Sincere Watch Hong Kong : Environmental, Social and Governance Report 2020

Sincere Watch

( H o n g K o n g ) L i m i t e d

Stock Code 股份代號 : 00444 (於開曼群島註冊成立的有限公司)

(incorporated in the Cayman Islands with limited liability)

2020

E N V I R O N M E N T A L , S O C I A L A N D G O V E R N A N C E R E P O R T

環 境 、 社 會 及 管 治 報 告

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

TABLE OF CONTENTS

About This Report	3
About Sincere Watch	4
Sustainability at Sincere Watch	5
Our Operations	6
Our People and Community	10
Our Environment	11
Laws and Regulations Compliance	14
Performance Data Summary	15
HKEx ESG Guide Content Index	16

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ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

ABOUT THIS REPORT

Sincere Watch (Hong Kong) Limited (hereinafter referred to as the "Company") along with its subsidiaries (the "Group") is pleased to present its fourth standalone Environmental, Social and Governance ("ESG") Report (the "Report"). This Report is prepared in accordance with the Environmental, Social and Governance Reporting Guide (the "ESG Reporting Guide") under Appendix 27 of the Main Board Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Exchange"). It complies with the "Comply or Explain" provision of the ESG Reporting Guide.

This Report focuses on the Group's watch distribution business in Hong Kong that contributes the most material ESG impacts for the year. The information disclosed in this Report covers the Group's headquarter office, warehouse, as well as four retail outlets located in Hong Kong. Unless otherwise specified, this Report covers our financial year from 1 April 2019 to 31 March 2020 (the "Reporting Period").

This Report is intended to provide stakeholders with an overview of the Group's efforts regarding ESG impacts arising from its daily operations in the watch distribution business. All information is prepared and published based on existing policies, practices, and official documents or reports in an accurate and transparent manner.

Our Board of Directors (the "Board") upholds the overall responsibility for the Group's ESG reporting and strategising. The Board is committed to managing and improving our sustainability performance by disclosing our ESG performance on an annual basis and adhering to the following Reporting Principles:

Materiality	This Report is structured based on the materiality of respective environmental, social and governance issues as assessed and
	confirmed by the Board. The Board and the management will regularly review these sustainability issues in order to ensure such
	issues align with and are being addressed in our daily operations.
Quantitative	This Report discloses material environmental and social key performance indicators ("KPls") within the operations of the
	headquarter office, warehouse and four retail outlets in Hong Kong. This allows us to review and evaluate the effectiveness of
	our ESG policies and management systems.
Consistency	This Report is prepared with consistency in terms of methodology with previous years, which is in accordance with the
	Exchange's ESG Reporting Guide. For factors leading to meaningful comparison in specific environmental KPI(s), please refer to
	the "Performance Data Summary".

We welcome reader feedback on the Report and our approach to sustainability. Please share your views with us by post to our main office in Hong Kong on Unit 6101-03, 61/F, The Center, 99 Queen's Road Central, Central. For further information regarding our corporate governance and financial performance, please refer to our Annual Report 2020.

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ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

ABOUT SINCERE WATCH

The Group is principally engaged in the distribution of branded luxury timepieces, watches, and accessories. We are the sole distributor of FRANCK MULLER watches and accessories in Hong Kong, Macau, Taiwan, and Mainland China, as well as the representative of four other luxury brands - CVSTOS, Pierre Kunz, European Company Watch and Backes & Strauss.

As of March 2020, the Group has established its distribution network of 51 retail points of sales and 10 boutiques, making a total of 61 points. Other than the 8 boutiques run by the Group, the remaining 53 watch retail outlets are run by 23 independent watch dealers throughout our key markets such as Hong Kong, Macau, Taiwan, and Mainland China.

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SUSTAINABILITY AT SINCERE WATCH

The Group is committed to complying with relevant laws and regulations, as well as industry standards in our sustainability practices. ESG- related policies are revised and communicated timely with our staff in order to enhance our ESG performance. We strive to maintain close communication with our stakeholders in order to ensure that economic, environmental and social values work together harmoniously.

