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VTECH APPROACH
VTech Holdings Limited
2
“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.”
The financial year 2017 (FY2017) marked the
40th anniversary of VTech, which was also
a challenging year for the Company as we
have completed three strategic acquisitions
during the year. These included LeapFrog,
a strong educational toy brand in the
industry; Snom, the pioneer and a leading
brand of professional and enterprise Voice
over Internet Protocol telephones; and the
acquisition of the fixed assets from Kenny
Precision Products (Shenzhen) Company
Limited for the production of high precision
metal tooling and parts. The integration
of these newly acquired businesses has
also facilitated VTech to achieve its record
revenue in FY2017.
With our continuous business development
and global expansion, VTech recognises
the responsibility to ensure that all our staff
and business activities, including those
employees and facilities joining VTech
through the recent acquisitions, are following
the same international statutory requirements
regarding the environmental, social and
ethical standards across the Company.
As part of our consolidation programme
after the acquisition, our sustainability sub-
committees comprising key employees from
the Company’s different product lines and
relevant departments, have also integrated
and aligned our sustainability strategies
and management systems to ensure that
they could be carried out effectively and
consistently throughout the Company and
our global supply chain.
At VTech, we have also developed our
sustainability management systems
and measures around the needs of
our stakeholders. We engage with our
stakeholders by conducting materiality
assessment surveys every year to identify
and address their material issues and
concerns on our sustainable development.
Based on the results of the stakeholder
surveys, we continue to focus our
sustainability resources and efforts on
the five key areas – product responsibility
and innovation, environmental protection,
workplace quality, sustainable operating
practices and community investment.
VTech’s Sustainability Report 2017 is our
4th annual Sustainability Report which has
not only identified our short-term and long-
term sustainability targets for the financial
year 2018 to 2020 (FY2020), but also
highlighted our performance progress and
achievements for the year, with actions and
programmes to be implemented towards
our long-term goals in FY2020. I am also
pleased to report that with our dedicated
sustainability resources and efforts,
VTech Holdings Limited continues to be
a constituent member of the Hang Seng
Corporate Sustainability Benchmark Index
and the FTSE4Good Global Index, and is
once again selected as one of the top 100
most sustainable companies in Asia and
ranked seventh in Hong Kong according
to Channel NewsAsia, CSR Asia and
Sustainalytics.
As the global leader in electronic learning
products and cordless telephones, VTech
strives to develop and supply high quality
and innovative products for the well-
being of our customers and benefits of the
society. These included our new series of
soother baby monitors and smart home
monitoring devices for the customers’ health
and safety, and eco-friendly products for
the environment. Our electronic learning
products such as Touch and Learn Activity
Desk
TM
Deluxe and Scoop and Learn Ice
Cream Cart
TM
, are also designed to inspire
children’s curiosity and love of learning
throughout their early development stage.
VTech also continues to devote its efforts to
preserving the natural environment for future
generations. Through our high performance
production chain and green manufacturing
programmes, we have achieved notable
reduction in electricity consumption and thus
lower carbon emission to the environment,
with CO
2
emission per production output
reduced by 7.9% compared with the
previous financial year. As a global Company
with approximately 27,000 employees and
operations in 13 countries and regions, we
are also committed to providing a decent
and safe working and living environment
for our employees, and strive to achieve
international Corporate Social Responsibility
standards across the Company.
As a responsible corporate citizen, it is
equally important for us to serve the diverse
needs of the community. In FY2017, we
have recruited over 2,500 volunteers and
developed various volunteering programmes
on “Support People in Need” and
“Collaborate with Local Charities”, aiming
at supporting social and charity activities on
children education, poverty alleviation and
local philanthropy. We also provide training
opportunities for students and nourish an
innovative environment for young generation
through our sponsorship programmes.
The 40th anniversary of VTech marked
an important milestone in our journey. As
the Company enters into its 5th decade,
we will continue to make every effort to
incorporate sustainability aspects into our
business strategies and activities. 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
stakeholders and the communities.
Allan WONG Chi Yun
Chairman
16 May, 2017
Chairman’s Message