Environmental, Social and Governance

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<span class="red-serif">Company Name</span><br> CFL Group Holdings Limited<br><br> <span class="red-serif">Sector</span><br> One-stop apparel supply chain management solutions provider<br><br> <span class="red-serif">Principal Place of Business</span><br> 12/F, Tower II, Enterprise Square<br>9 Sheung Yuet Road<br>Kowloon Bay, Hong Kong<br><br> <span class="red-serif">Registered Office</span><br> Cricket Square<br>Hutchins Drive<br>P.O. Box 2681<br>Grand Cayman KY1-1111<br>Cayman Islands

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We devote great effort to minimizing our impact on the environment — from conscientiously reducing our energy consumption and physical waste in the office, to implementing environmental policies with our vendors. <br> <br> Wanting to minimize the pollutants created during the manufacturing and production process, we proactively develop environmentally-sustainable technical packages for our apparel products during the product design and development process. Using creative software during the design and development process means our design and development teams provide virtual 3D samples of our products to our customers instead of physical samples — thereby significantly dropping the number of physical samples and decreasing wastage.<br> <br> When sourcing contract factories and evaluating their performance, we take into consideration their environmental sustainability practices. We urge our contract factories to adopt processes during production that lessen the impact on the environment in the areas of waste generation, energy and water usage and carbon emission levels. In particular we review processes and procedures for the safe and proper handling, storage, transport and disposal of any hazardous waste to ensure that they are always compliant with all relevant laws and regulations.

Requires real action and must be more than just ticking a box. We commit to the right corporate social responsibility initiatives by mapping them to tangible deliverables and expect to be held accountable. We maintain stringent compliance requirements and transparency in our operations and all the vendors and suppliers with whom we engage, but recognise there is opportunity to do more.<br> <br> We ensure that we deliver sustainable practices, strict vendor compliance, and strategic partnerships for responsibly manufactured products.<br> <br> Internally we are committed to employee-driven initiatives to drive meaningful purpose and employee benefits for work-life balance. We respect and stand up for the rights and dignity of employees of different races, genders and sexual orientation. People at CFL are treated equally and fairly, and are evaluated by their performance instead of identity. We uphold a ‘people-oriented’ principle while striving to provide an equal, diverse and respectful work environment for our employees.

We believe in trust and shared purpose. We are committed to fulfilling our social responsibilities and legal requirements to meet the expectations and standards of our customers. We source and partner with vendors who share the same commitment.<br> Our compliance professionals are always alert to the compliance implications at our customers' markets, and manage a comprehensive program including: Social Responsibility, Labor Standards, C-TPAT, Brand Protection, Product Safety, and Environmental Protection.<br> <br> They are proactive in providing our manufacturing partners and merchandising teams with the most up-to-date information and requirements regarding labor laws and regulations. The team also provides Compliance Manuals and best practices to our manufacturing partners to ensure their Compliance System meets our customers’ expectations, and conducts regular tracking audits to assess their compliance status.<br> <br> And they go one step further — they recommend solutions to compliance issues at manufacturing partners with follow ups to monitor progress for immediate and continuous improvement, as well as help submit a timely Corrective Action Plan (CAP).

CFL’s Corporate Code of Vendor Conduct sets forth the basic requirements that all factories must meet to qualify as one of our vendors.&nbsp;The Code is also the foundation for our ongoing evaluation of a factory's employment practices and environmental compliance — we monitor closely their practices to ensure compliance at all times. Points of particular importance to us:<br><br><span class="red-serif-menor">Laws &amp; Regulations</span> — Factories must operate in full compliance with all applicable laws, rules and regulations of their respective countries, including but not limited to those related to Labor Standards, the Environment, Conflict Minerals, C-TPAT, Product Safety and Country of Origin.<br><br><span class="red-serif-menor">Labor</span> — Factories must employ workers on the basis of the ability to do the job without reference to personal characteristics or beliefs, and provide fair compensation and benefits to all without discrimination. Factories cannot employ child or forced labor, or hamper workers' freedom of association, or engage in or permit harassment or abuse.<br><br><span class="red-serif-menor">Health &amp; Safety</span> — Factories must comply with all applicable laws regarding working conditions and dormitory facilities, including worker health and safety, sanitation, fire safety, risk protection, and electrical, mechanical and structural safety.<br><br><span class="red-serif-menor">Bribery &amp; Corruption</span> — Factories and suppliers must comply with all applicable anti-corruption and anti-bribery laws, rules and regulations as required by CFL and established by CFL (Anti-Fraud, Anti-Money Laundering, Whistleblowing Policies). Any form of bribery and corruption, deception and falsification of records is strictly prohibited. Any such findings may result in the termination of the business relationship.


For more information please contact:<br><br> <span class="red-serif">Colin Chau</span><br> Company Secretary<br> <a href="mailto:colinchau@cflhk.com" class="email-red">colinchau@cflhk.com</a>