Stakeholder Engagement

We recognise the impact on society and environment derived from the Group's operations. We also acknowledge the importance of stakeholders' support in forging long-term business success. To this end, we are dedicated to actively engage our stakeholders through various engagement channels to maintain close and long term relationships.

Determining Materiality

An independent sustainability consultancy has been commissioned by the Group in assisting the identification of material ESG issues based on their importance to stakeholders as well as the Group's business development. Peer benchmarking and reviewing of the Group's ESG policies and practices have been conducted. A meeting with the management was organised to understand and confirm the material environmental and social issues that are relevant to this year's ESG reporting.

As identified and confirmed by the Group, this Report is structured based on the significance of the three ESG aspects that are material to our watch distribution business, which follows the order of "Our Operations", "Our People and Community", and "Our Environment". Moving forward, the Group shall consider enhancing its ESG-specific stakeholder engagement exercise in order to provide a more holistic view on its sustainable development. It shall also disclose future plans, strategies and improvement targets in the pursuit of sustainability.

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ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

OUR OPERATIONS

As the sole distributor of FRANCK MULLER watches and accessories in Hong Kong, Macau, Taiwan and Mainland China, as well as the brand representatives of CVSTOS, Pierre Kunz, European Company Watch and Backes & Strauss, providing quality products and services, as well as enhancing trust with our suppliers are fundamental to our business development. We also ensure high standards of business ethics across our activities.

Product Quality

The Group sources timepieces, watches and accessories directly from our suppliers, who apply high quality control and assurance standards with relevant industry standards. In accordance with the requirements outlined by our suppliers, product quality inspection is performed by our quality control function based in Hong Kong.

The Group offers two years warranty on watches' movement to our customers, and has dedicated a team responsible for after-sales services, including special repair and maintenance services, technical support, and prompt responses to other inquiries. We also maintain records of all quality control documents and measures that contain testing activities performed by our in-house technicians. For those that require further assembling and inspection, the timepieces may be sent to Switzerland for servicing by a highly skilled watchmaker through a very precise procedure. During the Reporting Period, approximately 60% of the repairing services are conducted locally, whereas the remaining 40% are sent and repaired in Switzerland.

Training for Technicians

We offer in-house training to our technicians to update their knowledge about latest product designs. In order to ensure their skills and capability to conduct proper maintenance and repair work, the Group arranges and sends our technicians to undergo external training programmes at FRANCK MULLER headquarter, Switzerland. We also invite FRANCK MULLER-based technicians to conduct training on new techniques and latest industry trends, as well as to share experiences at our Hong Kong headquarter office.

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Brand Enhancement

Various brand enhancement activities and niche marketing initiatives have been undertaken in order to sustain brand value among our discerning customers. Three marketing events in our key markets were hosted during the Reporting Period, with the aim of increasing brand exposure and extending brand networking. These included the FRANCK MULLER Nanjing West Road Boutique Opening (China), DFS Four Seasons Luxury Timepiece Exhibition (Macau), and World Brand Piazza 2019 (Hong Kong).

Following the COVID-19 pandemic, various marketing initiatives and events were halted. Under such circumstances where detrimental impacts have been brought to hundreds and thousands of businesses, the Group has diverted its marketing strategy through digitalisation. We market the brand by posting product images and implementing incentives through social media, on Instagram, Facebook, Weibo, and WeChat. FRANCK MULLER is also proud to present its craftsmanship, showcasing the delicate crafts required to create a timepiece, through videos on its official website. We remain hopeful that our brand will continue to remain competitive and fashionable following the lifting of lockdowns.

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Customer Experience

The Group's retail boutiques are located at prime locations, guaranteeing customers the flexibility to enjoy their shopping experience. In order to retain customer loyalty, we are committed to enhancing their satisfaction and trust through effective customer relationship management and regular frontline staff training.

