Source of Prosperity – Balanced Development - About PUMA
Source of Prosperity – Balanced Development - About PUMA
Source of Prosperity – Balanced Development - About PUMA
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<strong>Source</strong> <strong>of</strong> <strong>Prosperity</strong> <strong>–</strong> <strong>Balanced</strong> <strong>Development</strong><br />
2011 Sustainability Report<br />
B.P. BAG CO., LTD.
Content<br />
2011 Report Theme <strong>About</strong> the Report Speech <strong>of</strong> Directors Company Pr<strong>of</strong>ile<br />
P.1 P.2 P.3 P.5<br />
Sustainability Team Environmental Protection & Management Enhancement Production Optimization &<br />
P.11 Green Life P.21 P.32 Quality Enhancement P.34<br />
Labor Rights, Communication Health & Safety Staff <strong>Development</strong> Training Support from Customers<br />
& Welfare P.41 P.50 Program P.52 P.55<br />
Our Partners <strong>–</strong> Suppliers Community Care & 2012 Prospect Summary<br />
P.58 Education P.60 P.63 P.63<br />
Appendix: GRI G3.1<br />
Index Reference Table P.64
2011 Report Theme~~~ <strong>Source</strong> <strong>of</strong> <strong>Prosperity</strong> <strong>–</strong> <strong>Balanced</strong> <strong>Development</strong><br />
The prosperity in front <strong>of</strong> her eyes now comes from her toiling efforts<br />
<strong>of</strong> farming and logging and her husband’s dangerous work in the coal and<br />
oil mines in the past. Thanks to their hard work, we now have constant<br />
supply <strong>of</strong> food, paper, nicely-packaged products and enjoy the convenience<br />
<strong>of</strong> electricity, lights, water, cars and trains.<br />
Everything she enjoys comes from the nature that she loves so<br />
much <strong>–</strong> it is her home and root, as well as the root <strong>of</strong> life for her <strong>of</strong>fspring.<br />
The dove is a symbol <strong>of</strong> purity and peace. A peaceful world depends on<br />
balanced development <strong>of</strong> the planet earth. The vision <strong>of</strong> sustainable<br />
development is to maintain and keep everything that we now enjoy for our<br />
future generations to continue to enjoy on a basis <strong>of</strong> balanced development.<br />
The theme <strong>of</strong> this year’s BP Sustainability Report is “<strong>Source</strong> <strong>of</strong><br />
<strong>Prosperity</strong> <strong>–</strong> <strong>Balanced</strong> <strong>Development</strong>”.<br />
An old lady who has gone through every stage <strong>of</strong> life has no more to<br />
want for herself but the hope for her family and <strong>of</strong>fspring to live happily on<br />
this wonderful homeland. The old lady smiles and looks back, under the<br />
dazzling neon lights and skyscrapers <strong>of</strong> the bustling city, she still remembers<br />
what she saw and felt years ago in the countryside she came from <strong>–</strong> the<br />
giant green pasture, the pine and cypress trees, the soothing sounds <strong>of</strong> a<br />
mountain stream, the fresh air in the garden. She misses the feeling in the<br />
embrace <strong>of</strong> Mother Nature.<br />
Caring for and protecting the environment is one <strong>of</strong> the things we<br />
can do, but it is not enough for fulfilling all the needs <strong>of</strong> the planet earth<br />
and human beings. The principle <strong>of</strong> balanced development is the<br />
foundation stone. If everyone from a small organization to a big<br />
community or even a nation can utilize what it has and allocate and<br />
develop in a smart way, everyone can benefit equally and enjoy consistent<br />
quality <strong>of</strong> life and rights. This way we can all afford to share the passion to<br />
appreciate and protect our beautiful world.<br />
With less competition and more love, the world will keep its peace<br />
and the planet earth will sustain.<br />
“<strong>Balanced</strong> development” is BP’s 2011 operation vision that leads the<br />
organization and its staff moving forward.<br />
*Artist <strong>of</strong> the Theme Paint: Denny Ong<br />
P.1
<strong>About</strong> the Report<br />
This report is the second Sustainability Report issued by B.P. Bag Co.,<br />
Ltd. (hereinafter referred to as "BP", "the Organization" or "the Company")<br />
after 2010 Sustainability Report. It is prepared in accordance with the<br />
standards <strong>of</strong> Global Reporting Initiative's GRI G3.1 Application Level B<br />
(www.globalreporting.org). This report is issued in the Chinese and English<br />
languages. In the event <strong>of</strong> any discrepancies between the two versions, the<br />
Chinese version shall prevail.<br />
Unless otherwise specified, the information disclosed herein includes<br />
information regarding the labor, human rights, occupational health &<br />
safety, environment, supply chain management etc. <strong>of</strong> BP's Hong Kong<br />
head <strong>of</strong>fice and its subsidiaries including "Da Lang Chang Fu Travel Bags<br />
Mfg" (hereinafter referred to as Chang Fu Factory), "Qi Fu Bags<br />
Manufacturing Ltd." (hereinafter referred to as Qi Fu Factory) and "Wealth<br />
Team Industrial Co., Ltd." (hereinafter referred to as Wealth Team Factory)<br />
for the period between April 1, 2011 and March 31, 2012 (hereinafter<br />
referred to as the "Year 2011"); except that information regarding "Wealth<br />
Team Industrial Co., Ltd." shall only cover the period between July 1, 2011<br />
and March 31, 2012 as its operation only started in early July 2011. BP’s<br />
sustainability report is published annually.<br />
Industrial Co., Ltd" since July 2011.<br />
BP prepared this report based on the organization's principles <strong>of</strong><br />
sustainable development. The key points <strong>of</strong> the report, priority <strong>of</strong><br />
presentation and stakeholders to be included were determined by way <strong>of</strong><br />
scoring during several meetings held in the Year 2011 in order to provide<br />
the latest information about BP's sustainable developments in a clear and<br />
organized way.<br />
BP hereby declares a GRI's G3.1 Application Level <strong>of</strong> B for this 2011<br />
Sustainability Report <strong>of</strong> B.P. Bag Co., Ltd.<br />
The data information and analyses herein are collected from the Hong<br />
Kong head <strong>of</strong>fice and the aforesaid three factories and do not include<br />
"Chung Ah Bags & Caps Manufacturing Ltd" mentioned in the 2010<br />
Sustainability Report as its operation has been replaced by "Wealth Team<br />
P.2
Speech <strong>of</strong> Directors <strong>–</strong> Active Improvements and Steady Growth<br />
After nearly half a century <strong>of</strong> development since 1967, BP has witnessed the<br />
changes <strong>of</strong> the society through five generations. The small company in the past<br />
has now become an enterprise with several factories due to the dedication and<br />
wisdom <strong>of</strong> BP’s leaders, diligent work <strong>of</strong> our staff, support <strong>of</strong> our customers and<br />
contribution <strong>of</strong> our suppliers.<br />
2011 was a year <strong>of</strong> challenges. Despite the continued gloomy outlook for the<br />
global economy, BP strived to move forward with its motto <strong>of</strong> “Active<br />
Improvements and Steady Growth” on the foundation <strong>of</strong> sustainable<br />
development as our business philosophy. We aim to achieve balance among the<br />
three areas <strong>of</strong> economics, environment and society to make sure our company<br />
can expand steadily and healthily.<br />
Active Improvements<br />
The changing factors <strong>of</strong> the global macro economics such as the euro debt<br />
crisis and the shadow over US economy continued to impact the business<br />
environment <strong>of</strong> industries and consumer confidence. There are also other<br />
problems such as heated inflation around the world, slowing demand in most<br />
emerging markets, reduced orders for export companies, rising costs etc.<br />
Faced with such economic environment, BP proactively established the<br />
Sustainability Division in recent years to form a team for continued<br />
improvements for the whole organization. Using this “Active Improvements” as<br />
our basic approach helps us to build a strong foundation during the economic<br />
downturn and pave way for our future developments.<br />
Mr. Thomas Tsui<br />
Chairman <strong>of</strong> the Board and CEO<br />
Mr. Sampson Tsang<br />
Executive Director<br />
Based on our 2010 outlook, in order to stabilize the Organization within a<br />
short period <strong>of</strong> time, BP carried out a series <strong>of</strong> sustainability efforts such as<br />
eco-factories, energy-saving programs, workflow streamlining, expansion <strong>of</strong><br />
testing center, strengthening <strong>of</strong> labor welfare and training etc. These were all<br />
carried out with an approach to proactively improve internally and to achieve<br />
environmental protection, caring for employees, energy saving and balance<br />
between income and expenses. We strive to live the spirit <strong>of</strong> sustainable<br />
development with positive thinking and energy amid the pessimistic external<br />
economic outlook, lead our organization to develop steadily and provide<br />
comfortable working and living environment for our staff. This way all members<br />
<strong>of</strong> the big BP family can enjoy quality life and career with peace <strong>of</strong> mind.<br />
P.3
In the long run, BP will continue to uphold the target <strong>of</strong> developing its original<br />
brand in order to link its products to the concept <strong>of</strong> sustainability and promote it<br />
to all levels <strong>of</strong> the society. We hope the society can share the BP mission and<br />
join hands to protect our home and build a beautiful environment and future for<br />
our coming generations.<br />
Mr. Thomas Tsui, Chairman <strong>of</strong> the Board & CEO<br />
&<br />
Mr. Sampson Tsang, Executive Director<br />
B.P. Bag Co., Ltd.<br />
Steady Growth<br />
“Steady Growth” is the long-term development strategy the BP leaders<br />
established for the Organization. The continued improvements we made have<br />
laid a solid foundation favorable for the progressive development <strong>of</strong> the<br />
Organization. Last year, BP Marketing Division carried out projects to expand the<br />
levels <strong>of</strong> marketing based on the mid-term development plan <strong>of</strong> the Company,<br />
leading the Organization to reach out to more customers <strong>of</strong> different levels and<br />
pave the foundation for future developments.<br />
The development <strong>of</strong> sustainability concept requires a long time <strong>of</strong> cultivation<br />
and understanding in terms <strong>of</strong> its education, promotion and acceptance by the<br />
society. As there is a global trend <strong>of</strong> manufacturing base relocation, to align with<br />
the Company’s mid- and long-term business plan and sustainability development,<br />
after in-depth consideration in 2011 the BP leaders decided to establish an<br />
overseas production line in 2013. We believe this will further prepare the<br />
Company for more balanced development in the future.<br />
P.4
Company Pr<strong>of</strong>ile<br />
Introduction<br />
B.P. Bag Co., Ltd. was incorporated in Hong Kong as a limited company in 1967.<br />
During the decline <strong>of</strong> the manufacturing sector in Hong Kong in the mid-1980s, BP<br />
moved its factories northwards in the Dongguan province. Now the company has<br />
its headquarters based in Hong Kong with the production based in mainland<br />
China. In the beginning, BP ran three factories, namely Qi Fu Bags Manufacturing<br />
Ltd., Dalang Chang Fu Travel Bags Mfg and Chung Ah Bags & Caps Manufacturing<br />
Ltd. In order to cope with the continuous expansion <strong>of</strong> the Company and the<br />
macro-economic trend, BP invested and opened a new factory in the Hunan<br />
Province, Wealth Team Industrial Co. Ltd., in September 2010 to replace the<br />
operation <strong>of</strong> Chung Ah Bags & Caps Manufacturing Ltd. in Huizhou, Guangdong.<br />
The new factory commenced production in July 2011.<br />
B.P. Bag Co., Ltd.<br />
employees, suppliers and the community.<br />
Mr. Thomas Tsui serves as the Chairman <strong>of</strong> the Board and the Chief<br />
Executive Officer (CEO), who leads the Board to monitor the internal operations.<br />
There is no remuneration for the Board members, as provided by the Board, any<br />
member shall abstain from any matter <strong>of</strong> conflicting interest with the<br />
Company’s operation to make sure the Company is run with integrity and<br />
fairness.<br />
BP reports to the shareholders on the corporate economic, environmental,<br />
and social matters in the form <strong>of</strong> periodical reports to clearly account for the<br />
Company’s situation and operation directions. Members <strong>of</strong> the Board have<br />
regular meetings with the department heads to collect suggestions and discuss<br />
future initiatives before they are submitted to the Board for resolution.<br />
Da Lang Chang Fu Travel<br />
Bags Mfg<br />
Qi Fu Bags<br />
Manufacturing Ltd<br />
Wealth Team<br />
Industrial Co., Ltd.<br />
Sales Department<br />
R& D Department<br />
Purchasing Department<br />
The Board and Organizational Structure<br />
The governance body <strong>of</strong> BP consists <strong>of</strong> the Board <strong>of</strong> Directors and senior<br />
management who are responsible for different departments with a mission to<br />
ensure mutual understanding among departments and a holistic planning<br />
approach to ultimately achieve balance within the organization and thorough<br />
Board <strong>of</strong> Directors<br />
CEO<br />
Production Department<br />
QC Department<br />
Warehoulse Department<br />
Shipping Department<br />
Sustainability Department<br />
Human Resources Department<br />
implementation <strong>of</strong> strategic developments.<br />
Finance Department<br />
Testing Department<br />
In addition to guarding the Company’s interest, the Board governs the<br />
General Services Department<br />
Company with the interest <strong>of</strong> its valued stakeholders in mind, including its<br />
P.5
Corporation Contact<br />
B.P. Bag Co. Ltd. Headquarter (Location A on map)<br />
Address:Room 1401—6, 14/F., Block B, Hi-Tech Industrial Centre, 491-501<br />
Castle Peak Rd., Tsuen Wan, N.T., Hong Kong<br />
Tel:+852 2415 5633 Fax:+852 2413 8409<br />
Website:www.bpbag.com E-mail:info@bpbag.com<br />
Da Lang Chang Fu Travel Bags Mfg (Location B on map)<br />
Address: No.199, East Changfu Road, Dalang, Dongguan, Guangdong<br />
Top: Qifu Factory,<br />
Bottom Left: Wealth Team Factory,<br />
Bottom Right: Changfu Factory<br />
Qi Fu Bags Manufacturing Ltd. (Location C on map)<br />
Address: Liujia Industrial Area, Liujia Village, Hengli Town, Dongguan,<br />
Guangdong<br />
Wealth Team Industrial Co., Ltd. (Location D on map)<br />
Address: Shi Li Pu Industrial Area, Ningyuan, Yongzhou, Hunan<br />
P.6
Compliance <strong>of</strong> Law, Social Responsibility & Company Regulations<br />
BP operates with respect for and strict compliance with the local legal system<br />
and develops its business by competing in the market in a fair and responsible<br />
manner.<br />
BP Sustainability Goal<br />
The Company also upholds the code <strong>of</strong> conduct requirements and suggestions <strong>of</strong><br />
our clients, based on which we have developed the ‘BP Code <strong>of</strong> Conduct’ (please<br />
refer to outline <strong>of</strong> BP Code <strong>of</strong> Conduct and Sustainable <strong>Development</strong> on P.6). We<br />
are actively training our employees and require them to comply with the law and<br />
be socially responsible in order to be aligned with our goal towards a more<br />
sustainable development.<br />
Through promotion, education and training, we are nurturing the concept <strong>of</strong><br />
sustainability within the organization. Our staffs have a good understanding the<br />
sustainability concept and participate in realizing the BP mission, making<br />
sustainable development and social responsibility our unique corporate culture.<br />
85% Rated<br />
Safe Grade A<br />
Water<br />
Saving<br />
Outline <strong>of</strong> BP Code <strong>of</strong> Conduct and Sustainable <strong>Development</strong><br />
Energy<br />
Saving<br />
Year 2015<br />
25% Improvement<br />
as goal<br />
CO2 Emission<br />
Reduction<br />
Reduction <strong>of</strong><br />
Waste<br />
Management System<br />
Social & Moral<br />
Labour & Human<br />
Rights<br />
Occupational Safety &<br />
Health<br />
Environment & Product<br />
Responsibility<br />
•Corporate<br />
commitment &<br />
responsibility<br />
•Duties <strong>of</strong><br />
Management Team<br />
•Risk Management<br />
•Goals <strong>of</strong> Sustainability<br />
•Training<br />
•Audit & Evaluation<br />
•Archival records &<br />
Employees'<br />
suggestions<br />
•Probity & impartal<br />
•Open & transparent<br />
•No corrumption<br />
•Fair Trade<br />
•No child labour<br />
•Guide to juvenile<br />
employees<br />
•Employees' health &<br />
sexual healthy<br />
•Non discrimination<br />
•Reasonable working<br />
hours, compensation<br />
& treatment<br />
•Welfare<br />
•Employees' rights<br />
•Work & association<br />
Freedom<br />
•Occupational safety &<br />
sanitation<br />
•Emergency measures<br />
•Work-related injuires<br />
& occupational<br />
diseases<br />
•Machine maintenance<br />
& safely use<br />
•Sanitation <strong>of</strong><br />
dormitory & canteen<br />
•Attention on<br />
restriction <strong>of</strong> product<br />
contents<br />
•Training about<br />
knowledge <strong>of</strong><br />
chemicals & hazardous<br />
substances<br />
•Solid waste & wasted<br />
water treatment<br />
•Reduce exhaust<br />
emission<br />
•Training on energy<br />
saving<br />
P.7
Corporate Risk Management<br />
Based on the principles <strong>of</strong> basic operational risk management, BP adopts the<br />
‘Plan, Do, Check, Action’ (PDCA) approach to continuously manage and<br />
streamline the company’s internal operations. The Sustainability Department<br />
was established in 2010 to supplement the risk management model on the<br />
design and inspection <strong>of</strong> every project, system and SOP with the aim <strong>of</strong> ensuring<br />
smooth operation in each department and strengthen the monitoring, evaluation<br />
and improvement efforts.<br />
Communications with Stakeholders<br />
BP communicates with its stakeholders in the form <strong>of</strong> reports which covers<br />
communications frequency, subjects <strong>of</strong> concerns and selected areas <strong>of</strong><br />
sustainable development etc., with the mission <strong>of</strong> accomplishing our goals<br />
with our stakeholders together.<br />
BP Main Stakeholders<br />
BP is striving to think outside the box <strong>of</strong> conventional evaluation approaches<br />
which only reveal superficial problems without <strong>of</strong>fering a solution for the long<br />
run. In 2011, BP’s Sustainability Team introduced a new evaluation mechanism<br />
for its factories - a set <strong>of</strong> evaluation standards for factory improvements is now in<br />
place for regular in-depth assessment <strong>of</strong> the factory facilities, its management,<br />
departmental operations, product quality inspection, employee’s welfare,<br />
training and education, environmental consciousness etc. After conducting the<br />
objectives review, the Sustainability Team will work out improvement plans<br />
together with the relevant departments. This mechanism <strong>of</strong> continuous<br />
monitoring and improvements, in addition to our consistent principles <strong>of</strong> risk<br />
management, can further minimize the potential operational risks faced by our<br />
stakeholders and perfect our organization on an ongoing basis.<br />
Suppliers<br />
Investors<br />
Customers<br />
Community<br />
Employees<br />
P.8
Stakeholders Definition Selected Areas Subject <strong>of</strong> Concerns Company’s Response & Actions<br />
Investors All investors / Operation situation; Report <strong>of</strong> operation situation; Release <strong>of</strong> the 2011 Sustainability Report;<br />
Shareholders <strong>Development</strong> prospects; Company plans and programs; Improvements by the team mentioned in 2011 Sustainability Report;<br />
Improvement plans Improvement plans and progress Establishment <strong>of</strong> 2012 Strategic <strong>Development</strong> Plan<br />
Customers All customers Environmental protection plan; EEP & emission reduction training;; Close communications with clients;<br />
Energy Efficiency Program; Staff <strong>Development</strong> plans; Regular reports on sustainable development and progress;<br />
Employee welfare and treatment; Round-Table Meetings; Employee welfare development and growth plan;<br />
Concept education and training; Supplier Summit; Energy-saving and recycling plans;<br />
Regulations & communication to suppliers; Social Responsibility Conferences; Working safety and health training;<br />
Occupational safety and health;<br />
Invites clients to regular factory inspection and review<br />
Community communication and education;<br />
Balance <strong>of</strong> economic, environment society developments<br />
Employees All employees Welfare and treatment; Continuous communications; Employee suggestion box and hotline;<br />
Salary; Greetings and care; Home and family visits<br />
Working environment; Trainings and seminars; Communications workshop;<br />
Career opportunities;<br />
Life and career goal programs;<br />
Physical and mental health<br />
Employee growth plans;<br />
Provision <strong>of</strong> entertainment facilities and leisure activities;<br />
Training and education;<br />
Suppliers Priority Labor Rights; Meetings with suppliers; Regular communications with suppliers on sustainable<br />
determined by Environment impact <strong>of</strong> products; Information Sharing; development information;<br />
level <strong>of</strong> contact Economic and environmental indices; Provision <strong>of</strong> clear product requirements <strong>of</strong> clients;<br />
