Fourace Industries Group Holdings released its 2025/26 Environmental, Social & Governance (ESG) Report, detailing material progress on emissions, resource efficiency and workforce management over the 12 months to 31 March 2026.
Environmental Performance • Greenhouse gases: Total Scope 1-3 emissions fell 27.1% year on year to 3,028 tonnes CO₂e, driven mainly by a 25.1% decline in electricity-related Scope 2 emissions to 2,976 tonnes CO₂e. Direct emissions (Scope 1) slipped to 28 tonnes CO₂e from 42 tonnes, reflecting lower vehicle fuel use and refrigerant releases. • Energy: Group energy consumption dropped 23.9% to 5,639 MWh. Electricity accounted for 99.4% of the total, with direct fossil-fuel energy limited to 30 MWh. Energy intensity improved to 4.86 kWh per product from 5.78 kWh. • Water: Usage declined 14.0% to 36,095 m³, holding intensity steady at 0.03 m³ per product. Effluent testing showed chemical oxygen demand, ammonia nitrogen and suspended solids well below Guangdong discharge limits. • Air quality: Concentrations of benzene, toluene, xylene and VOCs at the Shenzhen plant remained significantly under local emission standards; NOx, SOx and particulate emissions from vehicles fell 60–65% after fleet electrification. • Waste: Hazardous waste rose 35.0% to 64.86 tonnes (0.06 kg per product) on production mix changes. Non-hazardous waste doubled to 199.98 tonnes due to a one-off disposal of obsolete metal tools, lifting intensity to 0.17 kg per product.
Forward-looking Targets Fourace aims to cut per-product intensities for Scope 1+2 GHG, energy, water and non-hazardous waste by 5% by FY 2030/31 versus the new FY 2025/26 baseline. The board will monitor annual progress and embed energy-efficiency, waste-segregation and water-saving projects across operations.
Social Highlights • Workforce: Headcount fell to 261 (-23.7%), while turnover dropped to 18% from the prior year’s 50%, reflecting improved retention. Women comprise 50.2% of staff. • Training: 99.6% of employees received training, averaging 12.4 hours each. Senior executives averaged 19.8 hours. • Safety: Three minor work injuries led to 3.5 lost days; no fatalities were recorded for the third consecutive year. • Benefits: All staff receive statutory social insurance and housing funds; additional perks include free accommodation, meals, medical checks and festival allowances.
Supply Chain & Product Stewardship Fourace managed 235 key suppliers, with 89.4% located in Guangdong to trim logistics emissions. Suppliers must sign anti-bribery and social-responsibility undertakings and comply with EU RoHS and REACH substance restrictions.
Quality controls remain anchored in ISO 9001:2015 and ISO 13485 systems. No product recalls occurred during the year; 37 customer complaints were logged and resolved individually. Intellectual-property and data-privacy protocols align with China’s Personal Information Protection Law and Hong Kong’s Personal Data (Privacy) Ordinance.
Governance & Ethics The board retains direct oversight of ESG strategy. No corruption cases were recorded in FY 2025/26. All employees sign integrity commitments, and whistle-blowing channels are in place.
Outlook Management will refine climate-scenario analysis, expand Scope 3 emissions mapping and prioritise operational efficiency to meet its 2030/31 intensity-reduction goals while strengthening social and governance frameworks.