngModel

Theus eofec of r i endl ywat er l es st ex t i l ec ol or at i ont ec hnol ogy s i gni f i c ant l yr educ eswat er ,ener gy ,andc hemi c al us e,aswel l as f ur t her c ut t i ng our c ar bon f oot pr i nt and ov er al l was t ed mat er i al swhi l ek eepi ng hi ghl yc ompet i t i v e ec onomi c s .Thi s t ec hnol ogywasi dent i f i edbyourc us t omer sasak eyenabl eri n

LuenThaii ni t i at i v eshav ebeenv al i dat edbyc us t omerdemand

hel pi ngt hem ac hi ev et hei rambi t i ouss us t ai nabi l i t ygoal s .T op

ov ert hel as tt woy ear s .Wewer es el ec t edast hek eys t r at egi c

s por t s wearandf as hi onbr andsi nt hewor l dhav ec ommi t t edt o

par t nerbyourc us t omer st opr ov i dei nnov at i v es ol ut i ons( s uc h

pr oduc epr oduc t sus i ngourwat er l es sc ol or i ngt ec hnol ogy .For

as NTX™ nanof i ber t ec hnol ogy , NTX™ wat er l es sf abr i c

ust odel i v ers uper i orv al uet oourc us t omer st hr oughv er t i c al

c ol or i ngandpr i nt i ngt ec hnol ogy ,Heat T r anxpr oduc tc ol or i ng

ex pans i ons ,we hav e added Heat T r anxt ec hnol ogypower ed

t ec hnol ogy , manuf ac t ur i ng pr oc es s es aut omat i on, AI and

byNTX™ t oenhanc eours us t ai nabl es uppl yc hai nc apabi l i t i es .

di gi t al s ol ut i ons )f or enabl i ng f abr i c / mat er i al i nnov at i on,

Heat T r anx i s a di s r upt i v e wat er l es s pr oduc t c ol or i ng

ondemandmanuf ac t ur i ngandpr i nt i ng,ands mar tr et ai lwhi l e

t ec hnol ogyt hatr epl ac est r adi t i onals c r eenpr i ntandal l owsf or

at t ai ni ngt hehi ghes ts t andar dsi ns us t ai nabi l i t y .

pr i nt i ngongar mentwi t hnol i mi t at i ononc ol orandmi ni mum or derquant i t y ,enabl esust opr oduc epr oduc t satmuc hl ower

T omax i mi z et hev al ueofours t r at egi cpar t ner s hi pwi t hNTX™,

c os twi t hbet t erqual i t y ,hi gherout putandr educ edpr oc es s i ng

we hav ec ompl et ed t he f or mat i on ofour j oi nt v ent ur es

t i mef orf as t erdev el opmentand pr oduc t i on.Oneoft het op

wi t hNTX™ t obui l dadv anc eddy ei ngandpr i nt i ngpr oduc t i on

s por t s wearbr andshass t ar t edus i ngHeat T r anxt ec hnol ogyf or

c ent erf eat ur ed wi t h Cool t r ans ™ c ol or at i on t ec hnol ogi esi n

pr oduc tdev el opmentandpr oduc t i oni n2021.

Cambodi aandVi et nam.

61

The c us t omeri sl ev er agi ng t he f ul ls ui t e ofours ol ut i onst o dev el opa“New Chi naRet ai lSuppl yChai nModel ”t oac hi ev e

+

v er t i c ali nt egr at i on and s t r eaml i ne t he pr oc es s esf r om f abr i c / gar mentmat er i al i nnov at i on,f abr i cc ol or i ng,pr oduc tdes i gnand dev el opment , pr oduc t pr i nt i ng, OEM ( or i gi nal equi pment manuf ac t ur er ) ,s al esandmar k et i ngt os our c i ngandl ogi s t i c s .

Weal s oi nc or por at edt hi r dpar t yAIs y s t emsi nt ot hef ul lv al ue c hai nofouraut omat ed manuf ac t ur i ng oper at i onsi nChi nat o f ac i l i t at edec i s i onmak i ngandpr obl ems ol v i ngpr oc es s esus i ng r eal t i me dat at o al l ow f ora qui c kr es pons et oc us t omer demandsand r equi r ement s .Thenew modelai mst o notonl y dr i v et het opl i negr owt h,butal s os i gni f i c ant l yi mpr ov equal i t y , s peed,c os t ,f l ex i bi l i t y ,ands us t ai nabi l i t yac r os st hes uppl yc hai n.