& sustainability Education and training; Release <strong>of</strong> sustainability report;<br />
communications Supply chain communications;<br />
Community Focusing on the Environmental protection; Influence on surrounding community; Energy-efficiency and emission reduction program;<br />
community nearby Treatment <strong>of</strong> workers Workers’ salary, treatment & welfare Employee training and communications programs;<br />
the Company<br />
Child sponsorship programs;<br />
Employees’ family care and education promotion program<br />
P.9
Operating Situation<br />
As the uncertain global economic prospects have shaken the consumer’s<br />
confidence, companies are now being cautious with their sales forecasts.<br />
Therefore, order volume in 2011 showed a more conservative tendency. Since<br />
2010, with the aim <strong>of</strong> stabilizing its corporate foundation, BP has carried out a<br />
series <strong>of</strong> improvements to its internal operation, environment optimization and<br />
staff stability etc. We have developed a sales expansion plan in 2011 to prepare<br />
for the implementation <strong>of</strong> the mid-term target set in 2010 and tackling upcoming<br />
challenges. Despite the difficulties faced by the export business in 2011, with the<br />
sales expansion plan in place, BP achieved an increase <strong>of</strong> gross operating income<br />
from HKD162,063,475 last year to HKD168,456,378 this year.<br />
Despite the smaller order volume, the operating cost <strong>of</strong> export business shot<br />
up in 2011 due to the rise <strong>of</strong> factory rent and expenses mostly caused by inflation.<br />
BP inputs its main income back into the production operations. For example, the<br />
newly established factory, Wealth Team Industrial Co. Ltd implemented, from the<br />
beginning, various new facilities and equipments to increase its environmental<br />
performance and sustainability approach. The fixed operating cost <strong>of</strong> the<br />
Company jumped to 65.24%, a 6.38% rise over the ratio <strong>of</strong> operating cost<br />
compared to the total expenditure <strong>of</strong> the last year. BP has a long-term<br />
development plan <strong>of</strong> cost-efficient investment enhancements with the aim to<br />
improve the Company’s production efficiency and cost control and contribute to<br />
environmental protection so that the Company can maintain competitiveness<br />
and more sustainable operations with continuous improvements in the long run.<br />
BP strictly abides by the law and upholds the United Nations Global Compact.<br />
The Company has raised wages and welfare for its employees in light <strong>of</strong> the<br />
current inflation to help improve and stabilize their living standards. However,<br />
due to the surge in operating cost last year, the salaries as a percentage <strong>of</strong> total<br />
expenditure have declined. Our strategies for the next year are to streamline the<br />
overall operations and the production processes, improve and increase the staff<br />
trainings and strengthen the quality control <strong>of</strong> our product. We ultimately aim to<br />
minimize costs through our production base relocation plan developed in a<br />
balanced and sustainable way.<br />
BP Economic Value Distribution<br />
2011-2012 2010-2011 2009-2010<br />
Community investments<br />
Payments to government<br />
Payments to providers <strong>of</strong> capital<br />
Employee wages & benefit<br />
Operating costs<br />
0.66%<br />
0.83%<br />
0.81%<br />
5.45%<br />
0.92%<br />
0.99%<br />
0.00%<br />
3.36%<br />
3.71%<br />
28.65%<br />
33.56%<br />
34.74%<br />
65.24%<br />
61.33%<br />
59.75%<br />
P.10
Sustainability Team<br />
Introduction <strong>of</strong> the Team<br />
BP Sustainability Team (the “Team”) was established in 2010 with the<br />
aim to achieve balanced development in the areas <strong>of</strong> economics,<br />
environment and society to make sure that the Company is improving<br />
continuously and developing steadily. In order to boost the improvement<br />
projects and support the Company’s new factory in Hunan, the team was<br />
re-structured in 2011, now with more members working on sustainable<br />
development projects. The team structure remains similar but the division<br />
<strong>of</strong> work among team members has been re-arranged.<br />
P.11
Structure <strong>of</strong> the Team<br />
Members <strong>of</strong> the Team come from our Hong Kong head <strong>of</strong>fice and all three<br />
factories, consisting <strong>of</strong> top management, members <strong>of</strong> the Continuous<br />
Improvement, Production, HR, Finance divisions and Testing Center etc. so<br />
that the Team can see things from different perspective and unify the power<br />
<strong>of</strong> different departments. The concept <strong>of</strong> sustainable development has<br />
penetrated into all levels <strong>of</strong> the Company and all our management and staff<br />
understand that sustainable development is closely related to everyone’s<br />
work.<br />
Contacts <strong>of</strong> BP Sustainability Department:<br />
Ms Melissa Leung:melissa@bpbag.com<br />
Ms Bobie Dai: bobie@bpbag.com<br />
Ms Anry Zhong:anry@bpbag.com<br />
Sustainability Team Members & Their Duties in 2011<br />
Melissa Leung:<br />
In charge <strong>of</strong> co-ordination, strategic planning and monitoring <strong>of</strong> all sustainable<br />
development projects, data analysis and reporting, tracking <strong>of</strong> enhancement,<br />
implementation <strong>of</strong> economic and environmental projects, promotion and education.<br />
Bobie Dai:<br />
In charge <strong>of</strong> labor policies, performance review <strong>of</strong> human rights, occupational safety and<br />
health projects; product responsibility performance etc.<br />
Andy Dan / Mag Zhou / Anry Zhong :<br />
In charge <strong>of</strong> ISO projects, social performance, education, training and promotion,<br />
employee welfare, data collection etc.<br />
Hung Chan / Lian Kwong / Wah Lau :<br />
In charge <strong>of</strong> resource allocation and monitoring <strong>of</strong> projects<br />
Quan Li / Guong Heng Fung / Chen Ho Quan / Wu Zhing Li:<br />
In charge <strong>of</strong> lean production, production line improvement and monitoring <strong>of</strong> ancillary<br />
facilities<br />
Chen Ying Yan / Li Wan Xia / Weng Dai Li:<br />
In charge <strong>of</strong> collection, analysis and tracking <strong>of</strong> production data, assistance in<br />
production line improvement<br />
Qing Ye / Chen Xiao Lian:<br />
In charge <strong>of</strong> collection and tracking <strong>of</strong> environmental data<br />
Ye Yen Er / Wai Bai Hua / Lu Yan Yan / Zhang Xiao Yin:<br />
In charge <strong>of</strong> collection and tracking <strong>of</strong> HR data, employee welfare improvement and<br />
survey, arrangements <strong>of</strong> education promotion<br />
Li Qiao Ling / Li Xiao Hong:<br />
In charge <strong>of</strong> assistance in performance review <strong>of</strong> human rights, enhancement projects,<br />
document control etc.<br />
Jackie So / Kitty Lie:<br />
In charge <strong>of</strong> assistance in product performance review<br />
P.12
Messages <strong>of</strong> Sustainability Team Members<br />
otherwise the balance will gradually collapse and the consequences will spread<br />
from one level to another like dominos.<br />
Not only “balanced development” is BP’s philosophy, it is also the principle <strong>of</strong><br />
BP’s Sustainability Team. A company can grow steadily only when every aspect <strong>of</strong><br />
its business is moving forward in a balanced way. It has to achieve economic<br />
benefits and at the same time take good care <strong>of</strong> environmental protection,<br />
employee welfare, social responsibility, product and service quality etc.<br />
Ms. Melissa Leung, Sustainability Manager<br />
Many <strong>of</strong> us ask ourselves a question when we are alone: looking back, after all<br />
these years, how do I think <strong>of</strong> my life?<br />
When we are young, we are always learning and struggling because <strong>of</strong> our lack<br />
<strong>of</strong> experience. We <strong>of</strong>ten find ourselves at crossroads, confused about which way to<br />
go. Most <strong>of</strong> us will make the decision based on our interest and aspiration, but not<br />
all <strong>of</strong> us can maintain a good balance <strong>of</strong> life. Sometimes when we choose to go for<br />
one direction, we neglect the other things in life. When we gain something, we<br />
lose something at the same time.<br />
The growth <strong>of</strong> an organization is also like one’s life. From its start, development<br />
to expansion, there must be ups and downs, each <strong>of</strong> the decision its leaders make<br />
will affect its future path. Whether a company can achieve balanced growth<br />
depends on whether its leaders can take the interest <strong>of</strong> all stakeholders into<br />
consideration when making decisions.<br />
Sustainability is not just a visionary concept, but a practical way to lead us to<br />
extend our well-being on this planet earth with balanced developments. The three<br />
areas <strong>of</strong> sustainable development, economics, environment and society, are<br />
equally important that we cannot work on one only but neglect the other,<br />
It is easier to talk about sustainability than to put it into practice, as it requires<br />
in-depth execution. When carrying out BP’s sustainability work in last two years, I<br />
have deeply felt that real, effective sustainable development must be based on<br />
in-depth understanding <strong>of</strong> the concept, the organization and the stakeholders, it<br />
requires personal participation, care, love and patience to carry out real changes.<br />
The effect <strong>of</strong> sustainable development may not be obvious within a short period <strong>of</strong><br />
time as the focus is to educate and transform thinking, which are about changing<br />
things in the long run. If someone said he did something that changed everyone’s<br />
thinking right away, it is just a gimmick to achieve instant changes without a<br />
long-term strategy, which is pointless since once the focus is shifted, people will be<br />
distracted again.<br />
Let me cite two simple examples here. In an effort to protect the environment, a<br />
company installed a lot <strong>of</strong> energy-saving equipment, but it has neglected the<br />
essential part <strong>of</strong> educating its employees on how to save energy. One day when<br />
one <strong>of</strong> its employees leaves to work for another company without energy-saving<br />
policy, this employee will just put the idea <strong>of</strong> energy-saving behind his mind.<br />
Another example is a company which takes employee compensation seriously pays<br />
its staff very attractive salary. However, it does not pay much attention to health<br />
and safety at work, consequently one <strong>of</strong> its employees choose to give up<br />
P.13
the good salary due to stress and health problems, because he knows money is not<br />
as important as his health and life. These are good examples that show the<br />
importance <strong>of</strong> education and balanced development <strong>–</strong> they are not stories but<br />
things that happen in our surrounding every day.<br />
Many people think that education is only required within the organization;<br />
however, real sustainability education should extend beyond the employees <strong>of</strong> the<br />
organization to their families, friends, children, neighbors etc. We all know that<br />
education has to start at an early age in order to help our children establish values<br />
and view <strong>of</strong> life. The mind <strong>of</strong> children is like a blank sheet <strong>of</strong> paper, open to new<br />
knowledge. They can easily learn from parents and family members, therefore, we<br />
have to teach them by example. If we make effort to save energy and classify<br />
waste at home, our children will follow our example and make it their habit. This is<br />
how wisdom is passed on from one generation to another.<br />
Our planet earth is our home and the prosperity <strong>of</strong> our home depends on<br />
whether we human-beings could work hand-in-hand to protect and develop it. As<br />
the Chinese saying goes, “with harmony in the family, everything will thrive”, to<br />
achieve prosperity <strong>of</strong> our planet in the future, we must give up our selfish motive<br />
and think for others in order to achieve balance in all aspects <strong>of</strong> life.<br />
Story Sharing <strong>of</strong> Love Education <strong>–</strong> Everything Starts with Two “Smalls”<br />
Children are the future pillars <strong>of</strong> our society and the future <strong>of</strong> our world. It is all up to us to instill<br />
values in our children and therefore education by parents is a very important part <strong>of</strong> social<br />
development. The growth and education <strong>of</strong> children depends on the love and care <strong>of</strong> parents. We<br />
have to be patient in guiding them to learn everything, and we need to start with two “smalls”.<br />
First, we have to start teaching children when they are small. The younger they are, the faster<br />
they learn and easier to be influenced by parents when learning new things. Learning at an early<br />
age will help children establish a set <strong>of</strong> disciplines which will become their habits naturally when<br />
they grow up. Second we have to teach with “small” things. Talking difficult theories is not as<br />
effective as teaching by example. Every small thing in our daily life is the start for developing a<br />
good habit. With a solid foundation, children will grow up healthily.<br />
My child grew up in an atmosphere full <strong>of</strong> environmental awareness. We live close to the nature<br />
and therefore he can learn from real life. For example, we observe insects, animals and marine life<br />
to understand the natural ecology. When he became old enough to develop self discipline, we<br />
taught him to classify different kinds <strong>of</strong> waste into different bins, save electricity, save water and<br />
reuse water etc. We also have organic planting at home as part <strong>of</strong> our real-life education, and we<br />
established a habit <strong>of</strong> eating more green food at home to teach him about low-carbon diet.<br />
I was delighted to see a drawing by my child when he was about 5 or 6, in which he drew about<br />
a person with two big bags <strong>of</strong> rubbish that he was going to dispose, and in front <strong>of</strong> him were the<br />
bins we used to sort out waste at home. When we have guests at home, he <strong>of</strong>ten reminds the<br />
guests to sort out the waste when disposing. There was another painting by him that I couldn’t<br />
understand at first, which was something like a pool. “This is a public shower facility which can<br />
recycle water; the used water will be treated and become clean water again in the system under<br />
the pool, so drinking water will not be wasted”, he explained. There was another time when my<br />
child turned <strong>of</strong>f the independent switch on our power strip and said, “Mom, let me help you and<br />
dad to remove your cell phones when I see they are fully charged, and I will remember to turn <strong>of</strong>f<br />
the switch to save power.”<br />
Children learn from the teaching <strong>of</strong> their parents from an early stage. It is a tradition that each<br />
generation passes on to the next generation - teaching our children to care for our environment,<br />
Educating the child <strong>of</strong> organic planting at home<br />
with patience and love. P.14
Ms. Bobie Dai, Sustainability Supervisor<br />
Sustainable development means the harmonious development among human,<br />
environment and society. How can we achieve harmonious development?<br />
Each <strong>of</strong> us should think <strong>of</strong> the ways to reinforce the harmony among human,<br />
environment and society, especially those engaged in promoting the concept <strong>of</strong><br />
sustainability like me.<br />
Human behavior tends to be directed by traditional thinking. Only by changing<br />
our thinking that we can change our behavior. How can we change our thinking?<br />
The answer lies in continued promotion and education.<br />
In recent years, terms such as “environmental protection”, “energy-saving”,<br />
“waste reduction”, “harmonious development” are frequently mentioned by the<br />
media and in conversations. More industries and different walks <strong>of</strong> the society are<br />
also putting increasing focus on sustainable development.<br />
Sustainable development is important and requires a lot <strong>of</strong> efforts. As long as we<br />
persist, we are getting closer and closer to success.<br />
Ms. Anry Zhong, Sustainability Supervisor<br />
Before joining the Sustainability Team, little did I know about the concept <strong>of</strong><br />
sustainable development. Now as a member <strong>of</strong> the team, I think <strong>of</strong> sustainable<br />
development as the Company, individual, society and the environment depending<br />
on and promoting the growth <strong>of</strong> each other. By planning and implementing<br />
projects related to the company, I get to learn more <strong>of</strong> its importance. The<br />
difficulties I encountered also help me learn and hone my problem-solving skills. I<br />
am learning from my work about the importance <strong>of</strong> harmonious development<br />
between the individual and the society.<br />
Soon after I joined the organization I was put in charge <strong>of</strong> planning an organic<br />
farming activity. It was then that I discovered the conventional way <strong>of</strong> vegetable<br />
farming requires a lot <strong>of</strong> input despite the low output. Not only vegetables planted<br />
this way are exposed to chemicals and hence nutrition and quality issues, the<br />
conventional way is also not reasonable that the mono-specie mode can easily<br />
lead to imbalances such as insufficient or excessive supply. Organic farming is<br />
changing this with high-level management, advanced production technology and<br />
natural fertilizers to maintain ecological balance.<br />
I have come to understand more about the measures to preserve the ecological<br />
environment <strong>–</strong> the system <strong>of</strong> protect-as-you-develop, restore-as-you-destroy and<br />
pay-as-you-use. It is essential for us to clearly establish the rights, obligations and<br />
interests <strong>of</strong> environmental preservation and use the means <strong>of</strong> law, economics,<br />
administration and technology to protect the environment. P.15
As I have learnt more about sustainability, I also found out that a low-carbon<br />
lifestyle is healthier, more natural and safer. It is a low-cost and low-price lifestyle<br />
as well as the trend <strong>of</strong> our generation. “Low-carbon” is not difficult to achieve and<br />
it is just one step away from talking about it to putting into action. Reducing<br />
emission <strong>of</strong> carbon dioxide and living a low-carbon lifestyle is the responsibility <strong>of</strong><br />
each individual.<br />
As a conclusion, a low-carbon economy can help to reduce emission <strong>of</strong><br />
greenhouse gases and fight against the global warming and the climate crises it<br />
brings about. We must start now to promote low-carbon lifestyle and I believe a<br />
green planet is ours to have if we can make the effort.<br />
Company. For example, the team organized different activities to make our work<br />
and lifestyle more positive. Now we are more united in carrying out the actions to<br />
change.<br />
The effective operation <strong>of</strong> a team relies on mutual respect and co-ordination<br />
between superiors and subordinates. We have to be helpful, encourage each<br />
other and work hand-in-hand in order to optimize our work and maximize the<br />
effects <strong>of</strong> improvements. I hope our staff will participate in the Company’s<br />
activities more actively and work harmoniously like a big family. We can take care<br />
<strong>of</strong> each other and work together in the Company happily.<br />
Mr. Hung Chan, Sustainability Team Member<br />
This year the Sustainability Tem has led the employees to take part in a lot <strong>of</strong><br />
meaningful activities. For example, the organic planting was a refreshing activity<br />
and strengthened our sense <strong>of</strong> belonging to the Company. We learnt a lot about<br />
organic planting and the benefits <strong>of</strong> organic food, increasing our awareness about<br />
environmental protection and healthy lifestyle.<br />
Since the Sustainability Team was set up, it has introduced many new concepts<br />
into the Company and presented new ideas to the staff. After frequent<br />
communication and training, we have opened up to the new concepts. The team<br />
has conveyed the new customers’ requirements and environmental information to<br />
all staff and departments, bringing in constructive influence throughout the<br />
Ms Lian Kwong, Sustainability Team Member<br />
I have been working in the Company for 24 years. I started in the finance<br />
department and now I am the head <strong>of</strong> factory. Not only have I accumulated<br />
working experience, I have also mastered new management skills that allow me to<br />
manage effectively to raise productivity and quality.<br />
The Sustainability Team has provided training on environmental awareness,<br />
waste classification, factory improvements etc. Now our staff know how to protect<br />
the environment and the planet, refrain from discarding waste irresponsibly and<br />
contribute to a more organized and cleaner working environment.<br />
I can see a lot <strong>of</strong> staff born after 1980's working diligently. Faced with the need<br />
to build a family and a career, their career plans are starting to shape up. (To be<br />
continued…) P.16
Therefore, providing appropriate opportunities <strong>of</strong> career development is the key to<br />
