Sterling Group Posts HK$328 Million Revenue, Achieves 15.5% Carbon Cut in FY25/26 ESG Update

Bulletin Express
08/07

Sterling Group Holdings Limited reported FY25/26 revenue of HK$328 million on shipments of 1.50 million woven garments, with more than 98% sold to the United States, according to its eighth Environmental, Social and Governance (ESG) report covering the year to 31 March 2026.

Environmental Performance • Total Scope 1 and 2 greenhouse-gas emissions fell 15.5% year on year to 1,935 tCO₂e, surpassing the Group’s new target of a 15% absolute reduction by 2031 (baseline FY24/25: 2,289 tCO₂e). • Scope 3 emissions, dominated by purchased goods and services, were calculated at 9,157 tCO₂e. • Total energy use reached 3,217 MWh, comprising 2,428 MWh of purchased electricity and 789 MWh of direct fuels. Energy-intensity stood at 4.63 kWh per garment, while carbon-intensity measured 2.47 kg CO₂e per piece. • Water consumption totalled 29,061 m³ (0.04 m³ per piece). • Non-hazardous waste amounted to 133 tons; hazardous waste was 1 ton. • Participation in the Apparel Impact Institute’s Carbon Leadership Programme pinpointed four efficiency priorities—lighting, boilers, HVAC and compressed air systems—for phased upgrades.

Governance and Strategy The Board oversees ESG matters, supported by the Sterling Sustainability Committee, which sets climate targets and monitors progress. Climate-scenario analysis aligned with TCFD guidelines evaluated both low- and high-emission pathways, guiding mitigation and adaptation planning.

Social Metrics • Headcount: 990 employees (743 female, 247 male), with a 33% overall turnover rate. • Health & Safety: zero work-related fatalities; 98 lost workdays from injuries. • Training: over 1,800 training hours delivered, with 76% of employees receiving instruction. • Supply Chain: one critical tier-1 supplier in the Philippines is subject to enhanced auditing. Sri Lanka factories remain WRAP-certified, while the Guangzhou facility maintains SMETA audit compliance.

Ethics and Community Sterling recorded no corruption cases during the year. Anti-corruption training is mandatory for all staff, and a zero-tolerance policy covers child or forced labour. Community initiatives included donations to local schools in Sri Lanka and social support activities in China.

Outlook Management reiterated commitment to its science-aligned decarbonisation pathway, enhanced supplier engagement on environmental data, and continued investment in energy-efficient technologies to drive sustainable growth and stakeholder value.

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