HERA 2021 Written Winner’s Interview with Xtep International Holdings Limited
- Congratulations on winning at HERA 2020. Please share your thoughts and what does that mean to the company?
First of all, we wish to give our most sincere thanks to the Hong Kong ESG Reporting Awards. We are so delighted that our endeavours in sustainability have gained recognition from professionals. In the past year, we stepped up sustainability related efforts and established a Board-level sustainability Committee to set out a framework that defines our objectives, and had relevant, measurable key performance indicators drawn up. This award proves that our framework has been effective, and we have full confidence that, with a clear direction now, we shall be able to push on with sustainable development in the future.
- Amongst environmental, social, governance topics of ESG which one does your organization prioritise and why?
At this extraordinary moment, society is our priority. The outbreak of COVID-19 has disrupted and restricted people’s day-to-day living. Amid the uncertainties and new normal brought about by the pandemic, we have remained committed to honouring our corporate social responsibility. Early on at the beginning of the outbreak, we made donations to support medical workers combating the virus in Mainland China. And last year, we sponsored a total of 21 physical and virtual marathons and races, to raise public health awareness and encourage healthier lifestyles.
Xtep also has at heart the poverty-stricken in the country. To let young people from poor families experience and enjoy sports, we have thus far donated about RMB70 million worth of sports products to more than 900 schools in 40 cities and counties, benefiting more than 200,000 people.
We also do our best in the other two aspects. We hope to provide customers with greener product options and also promote the concept of environmental protection to the public. That’s why we plan to develop within three years a full line of products using biodegradable PLA woven. As for corporate governance, we have already established a risk governance organizational structure outlining clearly responsibilities and authorities, and processes for identification, assessment and management of material risks. These concrete actions testify to Xtep’s commitment to delivering a positive impact on society and the environment.
- How well do you believe your industry has embraced ESG and what more do you believe your industry needs to do?
The global health and wellness market is growing, and the sportswear market has become one of the biggest in the world. We are aware of the growing concern regarding the environmental impacts of the sportswear industry which relies heavily on a multi-tier system of suppliers and subcontractors.
Consumers, investors, and leading industry players are increasingly raising concerns about whether environmental and labour issues along the supply chain are being properly managed. Quality control is also highly important to sportswear brands in ensuring they deliver consistently high-quality products to consumers.
As ESG considerations continue to gain attention in the industry, we believe incorporating ESG into business is integral to the long-term sustainability of industry players.
Being a leading multi-brand sportswear company, Xtep recognises the impact of our operations on the environment and society at large. In the past years, Xtep has kept stepping up sustainability related efforts including establishing a framework that defines the Group’s sustainability objectives. We are devoted to integrating sound ESG practices into our business and will continue to enhance the ESG performance of our supply chain, provide consumers with greener sports products, support the growth of our people and enable people of all ages to pursue an active and healthy lifestyle in the future.