Customer Relationship Management

Our frontline team comprises experienced and well-trained sales executives, who are skillful in providing high standard sales services in accordance with the AIDAM approach, outlined in our Retail Services Standard. The Standard details guidelines in providing professional and caring services, for instance, excellent impression, interior display, incoming calls handling and sales procedure.

Our Boutique Operations Procedure was formulated with the aim to enhance operational efficiency by standardising job requirements for our frontline sales executives. It provides detailed guidelines with regards to in-store operations (as shown on the left). By communicating our expectations to all relevant staff, we expect them to effectively incorporate these procedures into their daily operational routines.

We encourage our esteemed customers to assist in our continual improvement on products and services. Feedback on areas such as shopping experience and query-handling process are welcomed through various channels, including our physical retail outlets and service centres, as well as designated customer service hotline, email address and social media platforms. Reports of inquiries and complaints are independently investigated and handled by the customer service

team, then reviewed by the management for follow-up improvement plans. During the Reporting Period, the Group did not receive any significant complaints. The majority of queries are related to maintenance matters, which were handled and documented diligently in a timely manner.

Training for Sales and Customer Service Teams

The Group ensures our sales and customer service teams are well-equipped with industry standard and specific product knowledge when answering customers' queries. Our boutique managers organise soft skills and product update training periodically. We also offer practical learning experience with regards to their duties, as well as assist them in developing skills required for long-term career development.

Induction and regular in-house training are arranged for all new recruits and existing staff, ensuring that they are capable to offer comprehensive sales advice and sincere after-sale services, as well as to respond to customers' enquiries in an effective and timely manner.

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Supply Chain Management

Since its establishment in 1989, the Group has maintained a solid and trusting partnership with FRANCK MULLER as the sole distributor of timepieces, watches and accessories in various regions of Asia. Backed by global-wide industry leading experts, our supplier is committed to excellent craftsmanship and quality. They are required to adhere to stringent manufacturing standards and testing procedures.

In order to foster and strengthen our business relationships, the Group actively engages with our suppliers and asserts brand commitment to craftsmanship and quality. Our staff, from frontline sales and customer services teams to technicians have proficient understanding regarding the brand values and requirements. These enable the Group to offer best-quality watches and accessories, as well as after-sale services to customers with professionalism.

Business Ethics

The Group believes that integrity, impartiality, and honesty are of vital importance to business growth. We emphasise ethical corporate culture and maintain integrity by strictly prohibiting cases with regards to corruption, bribery, extortion, fraud, money-laundering, deceptive marketing practices and violation of confidentiality. We are committed to upholding duty of care across our daily operations.

Anti-Corruption

In response to corruption risks, a set of guidelines were outlined in the Employment Agreement, where staff are required to acknowledge the acceptable and unacceptable business conduct in line with legal requirements. It has specified that solicitation and acceptance of advantages are prohibited, where breaches or violation may result in disciplinary actions. Staff are also required to declare conflict of interest, whenever necessary.

The Group also maintains the Whistleblowing Policy, which is introduced to all new recruits during induction programmes. Supervised and enforced by the Board, staff are reminded not to demonstrate any inappropriate behaviour that may compromise the interest of our stakeholders, investors, customers, and the general public. Staff are encouraged to report any concerns related to bribery and corruption, where all claims are investigated impartially, and employees' confidentiality are properly protected. They are encouraged to make relevant disclosures in person or in writing directly to the Board, who will also periodically review the effectiveness of the internal control systems.

During the Reporting Period, no legal case relating to corruption was brought against the Group or our staff. There was no whistleblowing incident reported concerning any criminal offence, malpractice, or misconduct.

Marketing Communications

The Group is committed to ensuring consistency between actual product specification and information on our marketing materials. To guarantee the provision of accurate product information, we verify all information provided by our supplier to check for consistency between product specifications and details shown on advertising material.

During the Reporting Period, the Group was not aware of any non-compliance with relevant laws and regulations that had a significant impact on the Group relating to product responsibility.