Wehav es uc c es s f ul l yr es t r uc t ur edours uppl yc hai nmodeland s t r engt henedmanuf ac t ur i ngc apabi l i t i est or educ ev ul ner abi l i t i es ami dt he gl obals uppl yc hai n unc er t ai nt i es ,s hor t ages ,and i nt er r upt i ons .An i nc r eas i ng numberoff as hi on r et ai l er sand br andsar et r ans f or mi ngt oademandf oc us edv al uec hai n,and adv anc i ng t hei r ef f or t s i n opt i mi z i ng appar el / ac c es s or i es pr oduc t i on t hr ough near s hor i ng/ ons hor i ng and aut omat i on.

Near s hor i ng/ ons hor i nghol dsahugeoppor t uni t yt or educ el ead t i mes ,i nv ent or i es ,and was t e pr oduc t i on,t her ebydr i v i ng t he i mpor t ants us t ai nabi l i t y mi s s i on whi l e nav i gat i ng geopol i t i c al r i s k s .

Wer eor gani z edours uppl yc hai nt os uppor tbot hnear s hor e andof f s hor es our c i ngs t r at egi est hr oughChi naandNonChi na oper at i ons ,wher e Chi na domes t i c manuf ac t ur i ng c apac i t yi s s uppor t i ng t he Chi na f oc us ed ex pans i on, and pr oduc t i on

NTX Cool t r ansamor eecoconsci ous t ext i l ecol or i zat i on

f ac i l i t i esout s i deofChi naar es uppor t i ngt henonChi namar k et .

Asar es ul toft hes uppl yc hai nr eor gani z at i on,maj or i t yor69% of ours al esf r om Chi naoper at i onsc omesf r om domes t i cor der s , whi l et heex por tbus i nes s esi nChi naar er educ edt o31% i n2021.

Thi shaspr ov ent obeanef f ec t i v ewayofr educ i ngc ur r enc yand geopol i t i c al r i s k s .

62

OURCOVI D1 9RESPONSE Ami ds tt hepandemi c ,LuenThai ’ st oppr i or i t yr emai nst obet heper s onal heal t hands af et yofourpeopl e.Wear ec l os el y moni t or i ngadv i c ei s s uedbyt heWor l dHeal t hOr gani z at i on( WHO) andl oc al gov er nment si neac hofourmar k et s .

Wewi l l c ont i nuet of ol l ow s t r i ngentgui del i nest opr ev entt hes pr eadoft hev i r usandt ak eal lnec es s ar yac t i onst opr ot ec tour empl oy eesandt hei rf ami l i es .T ak i ngt hes af eandef f ec t i v eCOVI D19v ac c i nei st hebes twayt ogetoutoft hec ur r ent pandemi c .

Weenc our ageal l el i gi bl eempl oy eest ogetv ac c i nat edwhi l er es pec t i ngt hei ndi v i dual swhoar eappr ehens i v e aboutt hev ac c i nesf ordi f f er entr eas ons .

Wet ak et her es pons i bi l i t yofeduc at i ngourpeopl e, s har i ngac c ur at ei nf or mat i on andr es our c esaboutv ac c i nat i onwi t hal lofourmember sandt hel ar gerc ommuni t y .Weboas tofhi ghv ac c i nat i onr at e ac r os st heor gani z at i on.AsofMar c h2022,ov er99% ofourempl oy eesgl obal l yr ec ei v edf i r s tdos eoft hehi ghl yef f ec t i v e COVI D19v ac c i nes ,and96% ofempl oy eesr ec ei v edt hes ec onddos eoft hev ac c i ne,wi t h53% r ec ei v i ngat hi r dboos t er dos e.

Thi si sahuges t epf or war di nbr i ngi ngt hi spandemi cunderc ont r ol andens ur i ngt hec ont i nui t yofbus i nes s .

Wewi l l f ur t herac c el er at et hev ac c i nat i onpr ogr am andmul t i f ac et edi ni t i at i v ess ot hatal lmember sofourc ommuni t yc anl ead t hei rl i v esi ns af et yandwi t hpeac eofmi nd.

