>> Believe in “We” We would thank all our people – the Crystallians – from the bottom of our hearts. To them, our hearts have no bottom.
Chairman’s Message
>> what’s inside Sustainable denim jeans
Chemical management
Going in line with Higg Index
Bettering the Industry
Our Achievements
Crystal Group in Infographics
About Crystal Group
06 08 1 2 22 26
Empowering Women
8
Boundary-breaking Communication
Unleashing synergy – G8
Nurturing leaders from the workshop
Grooming future leaders
Aiding recovery of Filipino typhoon victims
When health works and enables return
34 3
GRI Index
CEO’s Message
Quotes from stakeholders
Engaging our stakeholders
Mobilising Crystal Group with APPs
46 60 62
>> Chairman’s Message
Be an accountable “Crystallian” The vision of Crystal Group is to be an enterprise
breakthrough performance and encouraging
that focuses on stakeholders’ interests, social
community involvement. Growing company is
responsibility and environmental stewardship.
a collective effort, thus reinforcing the people strategy is vital to sustainable growth.
Crystal Group is a company run by people for the people. The “people” we work for are not
Our company is built on a learning culture, where
just our customers or shareholders, but more
our people enjoy and also take pride in working
importantly, our employees and our community.
in an open and non-hierarchical environment
Our employees are far more than workers. They
for continuous improvement. By offering our
are family members who share our common goal
people the opportunity to participate in decision-
on social responsibility – from building stronger
making and receiving feedback from them, we
family ties to a more harmonious society and a
endeavour to cultivate an entrepreneurial spirit in
sustainable industry and supply chain so as to
all of our employees. As our business expands,
create a better place to live.
we are determined to leverage on our global presence to influence more people around us
The success of Crystal Group today is attributed
and create greater impact throughout the world.
to our people of high calibre. We have been
Only by producing garments in a sustainable way
building a culture of ownership, which coupled
are we taking social responsibility towards our
with superior leadership, is capable of driving
planet.
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Chairman’s Message
About Crystal Group
About Crystal Group O U R C O R P O R AT I O N
Crystal Group is a private group of companies founded in Hong Kong in 1970, and has become a leading original equipment and original design garment manufacturer (OEM/ODM) and trader today.
>> Mission Let’s build the Crystal Group to be the most productive enterprise in our industry in terms of sales and profits, with quality products and services that our customers favourably regard as value for money.
>> Values
R ESPECT FOR PEOPLE IN TERGR I T Y B O U NDA RY L E S S EN T ER P R I S E D E L I G H T O U R C U S TO M E R S D E L I V E R B OT TO M L I N E R E S U LT S E M B R A C E I N N O VAT I O N LI V E QUA LI T Y E N E R G I S E OT H E R S
08
About Crystal Group
About Crystal Group
GOV ER N A NCE STRU CT UR E
d
e
f
g
a
h
b
i
j
c
>> Meet the board of directors
a
b
c
Yvonne Lo
Kenneth Lo
Andrew Lo
Vice Chairman
Chairman
CEO
d
e
f
George Chang
Alvin Mak
Dennis Wong
Independent Non-
Independent Non-
Executive Director
executive Director
executive Director
g
h
i
Anthony Griffiths
Paul Wong*
Frankie Wong
Independent Non-
Non-executive
Executive Director
executive Director
Director
j
Benny Tse
The Board meets quarterly to formulate and monitor overall strategies, financial performance, long term directions as well
Independent Non-
as other significant matters.
executive Director
*Paul Wong retired from the board as of 31 Dec, 2013.
10
About Crystal Group
Business
USD 1.6B Turnover
26%
compared to 2012
Garment produced
30% 300M pcs
12
compared to 2012
Crystal Group in Infographics
Crystal Group in Infographics
Quality Indicators
0.03% Customer Complaints Target: 0%
98.7% Customer Final Inspection* Pass Rate (CFIR) Target: 99% *The CFIR target adjusted from 98.5% to 99% since 2013.
1.9%
0.25%
Observed Quality Level (OQL) Target: 4%
Quality Claim Target: 0.1%
Management System Certifications
6
ISO 14001
6
M&S Plan A Eco Factory
1
6
OHSAS 18001
ISO 9001
14
Crystal Group in Infographics
> People
Intelligence
Crystal’s Talents All Over the World
China 48%
Bangladesh 8%
Vietnam 26%
Sri Lanka 10%
*Others 7%
48,000 Global employees
18
Crystal Group in Infographics
> Crystal Group in Infographics
8,506
out of
total workforce under annual performance appraisal scheme
All
8,000
hours
of leadership training
owned factories under
compliance monitoring
Communication
3% 77% Orientation
Worker Training
20%
Health & safety
181,003 hours of worker training
*Orientation includes: factory rules, rights, remuneration, and other policies and procedures
20
Crystal Group in Infographics
> Driving Higg Index adoption in the industry Apart from accelerating Higg Index implementation internally, Crystal Group has undergone pilot schemes with brands including Abercrombie & Fitch, ANN INC., Gap Inc., Target, and V.F. Corporation to encourage more extensive adoption of this coordinated standard for sustainability benchmarking in the industry. As a supplier member of SAC, Crystal Group regularly shares experience in using the index and sustainability practices with other
Crystal Group is an inspiring example of leadership in our industry. Driven by the vision of their chairman they have made impressive strides in reducing their environmental impact. We look forward to continuing our work with them on the Higg Index.
fashion supply chain stakeholders at SAC in-person meetings. We believe this innovative tool helps textile and apparel manufacturers as well as brand customers relieve from audit fatigue with one harmonised standard, and can even assist consumers in the future by providing more information for sustainable consumption. Its immense benefits will eventually enhance the transparency, environmental and social sustainability of the entire supply chain.