Data Privacy

The Group respects confidentiality of our customers, partners, and staff. We strive to safeguard the privacy in the collection, processing and use of personal data in accordance with legal requirements. We safeguard all personal data and will only process for the purpose for which it has been collected. Appropriate measures are in place to protect personal data against unauthorised usage, access, storage and modification.

The Group guarantees that user authentication by authorised staff is required before accessing the data. Detailed in the Employment Agreement, staff shall treat business information with due care and avoid disclosing confidential information. In the event of a terminated employment, staff are required to return all confidential records, documents, accounts, computer discs, letters and papers to the Group. Moving forward, the Group will continue to evaluate and maintain the existing system and practices in adherence to regulatory developments regarding data protection.

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OUR PEOPLE AND COMMUNITY

The Group attributes its success to our skilled and committed staff. We believe that a motivated and balanced workforce is crucial for long-term business growth. Thus, we strive to attract and retain talents by the implementation of a transparent and fair recruitment scheme that respects human rights and dignity, and by the provision of comprehensive benefit packages. We also ensure a healthy and safe working environment.

Employment

Equal Opportunity in Recruitment and Promotion

The Group hires and promotes staff who share and support our missions, values and work ethics, those who demonstrate diligence, initiative, responsibility and integrity. We strive to create an equal opportunity environment where hiring and promotion are based on performance and merit. We are against any kind of discrimination, regardless of gender, pregnancy, marital status, nationality, disability, family status, among others.

We benchmark local industry average and take into consideration experience and qualifications of staff to determine remuneration and other fringe benefits. In order to foster communication between management and staff, performance review meetings are organised on an annual basis. This allows staff to recognise their performance and encourages them to discuss potential areas of improvement relating to technical and personal attributes, as well as professional growth.

Benefits and Welfare

To attract and retain talent, the Group provides comprehensive benefits. Outlined in the Employment Agreement, our staff are entitled to various benefits and welfare, including but not limited to rest periods, statutory holidays, annual leave, sick leave, Mandatory Provident Fund contributions, and medical coverage. Subject to the Group's and their personal performance, staff may be granted discretionary bonus by the end of each calendar year.

Labour Standards

The Group prohibits any form of child or forced labour by strictly adhering to regulatory requirements. During recruitment, verification of personal data of candidates is performed to eradicate hiring of child labour. In addition, overtime work is not compulsory, where policies and measures are implemented to compensate staff for their extra work and contributions.

Occupational Health and Safety

Emergency preparedness

Healthy and safe workplace is fundamental for our staff, and the Group is committed to maintaining it. Although there are no material occupational hazards and risks associated with our retail and distribution business, the Group ensures compliance with all applicable regulatory requirements. We maintain a sound and safe workplace to prevent injury and illness, where first aid kits and fire extinguishing equipment are located at prominent locations and properly maintained at the office. To ensure emergency preparedness, we conduct evacuation and escape drills with our staff on an annual basis.

In the event of undesirable weather circumstances, the Group has implemented Guideline for Work Arrangements in Times of Typhoons, and Guideline for Work Arrangements in Times of Rainstorms. The internal policies provide guidelines on the proper handling and reporting of duties, as well as execution of preventive measures.

COVID-19 Arrangements

Amidst the outbreak of COVID-19, which has been declared a Public Health Emergency of International Concern, human resources matters have been discussed. Precautionary measures have been subsequently implemented to safeguard the health and well-being of our staff and customers. Some of our back-office staff are allowed to work from home, subject to management's approval. With the hope to ease pressure in search of hygiene products, the Group sources and distributes surgical masks and disinfectant products among all our staff.

In addition to regular cleaning and maintenance of air ventilation systems, as well as regular sanitisation of front desks, body temperatures are checked prior to entering the office. All updated arrangements are communicated through internal emails.