keeping them. On the other hand, those belonging to the post-1990's generation<br />
are still in the early days <strong>of</strong> working and have not thought through their future<br />
plans yet. They are more mobile and therefore the Company should provide more<br />
guidance on life-planning for them.<br />
Last year, activities such as Mid-Autumn festival and company trips gave our<br />
staff sense <strong>of</strong> belonging and home-like warmth. Everyone participated actively and<br />
gave positive feedback. These activities fostered communication between staff and<br />
management and strengthened their mutual understanding.<br />
This year, I represented the Company to attend some external training. During<br />
my exchanges with other companies, I got to learn about the outstanding and<br />
more systematic approaches out there, such as how HR performance is handled.<br />
Therefore, exchanging ideas and learning is very important for a Company to stay<br />
sustainable.<br />
Mr. Guong Heng Fung, Sustainability Team Member<br />
I am happy to see the changes brought by the active improvements<br />
implemented by the Company. For a production line to operate smoothly, the<br />
management must have the experience and ability to give pr<strong>of</strong>essional advice,<br />
make efficient work arrangements for better productivity, and carry out regular<br />
inspection and reviews to make continuous efforts to improve product quality.<br />
During my over twenty years <strong>of</strong> management work since 1988, I have enjoyed<br />
the trust from my superiors that I could freely utilize my experience to put into<br />
practice in my work. I believe in the old Chinese saying: “If you use a man, don't<br />
suspect him; if you suspect him, don't use him.” On the other hand, as I understand<br />
that staff and management have different standpoints and directions, I strive to<br />
reach mutual understanding through active communications and guidance. When<br />
staff members express intention to leave the Company, I will talk to them with care<br />
to help them find out solutions for the problems so that they can have the peace <strong>of</strong><br />
mind to stay in the organization. Some traditional-minded managers prefer to<br />
use reproach as a way <strong>of</strong> showing power and educating subordinates; however I<br />
find such approach out-<strong>of</strong>-date now. It requires mutual respect to build harmony<br />
between individuals; therefore, it is my management style to win respect from my<br />
staff instead <strong>of</strong> being overbearing.<br />
I have known my superior for more than 10 years. When he came to me and<br />
asked me to join this organization, I took up the job right away. The reason is that<br />
he has great personality and is highly trustworthy. I see him as a brother and work<br />
with him closely at work. Working here gives me a strong sense <strong>of</strong> loyalty and<br />
security. It is not just money but the leadership directions, strong teamwork, trust<br />
and approval from superiors that will affect our career choices.。<br />
I deeply appreciate the continuous improvements brought by the Sustainability<br />
Team to the organization as well as their care for the environment, devoted<br />
education for the staff, training and promotion work. I give them their full<br />
support and I hope we would put our strength together like one family and<br />
continue to help our organization move forward.<br />
P.17
Mr. Chen Ho Quan, Sustainability Team Member<br />
I have been in the Company for 24 years and witnessed the progress it made<br />
over the years. Not only does my job provide for my living, it also gives me the<br />
space for growing and developing. The growth <strong>of</strong> employees relies on the platform<br />
laid by the Company, its success and development.<br />
With the training provided by the Sustainability Team on environmental<br />
consciousness, waste classification, factory improvements etc, we are now more<br />
aware <strong>of</strong> the need <strong>of</strong> environment protection. Each <strong>of</strong> us has our own family, and<br />
so do waste <strong>–</strong> they have to be put into their “home”. Toxic and harmful substances<br />
should be placed in the red bin, recycle waste in the blue bin <strong>–</strong> this is a habit we<br />
and our families have developed.<br />
An employee should have a good attitude towards work. The way young<br />
people are raised nowadays may have made them too egocentric. They have a lot<br />
<strong>of</strong> inspirations but lack commitment towards family responsibilities. They only do<br />
what they are capable <strong>of</strong> and give up anything they cannot handle. The lack <strong>of</strong><br />
perseverance is not a matter <strong>of</strong> generation but a matter <strong>of</strong> mindset.<br />
Last year, activities like Mid-Autumn Festival event and company trips improved<br />
our welfare and strengthened our unity as fellow staff, and at the same time<br />
provided a good platform for various departments and staff <strong>of</strong> different levels to<br />
connect and mingle. We all participated actively and enthusiastically, and<br />
participants gave positive feedback that they all enjoyed the fun and the prizes.<br />
Employees and management have become closer towards each other throughout<br />
these activities.<br />
This year I had the chance to represent the Company to attend an external<br />
training organized by one <strong>of</strong> our clients, which covered a wide range <strong>of</strong> subjects<br />
including time management, lean production management etc. I learnt a lot,<br />
especially now I have a more in-depth understanding about lean production -<br />
everything starts from improvements, changing traditional practice to<br />
implementation with scientific and effective methods. This way waste can be<br />
eliminated and hence higher corporate pr<strong>of</strong>it can be achieved. I’ve learnt that<br />
concepts and methods based on common sense can boost efficiency without<br />
costing much.<br />
Ms. Qing Ye, Sustainability Team Member<br />
Since joining the Sustainability Team in 2010, besides benefiting from the<br />
teamwork spirit, I’ve also learnt the importance <strong>of</strong> accurate environmental data<br />
collection to future analysis from our continuous efforts <strong>of</strong> upgrading data analysis<br />
in the past year. Members in the team work closely with and help each other. The<br />
team gives me support and encouragement at work as well as in life, and it has<br />
become a motivation for my personal development.<br />
P.18
Mr. Jackie So, Sustainability Team Member<br />
Since its establishment in 2007, BP Testing Center has undergone development<br />
for 5 years and two expansions with continuous addition <strong>of</strong> testing facilities and<br />
equipment. Now the center has more than 20 types <strong>of</strong> state-<strong>of</strong>-art testing<br />
equipment that can test more than 50 items, covering most <strong>of</strong> the scope <strong>of</strong> bags<br />
testing. Under the supervision <strong>of</strong> the Company’s directors and thanks to the efforts<br />
<strong>of</strong> our colleagues, the Testing Center has won the compliments and trust <strong>of</strong> many<br />
customers, contributing to the business development <strong>of</strong> the Company. As a<br />
member <strong>of</strong> the center, I feel deeply honored and satisfied.<br />
When receiving the training and supervision by the accreditation institution in<br />
the beginning, we were under great stress but insisted on rational planning and<br />
elaborate preparation to ensure smooth completion <strong>of</strong> the certification. At the<br />
same time, during the process we were introduced to qualified testing<br />
pr<strong>of</strong>essionals and benefited a lot by learning the advanced testing technologies<br />
and sharing their experience. I realized that the technologies out there are<br />
constantly upgrading that there are a lot to learn to better myself.<br />
“By guaranteeing the product quality <strong>of</strong> our customers, we are protecting our<br />
own interests” are the words <strong>of</strong> Mr. Thomas Tsui, the President <strong>of</strong> the Company,<br />
during the initial stage <strong>of</strong> establishment <strong>of</strong> the testing center. Conducting testing<br />
and inspection <strong>of</strong> our products on one hand protects the safety and health <strong>of</strong><br />
consumers, on the other hand, it protects the interests <strong>of</strong> our customers and our<br />
own. During our daily operation we intercept substandard materials and prevent<br />
them from entering into our production process and use by consumers, at the<br />
same time saving unnecessary costs and expenses. I have a strong sense <strong>of</strong><br />
responsibility as well as enthusiasm for my work. In other words, I feel the<br />
recognition for my work.<br />
I joined BP five years ago and time really flies. Over the years I’ve felt that the<br />
generation keeps moving forward and technology is making great progress every<br />
day. I keep reminding myself to continue exploring and learning so that I can<br />
contribute more to the Company<strong>–</strong> this is another definition <strong>of</strong> “sustainability” for<br />
me.<br />
Surrounding <strong>of</strong> Hunan Factory<br />
Hunan Factory Planting Area<br />
P.19
Review <strong>of</strong> Sustainability Projects<br />
Category Items QF CF WT<br />
Solar thermal hot water generating system ✔ ✔<br />
Purchase <strong>of</strong> new waste classification bins ✔ ✔ ✔<br />
Communication,<br />
Education and<br />
Training<br />
Training on raw material restrictions<br />
The Whole BP<br />
Training on chemicals and harmful substances<br />
The Whole BP<br />
Training and promotion <strong>of</strong> occupational safety and health ✔ ✔ ✔<br />
Introduction <strong>of</strong><br />
Environmental<br />
Facilities /<br />
Equipment<br />
Production and<br />
System<br />
Improvements<br />
Communication,<br />
Education and<br />
Training<br />
Installation <strong>of</strong> water cooling curtains<br />
Installation <strong>of</strong> energy efficient central air conditioning system ✔ ✔<br />
Computerized paper-grid making machine<br />
Fume purifier<br />
Installation <strong>of</strong> energy efficient lights ✔ ✔ ✔<br />
Installation <strong>of</strong> LED lighting ✔ ✔ ✔<br />
Trial run <strong>of</strong> permanent magnetic motor on sewing machine<br />
Installation <strong>of</strong> separate electricity meters<br />
Introduction <strong>of</strong> lean production ✔ ✔<br />
Re-organization <strong>of</strong> warehouse<br />
ISO9001 & ISO14001 certification<br />
Salary and welfare improvements<br />
Management and control <strong>of</strong> raw material procurement ✔ ✔<br />
Internal Assessment and Improvement Program ✔ ✔ ✔<br />
Production Line and Factory Improvement Program ✔<br />
Quality Inspection and In-line Training Program<br />
6S Training ✔ ✔ ✔<br />
ISO9001 Training<br />
Expansion <strong>of</strong> testing center and addition <strong>of</strong> new equipment<br />
Introduction <strong>of</strong> a new supplier assessment and control mechanism<br />
Communication workshops<br />
Life goals-setting for employees<br />
Employee Capability Building training<br />
✔<br />
✔<br />
✔<br />
✔<br />
✔<br />
✔<br />
✔<br />
✔<br />
✔<br />
✔<br />
BP Testing Center<br />
Suppliers<br />
✔<br />
✔<br />
✔<br />
Anti-corruption and anti-bribe training ✔ ✔ ✔<br />
Education and guidelines on critical illnesses and health ✔ ✔ ✔<br />
Fire drills and emergency handling training ✔ ✔ ✔<br />
Use <strong>of</strong> Enablon environmental data control system<br />
The Whole BP<br />
Promotion <strong>of</strong> low-carbon lifestyle ✔ ✔ ✔<br />
Training and promotion <strong>of</strong> energy efficiency and emission reduction ✔ ✔ ✔<br />
Environmental Color code system <strong>of</strong> waste classification ✔ ✔ ✔<br />
Protection, ISO14001 training ✔ ✔ ✔<br />
Eco-Life, Low Use <strong>of</strong> pencils made from recycled newspaper & FSC paper in the<br />
Carbon Lifestyle <strong>of</strong>fice<br />
✔ ✔ ✔<br />
New sustainable development announcement board ✔ ✔ ✔<br />
Organic planting program<br />
✔<br />
Giving <strong>of</strong> Christmas gifts with green messages<br />
Customers<br />
Recycling <strong>of</strong> Signing <strong>of</strong> hazardous waste handling agreements ✔ ✔ ✔<br />
Common Waste / Waste classification and treatment ✔ ✔ ✔<br />
Wasted Materials Detailed recording and statistics <strong>of</strong> waste collected ✔ ✔ ✔<br />
Labor Welfare<br />
Improvements<br />
Promotion <strong>of</strong><br />
Sustainability<br />
Diet improvements<br />
New leisure facilities and interest classes<br />
Setup <strong>of</strong> staff hotline & Establishment <strong>of</strong> team’s suggestion box ✔ ✔ ✔<br />
Establishment <strong>of</strong> library<br />
Collective bargaining ✔ ✔ ✔<br />
Employees and family caring activities<br />
Hunan Chinese New Year caring activity<br />
Promotion <strong>of</strong> the 2010 Sustainability Report<br />
World Vision child sponsorship program<br />
✔<br />
✔<br />
✔<br />
✔<br />
✔<br />
All Stakeholders<br />
The Whole BP<br />
*QF, CF, WT hereinabove referred to Qifu Factory, Changfu Factory and Wealth Team Factory respectively.<br />
P.20
Environmental Protection & Green Life<br />
Energy Efficiency Projects<br />
In 2010, BP set up the Eco-Design 5R Principles (Revalue, Reduce, Reuse,<br />
Renew, Recycle) to establish the eco-values <strong>of</strong> the Company, focusing on<br />
environmental protection, energy saving and emission reduction.<br />
After two years <strong>of</strong> comprehensive collection, analysis and evaluation <strong>of</strong> the<br />
environmental data <strong>of</strong> its factories, the Company has laid a robust foundation for<br />
its environmental protection efforts and designed some energy-saving programs<br />
in 2011 with the aim <strong>of</strong> achieving the sustainable development goals <strong>of</strong> the<br />
organization.<br />
LED in the <strong>of</strong>fices<br />
independent LED for sewing machines<br />
Our energy saving efforts include installation <strong>of</strong> solar-powered water heating<br />
facilities, use <strong>of</strong> energy-saving lights and LED in the <strong>of</strong>fices, introduction <strong>of</strong><br />
cooling water curtain on the production floors etc. After the establishment <strong>of</strong><br />
Wealth Team Industrial Co., Ltd. in 2011, we introduced solar-powered water<br />
heating facilities, central eco-friendly AC system, independent LED for sewing<br />
machines, energy-saving lights for the whole plant and more into the new factory<br />
to make sure it is in line with the Company’s sustainable development plan and<br />
further achieve our target <strong>of</strong> energy saving.<br />
Cooling water curtains<br />
Central eco-friendly AC system<br />
To better understand the actual situation <strong>of</strong> the factories and in order to carry<br />
out appropriate enhancements and achieve the Company’s energy saving target,<br />
BP started, in 2011, to search for a new way <strong>of</strong> organizing environmental data.<br />
With the support <strong>of</strong> <strong>PUMA</strong>, we introduced the environmental data system called<br />
‘Enablon’ into the Company and provided energy-saving and emission reduction<br />
training at the same time. We are now able to carry out more in-depth analysis<br />
<strong>of</strong>f our environmental data and hence identify appropriate energy-saving<br />
enhancements and investments which can balance with the Company’s economic<br />
developments.<br />
Solar-powered water heating<br />
facility in Qifu Factory<br />
Solar-powered water heating<br />
facility in Wealth Team Factory<br />
After an on-site assessment and analysis as a part <strong>of</strong> the 2011 energy-saving<br />
and emission reduction plan, BP has installed additional separate meters<br />
so that, in the future, more accurate environmental data can be collected .<br />
P.21
According to the analysis <strong>of</strong> the electricity consumption <strong>of</strong> the whole<br />
organization in 2011, the average power consumption <strong>of</strong> each product was<br />
Electricity Consumption per Product (kWh)<br />
0.2008 KWh, a 1.857% decrease compared to 0.2046 KWh in 2010. BP is now<br />
0.43<br />
in the stage <strong>of</strong> testing new energy efficient motor and collecting relevant data<br />
0.38<br />
in hope <strong>of</strong> getting closer to the energy-saving targets.<br />
kWh<br />
0.33<br />
0.28<br />
0.23<br />
0.18<br />
0.13<br />
Year 2010<br />
Year 2011<br />
2010 Average<br />
2011 Average<br />
0.08<br />
Newly installed separate meters<br />
Trial run <strong>of</strong> energy efficient motor<br />
Total Electricity Consumption & Average per product (KWH) in 2010 Total Electricity Consumption & Average per product (KWH) in 2011<br />
Month<br />
Total Electricity<br />
Consumption<br />
Monthly Production<br />
(pcs)<br />
Per Product Electricity<br />
Consumption (KWH)<br />
Month<br />
Total Electricity<br />
Consumption<br />
Monthly Production<br />
(pcs)<br />
Per Product Electricity<br />
Consumption (KWH)<br />
April 2010 68,306 207,323 0.33 April 2011* 52,146 265,929 0.20<br />
May 2010 91,122 506,624 0.18 May 2011* 64,246 604,772 0.11<br />
June 2010 109,777 486,664 0.23 June 2011* 80,046 539,494 0.15<br />
July 2010 103,205 495,006 0.21 July 2011 101,646 462,901 0.22<br />
August 2010 108,021 331,542 0.33 August 2011 102,798 270,340 0.38<br />
September 2010 97,466 223,226 0.44 September 2011 88,090 272,170 0.32<br />
October 2010 86,664 427,769 0.2 October 2011 73,278 290,477 0.25<br />
November 2010 96,139 680,986 0.14 November 2011 61,890 395,274 0.16<br />
December 2010 77,296 360,435 0.21 December 2011 60,214 520,911 0.12<br />
January 2011 72,405 609,979 0.12 January 2012 52,410 158,125 0.33<br />
February 2011 37,245 233,888 0.16 February 2012 60,970 167,645 0.36<br />
March 2011 63,355 377,233 0.17 March 2012 65,290 350,243 0.19<br />
*Above table includes data <strong>of</strong> Qifu, Changfu & Wealth Team Factories, but consumption <strong>of</strong> April-June 2011 do not include Wealth Team Factory data<br />
P.22
Emission Reduction Projects<br />
Regarding the emission reduction progress we have made this year, in order<br />
to further break down the data <strong>of</strong> energy consumption and emission <strong>of</strong><br />
greenhouse gasses, we expanded our data analysis to cover the emission from<br />
firewood cooking in the factories and the direct and indirect emissions <strong>of</strong><br />
greenhouse gases within the organization. In 2011 the energy consumption <strong>of</strong><br />
firewood burning was 595,434 KWh, while during the period between January<br />
and December 2011, the total emission <strong>of</strong> greenhouse gases generated from<br />
the production and transportation <strong>of</strong> our three factories was 513.09 metric<br />
tons.<br />
Total direct & indirect green house gas emission in Jan to Dec 2011<br />
Chang Fu Qi Fu Wealth Team All Factories<br />
Energy related CO2 emissions<br />
+ CO2 emissions from owned 246.07 200.75 66.27 513.09 tones<br />
fleet (gasoline & diesel oil)<br />
total recycled waste was 66,511.77 kg, which was about 55.09% <strong>of</strong> our total<br />
waste. (See Tables “Breakdown <strong>of</strong> Total Waste in 2011” and “Process <strong>of</strong> Waste<br />
Treatment in 2011”)<br />
Fume Purifier<br />
FSC Paper<br />
Breakdown <strong>of</strong> Total Waste in 2012<br />
Non hazardous Waste (kg)<br />
Hazardous Waste (kg)<br />
Production<br />
Year<br />
Waste Fabric<br />
Other<br />
Production Paper Waste<br />
Other Non Waste light tubes, waste<br />
hazardous Waste cartridges, waste ball pen,<br />
CO2 emissions per product 0.08 0.16 0.28 0.11 kgs<br />
Type<br />
Waste<br />
Without Recycled<br />
waste batteries, etc.<br />
Total Production 3,011,092 1,277,172 234,377 4,522,641 pcs<br />
*Above data for Wealth Team Factory only includes July to December 2011.<br />
2011 38,596.70 10,867.30 17,047.77 54,152.00 72.60<br />
2010 74,732.00 8,818.00 No data collection 302.76<br />
In the past, BP installed a fume purifier to reduce the carbon dioxide emissions<br />
and carried out waste classification management. In 2011, we also continued to<br />
use FSC paper from forests with management certificates and pencils made from<br />
recycled newspaper. In addition to providing a series <strong>of</strong> training on waste<br />
classification and environmental management, in order to reach the Company’s<br />
environmental protection targets, we introduced the color code system <strong>of</strong> waste<br />
classification to our staff, after which we conducted an organization-wide<br />
assessment to make sure all our staff clearly understand our environmental<br />
protection target and requirements. The Company has outsourced the handling<br />
<strong>of</strong> dangerous waste to a qualified company, and we have added a category <strong>of</strong><br />
non-recycled waste other than production waste to the 2011 data. In 2011, the<br />
*Above table includes data <strong>of</strong> Qifu, Changfu & Wealth Team Factories<br />
Process <strong>of</strong> Waste Treatment in 2011<br />
Recycled Other Method <strong>of</strong> waste treatment<br />
44.91%<br />
55.09%<br />
P.23
As the production process <strong>of</strong> BP does not involve discharge <strong>of</strong> waste water in<br />
production, this part is not included in the data analysis. However, in terms <strong>of</strong><br />
general water consumption, the 2011 data shows that our annual per capita<br />
water consumption was 11.1m 3 , which was up from the figure <strong>of</strong> 2010, as<br />
Wealth Team Factory is still in transitional stage after its start only since July<br />
2011 and there was leakage from broken underground water pipes at Qi Fu<br />
Factory To solve these problems, BP carried out staff training at Wealth Team<br />
Factory to improve productivity, repaired the broken water pipes and installed<br />
separate water meters at Qi Fu Factory to monitor our general water<br />
consumption more accurately.<br />