Whi l ev ar i ousc ount r i esar er el ax i ngpandemi cc ont r ol s ,L uent hai i ss t i l l uphol di ngour“Mas kOn”pol i c yatourpr emi s es , andwher es el ft es tk i t sar eal l owedt obeus ed,wes c hedul er out i neRATs el ft es tf orourempl oy eesandens ur eear l y homei s ol at i onofi nf ec t edempl oy ees .I n2022wehav es hi f t edourCOVI D19pr ev ent i v es t r at egyf r om mi t i gat i ngs ev er e i l l nes sanddeat hst oenhanc i ngt hewel l bei ngofourempl oy ees .TheXO GOOD Empl oy ee Wel l nes sPr ogr am wi l lbe l aunc hedi nApr i l2022 t opr omot eands uppor tourempl oy eest obui l ds t r ongbodyandmi ndt oc ombatt heongoi ng c hal l engesbr oughtaboutbyCOVI D19.Wehav eel ev at edt hemoni t or i ngofabs ent eei s mr at et hati sduet oi l l heal t h, s o wec anc ont i nuet odev i s epr ogr amst hatwi l lbet t erenhanc et hev i t al i t yofourempl oy ees .

63

OURCOVI D1 9RESPONSE I nt he f i ghtagai ns tCOVI D19,we es t abl i s hed a per s onal pr ot ec t i v eequi pment( PPE)bus i nes sand qui c k l ydev el oped hi ghl y pr ot ec t i v e,br eat habl e,medi c al gr ade,r eus abl ef ac e mas k st hatl ev er ageourmat er i ali nnov at i onc apabi l i t i esand NTX™ nanof i bert ec hnol ogy .Thepr emi um mas k sandmedi c al r es pi r at or swedev el opedar eoneoft hev er yf ewr es pi r at or si n t hewor l dt hatmeetWHO s pec i f i edper f or manc es t andar dsf or PPEandpas s eddualc er t i f i edpr ot ec t i ons t andar ds( EN14683 T y peI I RandEN149FFP2) .Thes uper i orpr ot ec t i onc omeswi t h ant i v i r alf unc t i on and 99.

99% bac t er i alf i l t r at i on ef f i c i enc y c er t i f i edbyI SO 18184andI SO 20743.Ourf ac t or yi sal s oan I SO14644 Cl as s7 Cl eanr oom f ac i l i t ywi t hI SO13485 Qual i t y ManagementSy s t em f orMedi c alDev i c es .I naddi t i on,wear e r ec ogni z edast her ec i pi entoft heHongKongBus i nes s ’Made i nHongKongAwar ds2021–Medi c alCat egor y ,f orourmas k pr oduc t s .The mas k s we dev el oped ar e att he s t age of l ar ges c al e pr oduc t i on and c ommer c i al i z at i on. We wi l l c ont i nuet ot ak eadv ant ageofournanof i bert ec hnol ogyand ex pand ouref f or t st o dev el op ot hers us t ai nabl e and hi ghl y f unc t i onabl ePPEss uc hasmedi c al gownsandgl ov est hatar ei n hi ghdemandar oundt hewor l d.

Ther ei ss t i l la c hanc e ofCov i di nf ec t i on des pi t e bei ng v ac c i nat ed,t her ef or e Luen Thaipr ov i ded empl oy eesi n al l l oc at i onswi t ht hes emedi c algr ademas k st hatwepr oduc ed.I t pr ov i desaddi t i onalpr ot ec t i onandc omf or tt oourempl oy ees .

64

HKEXESG REPORTI NG GUI DEI NDEX

65

66

67

68

69

70

GRICONTENTI NDEX-ENVI RONMENTALTOPI CS

71

GRICONTENTI NDEX— SOCI ALTOPI CS

72

73

CONTACT AND FEEDBACK

Wewel c omef eedbac kont hi sESG r epor t andours us t ai nabi l i t yper f or manc e.

Forc omment sors ugges t i ons ,pl eas es endt o: Addr es s L uenThaiHol di ngsLi mi t ed, Rooms10011005,10/ F ,Nany angPl az a, 57HungT oRoad,KwunT ong,Kowl oon, HongKongSAR Emai l c or por at e_ c ommuni c at i ons @l uent hai . c om

74