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OUR ENVIRONMENT

Environmental protection is integral for driving sustainable growth and is fundamental to corporate presence and development. As we are principally engaged in the sourcing and distribution of luxury timepieces, watches and accessories, which do not include manufacturing processes, the adverse impact imposed on the ecosystem is minimal and indirect. Nevertheless, the Group is committed to reducing its environmental impact whenever possible. We take relevant environmental regulatory changes into consideration. We also periodically review our practices and measures in the hopes of promoting and pushing forward sustainable development.

Emissions and Waste Management

Greenhouse Gases ("GHG") Emissions

The Group's business operations do not generate significant air emissions, sewage discharge nor hazardous waste. During the Reporting Period, GHG emissions mainly derive from petroleum usage for vehicle transportation1, combustion of fossil fuels for the generation of purchased electricity, as well as the electricity used from processing fresh water and sewage by government departments.

The quantification methodology is based on the Guidelines to Account for and Report on Greenhouse Gas Emissions and Removals for Buildings (Commercial, Residential or Institutional Purposes) in Hong Kong 2010 established by the Environmental Protection Department and Electrical and Mechanical Services Department of the HKSAR. Most updated relevant emission factors are referenced from specific power companies.

The Group is aware of the carbon footprints arising from our business operations. We have put in place various environmentally friendly measures with the aim to minimise GHG emissions caused by resources consumption. For more details regarding our effort, please refer to the section "Resources Efficiency".

Waste

The Group has direct control over the generation of general waste at our headquarter office and retail outlets, which mostly comprise paper,

including but not limited to office-used papers, posters, and marketing brochures. A licensed third-party contractor is commissioned to collect and handle the recycling and disposal of our general waste. We are also committed to minimising such generation, through the following practices:

1The Group owns one private van during the Reporting Period.

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Resources Efficiency

The Group is committed to maximising energy conservation in our office and retail boutiques by promoting staff awareness and driving behavioural changes. Various measures and reminders have been developed and closely followed in order to encourage mindful consumption of electricity, water, as well as paper and packaging materials.

Electricity

Electricity is principally used for lighting, cooling, and for operating electronic appliances to support the Group's business activities. It remains the primary natural resources used in the Group's business and continues to contribute the most (97%) in the GHG emissions. In minimising electricity usage, the Group has carried out various measures, some of them are listed as below:

Due to months of large-scale protests as a result of the then-extradition bill, as well as the outbreak of COVID-19, the opening hours of our boutiques have been significantly shortened during the Reporting Period. Therefore, the Group's electricity consumption for its business operations in Hong Kong has experienced a sharp decrease during the Reporting Period. Under the impacts of global and regional issues, it has resulted in an increase in the intensity of electricity consumption by revenue. For further details, please refer to the table as shown below:

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ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

For further breakdown of consumption data related to specific operations in Hong Kong directly run and controlled by the Group for this Reporting Period, please refer to the table as presented below:

Water

Water is principally used in the form of drinking water, as well as sanitary purposes in bathrooms among our staff in headquarter office and retail outlets. Since most of the Group's premises are located at shopping malls or commercial office buildings, separate water metres for tenants are not available. Thus, a representative total amount consumed by the Group is not available. Nevertheless, we encourage our staff to adopt green practices by placing posters and stickers in highly visible locations to remind them of the scarcity of water resources. We also work closely with property management representatives and appoints technicians for regularly inspecting water taps to ensure there is no leakage.

During the Reporting Period, the Group was only responsible for its water consumption at one of our retail boutiques. For the consumption amount, please refer to section "Performance Data Summary".

Paper and Packaging Materials

The Group aspires to gradually eliminate the use of paper in the workplace through going paperless and relying more on IT systems. Through adopting double-sided printing and reusing paper, it enables the Group to minimise usage of natural resources and reduce costs of operation.

As for packaging materials, the watch boxes are sent together with the FRANCK MULLER watches from our supplier in Switzerland. The Group sources paper bags from a local printing and packaging company. Moving forward, the Group shall consider sourcing environmental-friendly packaging materials, such as paper bags made from papers certified by the Forest Stewardship Council.