We also provided education on water use and discharge reduction within the<br />
organization with the purpose to lead our staff towards the direction <strong>of</strong> saving<br />
resources and minimizing waste.<br />
Total Water Consumption & Average per Capita (M3) in 2010 Total Water Consumption & Average per Capita (M3) in 2011<br />
Month Total Workforce Total Water Consumption Water Consumption per Capita Month Total Workforce Total Water Consumption Water Consumption per Capita<br />
April 2010 850 5273 6.2 April 2011* 495 6544 13.22<br />
May 2010 901 6220 6.9 May 2011* 503 6693 13.31<br />
June 2010 850 6963 8.19 June 2011* 486 7546 15.53<br />
July 2010 850 6990 8.22 July 2011 723 8493 11.75<br />
August 2010 850 7334.3 8.63 August 2011 751 8876 11.82<br />
September 2010 850 6323.3 7.44 September 2011 740 8690 11.74<br />
October 2010 850 5776.3 6.8 October 2011 716 7731 10.8<br />
November 2010 850 6798.3 8 November 2011 661 6702 10.14<br />
December 2010 845 5868.75 6.95 December 2011 615 6655 10.82<br />
January 2011 697 5287.75 7.59 January 2012 593 4379 7.38<br />
February 2011 660 4440.75 6.73 February 2012 630 5605 8.9<br />
March 2011 703 6433.75 9.15 March 2012 642 5957 9.28<br />
*Above table includes data <strong>of</strong> Qifu, Changfu & Wealth Team Factories, but consumption <strong>of</strong> April-June 2011 do not include Wealth Team Factory data<br />
P.25<br />
M3<br />
Water Consumption per Capita (M3)<br />
18<br />
16<br />
14<br />
12<br />
Year 2010<br />
10<br />
Year 2011<br />
8<br />
2010 Average<br />
6<br />
2011 Average<br />
4<br />
2<br />
0
The Company has made a big improvement in the area <strong>of</strong> materials<br />
procurement control in 2011 compared to the previous year. By using more<br />
stringent ways to calculate the amount <strong>of</strong> materials required for production and<br />
strengthening the inventory control to reduce the material waste, the total<br />
amount <strong>of</strong> raw materials procured for production in 2011 was 5,501,894 kg. Even<br />
though our production decreased by 13%, it is still a significant reduction<br />
compared to the amount <strong>of</strong> raw materials procured in 2010. It has showed the<br />
fruitful result <strong>of</strong> the Company’s efforts <strong>of</strong> improving the monitoring <strong>of</strong> the<br />
procurement and consumption <strong>of</strong> major productions and packaging materials as<br />
well as its inventory control. The product and packaging design by our clients and<br />
material selection by their product development teams based on concepts <strong>of</strong><br />
sustainable development and minimalistic, low-carbon philosophy also<br />
contributed to encourage positive results.<br />
In 2011, BP took a further step towards its commitment to use more recycled<br />
materials by establishing a trial plan to use biodegradable materials for some<br />
products. In 2011, recycled materials took up about 21.86% <strong>of</strong> the total amount<br />
<strong>of</strong> materials used; the figure went down from 30.7% in 2010 due to the external<br />
factors <strong>of</strong> global economic trends and repositioning <strong>of</strong> clients’ material<br />
requirements. (See table: “Raw Materials Total Consumption in 2011” and<br />
“Percentage <strong>of</strong> Recycled Materials Used in 2011”)<br />
Percentage <strong>of</strong> Recycled Materials Used in 2011<br />
21.86%<br />
Common Materials<br />
78.14%<br />
Recycled Materials<br />
Raw Materials Total Consumption in 2011<br />
Main Materials Year 2011 (kg) % Year 2010 (kg) %<br />
Nylon / Polyester 6,290,391 90.96 9,601,756 92.71<br />
Cotton 154,966 2.24 130,933 1.26<br />
Imitation leather 470,106 6.80 624,312 6.03<br />
Total 6,915,463 10,357,001<br />
Other Materials Year 2011 (kg) % Year 2010 (kg) %<br />
Plastic Accessories 84,675 20.55 87,051 32.84<br />
Metal Accessories 114,417 27.77 120,906 45.61<br />
Padding (Sponge, PE foam,<br />
PE board, etc.)<br />
212,349 51.54 56,922 21.47<br />
Others (Lubricant, etc.) 566 0.14 232 0.09<br />
Total 412,007 265,112<br />
Packing Materials Year 2011 (kg) % Year 2010 (kg) %<br />
Plastic Type (Poly bags,<br />
Plastic Needle, Adhesive<br />
41,785 22.44 38,668 15.18<br />
tape, etc.<br />
Cartons 134,811 72.41 208,009 81.67<br />
Paper Type (Tissue papers,<br />
hangtags, etc.)<br />
9,585 5.15 8,011 3.15<br />
Total 186,181 254,687<br />
Year 2011 (kg) % Year 2010 (kg) %<br />
Total Consumption per<br />
Year<br />
7,513,651 10,876,800<br />
Recycled Materials Used 1,642,484 21.86 3,339,178 30.70<br />
*Above table includes data <strong>of</strong> Qifu, Changfu & Wealth Team Factories, but consumption <strong>of</strong><br />
April-June 2011 do not include Wealth Team Factory data<br />
P.26
Environmental Protection<br />
Part <strong>of</strong> BP’s commitment to sustainable development and environmental<br />
protection is to make sure its materials comply with safety standards and use<br />
recycled materials when possible. BP already set up a testing center for<br />
monitoring materials and products by the end <strong>of</strong> 2007. The center was expanded<br />
in 2011 February in size with the addition <strong>of</strong> new testing facilities and additional<br />
staff with the purpose <strong>of</strong> ensuring product quality <strong>–</strong> we want to be responsible<br />
for both our clients and consumers. BP Testing Center has received recognition<br />
from the Hong Kong Standards and Testing Centre according to the standards <strong>of</strong><br />
the international sports brand <strong>PUMA</strong>. Another Japanese sports brand, Mizuno,<br />
also accredited our testing center after assessment and issued a certificate to<br />
recognize its qualification since 2007.<br />
The organization takes responsibility for its products, consumer health and<br />
safety, as well as reducing the impact <strong>of</strong> the products on the environment. In<br />
2011, BP participated in a seminar organized by a customer on the standards for<br />
chemical and harmful substances to ensure the Company shares the same<br />
thinking and understanding about environmental protection with the customer<br />
and implements the standards thoroughly in its production.<br />
Certificate issued by HKSTC<br />
(<strong>PUMA</strong> standards)<br />
Certificate issued by Mizuno<br />
BP’s Testing Center<br />
In the area <strong>of</strong> chemical testing, we procure raw materials which meet<br />
international safety standards for our products and send the materials for<br />
production to international accredited testing center for testing. Our products<br />
will be delivered only after the testing reports have proven that no harmful<br />
substances are contained. <strong>About</strong> 80% <strong>of</strong> the production materials have to<br />
undergo this inspection process to minimize the risks to the Company and our<br />
customers.<br />
Bally Leathers Flexing Tester<br />
P.27
Green Factory Plan<br />
In BP’s Sustainable <strong>Development</strong> Plan, green factory is one <strong>of</strong> the key<br />
environmental protection projects <strong>of</strong> 2011. After the accreditation <strong>of</strong><br />
ISO14001:2004 <strong>of</strong> the Qi Fu Factory in 2010, we further strengthened the<br />
environmental management <strong>of</strong> the factory by implementing a series <strong>of</strong><br />
enhancements in the areas <strong>of</strong> training, waste classification, control <strong>of</strong><br />
environment data collection etc. Not only did we achieve improvements <strong>of</strong><br />
quality control and production, we were also able to minimize the negative<br />
impact <strong>of</strong> our production activities on the environment, striking a balance<br />
between operation expansion and environmental protection.<br />
BP’s Environment Protection Principles:<br />
1. To uphold the law and regulations related to the environment;<br />
strengthen the control <strong>of</strong> various kinds <strong>of</strong> solid waste; adopt measures<br />
integrating prevention and improvements <strong>of</strong> “3 Wastes” and noise.<br />
2. To carry through the strategies <strong>of</strong> continuous improvement and<br />
sustainability development; minimize the material used and waste <strong>of</strong><br />
resources and energy while guarantee product quality at the same time<br />
ISO14001:2004 Certificate<br />
At the moment, we are actively leading our staff to develop the habit <strong>of</strong> waste<br />
classification. However, in the area <strong>of</strong> collected waste tracking, we are faced with<br />
difficulties at different levels. Currently, most waste recyclers in China operate by<br />
centralized collection and have not yet established clear standards for tracking<br />
where the collected waste will go to. Therefore, even our factories make the<br />
effort <strong>of</strong> classifying the waste; we have no means to track whether the waste is<br />
really recycled. In light <strong>of</strong> this, we hope to strengthen our communication with<br />
the recyclers so that we can get more accurate information about the<br />
whereabouts <strong>of</strong> collected waste in the future. We want to contribute to<br />
environment protection with a responsible attitude.<br />
Waste Sorting Rooms<br />
P.28
Case Sharing: Organic Planting <strong>–</strong> 3.12 China Arbor Day<br />
In addition to our green production projects, health and education <strong>of</strong> employees are<br />
always the top concern <strong>of</strong> a people-oriented company like BP. The 2011 green factory<br />
plan included a project outside <strong>of</strong> production <strong>–</strong> organic flower and vegetable planting. BP<br />
organized a day <strong>of</strong> organic planting activities on March 12, the China Arbor Day, to<br />
encourage our staff to learn more about the benefits <strong>of</strong> organic planting. Those who<br />
were interested in organic planting were encouraged to try it within the factory area with<br />
seeds and organic fertilizers provided by the Company regularly. This way we help to<br />
support our staff’s healthy diet, beautify the environment surrounding the factory and<br />
reduce the environmental pollution from carbon emission and chemical fertilizers in the<br />
community. We had the honor to invite Ms. Prunelle Paquette, Sustainability Manager at<br />
<strong>PUMA</strong> Accessories to participate in our activity, giving us a chance to interact with our<br />
customer and exchange information about sustainable development.<br />
On that day, the Sustainability Team distributed information and guidelines about<br />
organic planting to the participating employees and put up posters throughout the<br />
factory area. Not only did we arouse awareness <strong>of</strong> personal health and low-carbon living,<br />
the positive feedback and support from our staff help to spread the idea <strong>of</strong> caring for the<br />
environment to the whole community. As we mentioned in our 2010 report, we hope<br />
every step we take can remind our staff that even a little can contribute to a better planet<br />
in the long run. In 2011, it is our hope that the seeds we sowed will disseminate the<br />
sustainability concept to more members <strong>of</strong> the society and pave the way for sustainable<br />
development in the community.<br />
Organic planting guidelines Employees enjoyed the activity<br />
Our Organic Crops<br />
Photos <strong>of</strong> Organic Planting Activity<br />
P.29
Ms. Prunelle Paquette, Sustainability Project Manager <strong>of</strong> <strong>PUMA</strong> Accessories<br />
“In the last 2 years I have followed B.P Bag’s progress, various and multiple initiatives and<br />
projects and I can clearly say that their devotion towards sustainability is grounded on a<br />
solid foundation and maturing rapidly. They have broadened their actions and focus to<br />
increase the engagement <strong>of</strong> each employee’s part <strong>of</strong> the B.P Bags family and together<br />
there are making the changes, one step at the time.”<br />
Employees participated in organic planting activity<br />
“Organic planting activity is a good memory worth to remember; remember the good<br />
times we share that moment.”<br />
“The organic planting activity this year not only gave us a lot <strong>of</strong> knowledge about health<br />
and healthy diet, but also brought us to the nature. It was like returning to my hometown,<br />
I felt very relaxed.” P.30
Low Carbon Living<br />
Lifestyle education is the foundation for promoting sustainable development,<br />
and such education must be done with care and patience. By demonstrating the<br />
connection between low carbon footprint and sustainable development in the<br />
daily life, we are showing our staff that sustainability is not only a concept that<br />
BP adopts, but something closely related to their living, health and life. We are<br />
sowing the seeds <strong>of</strong> sustainable development through different channels like<br />
education and seminars, posters, E-circulars and publications. We also<br />
encourage our staff to pass on the messages and information to their family and<br />
friends, telling them the importance to teach our children to care for the<br />
environment and save resources.<br />
Mr. Dixon Zhu, Sales Department<br />
“I joined the Company in December 2002 and since then 9 years have passed. BP is a<br />
company with great prospects and excellent working atmosphere among co-workers. We<br />
have strong team work and always try our best efforts in serving every customer. I hope<br />
the Company can organize more group activities and skills training in the coming year so<br />
we can further improve at work and develop ourselves.<br />
Since its launch in 2010, the plans <strong>of</strong> Sustainable <strong>Development</strong> have been continuously<br />
carried out throughout the whole BP organization and factories. The changes brought by<br />
the plans are all positive and have aroused our awareness for the environment, leading us<br />
to participate in the improvement <strong>of</strong> the environment <strong>of</strong> the factories and <strong>of</strong>fice. The<br />
improvement <strong>of</strong> staff quality is particularly obvious.<br />
Besides, the Sustainability Team has been promoting low-carbon lifestyle and green <strong>of</strong>fice<br />
recently. These concepts remind me to save water and electricity in daily life and use more<br />
environmental-friendly products with low carbon print.”<br />
publications, posters, seminar materials, organic healthy food for low carbon life in<br />
BP’s factories<br />
P.31
Management Enhancement<br />
Management Enhancement Programs<br />
As a high-quality manufacturing enterprise, we always regard product quality and production efficiency as our core competiveness in the market. To raise product<br />
quality and production efficiency <strong>of</strong> a company, the prerequisite is to have an extraordinary management team. Only a well-managed company with strong unity<br />
among employees can ensure smooth and successful operation. In order to further develop BP’s business, besides implementing a series <strong>of</strong> improvement projects, we<br />
also have trainings designed for upgrading management quality. Based on our in-depth analysis and understanding <strong>of</strong> our management after the Communication<br />
Workshop and Life and Career Goals-Setting programs, in 2011 we established a training program <strong>of</strong> management skills and communication skills, including<br />
management <strong>of</strong> superiors and subordinates, communication skills, EQ control, bolstering <strong>of</strong> staff morale, conflicts handling and management, raising team quality etc.<br />
The purpose <strong>of</strong> these trainings is to strengthen the management and interpersonal skills <strong>of</strong> our management team and promote inter-departmental communications to<br />
ensure that the whole BP team can work seamlessly together to prepare for the different improvement projects in the future.<br />
Projects for improving management, product quality and production lines:<br />
Area <strong>of</strong> improvement Program Purpose<br />
Management Skills<br />
Management quality<br />
To reinforce management skills and interpersonal relations;<br />
Improvement Training<br />
improvement<br />
strengthen inter-department communication<br />
Program<br />
Monitoring and<br />
improvements <strong>of</strong><br />
management and<br />
Internal Assessment and<br />
Improvement Program *<br />
To explore issues <strong>of</strong> management and production lines,<br />
analyze and suggest solutions<br />
production lines<br />
Optimization <strong>of</strong> production<br />
lines and factory<br />
Production Line and Factory<br />
Improvement Program *<br />
To implement and carry out improvement proposals in<br />
order to reach improvement goals<br />
Raising product quality and<br />
productivity<br />
Quality Inspection and Online<br />
Training Program *<br />
To understand staff abilities and conduct training to<br />
improve productivity and product quality<br />
* Trial run in 2011, <strong>of</strong>ficial launch in 2012<br />
P.32
In order to ensure all members <strong>of</strong> our management can put their knowledge<br />
from training into practical work effectively in a sound working environment and<br />
help the Company accomplish its targets <strong>of</strong> improving production lines and quality,<br />
in 2011 BP introduced the new Internal Assessment and Improvement Program,<br />
which aims to carry out in-depth investigation <strong>of</strong> corporate management and<br />
production line issues. The Sustainability Team is responsible for analyzing the<br />
fundamental causes <strong>of</strong> the problems, suggesting improvement proposals for<br />
departmental discussion and conducting the Production Line and Factory<br />
Improvement Program simultaneously. Recurring assessment is carried out<br />
throughout the improvement process to ensure the whole plan achieve the<br />
improvement targets set by the team. The two plans complement each other to<br />
carry out reviews on a continuous basis to keep the management team abreast <strong>of</strong><br />
the times and constantly improving, ultimately maintaining the high quality level<br />
<strong>of</strong> BP's production lines.<br />
Photos <strong>of</strong> Management &<br />
Communication Skills Enhancement<br />
Training Courses<br />
Outline <strong>of</strong> the Internal Assessment and Improvement Program:<br />
◇ Management system review<br />
◇ Management skills assessment<br />
◇ Resources management evaluation<br />
◇ Production lines and factory on-site evaluation<br />
◇ Management evaluation <strong>of</strong> different production divisions<br />
◇ Quality inspection management assessment<br />
◇ Evaluation <strong>of</strong> continued improvement and training<br />
Ms. Liang Mei Lan, Production Department<br />
“I am a team leader promoted from the Sampling Department. It takes time to adapt and<br />
learn; luckily I have the Company’s guidance and training to help me.”<br />
P.33
Production Optimization & Quality Enhancement<br />
Production Line Optimization<br />
Since the introduction <strong>of</strong> lean production management to BP's production lines<br />
in 2010, our production lines have been gradually optimized, reducing unnecessary<br />
waste by organizing the production area and managing material procurement in<br />
particular. Benefiting from lean production, our production team and quality team<br />
can now discover production and quality issues quickly and take action promptly,<br />
hence product quality has improved.<br />
In the course <strong>of</strong> the lean production improvements in 2010 and 2011, BP has<br />
analyzed and reviewed the measures taken in 2010 with the following conclusions:<br />
In the process or production line optimization, we received positive feedback as<br />
well as opposition. Employees have different ideas about tidying up <strong>–</strong> some hope<br />
to have neat production lines so that work can be easier and safer, while some feel<br />
too exhausted to do the cleaning up after a day <strong>of</strong> work. It takes time to build and<br />
change habits, and the best way is to let them penetrate into their daily life over<br />
time. Through system reform, encouragement and continuous reminder by<br />
Sustainability Team, and support among employees, we hope that our staff will<br />
eventually understand the benefits <strong>of</strong> maintaining a clean and organized<br />
workplace to their work and personal safety.<br />
2010 Reform Measures Results accomplished in 2011<br />
Reform <strong>of</strong> the workshop and Saving <strong>of</strong> preparation and personnel movement<br />
improvement <strong>of</strong> the balance time <strong>of</strong> about 3% for the same product design;<br />
and layout <strong>of</strong> production decluttered working environment due to reduced<br />
lines<br />
accumulation <strong>of</strong> semi-finished products<br />
Reform <strong>of</strong> the warehouse Reduced waste by material control; clean and safer<br />
and production lines - 6S production lines; saved time by orderly workflow<br />
improvements, visual<br />
management etc.<br />
FIFO approach<br />
Saved space and more organized warehouse<br />
Cause & effect analysis for Able to discover issues quickly and saving time and<br />
product quality analysis re-work; enhanced product quality and customer<br />
satisfaction<br />
Ms. Yang Ju, Production Department<br />
“Our plant is now a more comfortable working environment after the organizing and<br />
clean-up. There have been times when things were not done properly, but now our<br />
supervisor set up some new rules for the department, we all try our best to comply with<br />
them. Superiors who are understanding and treat staff fairly create a happy working<br />
environment for all.”<br />
P.34
Improvement works carried out in 2011:<br />
◎<br />
Continuous improvements <strong>of</strong> the production area<br />
◎<br />
◎<br />
◎<br />
◎<br />
Improvements in SOP content<br />
Optimization and improvement <strong>of</strong> production tools<br />
Better control <strong>of</strong> the Seven Wastes<br />
