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Environmental, Social and Governance Report

STAKEHOLDER OPINION

We welcome opinions on the Group’s approaches on the environmental, social, and governance aspects
upon reading the ESG Report. Please share with us via email at investor.enquiry@alco.com.hk.

ENVIRONMENTAL ASPECT

The Group is mindful of the environmental impact of its business operations, as it establishes new goals
and performance indicators every year based on its environmental approaches, results of impact and risk
assessment, as well as other internal and external factors. The Group’s environmental goals are centred
around saving of water, electricity and energy, legal and proper disposal of waste, environmental safety and
other areas.

The Group has enacted the Risk and Opportunities Control Procedures, which specifies internal measures for
identifying potential risks and taking coping efforts, understanding needs and expectations from stakeholders,
fulfilling compliance requirements, as well as preparing for contingencies. We evaluate the effectiveness of
various measures with records being kept in order to developing a continuous improvement process.

Internal environmental policies, approaches and objectives will be set forth in internal guidelines, checklists
and solutions, notice boards and other document as we ensure that all employees are made aware of them.
All of these efforts in environmental protection are initiated and monitored by our devoted Environmental
Control Committee, which is formed by members with qualifications of ISO 14001:2015 Environmental
Management Systems: Internal Auditor and EHS Manager from Lingnan College, Sun Yat-Sen University.

During the Reporting Period, there was no incident of non-compliance with local relevant environmental laws
and regulations relating to air and greenhouse gas emissions, discharges into water and land, and generation
of hazardous and non-hazardous waste that have a significant impact on the Group.

Emissions

We have a manufacturing facility based in Houjie Town, Dongguan City, Guangdong Province in the People’s
Republic of China (“PRC”) (“Houjie Factory”). Upon an acceptance inspection of the facility’s construction
and a thorough environmental assessment, Houjie Factory has received the Approval of Pollutant Emission
in Guangdong Province from the Environmental Protection Bureau of Dongguan City, which is a prerequisite
for commencement of manufacturing activities. Houjie Factory has also obtained the certification of
ISO14001:2015 for meeting the required standards for environmental management system.

ALCO HOLDINGS LIMITED ANNUAL REPORT 2018 19