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ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

LAWS AND REGULATIONS COMPLIANCE

The Group is committed to adherence to relevant laws and regulations. The Corporate Governance Department is delegated by the Board to oversee and review policies and practices in compliance with regulatory requirements which have significant ESG impact, including but not limited to the following ordinance(s):

Our Operations

• Trade Descriptions Ordinance (Cap. 362 of the Laws of Hong Kong)
• Prevention of Bribery Ordinance (Cap. 201 of the Laws of Hong Kong)
• Anti-MoneyLaundering and Counter-Terrorist Financing Ordinance (Cap. 615 of the Laws of Hong Kong)
• Companies Ordinance (Cap. 622 of the Laws of Hong Kong)
• Competition Ordinance (Cap. 619 of the Laws of Hong Kong)
• Personal Data (Privacy) Ordinance (Cap. 486 of the Laws of Hong Kong)
• Sale of Goods Ordinance (Cap. 26 of the Laws of Hong Kong)
• Supply of Services (Implied Terms) Ordinance (Cap. 457 of the Laws of Hong Kong)
• Consumer Goods Safety Ordinance (Cap. 456 of the Laws of Hong Kong)

Our People

• Employment Ordinance (Cap. 57 of the Laws of Hong Kong)
• Employees' Compensation Ordinance (Cap. 282 of the Laws of Hong Kong)
• Minimum Wage Ordinance (Cap. 608 of the Laws of Hong Kong)
• Mandatory Provident Fund Schemes Ordinance (Cap. 485 of the Laws of Hong Kong)
• Occupational Safety and Health Ordinance (Cap. 509 of the Laws of Hong Kong)
• Employment of Children Regulations (Cap. 57B of the Laws of Hong Kong)

Our Environment

• Motor Vehicle Idling (Fixed Penalty) Ordinance (Cap. 611 of the Laws of Hong Kong)
• Product Eco-responsibility Ordinance (Cap. 603 of the Laws of Hong Kong)

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ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

PERFORMANCE DATA SUMMARY

Key Performance Indicators (KPIs)	Unit	Hong Kong
Environmental2
GHG Emissions (Scope 1)	tCO2e-	6.28
GHG Emissions (Scope 2)	tCO2e-	215.21
GHG Emissions (Scope 3)3	tCO2e-	0.01
Total GHG Emissions (Scope 1-3)	tCO2e-	221.51
GHG Emission Intensity by Revenue	tCO2e-/HK$'000	0.00
GHG Emission Intensity by FTE	tCO2e-/Person	3.96
Electricity Usage	kWh	280,250.18
Petroleum Usage	Litre	2,285
Total Energy Usage	MJ	1,097,101.64
Energy Intensity by Revenue	MJ/HK$'000	4.18
Energy Intensity by FTE	MJ/Person	19,591.10
Water Usage4	m3	15
Packaging Materials Usage - Paper Bags	Piece	2,000
Social
Workforce by Gender
Male	Person	26
Female	Person	30
Workforce by Employment Level
Senior Level	Person	9
Intermediate Level	Person	10
General Level	Person	37
Workforce by Age
<30	Person	7
30-50	Person	44
>50	Person	5
Turnover Rate	%	42

2

3

4

The calculation of environmental KPIs includes headquarter office, warehouse and 4 retail outlets in Hong Kong. All figures have been rounded up to 2 decimal places, unless otherwise specified.

The GHG Emissions (Scope 3) due to electricity used from processing fresh water and sewage by government departments is calculated from available water bills of the first two quarters.

Water data is limited to one of the retail boutiques only, where we can gather representative data.

