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VTech Holdings Limited
2
VTECH APPROACH
Chairman’s Message
Our sustainability vision is to
design, manufacture and supply
innovative and high quality products
in a manner that minimises any
impact on the environment, while
creating sustainable value for our
stakeholders and the communities.
VTech’s sustainability vision is to
design, manufacture and supply
innovative and high quality products
in a manner that minimises any
impact on the environment, while
creating sustainable value for our
stakeholders and the communities.
In our Sustainability Report 2015,
we have developed a Sustainability
Plan 2020 for the financial years
from 2016 to 2020 (FY2020). It has
not only identified our short-term
goals with activities to be achieved in
FY2016, but also defined the actions
and programmes to be implemented
toward the achievement of our long-
term targets in FY2020.
I am pleased to inform you that our
commitments and efforts toward the
long-term sustainability plan have
continued to achieve remarkable
results for the Company in FY2016.
Our products for customers’ health
and safety including the new series of
video baby monitors, different playsets
of Go! Go! Smart family for the
children, and eco-friendly products for
the environment were well received by
the customers. We are also committed
to building on our sustainability
foundation to further expand our
footprint in the toy market of children’s
learning and development. On 4
April 2016, VTech has completed the
acquisition of LeapFrog Enterprises,
Inc., which is a very strong educational
toy brand in the industry.
Our dedication to high performance
production chain and green
manufacturing programmes has
also continued to deliver solid
improvements in our productivity and
cost efficiency. We have achieved
notable reduction in the electricity
consumption and thus lower carbon
emission to the environment. As a
global company with approximately
27,400 employees and operations
in 11 countries and regions, we also
provide a decent and safe working and
living environment for our employees
as the Company grows, and strive to
achieve international Corporate Social
Responsibility (CSR) standards across
the Company and our global supply
chain. In our Sustainability Report
2016, you will also find out how our
enthusiastic employees serve the local
communities through our programmes
on “Support People in Need” and
“Collaborate with Local Charities”,
which support social investments and
voluntary activities mainly targeting on
children education, poverty alleviation
and local philanthropy.
VTech is also strongly committed to
protecting the data of our customers.
In November 2015, we experienced
a cyber-attack in which an intruder
gained unauthorised access to some of
our databases and servers, and stole
certain personal data of our customers
around the world. In order to ensure
that our customer data would be safe
from further attack, we have taken
immediate actions to suspend all the
affected websites and services, inform
the affected customers and report the
incidents to a number of governmental
authorities. With the assistance of
one of the world’s leading cyber
security firms, we have also further
strengthened our data protection and
network security measures.
Our sustainability strategies and efforts
continue to focus on five key areas –
product responsibility and innovation,
environmental protection, workplace
quality, sustainable operating practices
and community investment. We have
also engaged with our stakeholders
by conducting materiality assessment
surveys to identify and address their
material issues and concerns on our
sustainable development.
VTech has established a strong
foundation for its sustainable
growth. Moving forward, with our
determinations and commitments
toward sustainability, we will continue
to implement comprehensive
programmes and measures to achieve
our long-term sustainability targets
in FY2020. We also strive to balance
the impacts of economic growth,
environmental protection and social
responsibility in our strategic business
plan, aiming to drive sustainable
value for our customers, employees,
shareholders, investors, suppliers and
the communities.
Allan WONG Chi Yun
Chairman
17 May, 2016