VTech Holdings Limited
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VTECH SUSTAINABILITY ACTIVITIES
Prior to placing any orders to a supplier,
we engage with them in order to
understand any risks they may pose
to VTech and request them to follow
our supplier CSR agreement. This is
reviewed by our procurement team and
each supplier is given a risk category
rating. All new suppliers need to go
through a comprehensive supplier
audit to ensure they meet VTech’s CSR
and quality standards. For critical
safety-related components and
materials, we will conduct examinations
at early stage of our manufacturing
process to identify any non-compliance
issues and implement corrective actions
in a timely manner.
Following the audit process, if there are
any areas of non-compliance identified
in the supplier’s factories, the supplier is
required to propose corrective actions
with an implementation schedule
in order to eliminate the identified
deficiencies. Our teams follow up on
the corrective actions to ensure that
the areas have been improved and
managed accordingly. We also provide
training to suppliers on continuous
improvement processes to facilitate
their implementation of any corrective
actions. In FY2015, we audited 271
suppliers. A small number of these were
removed as approved suppliers due to
their failures to meet VTech’s required
standards and no suppliers were
removed due to negative environmental
impacts. In FY2016, we will be working
closely with our suppliers to further
improve the manufacturing energy
efficiency and social aspect of our
upstream supplier chain. Through
sharing our experience with suppliers,
we believe that we can further reduce
the carbon footprint of the components
used in our products, and help our
suppliers to improve their social and
working conditions.
Climate Change Strategy
As an environmentally conscious
and sustainable company, VTech
recognises that climate change could
create uncertainties in our business
development, and we have to develop
a strategy to minimise the potential
impacts on our sustainable growth. As
part of our environmental management
approach, we are dedicated to
managing our GHG emissions and
minimising the energy consumption
arising from our daily operations. We
also work closely with our suppliers
and customers to reduce the carbon
emissions through enhancing our
environmentally friendly product designs
and sustainable operating practices.
To plan for a more comprehensive
Climate Change Strategy, we need
to assess how climate change could
affect our business and make informed
decisions accordingly. This helps us to
prepare for downside risks, maximise
upside opportunities, and ensure
our business strategies are not only
accounted for longer term trajectory
of climate change, but also sufficiently
flexible to respond to the inevitable
changes in the business environment.
VTech continuously reviews our
approach on climate change to
enhance our resilience in response to
the associated risks and opportunities.
VTech recognises the potential adverse
effects of climate change on our
operations. We have developed carbon
reduction programmes internally and
externally, contributing to the low-
carbon economy. We manage our
carbon emissions in our supply chain
and operations, and also work with
our customers and the communities in
which we operate.
Supply Chain
• Work closely with our
suppliers and require
them to follow our CSR
requirements
• Share our energy
efficiency programmes
with our suppliers and
help them to reduce the
environmental impacts
from operations
Operations
• Disclose the total GHG
emissions including Scope
1 and 2 emissions
• Strive to reduce our GHG
emission per production
output
• Report our GHG
information and progress in
our Sustainability Report
• Review and update our
climate change policies
and projects annually
Customers
• Share GHG information
with customers
• Optimise the energy
efficiency in the use of
our products
• Measure and reduce
the carbon footprint
of our key products in
each generation
Communities
• Support local climate
change policy of our
sites of operation
• Update our Climate
Change Strategy and
carbon reduction
programmes with
reference to the
international and local
climate mitigation
targets, plans, and
adaptation initiatives
VTech Carbon Management Approach