Jason Kibbey Executive Director Sustainable Apparel Coalition
28
Bettering the Industry
> Working upstream
>> Crystal Chemical Management System
Holding product integrity as a key value to its
With the control at source such as RSL
business, Crystal Group has released its own
compliance agreement signed by suppliers and
Restricted Substances List (RSL) with frequent
preference to APEO-free and Oeko-tex compliant
updates since 2009.
chemicals, Crystal Group also works hard to improve the internal process to ensure different
To enforce better control at source, we work
manufacturing stages and the final products from
closely with our upstream suppliers and focus
each facility are safe to our workers, consumers
on more strategic partnership with the existing
and the environment.
ones for the provision of safer choices. In order to ensure our suppliers are aware of the issue,
A chemical management practice guideline
we provided awareness training conducted by
with consolidated good practices from various
well-established professional body on hazardous
industries and incorporating international system,
substances to suppliers, as well as our sourcing,
Globally Harmonised System of Classification and
sales, and quality assurance teams.
Labelling of Chemicals (GHS), will be released in 2014 for rolling out in all Crystal facilities.
We are now working on a “manufacturing restricted substances list (MRSL)” to help our suppliers avoid using potential hazardous substances in their formulation.
30
Bettering the Industry
> Ban on sandblasting since 2010
Considered as somewhat heavy labour and
As sandblasting processes have proven link to
as one of the traditional way to denim jeans
the incurable lung disease silicosis, Crystal Group
production, hand sanding process is re-
has eliminated them in denim production since
engineered by Crystal Group’s Denim division.
2010, as a response to workers’ health concerns
We have adopted different practices to enhance
as well as customers’ initiatives.
the working condition: •
the ergonomic design and improvement
Since then, we have adopted more sustainable
of workstations, and development of hand
wear and tear craftsmanship techniques such as
tools reduce workers’ fatigue and enhance
the novel ozone and laser technologies with an
comfort
aim to minimise health and safety risks to our workers. The adoption of these techniques has
•
the working environment is air-conditioned
also enabled Crystal Group to reap environmental
with enhanced ventilation and humidifying
benefits against conventional washing methods
systems to control the dust level
with 30% to 80% energy savings, carbon •
reduction and less chemical usage.
orientation training and refresher courses are organised for workers to raise their
>> Bettering health and safety at work
awareness on general health and safety,
Although ozone and laser technologies have
chemical safety, potential chemical hazards,
been proven to be safe for workers, Crystal
and use of PPE
Group still conducted respective risk analysis as safety precautions during the feasibility study
>> Sustainable denim business model
stage, including checking on ozone and fume
We envisage establishing a new sustainable
levels. Segregation, better ventilation, and
denim business model in Crystal Group that
ozone sensors are put in place and all these new
can manufacture innovative, fashionable and
process operations have also been registered
sustainable products, assure safety for workers
with the local authorities for compliance.
and their families, and the sustainability of the planet.
32
Bettering the Industry
Empowering Women
Empowering Women Operating in various countries and across different cultures, Crystal Group found it important to empower our female workers to contribute to the well-being of their families as well as to the society. With enhanced skills and knowledge, they will be in a better position to advance personal development, foster closer family relationship, and extend helping hands to the needy.
34
Empowering Women
Empowering Women
W H E N H E A LT H W O R K S A N D E N A B L E S R E T U R N
>> A HOPE for change
>> Writing HERstory
To raise our female workers’ personal health
The HERproject (Health Enables Return) is
awareness, two Cambodia nightwear and
another workplace initiative we have adopted to
knickers factories have partnered with
empower women workers through promoting
international health organisation Project HOPE
health, financial knowledge and women’s rights.
(Health Opportunities for People Everywhere) to
Launched in collaboration with global non-profit
implement a new workforce health programme
business network BSR (Business for Social
called HealthWorks, which is funded by one of
Responsibility), under the support from our
our customers, Marks and Spencer.
customers including Abercrombie & Fitch, ANN INC., and Levi’s, it employs the “train-the-trainer”
Under the HealthWorks programme, our female
concept.
workers attended workshops once a month to learn about safe water and hydration, personal
Using activity-based and peer-to-peer
hygiene, nutrition, sexual health, and family
approaches, 12,000 females from three Crystal
planning. While all attendees were screened
Group’s factories in China and Vietnam were
for Anemia – a prevalent illness in Cambodia,
trained on sexual health, AIDS prevention,
expectant mother workers were given pregnancy
personal hygiene and financial literacy. They
counselling, ante- and post-natal care. Our
would then pass on such knowledge to their
doctors and nurses at factories would also
peers for the continuity of the project.
receive enhancement training for providing better care to workers.
We believe improved well-being of our female employees will bring tangible financial rewards to
We constantly refresh our educational activities
Crystal Group as well.
and around 1,000 workers in the two factories have participated in the programme. The rationale was through increasing workers’ awareness on preventive health care and better access to quality health services, their health would be improved in the long run resulting in reduced absenteeism and sick time, thus contributing to better care to themselves and their families.
36
Empowering Women
Communication channels
•
Direct Mail
•
In person Meeting
•
Site Viisit
•
Annual Sustainability Report
•
Tree Planting Event
•
Public Display & Speech
•
Trade Show
•
Internet (Intranet & External Website)
•
Membership of Trade / Industrial Associations
50
Boundary-breaking Communication