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HKEX ESG GUIDE CONTENT INDEX

Aspects, General
Disclosures and KPIs Description	Relevant Chapter or Explanation
A. Environmental
Aspect A1: Emissions

General Disclosure	Information on:
	(a)	the policies; and
	(b)	compliance with relevant laws and regulations that have a
		significant impact on the issuer relating to air and
		greenhouse gas emissions, discharges into water and land,
		and generation of hazardous and non-hazardous waste.
KPI A1.1	The types of emissions and respective emissions data.
KPI A1.2	Greenhouse gas emissions in total (in tonnes) and, where
	appropriate, intensity (e.g. per unit of production volume, per
	facility).
KPI A1.3	Total hazardous waste produced (in tonnes) and, where
	appropriate, intensity (e.g. per unit of production volume, per
	facility).
KPI A1.4	Total non-hazardous waste produced (in tonnes) and, where
	appropriate, intensity (e.g. per unit of production volume, per
	facility).
KPI A1.5	Description of measures to mitigate emissions and results achieved.
KPI A1.6	Description of how hazardous and non-hazardous wastes are
	handled, reduction initiatives and results achieved.

Aspect A2: Use of Resources

General Disclosure Policies on the efficient use of resources, including energy, water and other raw materials.

KPI A2.1	Direct and/or indirect energy consumption by type (e.g. electricity,
	gas or oil) in total (kWh in '000s) and intensity (e.g. per unit of
	production volume, per facility).
KPI A2.2	Water consumption in total and intensity (e.g. per unit of
	production volume, per facility).
KPI A2.3	Description of energy use efficiency initiatives and results achieved.
KPI A2.4	Description of whether there is any issue in sourcing water that is fit
	for purpose, water efficiency initiatives and results achieved.
KPI A2.5	Total packaging material used for finished products (in tonnes) and,
	if applicable, with reference to per unit produced.
Aspect A3: The Environment and Natural Resources
General Disclosure	Policies on minimising the issuer's significant impact on the
	environment and natural resources.
KPI A3.1	Description of the significant impacts of activities on the
	environment and natural resources and the actions taken to
	manage them.

Our Environment - Emissions and Waste

Management, Resources Efficiency, Laws and

Regulations Compliance

Our Environment - Emissions and Waste M a n a g e m e n t , R e s o u r c e s E f f i c i e n c y , Performance Data Summary

Our Environment - Emissions and Waste M a n a g e m e n t , R e s o u r c e s E f f i c i e n c y , Performance Data Summary

The Group's operations did not involve the production of hazardous waste during the Reporting Period.

Our Environment - Emissions and Waste Management

Our Environment - Emissions and Waste

Management, Resources Efficiency, Laws and

Regulations Compliance

Our Environment - Emissions and Waste

Management, Resources Efficiency, Laws and

Regulations Compliance

Our Environment - Emissions and Waste

Management, Resources Efficiency, Laws and

Regulations Compliance

Our Environment - Resources Efficiency,

Performance Data Summary

Performance Data Summary

Our Environment - Emissions and Waste Management, Resources Efficiency

Our Environment - Emissions and Waste Management, Resources Efficiency

Our Environment - Emissions and Waste M a n a g e m e n t , R e s o u r c e s E f f i c i e n c y , Performance Data Summary