Additional training courses<br />
Before Improvement<br />
6S & Visual Management<br />
After Improvement<br />
SOP Board<br />
Warehouse<br />
Use <strong>of</strong> Computerized pattern cutting machine<br />
P.35
Quality Enhancement<br />
ISO9001:2008 Quality Management System<br />
Our customers are always our priority and product quality is the ultimate goal<br />
that we spare no efforts for. In 2010, our Qi Fu factory obtained the ISO9001: 2008<br />
Quality Management System Certification successfully, paving a rigid foundation<br />
for the sustainable development <strong>of</strong> the Company. We have carried out the<br />
following factory improvements to enhance the system:<br />
◇<br />
◇<br />
◇<br />
◇<br />
◇<br />
◇<br />
◇<br />
◇<br />
Re-arrangements <strong>of</strong> duties and positions<br />
Establishing SOP for different departments<br />
Efficient use <strong>of</strong> machine to match with human input<br />
Preparation <strong>of</strong> working instructions<br />
Using effective procedures to strengthen supplier monitoring and<br />
ensure the quality and accurate delivery <strong>of</strong> raw materials<br />
Rational planning <strong>of</strong> warehouse areas, re-arrangements and labeling,<br />
adoption <strong>of</strong> first-in-first-out approach to eliminate waste<br />
Improving the workflow <strong>of</strong> the shipping department and customer<br />
satisfaction research procedures<br />
Launching lean production with SOP to improve production efficiency<br />
Mr. Huang Yi Hui, Production Department<br />
“After the trainings on workflow and system, I have a clearer understanding about the<br />
working procedures now. In the past I just got on with whatever work I was assigned<br />
without thinking much <strong>of</strong> the workflow. Now with clear working procedures, I understand<br />
what the next step is in the flow, it makes operation smoother and easier to make<br />
appropriate arrangements.”<br />
ISO9001:2008 Certificate<br />
Ms Ling Ye, Shipping Department<br />
“Since the introduction <strong>of</strong> the ISO management system to lead operation, the Company has<br />
changed and grown a lot. We have also learnt a wide variety <strong>of</strong> environmental information.<br />
Personally I hope for the prosperity and advancement <strong>of</strong> the Company. By working<br />
together in a systematic way, the Company has a lot <strong>of</strong> room for further development.”<br />
P.36
Mr. Huang Yin Hai, Production Department<br />
“The Company has set up work in process standards to remind us what to pay attention to<br />
in the production process. These WIP standards make requirements clear to us and provide<br />
guidelines to train our staff, taking pressure <strong>of</strong>f from our work. The Company also takes the<br />
initiative to lead us improve our working environment hygiene by teaching staff how to<br />
keep the place clean and organized. This has also lessened our burden.”<br />
Mr. Liang Xiao Wu, Purchasing Department<br />
“The introduction <strong>of</strong> management system has brought many positive changes to the<br />
control <strong>of</strong> raw material procurement. Compared to last year, we have more accurate<br />
calculation <strong>of</strong> material usage and more precise control <strong>of</strong> purchase volume to avoid waste.<br />
In the area <strong>of</strong> suppliers’ quality, due to strengthened communication with suppliers as well<br />
as the clear and strict requirements, we have achieved improvements in raw material<br />
control and reduced the occurrence <strong>of</strong> problems.”<br />
During early stage <strong>of</strong> introduction<br />
<strong>of</strong> ISO9001 system in 2010<br />
Lack <strong>of</strong> understanding about the<br />
system, staff held on to the old<br />
system and reluctant to change<br />
When the SOPs were introduced,<br />
many departments were not used to<br />
the changes<br />
During the early stage <strong>of</strong> rational<br />
warehouse planning and<br />
introduction <strong>of</strong> FIFO approach, it<br />
took a long time for warehouse staff<br />
to reorganize<br />
It took time for some staff to receive<br />
training on how to work according to<br />
the working instructions<br />
Improvements accomplished in<br />
2011<br />
After training, staff took the<br />
initiative to learn and work with the<br />
system, making suggestions for<br />
improvements frequently<br />
After the adjusting period, staff<br />
found that there were less potential<br />
errors and thus started to accept the<br />
SOPs<br />
The warehouse became more<br />
organized, with more space for<br />
storage and better control <strong>of</strong> raw<br />
materials, reducing waste <strong>of</strong><br />
materials and search time (for<br />
material control information please<br />
refer to the "Emission-reduction<br />
Projects" section on P.23-26)<br />
The clear instructions reduced<br />
re-work rate and boosted product<br />
quality and productivity. Staff<br />
commented that the working<br />
instructions boosted their confidence<br />
at work<br />
(Defect rate dropped 1.37%<br />
compared to before ISO9001 was<br />
introduced)<br />
P.37
Comparing before and after implementation <strong>of</strong> the ISO9001:2008 system, the<br />
productivity and production efficiency <strong>of</strong> Qi Fu factory have increased: daily<br />
productivity rose by 5%, product passing rate went up 5.9%, delivery timeliness<br />
increased by 3.8%.*(Analysis <strong>of</strong> 2010 data)<br />
100%<br />
95%<br />
90%<br />
85%<br />
80%<br />
ISO9001:2008 Implementation Comparison<br />
Product'n<br />
target<br />
achievem't<br />
rate<br />
Delivery on<br />
time rate<br />
Product<br />
qualified<br />
rate<br />
Ms. He Feng Ying, QC Department<br />
“I have worked in the Company for almost eight years, starting as a team leader. Now I<br />
have become a supervisor <strong>of</strong> the quality department thanks to the experience I’ve<br />
accumulated as well as the appreciation and trust from my boss.<br />
I am very active in<br />
expressing my ideas and always make suggestions when I see there are improvements that<br />
are necessary or when there is any department not doing their job properly, because I want<br />
to help the organization grow and advance.<br />
Suppliers'<br />
delivery on<br />
time rate<br />
Sampling<br />
delivery on<br />
time rate<br />
Before<br />
After<br />
I have witnessed the Company’s expansion all these years. I feel honored as a part <strong>of</strong> it and<br />
my efforts have paid <strong>of</strong>f. As I have grown together with the Company as a member <strong>of</strong> its<br />
management, I have realized that in additional to listening to my subordinates’ voices, I<br />
also have to understand my superiors’ difficulties, so that we can find the balance for the<br />
Company’s developments and everyone can work happily in the organization. To this end,<br />
communications is very important - regular meetings, proactive proposals, frequent<br />
reviews for improvements etc. contribute boosting the quality <strong>of</strong> work. Personally I like to<br />
reflect on myself to find out the problems I have and think <strong>of</strong> solutions to solve them. As a<br />
supervisor, I don’t hold myself unapproachable but listen to my staff’s voices at the right<br />
time to communicate with them effectively and show my appreciation where appropriate.<br />
As the Company’s is making great progress, I can also see the changes and improvements<br />
made by our superiors. They are not just making changes for the Company’s pr<strong>of</strong>it but<br />
really thinking <strong>of</strong> what they can do in order to build better connections with the staff so<br />
that the Company can keep up with the society. I really appreciate their hard efforts.<br />
It is not easy to manage an organization. Using the right people for the right positions is<br />
essential, as well as the charm as a competent leader. Only by working closely with the<br />
supervisors <strong>of</strong> other departments to communicate, support and make suggestions to each<br />
other we can lead the Company forward together. There are times when new managers<br />
find it difficult to adapt to the management’s philosophy right away and have difficulties<br />
performing their tasks or technical problems. Leadership skills training and requiring them<br />
to uphold the standard operating procedures are very important in this situation. It is our<br />
belief that letting our people learn from the errors they made, together with continued<br />
training and helpful reminders, is much more effective than blaming them for what they<br />
did wrong.<br />
Nowadays, employees in particular the young ones are more mobile than they used to be.<br />
The education level <strong>of</strong> our workers has also improved. Everyone wants to be respected, and<br />
hopes to communicate with the management and receive fair treatment. I see the<br />
Company as my second family and my daughter has also joined the organization after she<br />
graduated. We are here to grow with the Company and we truthfully hope to see it<br />
becoming better and better over time.”<br />
P.38
Improvement works <strong>of</strong> the quality system in 2012:<br />
‣ Continued review <strong>of</strong> system imperfections and improvements<br />
‣ Additional communication with and training <strong>of</strong> sub-divisions to<br />
enhance system operation<br />
‣ Established the "Quality Inspection and In-line Training Program" to<br />
provide timely training and correct in-line error in order to reduce<br />
waste and improve quality<br />
‣ Raised quality improvement target: drop <strong>of</strong> another 1% in defect rate<br />
than 2011<br />
QC & Packing<br />
Expansion <strong>of</strong> BP Testing Center<br />
In the process <strong>of</strong> quality control, other than the control measures taken on the<br />
production lines, BP also strictly upholds the law and regulation to ensure the<br />
products meet the international standards specified by our customers. As a<br />
responsible and pr<strong>of</strong>essional company, we constantly review and improve every<br />
aspect including product design development, material procurement, production<br />
process, material identification safety labels provided by customers etc. to ensure<br />
the products conform to environmental standards and health and safety<br />
standards.<br />
At the end <strong>of</strong> 2007, BP already established a testing center to conduct physical<br />
inspection <strong>of</strong> materials and products with the purpose <strong>of</strong> upholding our customers'<br />
product quality and being responsible for consumers (please refer to<br />
"Environmental Protection" on P.27 for information about the laboratory). In the<br />
area <strong>of</strong> chemical testing, the Company procures raw materials that meet<br />
international safety standards and send them to internationally-recognized testing<br />
centers for chemical testing. By being responsible for the product, BP strives to<br />
minimize the risks <strong>of</strong> the Company as well as our customers and protect the health<br />
and safety <strong>of</strong> consumers. As a result <strong>of</strong> these efforts, up to 2011, there has been no<br />
issue <strong>of</strong> breaching law or regulation <strong>of</strong> provision and use <strong>of</strong> product or services in<br />
BP.<br />
In order to catch up with the latest norms, meet international standards and<br />
fulfill the Company's commitment to sustainable development, in February 2012<br />
BP expanded its testing center with the purpose to further improve product quality<br />
and reduce operating risks. We want to ensure customers and consumers that they<br />
can buy our products with peace <strong>of</strong> mind and lead the whole organization to take<br />
a further step towards the target <strong>of</strong> sustainability.<br />
Humidity Controlling Room<br />
Metal Detection Equipment<br />
P.39
Expansion outline:<br />
◇ Area expansion <strong>of</strong> Testing Center<br />
◇ Expanded crew at the Testing Center<br />
◇ Additions and replacements <strong>of</strong> testing equipments<br />
Area Expansion Floor Plan<br />
Mr. Jackie So, BP Testing Centre<br />
After Expansion<br />
“Now the center has more than 20 types <strong>of</strong> state-<strong>of</strong>-art testing equipment that<br />
can test more than 50 items, covering most <strong>of</strong> the scope <strong>of</strong> bags testing. Under the<br />
supervision <strong>of</strong> the Company’s directors and thanks to the efforts <strong>of</strong> our colleagues,<br />
the Testing Center has won the compliments and trust <strong>of</strong> many customers,<br />
contributing to the business development <strong>of</strong> the Company. As a member <strong>of</strong> the<br />
center, I feel deeply honored and satisfied.<br />
‘By guaranteeing the product quality <strong>of</strong> our customers, we are protecting our own<br />
interests’ are the words <strong>of</strong> Mr. Thomas Tsui, the President <strong>of</strong> the Company, during<br />
the initial stage <strong>of</strong> establishment <strong>of</strong> the testing center. Conducting testing and<br />
inspection <strong>of</strong> our products on one hand protects the safety and health <strong>of</strong><br />
consumers, on the other hand, it protects the interests <strong>of</strong> our customers and our<br />
own. During our daily operation we intercept substandard materials and prevent<br />
them from entering into our production process and use by consumers, at the<br />
same time saving unnecessary costs and expenses. I have a strong sense <strong>of</strong><br />
responsibility as well as enthusiasm for my work. In other words, I feel the<br />
recognition for my work.”<br />
P.40
Labor Rights, Communication & Welfare<br />
BP Employees<br />
We are a people-oriented company <strong>–</strong> one <strong>of</strong> the important elements <strong>of</strong> BP’s<br />
philosophy is that we see employees as our core asset. Compensation, welfare,<br />
career opportunities, training, education, work and living environment are all<br />
areas that BP pays close attention to. BP upholds the code <strong>of</strong> human rights and<br />
principle <strong>of</strong> equal employment and boycotts any discriminatory behavior in all<br />
aspects <strong>of</strong> recruitment, promotion, training, compensation etc.<br />
After streamlining its production in 2010 and relocation <strong>of</strong> production base to<br />
the north in 2011, the total number <strong>of</strong> employees <strong>of</strong> BP head <strong>of</strong>fice and its three<br />
factories remained between 630 and 800 in 2011, relatively less than that <strong>of</strong> 2010.<br />
79.7% <strong>of</strong> our staff came from provinces outside <strong>of</strong> Guangdong, a rise over the 75%<br />
<strong>of</strong> 2010, due to the reason that the younger generation <strong>of</strong> Guangdong province<br />
now enjoys wider career choices as their education has improved in recent years.<br />
100%<br />
90%<br />
80%<br />
70%<br />
60%<br />
50%<br />
40%<br />
30%<br />
20%<br />
10%<br />
0%<br />
2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010<br />
Board<br />
Members<br />
Proportion <strong>of</strong> Employees by Gender<br />
Senior<br />
Management<br />
Middle<br />
Management<br />
Administration Production Others<br />
Male 3 3 8 10 27 26 4 17 174 262 20 27<br />
Female 0 0 12 14 34 26 41 44 338 290 19 16<br />
4.9%<br />
1.3% 0.7%<br />
1.9% 2.2% 2.6% 1.2% 0.6%<br />
4.1%<br />
37.1%<br />
Total Workforce by Region in 2011<br />
20.3%<br />
23.1%<br />
Guangdong<br />
Guangxi<br />
Hunan<br />
Sichuan<br />
Guizhou<br />
Hubei<br />
Henan<br />
Jiangxi<br />
Hainan<br />
Yunnan<br />
Chongqing<br />
Others<br />
P.41
As <strong>of</strong> March 2012, the three BP factories employed 680 full-time staff,<br />
including 23 directors and senior management, 512 production staff, <strong>of</strong> which<br />
53.2% are under 35 years <strong>of</strong> age and all staff over 18 years <strong>of</strong> age. All employees<br />
are recruited through a stringent recruitment process and evaluation system to<br />
make sure they are <strong>of</strong> legal working age and to establish and maintain authentic<br />
personal pr<strong>of</strong>ile <strong>of</strong> each employee. Therefore, there was zero case <strong>of</strong> inappropriate<br />
employment <strong>of</strong> child labor in 2011. When an under-age person comes to apply for<br />
a job, the Company will arrange a position according to the legal regulations to<br />
ensure the work does not compromise their physical and mental wellness. At the<br />
same time, we are extending such requirement to our suppliers to work together<br />
with them in regulating staff management in the whole supply chain.<br />
Labor Rights<br />
We highly value labor rights and strive to protect our employees’ rights by<br />
setting up a reasonable, legal, open and transparent compensation system in<br />
accordance with international labor conventions, local law and regulations and<br />
social responsibility standards <strong>of</strong> our clients. We have also set up a management<br />
system based on these standards with the aim to build harmonious<br />
labor-management relations. There is a robust framework to prevent any behavior<br />
<strong>of</strong> forced labor and to eliminate any obstacle <strong>of</strong> freedom <strong>of</strong> association and<br />
collective bargaining so that employees can elect their representative as they see fit.<br />
We have also established a regular communication mechanism between employee<br />
representatives and management and hired a NGO to set up a labor hotline.<br />
Proportion <strong>of</strong> Mangement & Ordinary Staff in 2011<br />
Board Members Senior Management Middle Management Ordinary Staff<br />
Total Workforce by Age Group in 2011<br />
0.4% 2.9% 9.0%<br />
87.6%<br />
11.3%<br />
17.2%<br />
18-22<br />
Proportion <strong>of</strong> Directors & Senior Management by Age Group in 2011<br />
35.4%<br />
36.0%<br />
23-35<br />
36-45<br />
>45<br />
22%<br />
43%<br />
35%<br />
23-35<br />
36-45<br />
>45<br />
P.42
Proportion <strong>of</strong> Directors & Senior Managemet by Gender<br />
48%<br />
52%<br />
Female<br />
Male<br />
In addition, in terms <strong>of</strong> basic salary, regardless <strong>of</strong> gender, region, working in<br />
Guangdong or Hunan, employees <strong>of</strong> the same rank and ability working in the<br />
same district will receive equal compensation. The Company only adjusts one’s<br />
compensation based on his/her working experience, performance and seniority.<br />
Therefore, there was no case <strong>of</strong> discrimination, serious forced or compulsory labor,<br />
breach or serious harm <strong>of</strong> freedom <strong>of</strong> association and collective bargaining<br />
neither in 2010 or 2011<br />
This year 65.3% <strong>of</strong> our total employees and more than 50% <strong>of</strong> our top- and<br />
mid-level management are female. We ensure that there is no discrimination <strong>of</strong><br />
race, gender, region, religion, social background, political perspective etc. and<br />
everyone is treated equally. In 2011, in order to express our respect for freedom<br />
<strong>of</strong> association and labor, in addition to encouraging employees to join union<br />
freely and elect union representatives, we have extended the signing <strong>of</strong> binding<br />
collective bargaining agreement to 100% <strong>of</strong> our employees that now everyone<br />
can choose to take part in the negotiation <strong>of</strong> compensation and welfare. This<br />
shows our high regard for our employees and creates a sense <strong>of</strong> belonging.<br />
Staff Communication<br />
We have included the percentage <strong>of</strong> new employees in the 2011 data so that<br />
our 2012 data analysis can provide a better understanding about the internal<br />
personnel movements to our stakeholders. First, our average staff turnover ratio<br />
in 2011 was 9.9%, a drop <strong>of</strong> 1% from 2010. Looking at the breakdown <strong>of</strong> age<br />
ranges, the loss <strong>of</strong> 18-35 year-old employees was 10.3% less than the previous<br />
year. In order to reduce employee turnover effectively, BP has conducted an<br />
in-depth staff situation analysis since 2010. We found that there is a higher ratio<br />
<strong>of</strong> quitting in the 18-35 age group, therefore, as part <strong>of</strong> the solution we are<br />
recruiting more employees in the 35-45 age group who are more experienced<br />
and value work stability.<br />
Proportion <strong>of</strong> Workforce <strong>of</strong><br />
Minority in 2011<br />
Proportion <strong>of</strong> Directors & Senior<br />
Management by Minority<br />
Employee Turnover Rate by<br />
Age Group in 2011<br />
Employee Turnover Rate by<br />
Age Group in 2010<br />
4.7%<br />
95.3%<br />
Han<br />
Nationality<br />
Minority<br />
4%<br />
96%<br />
Han<br />
Nationality<br />
Minoriy 18-22<br />
34.8%<br />
23-35<br />
40.4% 36-45<br />
Others 18.3%<br />
24.8%<br />
>45<br />
6.6%<br />
23-35<br />
34.3% 36-45<br />
Others 10.1%<br />
14.5%<br />
18-22<br />
51.2%<br />
>45<br />
4.4%<br />
P.43
Total Number and Ratio <strong>of</strong> Staff Turnover in 2010 and 2011<br />
Monthly Turnover Monthly Total<br />
Turnover Rate<br />
Month<br />
(FTE)<br />
Workforce (FTE)<br />
Year 2011 Year 2010 Year 2011 Year 2010 Year 2011 Year 2010<br />
Apr 39 85 540 850 7.2% 10.0%<br />
Employee Turnover Rate by Gender in 2011<br />
41.4% Male<br />
58.6%<br />
Female<br />
May 49 129 552 901 8.9% 14.3%<br />
Jun 71 91 537 850 13.2% 10.7%<br />
Jul 86 106 774 850 11.1% 12.5%<br />
Aug 68 133 801 850 8.5% 15.6%<br />
Sep 64 91 792 850 8.1% 10.7%<br />
Oct 88 94 767 850 11.5% 11.1%<br />
Nov 59 43 705 850 8.4% 5.1%<br />
Dec 27 55 657 845 4.1% 6.5%<br />
Jan 137 77 636 697 21.5% 11.0%<br />
Feb 74 75 666 660 11.1% 11.4%<br />
Mar 43 82 680 703 6.3% 11.7%<br />
Annual Total &<br />
Average 805 1061 8107 9756 9.9% 10.9%<br />
Turnover Rate<br />
BP Guangdong Turnover Rate by Region (except Wealth Team Factory) in March 2012<br />
