Esquel Group

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Civic Exchange acknowledges the assistance and guidance of the following individuals and organizations in preparing this report: Ray Anderson, Interface Inc. Brenda Bateman, International Resources Group Mike Bertolucci, Interfac e Inc. E. Milton Bevington, Servidyne Systems, LLC Paula Lawton Bevington, Servidyne Systems, LLC Glenn Frommer, Mass Transit Railway (MTR) Corporation The Esquel Group

Civic Exchange also thanks the Hongkong and Shanghai Banking (HSBC) Corporation for their support for this project.

Table of Contents
An Introduction to ‘Measuring Sustainability’ 1-5 1 1 2 3 4 4 5 6 6 6-7 6 6 7 7 7 7 8-10 8 8 8 8 9 9-10 11-17 11 11-12 12 13 13-17 17 18-26 18 18 19 19 20 20 21-22 22-23 23-24 24-25 25-26

• • • • • • • • • • • • • •

Study Aims Civic Exchange Aims Methodology Limitations Sustainable Development Measuring Sustainability Global Reporting Initiative

A Sustainability ‘Snapshot’ - The Esquel Group Introduction to the ‘Snapshot’

Introduction to EG Introduction to EG What does EG do? Where is EG located? What is EG’s Mission? Who are EG’s customers? How does EG operate?

EG and Sustainable Development

• • • • • •

EG’s Sustainable Development Mission A Sustainable Development Strategy Sustainable Development Team EG’s Commitment to Sustainable Development Communication and Sustainable Development Creativity 2000

Planet: Managing EG’s Environment

• • • • • • • • • • • • • • • • •

EG’s Environmental Impacts Environmental Management and ISO 14001 Certification Resource Consumption Waste Environmental Initiatives and Achievements Observations

People: Managing EG’s People What they do Where they are EG Employees Wages Benefits Training EG’s Code of Conduct External Audit, Memberships and Certifications Community Stakeholders Observations


Profit: Managing EG’s Profits

• • • • • • • •

Profits and Sustainable Development GRI Reporting EG’s Profits and Disclosure Policy EG’s Major Expenses

27-28 27 27 28 28 29-36 29-30 31-34 35 36 36 37 38-47

Our Observations and Recommendations Overall Observations Developing a Sustainable Development Strategy Implementing Sustainable Development Reporting on Sustainable Development

Conclusion Bibliography Appendix – GRI Checklist (adapted by Civic Exchange)



AN INTRODUCTION TO MEASURING SUSTAINABILITY Study Aims The concept of sustainability has become more familiar in Hong Kong but the discussion of how organizations can become more sustainable in terms of economic, environmental and social performance is still at an early stage. Learning comes from doing. The more that an organization is prepared to try new ways of doing things, the more likely it is that the organization will find practical alternatives. In seeking support for this Study, we aimed to work with organizations that have already taken positive steps towards sustainability so that these efforts could be examined and shared with a wider audience. With the support of the Hongkong and Shanghai Banking Corporation Limited (HSBC), Civic Exchange was able to work with a leading Hong Kong company in order to record its sustainable development efforts and explore how to measure the environmental, economic and social sustainability of an organization. By learning about the company’ experience in integrating s sustainable measures into its management decisions and sharing these experiences with other groups, Civic Exchange hopes to raise awareness of sustainable development and inspire other organizations to consider how to adopt and measure steps towards sustainability in the future. This report provides a case study of The Esquel Group (EG), a prominent, Hong Kong-based textiles and garments manufacturer. Civic Exchange Aims Organizations create impacts at various levels: locally, regionally, nationally and internationally. Some impacts are well understood and easily measurable, while others...
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