Our Environment - Emissions and Waste

Management, Resources Efficiency

Our Environment - Emissions and Waste

Management, Resources Efficiency

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ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Aspects, General
Disclosures and KPIs	Description	Relevant Chapter or Explanation
B. Social
Employment and Labour Practices
Aspect B1: Employment
General Disclosure	Information on:	Our People and Community - Employment,
	(a)	the policies; and	Laws and Regulations Compliance
	(b)	compliance with relevant laws and regulations that have a
		significant impact on the issuer relating to compensation
		and dismissal, recruitment and promotion, working hours,
		rest periods, equal opportunity, diversity, anti-discrimination,
		and other benefits and welfare.
KPI B1.1	Total workforce by gender, employment type, age group and	Performance Data Summary
	geographical region.
KPI B1.2	Employee turnover rate by gender, age group and geographical	Performance Data Summary
	region.
Aspect B2: Health and Safety
General Disclosure	Information on:	Our People and Community - Occupational
	(a)	the policies; and	Health and Safety, Laws and Regulations
	(b)	compliance with relevant laws and regulations that have a	Compliance
		significant impact on the issuer relating to providing a safe
		working environment and protecting employees from
		occupational hazards.
KPI B2.1	Number and rate of work-related fatalities.	NIL
KPI B2.2	Lost days due to work injury.	NIL
KPI B2.3	Description of occupational health and safety measures adopted,	Our People and Community - Occupational
	how they are implemented and monitored.	Health and Safety
Aspect B3: Development and Training
General Disclosure	Policies on improving employees' knowledge and skills for	Our Operations - Product Quality, Customer
	discharging duties at work. Description of training activities.	Experience
KPI B3.1	The percentage of employees trained by gender and employee	N/A
	category (e.g. senior management, middle management).
KPI B3.2	The average training hours completed per employee by gender	N/A
	and employee category
Aspect B4: Labour Standards
General Disclosure	Information on:	Our People and Community - Employment,
	(a)	the policies; and	Laws and Regulations Compliance
	(b)	compliance with relevant laws and regulations that have a
		significant impact on the issuer relating to preventing child
		and forced labour.
KPI B4.1	Description of measures to review employment practices to avoid	Our People and Community - Employment
	child and forced labour.
KPI B4.2	Description of steps taken to eliminate such practices when	Our People and Community - Employment
	discovered.

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Aspects, General
Disclosures and KPIs Description	Relevant Chapter or Explanation
Operating Practices
Aspect B5: Supply Chain Management

General Disclosure

KPI B5.1

KPI B5.2

Policies on managing environmental and social risks of the supply	Our Operations - Supply Chain Management
chain.
Number of suppliers by geographical region.	Our Operations - Supply Chain Management
Description of practices relating to engaging suppliers, number of	Our Operations - Supply Chain Management
suppliers where the practices are being implemented, how they are
implemented and monitored.

Aspect B6: Product Responsibility
General Disclosure	Information on:	Our Operations - Product Quality, Brand
	(a)	the policies; and	Enhancement, Customer Experience, Business
	(b)	compliance with relevant laws and regulations that have a	Ethics
		significant impact on the issuer relating to health and safety,
		advertising, labelling and privacy matters relating to products
		and services provided and methods of redress.
KPI B6.1	Percentage of total products sold or shipped subject to recalls for	Our Operations - Customer Experience
	safety and health reasons.
KPI B6.2	Number of products and service related complaints received and	Our Operations - Customer Experience
	how they are dealt with.
KPI B6.3	Description of practices relating to observing and protecting	Our Operations - Business Ethics
	intellectual property rights
KPI B6.4	Description of quality assurance process and recall procedures.	Our Operations - Product Quality, Customer
			Experience
KPI B6.5	Description of consumer data protection and privacy policies, how	Our Operations - Business Ethics
	they are implemented and monitored.
Aspect B7: Anti-corruption
General Disclosure	Information on:	Our Operations - Business Ethics, Laws and
	(a)	the policies; and	Regulations Compliance
	(b)	compliance with relevant laws and regulations that have a
		significant impact on the issuer relating to bribery, extortion,
		fraud and money laundering.
KPI B7.1	Number of concluded legal cases regarding corrupt practices	NIL
	brought against the issuer or its employees during the reporting
	period and the outcomes of the cases.
KPI B7.2	Description of preventive measures and whistle-blowing	Our Operations - Business Ethics
	procedures, how they are implemented and monitored.

Community

Aspect B8: Community Investment

General Disclosure	Policies on community engagement to understand the needs of	The Group is committed to operating our
	the communities where the issuer operates and to ensure its	business as a mindful and responsible
	activities take into consideration the communities' interests.	corporate citizen. We have taken into account
		the interests of the community, and are open
		to the insight from the community and our
		stakeholders.
KPI B8.1	Focus areas of contribution (e.g. education, environmental	N/A
	concerns, labour needs, health, culture, sport).
KPI B8.2	Resources contributed (e.g. money or time) to the focus area.	N/A

18 Sincere Watch (Hong Kong) Limited • Environmental, Social and Governance Report 2020