Total FTE Turnover FTE Turnover Rate<br />
Guangdong Area 135 6 4.44%<br />
Other Provinces 349 16 4.58%<br />
Wealth Team Factory Hunan Area Turnover Rate by Region in March 2012<br />
Total FTE Turnover FTE Turnover Rate<br />
Hunan Area 184 20 10.87%<br />
Other Provinces 12 0 0.00%<br />
Monthly Total Number & Proportion <strong>of</strong> New Employees Hired<br />
New Employees Annual Total Workforce Proportion <strong>of</strong> New Employees<br />
357 8107 4.40%<br />
BP Guangdong Employee Hiring Rate by Region (except Wealth Team Factory) in March 2012<br />
Total FTE New Hiring FTE Hiring Rate<br />
Guangdong Area 135 5 3.70%<br />
Other Provinces 349 11 3.15%<br />
Wealth Team Factory Hunan Employee Hiring Rate by Region in March 2012<br />
Total FTE New Hiring FTE Hiring Rate<br />
Hunan Area 184 38 20.65%<br />
Other Provinces 12 2 16.67%<br />
New Employee Hiring Rate by Age Group in 2011<br />
28.0%<br />
6.2%<br />
40.9%<br />
24.9%<br />
18-22<br />
23-35<br />
36-45<br />
>45<br />
P.44
We also understand that more than half <strong>of</strong> our employees are post-80’s or 90’s<br />
generation, who are more educated and have different expectations towards their<br />
career and standards <strong>of</strong> living from the older generation. In light <strong>of</strong> this, we invited<br />
a non-government organization, The Institute <strong>of</strong> Contemporary Observation (”ICO”)<br />
to organize a communication workshop in 2010 to show our respect for our<br />
employees as members <strong>of</strong> the organization and encourage their participation in<br />
the decision-making process. In 2011 we continued to launch a series <strong>of</strong> activity<br />
such as employees’ hotline, questionnaire surveys, visits and family care etc. to<br />
find out what our employees really need. We also help our employees to set their<br />
life and career targets, organize classes in collaboration with ICO to support their<br />
growth, and provide a wide range <strong>of</strong> after-hours activities and recreational<br />
facilities.<br />
Our management values the communication between management and<br />
employees. On the weekly meeting, our senior management puts forward the<br />
most recent and important items for review, discussion and resolution, while on<br />
the monthly meeting, union representatives will talk to management about the<br />
topics <strong>of</strong> most concern to employees such as salary, working hours, occupational<br />
safety and health, work stability, opinions about the Company’s development and<br />
management.<br />
The foundation <strong>of</strong> effective communication is to let representatives to reflect<br />
the voice <strong>of</strong> our workers, so that they have a say about their welfare. Therefore<br />
worker representatives are elected by way <strong>of</strong> secret ballot. The management and<br />
Sustainability Team review the union meeting minutes <strong>of</strong> the factories regularly.<br />
From the meetings, we can see that in addition to the routine meeting, a lot <strong>of</strong><br />
discussion has been about workers’ welfare and living. Each <strong>of</strong> the proposals and<br />
concerns raised during the meeting will be discussed in detail among the<br />
management, the team and the worker representatives in order to respond and<br />
work out solutions actively.<br />
<strong>Balanced</strong> development <strong>of</strong> work, physical and mental is an idea that BP always<br />
advocates. Like the concept <strong>of</strong> sustainable development, we also need to achieve<br />
our own balance in order to carry on our work. From organizational development<br />
to individual growth, every level <strong>of</strong> our plan is based on a concept <strong>of</strong> balanced<br />
development. This way our employees can envision a foreseeable, promising and<br />
bright future. Our Sustainability Team will continue its in-depth investigation by<br />
interviewing employees from all ages, gender, race and regions to care for their<br />
needs and give them the opportunities to express their opinions. We strive to<br />
create a harmonious working and living environment for everyone from<br />
management to workers.<br />
In order to bolster the relations between the management and staff,<br />
according to the survey statistics from the 2010 Goals Setting Project, BP invited<br />
ICO to design an interpersonal skills course for the Company so that both<br />
management and staff have better understanding <strong>of</strong> how to communicate at<br />
work. This has helped to fill in the communication gap at work and our employees<br />
have also benefited from the pr<strong>of</strong>essional management training, paving the<br />
foundation for the Company’s growth. P.45
Case Study Sharing: Communication Workshop<br />
On 3 and 4 December 2010, BP invited a non-government organization (NGO),<br />
Institute <strong>of</strong> Contemporary Observation (“ICO”) to organize a communication<br />
workshop for our staff with the purpose to gather staff together to brainstorm<br />
ideas <strong>of</strong> problem solutions, strengthen their sense <strong>of</strong> belonging and improve the<br />
communication channels between staff and management.<br />
Employees are encouraged to write down the company issues they are concerned<br />
with and select the top five issues by way <strong>of</strong> voting. Votes <strong>of</strong> all staff were then<br />
counted to determine the top five issues <strong>of</strong> the Company. Following the morning<br />
sessions, three discussion meetings were held in the afternoon to encourage staff<br />
to come up with solution proposals for the five issues identified. Their suggestions<br />
are gathered and summed up right away.<br />
Senior Management - ICO Advisory Panel Communication Meeting<br />
From 3 December, with the assistance <strong>of</strong> BP Sustainability Team a consultant<br />
from ICO started to interview our mid- and top- management, leaders from base<br />
level, clerks and production staff to have an initial grasp <strong>of</strong> our staff situation and<br />
in-depth understanding <strong>of</strong> the thoughts and feelings <strong>of</strong> our management and staff.<br />
Staff enthusiastically holding up Staff actively writing down their<br />
hands to speak out questions comments in solution meeting<br />
After reviewing concluding the solutions suggested by our staff, the ICO<br />
consultant submitted an action plan for solving the top five issues to the<br />
Company’s decision-makers. After thorough consideration, the management found<br />
the suggestions practical and workable, therefore agreed to improve the working<br />
environment and living environment <strong>of</strong> the Company according to the employees’<br />
proposals. An all-hands meeting was held to announce the management’s<br />
commitment.<br />
ICO Consultants assembled the grassroots employees for communication meeting<br />
to find out problems and to vote<br />
In the morning <strong>of</strong> 4 December, we organized three “Problems Discovery”<br />
sessions for our production staff, management and <strong>of</strong>fice clerks respectively.<br />
Smile on staff face & active participation showed sense <strong>of</strong> ownership P.46
The two-day communication workshop gave our staff a chance to raise<br />
suggestions or even complaints about their work and living environment. We<br />
encourage our staff to come up with improvement proposals, and our adoption <strong>of</strong><br />
their ideas gives them the feeling <strong>of</strong> being in charge. The workshop has boosted<br />
employees’ confidence in the Company and their sense <strong>of</strong> belonging.<br />
After the successful Communication Workshop in 2010, employees became<br />
more positive and enthusiastic at work and had better interactions and<br />
communications among each other in 2011. Other than actively discussing opinions<br />
<strong>of</strong> employees, BP Sustainability Team also introduced many work and training<br />
projects that allow direct interactions with employees and reinforce their<br />
participation in decision-making by giving them opportunities to express their<br />
opinions and thoughts in each area. We carefully listen, actively assist and respond<br />
to our staff to fortify their sense <strong>of</strong> belonging and trust.<br />
Employee Welfare<br />
Most BP employees come from other provinces. We understand that the<br />
Company is like a second home to our staff and it is important to provide a warm<br />
“home” in order to retain them. In the Chinese Confucian thinking, it is believed<br />
that to convince everyone under the same sky to move towards the same goal,<br />
one should govern a nation well. In order to do that, one must have a harmonious<br />
family first, and before being able to have that, one must learn to train<br />
himself/herself to be a better person. The planet earth is what we share under the<br />
same blue sky, and in order to achieve sustainable development for the world, we<br />
must first bring good order to our family, that is, the BP organization. Our family<br />
members rely on us to provide them a warm and stable environment to help them<br />
become a better person.<br />
We care about the working environment and quality <strong>of</strong> life <strong>of</strong> our staff;<br />
therefore we listen carefully to the voices <strong>of</strong> our grass-root employees about how<br />
to improve their living and welfare. We provide recreational facilities and<br />
activities for staff to enjoy and expand their knowledge outside <strong>of</strong> work.<br />
Dormitory & Canteen<br />
Ms. Prunelle Paquette, Sustainability Project Manager <strong>of</strong> <strong>PUMA</strong> Accessories<br />
“I was impressed firstly by the devotion <strong>of</strong> the owners and business partners <strong>of</strong> BP to<br />
initiate and engage in this communication workshop. By hiring a sustainability manager,<br />
BP has made a huge step towards deep improvement within this company.”<br />
P.47
◎ Free accommodation: We provide free dormitory for employees<br />
who need accommodation. We ensure that everyone has enough<br />
living space and provide sufficient facilities in the dormitory such as<br />
shower rooms, lockers etc. We also provide family room for couples<br />
who both work for us so that they can feel a sense <strong>of</strong> belonging.<br />
Cleaning is provided for the dormitory to ensure the hygiene and<br />
cleanliness <strong>of</strong> the living environment.<br />
◎ Free catering: Each <strong>of</strong> our three factories is running a canteen to<br />
provide free food to our employees. We emphasize the freshness,<br />
hygiene and nutrition; balanced-nutrition in particular. Our<br />
canteens have received hygiene permits and health check<br />
certificates for the canteen staff issued by the local authorities. We<br />
also have regular sterilization programs and food poisoning<br />
emergency procedures in place.<br />
◎ Library: BP wants to improve the quality <strong>of</strong> our employees’<br />
after-work life as well. In 2010, we have set up a trial library in the<br />
Qi Fu dormitory where we provide books <strong>of</strong> different genres to<br />
support nurturing <strong>of</strong> knowledge and concepts <strong>of</strong> sustainable<br />
development.<br />
Library<br />
Basketball matches<br />
◎ Basketball team: We established the BP basketball team for our younger<br />
staff to strengthen their relations with each other and boost their sense <strong>of</strong><br />
belonging to the Company. The players get to train physically and enjoy<br />
themselves during the many basketball games we organize.<br />
◎<br />
◎<br />
◎<br />
Recreation: In addition the existing basketball and badminton facilities,<br />
in 2010 we added new recreational facilities like table tennis, Chinese<br />
chess, checker games etc according to the opinions <strong>of</strong> 80% <strong>of</strong> employees<br />
interviewed. Our Sunday after-dinner movies are also popular among our<br />
elder employees and those who prefer less physical activities.<br />
Snooker Table tennis 2011 Company Trip<br />
Company trips: In 2011, BP organized a trip to Chime-Long Water Park for<br />
our employees and their families. Not only did we make it an event <strong>of</strong> fun<br />
and mingling, we also promote environmental awareness among our staff<br />
by encouraging them to bring their own dining utensils and reduce use <strong>of</strong><br />
disposable utensils. Our staff enjoyed themselves to the full in the rain and<br />
took a lot <strong>of</strong> pictures to remember the happy moments.<br />
Interest activities: In order to help our staff to enrich their pastime and<br />
achieve a balanced lifestyle, we have organized events such as Chinese<br />
New Year Festival, Mid-Autumn Festival gathering, snooker contest,<br />
makeup classes etc. Employees <strong>of</strong> all ages and levels enjoyed the activities<br />
and felt the Company’s care for them. We were in particular delighted to<br />
see the enthusiastic participation at the Chang Fu factory’s Mid-Autumn<br />
Festival gathering and receive positive feedback from our staff asking for<br />
more similar recreational activities.<br />
Winners <strong>of</strong> snooker<br />
contest<br />
P.48
Ms. Fu Shun Lan, Production Department<br />
“Soon after joining the factory, I became one <strong>of</strong> the employee representatives <strong>of</strong> the labor<br />
union and have since witnessed many changes in the Company. In 2009 we brought up the<br />
issues <strong>of</strong> time management <strong>of</strong> incoming materials and overtime working on the union<br />
meeting, for which obvious improvements have been seen as a result <strong>of</strong> the continued<br />
efforts <strong>of</strong> workflow and system enhancement in 2010. The Company has made our work<br />
easier.<br />
Regarding quality control, as the team leader <strong>of</strong> the Downstream Preparation Team, I<br />
have observed that since the strengthening <strong>of</strong> on-line quality control by the Company, the<br />
rework ratio <strong>of</strong> finished products has decreased and we no longer need to work overtime<br />
to meet deadlines. Our life has resumed the rhythm it is supposed to be.<br />
In terms <strong>of</strong> welfare improvements, we are happy with the Company’s reform <strong>of</strong> reward<br />
approach and ratios. My subordinates have become more proactive at work under the<br />
reward system. We also participate in the after-hour activities organized by the Company<br />
such as interest classes. We benefit from the expanding variety <strong>of</strong> activities as they make<br />
our life more meaningful.<br />
In the area <strong>of</strong> staff training, as a team leader I always provide training for my team<br />
members to keep up with the company’s developments and new knowledge to help<br />
them understand the organization’s system, requirements <strong>of</strong> work standards,<br />
occupational safety and health education etc. Thorough understanding <strong>of</strong> the company<br />
gives workers a good sense <strong>of</strong> security at work.<br />
Communications among individuals is very important. My communications with my<br />
co-workers and subordinates is based on mutual respect, kindness and care. I treat<br />
those elder than I am as older brother and sisters, whom I respect and be amiable to. I<br />
also make sure to be kind to young newcomers to build mutual trust and give them the<br />
sense <strong>of</strong> security. They call me their “bigger sister” and I also guide them as if they were<br />
my children, correct them when they are not meeting the Company’s or the clients’<br />
standards to ensure work efficiency and top quality.<br />
I look forward to more training from the Company for us to add value to ourselves and<br />
contribute to the Company’s future improvements.”<br />
Mr. Zhang Jian, Warehouse Department<br />
“I joined the Company more than 8 years ago and learnt a lot from my work. Many<br />
employees like me left our hometown in hope <strong>of</strong> making more money for a better living.<br />
When we are busy to make ends meet, we don’t think too much about learning outside <strong>of</strong><br />
work. To change this kind <strong>of</strong> atmosphere and to improve our culture, the first thing to<br />
change is the mindset.<br />
Our company welfare gives us motivation for work. I hope the Sustainability Team will<br />
continue to introduce more leisure facilities <strong>of</strong> different types for employees <strong>of</strong> different<br />
generations and interests to enjoy, so as to encourage employees to participate in more<br />
activities and more frequently.” P.49
Health & Safety<br />
Health & Safety Education<br />
“Home” is where we feel comfortable, safe and warm. A lot <strong>of</strong> BP employees<br />
work far away from home, and we understand the feeling <strong>of</strong> nostalgia. We know<br />
only by providing a warm home for our staff, where they can feel the sense <strong>of</strong><br />
belonging, stability, safety and comfort, that we can keep them in the BP family<br />
and grow with them together healthily. As a manufacturing company, the working<br />
environment and safety at all factories, dormitory hygiene as well as the health<br />
issues <strong>of</strong> our staff are all top concerns <strong>of</strong> BP.<br />
We design and build our working and living premises according to the local laws<br />
and regulations on occupational safety and health, national compulsory industry<br />
standards and our customers’ requirements, and at the same time monitor the<br />
safety <strong>of</strong> our production process strictly to ensure the health and safety <strong>of</strong> our<br />
staff.<br />
In order to ensure each <strong>of</strong> our staff work and live in a healthy and safe<br />
environment, in addition to routine fire drills and fire-fighting system inspection,<br />
we also have a safety and production management system in place to govern the<br />
prevention and emergency handling <strong>of</strong> work-related injuries, occupational<br />
diseases and major safety incidents at the factories. In 2011 , the Sustainability<br />
Team and Safe Production Management Team worked together to carry out<br />
inspection, re-organization and improvements <strong>of</strong> the working environment,<br />
develop the “6S” improvement materials for training and put on educational<br />
posters to help create a clean, comfortable and safe working environment. We also<br />
fostered education and promotion to boost the self-discipline <strong>of</strong> our staff in order<br />
to maintain our accomplishment after improvements.<br />
6S<br />
Improvement<br />
Training<br />
Materials<br />
EHS<br />
Advertisement<br />
Employees work safely with machines & wear ear plugs for protection<br />
P.50
The Company provides an intensive health and safety training every month for<br />
the new employees, which includes explanation <strong>of</strong> factory safety production<br />
regulations and equipment operation demonstration. In addition, leaders <strong>of</strong> the<br />
basic levels <strong>of</strong> each division will independently supervise their subordinates on the<br />
best practice <strong>of</strong> operating the equipment for their job duties and key points <strong>of</strong><br />
safety production. In 2011, the Sustainability Team prepared and printed<br />
education information on health and safety at work for employees and<br />
encouraged them to teach their family to pay attention to occupational health and<br />
safety as well. Besides, the Sustainability Team also arranged seminars to increase<br />
the knowledge <strong>of</strong> critical illness and these were taught specifically for the<br />
prevention and control <strong>of</strong> the recent avian flu, tuberculosis, hepatitis B and AIDS.<br />
Booklets and leaflets are distributed to the employees and their family to pass on<br />
the health-related information in the community. In 2011, there was no case <strong>of</strong><br />
work-related injury or occupational disease in the Company, and the monthly<br />
absence rate was 2.44%, which has risen from 2010. The reasons for taking leave<br />
included family reunion during the summer holidays and national day holidays,<br />
returning to hometown during the Chinese New Year and the transitional changes<br />
for the Wealth Team factory staff, however, the situation did not impose any<br />
adverse impact on our operation. In fact, we made special arrangements for<br />
employees taking leave as we understood the feeling <strong>of</strong> working far away from<br />
home. This has strengthened the employees’ sense <strong>of</strong> belonging to the Company,<br />
which is in the end, favorable for the Company.<br />
Rates <strong>of</strong> Absenteeism<br />
Month Year 2011 Year 2010<br />
April 1.70% 1.47%<br />
May 1.21% 1.58%<br />
June 1.14% 1.58%<br />
July 2.46% 2.24%<br />
August 3.35% 1.63%<br />
September 3.03% 3.92%<br />
October 3.86% 1.45%<br />
November 3.10% 2.18%<br />
December 2.30% 1.78%<br />
January 3.23% 0.70%<br />
February 2.65% 3.13%<br />
March 1.29% 1.21%<br />
Average 2.44% 1.91%<br />
Staff paid<br />
attention in<br />
seminars <strong>of</strong><br />
critical illness<br />
Frill Drills P.51
Staff <strong>Development</strong> Training Program<br />
Case Study Sharing: Life and Career Goals Setting<br />
Following the Communication Workshop in 2010, this is the second staff<br />
development project that the BP’s Sustainability Team and ICO carried out within the<br />
Company in late 2010. As most o the workers at that time mostly came from other<br />
provinces in China than Guangdong area and received little education, a lot <strong>of</strong> them<br />
were confused about their needs, career development and future path. The aim <strong>of</strong> this<br />
project was to help each employee to find out what they truly need and aspire after in<br />
life, so that they have clear directions for their future and know how to realize their<br />
goals <strong>of</strong> life.<br />
Participants were divided in to 16 Goals Setting teams voluntarily, each team<br />
