Lung Fung Group Holdings has published its first Environmental, Social and Governance (ESG) Report, covering the 12 months to 31 March 2026 and detailing how the Hong Kong pharmacy and health-care retailer is embedding sustainability into core operations.
Governance and Material Focus • The Board has assumed full responsibility for ESG strategy, supported by an ESG Working Group led by the Chief Financial Officer and representatives from finance, HR and compliance. • A materiality assessment highlighted four priority areas: energy management, employment and labour standards, product quality and service, and business ethics/anti-corruption.
Climate Targets and Environmental Metrics • Commitment: cut Scope 1 and Scope 2 greenhouse-gas (GHG) emission intensity by 5 % by 2030 versus a 2025 baseline. • 2025/26 emissions totalled 2,475.17 tCO₂e, comprising 321.68 t (Scope 1), 2,153.27 t (Scope 2) and 218.43 t (Scope 3). Emissions intensity was 0.76 tCO₂e per million HKD revenue. • Energy use reached 6,935.57 MWh (2.12 MWh per million HKD revenue), primarily electricity, diesel and petrol. • Water consumption was 5,545 m³, with intensity down 14 % year on year to 1.69 m³ per million HKD revenue. • No hazardous waste was generated; packaging recovered includes 2,103 t of paper boxes and 48.00 t of stretch wrap, with an 80 % recycling rate for stretch wrap.
Workforce and Safety • Headcount rose to 786, all in Hong Kong after outsourcing Mainland operations. Female employees represent 54.6 % of staff; 90 % work full-time. • Turnover fell to 50.5 % from 70.5 % a year earlier. • Zero work-related fatalities were recorded, though 240 lost workdays resulted from injuries. Safety guidelines, PPE provision and routine inspections underpin the group’s health-and-safety framework.
Product Responsibility and Supply Chain • No product recalls or material customer complaints occurred during the period. • The group managed 603 suppliers—94 % based in Hong Kong—and applies qualification checks, performance reviews and ESG criteria to procurement decisions. • Data-privacy safeguards follow the Personal Data (Privacy) Ordinance, while anti-corruption and anti-money-laundering policies are overseen by designated officers; no corruption cases were concluded in the year.
Community Engagement • Through its “Community People” volunteer team and Lung Fung Charitable Foundation, the company donated more than HK$24,000 to organisations such as UNICEF and Plan International and ran youth, elderly-care and blood-donation initiatives.
Outlook Although the group has not yet conducted full scenario analysis or set science-based targets, it plans to broaden Scope 3 disclosures, strengthen supplier engagement on ESG compliance and develop a formal climate-transition roadmap as data capabilities mature.
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