consisting <strong>of</strong> 6 to 12 employees. ICO assigned a consultant to each team to help the<br />
team members learn how to use analysis tools such as fishbone diagram, SWOT etc. to<br />
draw out their own goals in life. Team members encouraged and helped each other to<br />
realize their goals in life and career planning.<br />
On 17 December 2010, all employees from the <strong>of</strong>fice and Qi Fu factory joined this<br />
activity. They were excited and serious when setting their own goals while helping<br />
each other to find theirs and make their career plans. Each participant drew their goals<br />
<strong>of</strong> life on the fishbone diagram, which they put near their bedside to motivate them or<br />
bring back home during the Chinese New Year to share with their family and friends.<br />
knowledge and needs <strong>of</strong> most employees, the consultants formulated the Employee<br />
Capability Building Education Program to nurture ability <strong>of</strong> self-learning,<br />
self-development and self-protection.<br />
On the day <strong>of</strong> the event, BP had the honor to invite one <strong>of</strong> our customer<br />
representatives, Ms Prunelle Paquette, <strong>PUMA</strong> Accessories Sustainability Manager, to<br />
join our activities. We hope to grow together with our customers in an open and<br />
transparent environment.<br />
In 2011, BP continued to interview new employees and provides guidance on<br />
goals-setting to find out the needs and capabilities <strong>of</strong> employees. We also continued to<br />
design various kinds <strong>of</strong> training program for our employees so that our people can grow<br />
together with the Company.<br />
Employees learned how to carry out their plans & presented their own goals to teammates.<br />
The ICO consultants reviewed the life and career plan <strong>of</strong> each employee and<br />
concluded their strengths and weaknesses. Identifying the lack <strong>of</strong> some particular<br />
Ms. Prunelle Paquette, Sustainability Project Manager <strong>of</strong> <strong>PUMA</strong> Accessories<br />
“<strong>About</strong> the Goals Setting, the responses and details that came out <strong>of</strong> my assigned group<br />
were impressive. My teammates all then revealed high ambitions along with detailed<br />
planning on how to achieve their dream and goals; and some were even to tears by how<br />
impressed they were <strong>of</strong> each other.” P.52
Case Study Sharing: Employee Capability Building<br />
BP Sustainability Team discovered that despite their strong will to develop themselves,<br />
most employees lack the knowledge and ability to do so, which hinder the continued<br />
growth <strong>of</strong> their personal strength. In light <strong>of</strong> this, BP invited ICO pr<strong>of</strong>essional trainers to<br />
carry out the third staff development project “Employee Capability Building”, on the<br />
foundation laid by the Communication Workshop and Life and Career Goals-Setting<br />
Program. The purpose is to help our employees to catch up on the way <strong>of</strong> thinking,<br />
communication skills, learning ability, health knowledge and wealth management etc.<br />
through external training.<br />
Trainings & employees received certificates after trainings<br />
Based on the needs <strong>of</strong> our employees, in 2011 we set up the Occupational<br />
Multi-Talent Training Program. Regarding personal growth <strong>of</strong> management and<br />
employees, we have invited pr<strong>of</strong>essional trainers to talk about personal wealth<br />
management, food hygiene and nutrition, management skills, communication skills,<br />
health and mental well-being etc. The program <strong>of</strong>fered a class each month to cultivate<br />
the development ability <strong>of</strong> both management personnel and production workers. The<br />
classes were welcomed by our employees.<br />
The statistics <strong>of</strong> number <strong>of</strong> employees who received training in 2011 showed that BP<br />
has made appropriate adjustments and arrangements so that all members <strong>of</strong> the<br />
Company have the chance to receive training <strong>of</strong> different kinds in light <strong>of</strong> the<br />
unsatisfactory ratio <strong>of</strong> number <strong>of</strong> senior management who received training in 2010.<br />
Employees <strong>of</strong> all levels are given opportunities to foster their competitiveness and<br />
chances to further develop themselves. In 2011, classes designed based on the Employee<br />
Capability Building Program introduced our employees to training <strong>of</strong> different topics. The<br />
total number <strong>of</strong> training hours in 2011 rose obviously above that in 2010.<br />
Mr. Lu Xu De, Human Resources Department<br />
“Last year the Sustainability Team arranged many activities for us such as snooker contests.<br />
We all had fun together and it took away our fatigue from work.<br />
The organic planting activity this year not only gave us a lot <strong>of</strong> knowledge about health<br />
and healthy diet, but also brought us to the nature. It was like returning to my hometown, I<br />
felt very relaxed.<br />
I also joined different trainings and seminars arranged by the Company, which improved<br />
my ability to communicate with others and express myself.<br />
I hope the Sustainability Team can introduce more variety <strong>of</strong> leisure activities for us, such<br />
as singing activities, to enrich our after-hours, so that we can enjoy our work here more.”<br />
P.53
Training Hours <strong>of</strong> Employees in 2011<br />
Total Training Hours(hr) Employee(FTE)<br />
Average Training<br />
Hours per<br />
Employee (hr)<br />
Senior Management 622 20 31.1<br />
Middle Management 2,684 61 44<br />
Administration 1,485 45 33<br />
Others 1,033 39 26.5<br />
Production 14,080 512 27.5<br />
Ratio <strong>of</strong> Training Hours <strong>of</strong> Employees by Gender in 2011<br />
Average Training Hours<br />
Total Training Hours(hr) Employee(FTE)<br />
per Employee (hr)<br />
Male 6,940 233 29.8<br />
Female 12,964 444 29.2<br />
Anti-Corruption Policies and Implementation<br />
In addition, in order to ensure the Company’s operations complies with the<br />
laws and regulations and to eliminate the risks <strong>of</strong> corruptive behaviors that may<br />
affect our business and reputation, BP re-formulated, at the end <strong>of</strong> 2010, the<br />
anti-corruption policies and implementation approach at the corporate level. We<br />
have carried corruption risk assessment to identify the ratio <strong>of</strong> high-risk<br />
personnel among the management and conducted anti-corruption training for<br />
50% <strong>of</strong> these employees. In 2011, in order to further fulfill its commitment to<br />
social responsibility by laying a corporate foundation <strong>of</strong> incorruptible<br />
management and culture, BP provided anti-corruption training and education for<br />
all employees including management and non-management. On the foundation<br />
<strong>of</strong> such virtuous culture and education, in 2011 there was no illegal behavior<br />
such as fraud, corruption, bribe etc recorded.<br />
The Sustainability Team also assumes the responsibility to promote<br />
anti-corruption awareness and ideas to the younger generations by actively<br />
circulating educational leaflets to the staff, so that they can bring the messages<br />
against corruption to their family and friends. We hope to gradually change the<br />
culture <strong>of</strong> the society and continuously make efforts for our future generations to<br />
develop on a foundation <strong>of</strong> probity and justice.<br />
P.54
Support from Customers<br />
The major products <strong>of</strong> BP are backpacks, travel bags, handbags etc. and BP's<br />
points <strong>of</strong> sale cover Europe, Japan, US and all over the world. Since its<br />
establishment, the Company has been actively expanding its international market<br />
with the spirit <strong>of</strong> openness, fairness, transparency and co-operation. It has earned<br />
the trust <strong>of</strong> well-known brands around the world such as <strong>PUMA</strong>, Mizuno, Converse<br />
etc. and become an important global partner <strong>of</strong> these customers.<br />
In 2010, BP received the “Accessory Supplier <strong>of</strong> the Year” award from <strong>PUMA</strong><br />
and was invited to <strong>PUMA</strong>'s Global Supplier Summit and Sustainability Round-Table<br />
Meeting, as well as the "Global Brands Social Responsibility Summit" co-held by<br />
different international brands. On the 2010 <strong>PUMA</strong> Global Supplier Summit , BP<br />
was invited to share its experience <strong>of</strong> implementing sustainable development to<br />
<strong>PUMA</strong>'s suppliers around the world. In the 2011 <strong>PUMA</strong>'s Sustainability<br />
Round-Table Meeting, BP shared the best practice <strong>of</strong> corporate social responsibility<br />
with all participants.<br />
Since BP established its mid-term development strategy <strong>of</strong> marketing expansion<br />
in 2010, our Marketing Department has been working actively throughout 2011 to<br />
win support from customers and carried out sales and marketing activities, leading<br />
the Company to prepare for future development on a robust foundation.<br />
In addition to our expansion activities <strong>of</strong> sales and marketing, BP has also made<br />
a lot <strong>of</strong> effort to promote sustainable development. In 2011, our Sustainability<br />
Team took the initiative to contact our stakeholders including customers to provide<br />
our 2010 Sustainability Report by mail, portable disks and updating company's<br />
website. The report provided an in-depth understanding <strong>of</strong> BP's development and<br />
sustainability work to our stakeholders, echoed with our customers' developments<br />
and called for co-operation from the whole supplier chain to bring out the spirit <strong>of</strong><br />
sustainable development.<br />
BP is grateful for the support and encouragement from our customers that<br />
helped our successful development for decades. This year, BP continued to move<br />
towards our goal <strong>of</strong> sustainable development hand-in-hand with our customers. In<br />
particular, <strong>PUMA</strong> helped us to arrange energy-saving and emission-reduction<br />
training, human resource and production lines enhancement training by external<br />
parties. In addition, in order to optimize our collection <strong>of</strong> environmental data,<br />
<strong>PUMA</strong> also helped us to introduce the environmental data collection system<br />
"Enablon" with the purpose to improve data accuracy and transparency. <strong>PUMA</strong> is<br />
leading the whole supplier chain to protect the environment and work together to<br />
achieve sustainability.<br />
“Accessory Supplier <strong>of</strong> the Year”<br />
award from <strong>PUMA</strong> in 2010<br />
P.55
Dr. Reiner Hengstmann, Global Director <strong>PUMA</strong>. SAFE<br />
“BP Bag has embraced <strong>PUMA</strong>’s sustainability strategy and is now investigating<br />
ways to truly integrate this into its core business decisions. BP Bag participates in all<br />
<strong>of</strong> <strong>PUMA</strong>’s projects so far, including GRI project within this report is being written.<br />
Ms. Prunelle Paquette, Sustainability Project Manager <strong>of</strong> <strong>PUMA</strong> Accessories<br />
"With this second B level GRI sustainability report, B.P Bag is once more showing<br />
their unwavering engagement and their determination to contribute to a more<br />
sustainable future.<br />
BP Bag was also the first <strong>PUMA</strong> supplier in China to produce a Level B GRI report.<br />
Our impression is that with top management support we can begin to witness BP Bag<br />
early transformation into a more sustainable supplier for <strong>PUMA</strong>.<br />
We obviously want to see all <strong>of</strong> the indications <strong>PUMA</strong> have defined as being<br />
important to us. In addition, you should mention all <strong>of</strong> the projects and efforts that<br />
you are doing to become more sustainable.<br />
The majority <strong>of</strong> recent focus has been on measuring e-KPIs. You need to measure<br />
before you can manage. However, hopefully now you have a stable data collection<br />
system and we can see more actual resource savings through project implementation<br />
and see real progress <strong>of</strong> reaching their 25% sustainability targets through solid<br />
investments.”<br />
This GRI sustainability report will further enable them to illustrate, in a transparent<br />
and exhaustive manner, the ways in which they pursue their economic, environmental<br />
and social development goals as well as monitor closely their results and therein<br />
identify areas for potential improvements and guide them to drive their future<br />
initiatives.<br />
In the last 2 years I have followed B.P Bag's progress, various and multiple<br />
initiatives and projects and I can clearly say that their devotion towards sustainability<br />
is grounded on a solid foundation and maturing rapidly. They have broadened their<br />
actions and focus to increase the engagement <strong>of</strong> each employee's part <strong>of</strong> the B.P Bag<br />
family and together there are making the changes, one step at the time. There are still<br />
many challenges ahead to overcome and I'm convinced that they will succeed and<br />
achieve their set targets as their devotion is tenacious and energetic. "<br />
P.56
Mr. Sergio Colombini, Global Director Sourcing Accessories <strong>of</strong> <strong>PUMA</strong><br />
“I think the best attitude for suppliers to achieve their Sustainability goal is to keep<br />
on looking for any possible flaw in their organizations and trying to be self-critical.<br />
We can suggest goals, ideas and options to suppliers or we can show examples <strong>of</strong><br />
other factories in order to make sure they understand what we need from them.<br />
Every supplier should develop its own approach and solutions that will help to<br />
overcome the problems creating gaps between the goals and the current situation.<br />
<strong>PUMA</strong> has already started putting suppliers in touch with third parties that can<br />
help those manufacturers to re-organize the production or to measure the<br />
consumption <strong>of</strong> electricity, water etc.<br />
At the end, it is up to suppliers’ own judgment to decide what they are willing to<br />
do to improve, since it involves investment in the organization. Suppliers should do as<br />
much as possible to stay pr<strong>of</strong>itable while fulfilling <strong>PUMA</strong>’s goals. These goals are<br />
mostly shared by many players in this business, and they define the direction where<br />
the market is going now.<br />
We cannot urge our suppliers to just apply all the existing sustainable innovations<br />
as different factories have different needs, so the approach must be different for each<br />
factory, according to their needs.<br />
Communication on Sustainability probably is not enough at the moment. <strong>PUMA</strong><br />
Safe is trying its best to do as much as possible from its side. Though there are not<br />
many people in <strong>PUMA</strong> Safe to deal with hundred factories, they have tried to arrange<br />
presentations, round table meetings, etc. in order to create interactive opportunities.<br />
In the round table meetings, they should probably give more concrete directions and<br />
promote more discussions in order to achieve a better result.<br />
Actions and situations which cannot be taken or improved by either <strong>PUMA</strong> or its<br />
suppliers should not be repeated in the meetings so to leave more time and increase<br />
to focus on valuable topics where something can really be done.<br />
The biggest job in the communication work is done by the Sustainability<br />
Managers in <strong>PUMA</strong>, like Prunelle for Accessories, who transfers the information to the<br />
factories and helps the implementation. Suppliers can approach the Sustainability<br />
Manager anytime. The Sustainability Managers sit together with suppliers for<br />
discussion and action planning.<br />
In terms <strong>of</strong> improvement, I am concerned about quality and production issues. To<br />
create a solid base for possible future production increase, suppliers need to make<br />
sure that what we do now is at a good level <strong>of</strong> quality. We have to see more<br />
transparency on this part, therefore we have established a QA department with a QA<br />
manager and QC supervisors with the goal to further increase quality. Though BP Bag<br />
has its own QC team, some other suppliers may not pay high attention on this<br />
important topic. World Cat QA team will need to raise their attention on quality and<br />
minimize the risk related to lack <strong>of</strong> attention and structure.<br />
Puma has cooperation with other brands and we might source and produce on their<br />
behalf. They may have their own standard <strong>of</strong> quality, which might differ from what we<br />
use for Puma products. Once we train our QA people on those standards it is easier to<br />
transfer them to the suppliers and ensure a compliant production. I am sure BP Bag is<br />
doing a good job on labor part, this year I want to see more on the economic part, for<br />
example the short, middle and long term strategies and goals, not only in relation to<br />
Puma but to the market itself. I would like to see how BP Bag is interpreting the market<br />
and plan to improve their competitiveness.”<br />
P.57
Our Partners - Suppliers<br />
Communication with Suppliers<br />
In every supplier chain, a client and its suppliers are always interconnected<br />
and interacting closely. As a supplier for various well-known brand names, BP<br />
highly respects our clients’ requirements and standards and strives for<br />
improvements in different areas to honor our long-term relationship and align<br />
our future developments with those <strong>of</strong> our clients.<br />
clients’ requests by paying attention to the safety and<br />
environmental-friendliness <strong>of</strong> the materials selected. We regularly convey the<br />
new requirements and standards to our suppliers to make sure they can provide<br />
quality materials that meet the standards. All materials that enter BP’s factories<br />
must undergo testing by a qualified testing institution to makes sure they<br />
conform to international safety standards and environmental standards.<br />
BP and its management team are proactively pursuing improvements in all<br />
areas <strong>of</strong> product quality, productivity, environmental protection, occupational<br />
safety and health etc. to ensure smooth operation <strong>of</strong> the supply chain and<br />
excellent quality. BP understands the chain reaction within the supply chain, not<br />
only is BP a supplier, at the same time we have our own suppliers, therefore we<br />
also endeavor to communicate with our important suppliers to clearly express<br />
the product and sustainability requirements <strong>of</strong> our clients. We constantly make<br />
sure we share the same goal with our suppliers and move towards the goal in<br />
the same pace.<br />
In 2011, we provided copies <strong>of</strong> and promoted our 2010 Sustainability Report<br />
to our suppliers to improve transparency and introduced BP’s sustainable<br />
development. We also provided information that introduces the concept <strong>of</strong><br />
sustainability, environmental protection, green production etc. to our suppliers<br />
to foster communication and interaction so that all <strong>of</strong> us can grow and develop<br />
hand-in-hand.<br />
As part <strong>of</strong> our factory operation enhancement efforts, the Sustainability<br />
Team introduced new measures that strengthen supplier control in 2011. These<br />
include annual evaluation <strong>of</strong> supplier’s delivery, quality, management etc and<br />
working with suppliers to develop improvement programs, to make sure we only<br />
use suppliers with outstanding standards to be responsible to our clients and our<br />
products.<br />
For our 2011 Sustainability Report, we interviewed two <strong>of</strong> our major suppliers,<br />
Duraflex Unitex International Button Accessories Ltd. who also talked to us last<br />
year, and Tai Hing Zipper Factory Co., Ltd.<br />
In the past two years, BP has been looking for more suppliers that support<br />
the use <strong>of</strong> green materials. We also develop our products in accordance with our<br />
P.58
Left: Mr. Jochen Schulz<br />
Right: Mr. Patrick Wong<br />
Duraflex Unitex International Button Accessories Ltd. is a supplier with the<br />
Blue Sign certification, proving that their manufacturing process and products<br />
all conform to ecological, health and safety standards with measures to minimize<br />
its impact on the environmental and provide consumer safety protection. “We<br />
really appreciate BP’s efforts <strong>of</strong> supporting sustainability development and I<br />
particularly admire the great work BP did in terms <strong>of</strong> sharing information <strong>of</strong><br />
sustainable development in 2011. It’d be encouraging to see more companies<br />
working as hard as BP does for sustainable development. It is important for a<br />
company to provide its sustainability report to the stakeholders within its<br />
supplier chain in order to get the best results,” said Mr. Jochen Schulz, Europe<br />
Regional Sales Manager, Duraflex Unitex International Button Accessories Ltd.<br />
When asked about his views on the new system <strong>of</strong> supplier assessment, Mr.<br />
Schulz said: “I’ve always regarded supplier assessment as a good way to control<br />
quality; however, I think the methods used should be simplified to avoid<br />
excessive input <strong>of</strong> human resources and time. A simple yet effective evaluation<br />
approach will be useful to the whole supply chain and contributes to<br />
environmental protection. Besides, during the annual supplier round-table<br />
conference, I suggest the arrangement <strong>of</strong> some one-on-one meetings for in-depth<br />
discussion, this can shorten the time <strong>of</strong> meeting and at the same time achieve<br />
more interactive exchanges <strong>of</strong> ideas.”<br />
We also had the honor to interview Tai Hing Zipper Factory Co., Ltd., another<br />
supplier <strong>of</strong> BP. Mr. Patrick Wong (“Mr. Wong”), leader <strong>of</strong> Tai Hing has shared<br />
with us how he felt about BP’s communication with its suppliers on sustainable<br />
development. Mr. Wong made a special mention about the information the BP<br />
Sustainability Team prepared to share with suppliers on sustainable<br />
development and environmental protection in this couple <strong>of</strong> years: “BP has<br />
provided plenty <strong>of</strong> information <strong>of</strong> sustainable development with us; in particular<br />
there are a lot <strong>of</strong> data and case studies in the presentation for our reference. I<br />
think it’d be great to have one to two meetings with BP each year to exchange<br />
information and updates on sustainable development, which will be a great<br />
opportunity for us to learn from each other.” In 2011, during the annual supplier<br />
conference <strong>of</strong> <strong>PUMA</strong>, BP talked to Mr. Wong about the possibility <strong>of</strong> organizing a<br />
meeting or round-table discussion for better communication. “I think it’d be<br />
great if BP could provide more information to material suppliers like us before<br />
the supplier conference so that we can prepare better. I also suggest adding a<br />
brief discussion session on sustainable developments for everyone to bring up<br />
their ideas so that the conference can be more interactive. In addition, I think<br />
the traditional factory auditing <strong>of</strong> suppliers is not a good approach. As each<br />
company establishes its sustainability goals specific to its industry, it is difficult<br />
for someone outside the industry to judge. Besides, the score-basis audit<br />
method should not be taken as a tool to get more orders, because regardless <strong>of</strong><br />
size and corporate goals, we should share the same goal when it comes to<br />
taking care <strong>of</strong> our planet. I’d like to say that BP is really doing an amazing job in<br />
sustainable development and stands out in our industry. I look forward to<br />
receiving some good examples provided by BP in future sustainability meetings<br />
on how to reduce cost, which will help us to explain to our factory investors. It<br />
requires a large amount <strong>of</strong> capital input to kick start sustainable development<br />
projects, but I believe in the long run they will contribute to cost-saving. This will<br />
be an interesting point to attract investors who are having problems with cost<br />
control to join sustainability movements”, said Mr. Wong. P.59
Community Care & Education<br />
World Vision’s Child Sponsorship Program : “Education <strong>of</strong> love”<br />
Education is the best way to spread the idea <strong>of</strong> sustainable development.<br />
Good education uses love and caring to open people’s mind to listen and accept.<br />
Since 2010, BP extended its care for children through the World Vision’s<br />
children sponsorship program. During our communications with our sponsored<br />
children, we shared with them the ideas <strong>of</strong> treasuring resources and protecting<br />
our planet Earth. In 2011, BP continued its efforts by conveying more knowledge,<br />
love and care by writing letters to the children, which were encouragingly<br />
rewarded with their positive reply that they do understand the importance <strong>of</strong><br />
protecting the environment and some <strong>of</strong> them even pledged to share the<br />
messages with their friends and family. What we have gained from this program<br />
means a lot to us - educating children with patience is the most effective way to<br />
change social trends and culture.<br />
Caring for our staff and their families<br />
In 2011, the Sustainability Team had the chance to talk to the family member<br />
<strong>of</strong> one <strong>of</strong> our staff, Miss Liu, when she came to our factory to visit her mother<br />
who previously received help from the team. We were glad to learn that BP’s<br />
training and Education <strong>of</strong> Love program did have a positive impact on our staff<br />
and also on their families. “Mother talked to us about wealth management and<br />
healthy lifestyle when she came home during the New Year. We were really<br />
impressed and wondered where she got those ideas from. Then I found out it<br />
was the seminars organized by her company. It surprised me that a factory<br />
would <strong>of</strong>fer this kind <strong>of</strong> knowledge education to its staff <strong>–</strong> it must be a good<br />
company. BP’s Sustainability Team showed me the inner and outer beauty <strong>of</strong><br />
humanity. I’m really grateful for your company’s care and support for my mother.<br />
Words cannot express my gratitude to Ms Melissa Leung, Mr. Quan Li & Miss Li<br />
and all other team members, and the senior management <strong>of</strong> BP. My mother and<br />
I are both very lucky!” said Miss Liu.<br />
Left top & bottom: letters from<br />
sponsored children told us that<br />
they will protect the<br />
environment and share the<br />
messages with friends.<br />
Top right: Gifts & letters we sent<br />
to the children.<br />
It was delightful for the team to hear about Miss Liu’s impression about our<br />
work related to environmental awareness. “After my conversation with Melissa<br />
on the train, I am truly impressed with BP’s Sustainability Team. There are not a<br />
lot <strong>of</strong> people in my surrounding who think like Melissa does. Now I am paying<br />
more attention to environmental protection, for example, I seldom ask for<br />
plastic bags when shopping at the supermarket; I bring my own bag when<br />
buying breakfast; I don’t throw away things without thinking. I hope BP can hold<br />
on to its work and those changed by BP will also give back to the society with a<br />
grateful heart. This way our world could be a better one.”<br />
P.60
Chinese New Year Caring Event in Hunan<br />
Last year, in addition to our education <strong>of</strong> sustainability concepts within the<br />
organization, BP has reached out to the families <strong>of</strong> our staff to show that we<br />
care about them and also to strengthen employees’ sense <strong>of</strong> belonging. The<br />
environment and living conditions in Hunan are different then from the<br />
Guangdong area and families <strong>of</strong> some <strong>of</strong> our Hunan staff are not as well-<strong>of</strong>f as<br />
their Guangdong fellows. In 2011, Wealth Team Factory asked our employees<br />
what they needed for the Chinese New Year celebrations and decided to start a<br />
caring event. We then visited some <strong>of</strong> the families to bring them food and<br />
greetings so that they could enjoy the holiday and have a happy Chinese New<br />
Year with their family. The smiley faces <strong>of</strong> our staff and their families have<br />
become the motivation <strong>of</strong> the Sustainability Team <strong>–</strong> the satisfaction <strong>of</strong> our staff<br />
proved to us the importance <strong>of</strong> caring for others. This is a good example that we<br />
use when we talk to our employees about caring for each other and to<br />
strengthen the unity <strong>of</strong> BP team.<br />
P.61
Interaction with the Community & Community Promotion<br />
In 2010, BP’s Sustainability Team started communications with the Liujia<br />
Village Committee, the community where our Qi Fu Factory is located. We were<br />
glad to know that the Village Committee is also paying attention to our<br />
sustainable development activities. In 2011, BP actively communicated with the<br />
Village Committee and also provided a copy <strong>of</strong> the 2010 Sustainability Report to<br />
the committee to inform them <strong>of</strong> our work. From our last communications, we<br />
know that the development and environmental protection activities <strong>of</strong> the Qi Fu<br />
Factory have received attention from the Village Committee. This year we have<br />
had the honor to interview two representatives from the Committee: Mr. Xiang<br />
Jie Ming, Safety and Hygiene Manager, who also talked to us in 2010; and Mr.<br />
Xiang Fu Xin, Deputy Secretary <strong>of</strong> Party Branch and Village Manager. They<br />
commented, “The organic planting activity <strong>of</strong> BP’s Qi Fu Factory has spread the<br />
ideas <strong>of</strong> environment enhancement, eco-balance and protection <strong>of</strong> trees and<br />
plants. The District Branch Office and Village Committee both highly support such<br />
efforts. Not only do we have a more pleasant environment now, people in the<br />
neighborhood have also learnt how to care for the nature and plants.<br />
In the last two years, the District Branch Office and Village Committee have<br />
input more than RMB 1 million to carry out water conservancy works in order to<br />
solve the flooding problem during heavy rains. The Hengli Town Committee and<br />
Town Government have built a sewage treatment plant and laid sewage pipes to<br />
handle industrials sewage and domestic sewage, ensuring environment<br />
protection.”<br />
During the interview, BP reached an agreement with the Village Committee,<br />
which pledged to assist promotion <strong>of</strong> environmental protection and carry out<br />
sustainable development work throughout the community.”<br />
Environment protection is an area <strong>of</strong> concern to the District Branch Office and<br />
Village Committee. In the past, we have dealt with many cases <strong>of</strong> corporate<br />
pollution such as exhaust gases, sewage, noise etc. For example, when some<br />
villagers complained about a strong smell <strong>of</strong> burning plastic in the morning, the<br />
Village Committee and the local Environment Protection Bureau went to<br />
investigate the case. After finding out the root cause was the fume emitted from<br />
a factory in a neighboring village, they requested the suspension <strong>of</strong> operations<br />
until the problem was solved. Now, after rectifications, the factory’s exhaust gas<br />
emission meets the national standards and our people do not have to suffer from<br />
the harmful gases.<br />
P.62
2012 Prospect<br />
◇ Continuous development <strong>of</strong> energy saving and reduction<br />
emission <strong>of</strong> harmful substances plan<br />
◇ Further education <strong>of</strong> sustainability idea to employees<br />
◇ Strengthen the quality assurance management<br />
◇ Further communication with suppliers and start new<br />
assessment plan<br />
◇ Actively communicate with the community and promote the<br />
sustainability idea by education<br />
Summary<br />
By reviewing the Year <strong>of</strong> 2010 and 2011, BP invested resources and did<br />
improvements on different aspects gradually by sincere and fortitude<br />
attitudes, leading the organization and our employees to grow step by<br />
step. Meanwhile, BP will face new challenges in the future by upholding<br />
positive and optimistic attitudes, in order to walk towards our 2015<br />
sustainability goals on the targeted path.<br />
Thank you very much for all readers <strong>of</strong> our 2011 Sustainability Report<br />
in all sincerity. The growth <strong>of</strong> the corporation relies on supports and<br />
feedbacks from all stakeholders; your voices are the cornerstones <strong>of</strong> our<br />
growth. If you have any comment or feedback about this report, you are<br />
welcome to send e-mails to the report Chief Editor, Ms Melissa Leung,<br />
melissa@bpbag.com.<br />
P.63
APPENDIX: GRI G3.1 INDEX REFERENCE TABLE<br />
Report Standard Disclosure<br />
INDICATOR DESCRIPTION PAGE<br />
Strategy and Analysis<br />
Report Standard Disclosure<br />
INDICATOR DESCRIPTION PAGE<br />
Report Parameters & Boundary<br />
1.1 Statement from most senior decision-maker <strong>of</strong> the organization Page 3 / 4<br />
1.2 Description <strong>of</strong> key impact, risk and opportunities Page 3 / 4<br />
Organizational Pr<strong>of</strong>ile<br />
3.8 Basis for reporting on subsidiaries that can significantly affect<br />
comparability from period to period and/or between<br />
organizations<br />
Page 2<br />
2.1 Name <strong>of</strong> Organization Page 2<br />
2.2 Primary brands, products and / or services Page 55<br />
2.3 Operational structure <strong>of</strong> organization Page 5 / 6<br />
2.4 Location <strong>of</strong> organization’s headquarters Page 5 / 6<br />
2.5 No. <strong>of</strong> countries that the organization operates Page 5 / 6<br />
2.6 Nature <strong>of</strong> ownership and legal form Page 5<br />
2.7 Markets served Page 55<br />
2.8 Scale <strong>of</strong> reporting organization Page 5/10/23/41<br />
2.10 Awards received in the reporting period Page 55<br />
Report Parameters<br />
3.1 Report period Page 2<br />
3.2 Date <strong>of</strong> most recent previous report Page 2<br />
3.3 Report cycle Page 2<br />
3.4 Contact point <strong>of</strong> questions regarding the report or its contents Page 12<br />
Report Parameters & Boundary<br />
3.9 Data measurement techniques and the bases <strong>of</strong> calculations Page 2<br />
GRI Content Index<br />
3.12 Table defining the location <strong>of</strong> Standard Disclosures <strong>of</strong> the<br />
Page 64-65<br />
report<br />
Governance<br />
4.1 Governance structure <strong>of</strong> the organization Page 5<br />
4.2 Indicate whether the Chair <strong>of</strong> the highest governance body is Page 5<br />
also an executive <strong>of</strong>ficer<br />
4.3 For organizations that have a unitary board structure, state the Page 5 / 41-43<br />
number <strong>of</strong> members <strong>of</strong> the highest governance body that are<br />
independent and / or non executive members<br />
4.4 Mechanism <strong>of</strong> shareholders and employees to provide<br />
Page 8 / 42-46<br />
recommendations or direction to the highest governance body<br />
4.5 Linkage between compensation <strong>of</strong> members <strong>of</strong> the highest<br />
governance body, senior managers and executives<br />
Page 5<br />
3.5 Process <strong>of</strong> defining report content Page 2<br />
3.6 Boundary <strong>of</strong> the report Page 2<br />
3.7 State any specific limitations on the scope or boundary <strong>of</strong> the<br />
Page 2<br />
report<br />
P.64
Report Standard Disclosure<br />
INDICATOR DESCRIPTION PAGE<br />
Strategy Analysis<br />
Report Standard Disclosure<br />
INDICATOR DESCRIPTION PAGE<br />
Commitments<br />
4.6 Processes in place for the highest governance body to ensure<br />
conflicts <strong>of</strong> interest are avoided<br />
4.7 Process for determining the qualifications and expertise <strong>of</strong> the<br />
Page 5<br />
Page 5<br />
4.11 Precautionary approach or principles <strong>of</strong> the organization Page 8<br />
Stakeholder Engagement<br />
4.14 List <strong>of</strong> stakeholders group engaged by the organization Page 8 / 9<br />
members <strong>of</strong> the highest governance body for guiding the<br />
organization<br />
4.15 Bases <strong>of</strong> identification and selection <strong>of</strong> stakeholders with whom<br />
to engage<br />
Page 8 / 9<br />
4.8 Internally determined statement <strong>of</strong> mission or values, code <strong>of</strong><br />
conduct, principles relevant to economic, environmental, and<br />
social performance and the status <strong>of</strong> their implementation<br />
4.9 Procedures <strong>of</strong> the highest governance body for overseeing the<br />
organization’s identification and management <strong>of</strong> economic,<br />
environmental and social performance<br />
4.10 Processes <strong>of</strong> evaluating the highest governance body’s own<br />
performance, particularly with respect to economic,<br />
environmental and social performance<br />
Page 7<br />
Page 8 / 11-12<br />
Page 5<br />
4.16 Approaches to stakeholder engagement Page 9<br />
4.17 Key topics and concerns that have been raised through<br />
stakeholder engagement, and how the organization had<br />
responded to those key topics and concerns, including through<br />
its reporting<br />
Page 9<br />
P.65
Key Performance Indicator Disclosure<br />
INDEX DESCRIPTION PAGE<br />
ECONOMIC PERFORMANCE INDICATORS<br />
Economic Management Approach Disclosure Company Pr<strong>of</strong>ile /<br />
Community Care & Education<br />
Economic Performance EC1 Direct economic value generated and distributed Page 10<br />
Indirect Economic<br />
EC8<br />
<strong>Development</strong> & impact <strong>of</strong> infrastructure investments & services provided primarily for public benefit through<br />
Page 10 / 60-62<br />
Impacts<br />
commercial, in-kind, or pro bono engagement<br />
ENVIRONMENT PERFORMANCE INDICATORS<br />
Environmental Management Approach Disclosure<br />
Environmental Protection & Green Life<br />
Materials EN1 Materials used by weight or volume Page 26<br />
EN2 Percentage <strong>of</strong> materials used that are recycled input materials Page 26<br />
Energy EN3 Direct energy consumption by primary energy source Page 23<br />
EN4 Indirect energy consumption by primary source Page 21-22<br />
Water EN8 Total water withdrawal by source Page 25<br />
Emissions, Effluents and Waste EN16 Total direct and indirect greenhouse gas emission by weight Page 23<br />
EN21 Total water discharge by quality and destination Page 25<br />
EN22 Total weight <strong>of</strong> waste by type and disposal method Page 23<br />
P.66
Key Performance Indicator Disclosure<br />
INDEX DESCRIPTION PAGE<br />
SOCIAL PERFORMANCE INDICATORS: LABOR PRACTICES & DECENT WORK<br />
Labor Practices & Decent Work Management Approach Disclosure<br />
Labor Rights, Communication & Welfare<br />
/ Health & Safety /<br />
Staff <strong>Development</strong> Training Program<br />
Employment LA1 Total workforce by employment type, employment contract and region, broken down by gender Page 41-42<br />
LA2 Total number and rate <strong>of</strong> new employee hires and employee turnover by age group, gender and region Page 43-44<br />
Labor / Management Relations LA4 Percentage <strong>of</strong> employees covered by collective bargaining agreements Page 43<br />
Occupational Healthy and<br />
LA7 Rates <strong>of</strong> injury, occupational diseases, lost days, and absenteeism, and total number <strong>of</strong> work-related fatalities by region Page 51<br />
Safety<br />
LA8<br />
Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their<br />
Page 51<br />
families, or community members regarding serious diseases<br />
Training and Education LA10 Average hours <strong>of</strong> training per year per employee by employee category Page 53-54<br />
Diversity and Equal<br />
LA13<br />
Composition <strong>of</strong> governance bodies and breakdown <strong>of</strong> employees per category according to gender, age group, minority<br />
Page 41-43<br />
Opportunity<br />
group membership, and other indicators <strong>of</strong> diversity<br />
Equal Remuneration for Women<br />
LA14 Ratio <strong>of</strong> basic salary and remuneration <strong>of</strong> women to men by employee category, by significant locations <strong>of</strong> operation P.43<br />
and Men<br />
SOCIAL PERFORMANCE INDICATORS: HUMAN RIGHTS<br />
Human Rights Management Approach Disclosure<br />
Labor Rights, Communication & Welfare<br />
Non-discrimination HR4 Total number <strong>of</strong> incidents <strong>of</strong> discrimination and actions taken Page 41-43<br />
Freedom <strong>of</strong> Association<br />
HR5<br />
Operations identified in which the right to exercise freedom <strong>of</strong> association and collective bargaining may be at<br />
Page 42 / 43 / 45<br />
and Collective Bargaining<br />
significant risk, and actions taken to support these rights<br />
Child Labor HR6 Operations identified as having significant risk for incidents <strong>of</strong> child labor, and measures taken to contribute to the<br />
Page 42<br />
elimination <strong>of</strong> child labor<br />
Forced and Compulsory<br />
HR7<br />
Operations identified as having significant risk for incidents <strong>of</strong> forced or compulsory labor, and measures taken to<br />
Page 43<br />
Labor<br />
contribute to the elimination <strong>of</strong> forced or compulsory labor<br />
P.67
Key Performance Indicator Disclosure<br />
INDEX DESCRIPTION PAGE<br />
SOCIAL PERFORMANCE INDICATORS: SOCIETY<br />
Society Management Approach Disclosure Staff <strong>Development</strong> Training Program /<br />
Community Care & Education<br />
Local Communities SO1 Percentage <strong>of</strong> operations with implemented local community engagement, impact assessments, and development<br />
Page 62<br />
programs<br />
Corruption SO3 Percentage <strong>of</strong> employees trained in organization’s anti-corruption policies and procedures Page 54<br />
Compliance SO8 Monetary value <strong>of</strong> significant fines and total number <strong>of</strong> non-monetary sanctions for non-compliance with laws and<br />
Page 54<br />
regulations<br />
SOCIAL PERFORMANCE INDICATORS: PRODUCT RESPONSIBILITY<br />
Product Responsibility Management Approach Disclosure Environmental Protection & Green Life /<br />
Production Optimization & Quality<br />
Enhancement<br />
Customer Health and Safety PR1 Life cycle stages in which health and safety impacts <strong>of</strong> products and services are assessed for improvement, and<br />
Page 27 / 39<br />
percentage <strong>of</strong> significant products and services categories subject to such procedures<br />
Compliance PR9 Monetary value <strong>of</strong> significant fines for non-compliance with laws and regulations concerning the provision and use <strong>of</strong><br />
Page 39<br />
products and services<br />
P.68
B.P. Bag Co., Ltd.<br />
Address: Room 1401—6, 14/F., Block B, Hi-Tech Industrial Centre, 491-501 Castle Peak Rd., Tsuen Wan, N.T., Hong Kong<br />
Tel:+852 2415 5633 Fax:+852 2413 8409 Website:www.bpbag.com E-mail:info@bpbag.com<br />
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