Page 46 - Demo

46 About Strategy and Governance Our People Our Business Our Outcome Appendixtribution centers in the markets of Cambodia, Hong Kong, Indonesia, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Taiwan, Thailand, and Vietnam reported waste data in 2023. In total, these markets generated 10,917 metric tons of waste in 2023, including 296 metric tons of hazardous waste. The data is the foundation for setting targets to improve our waste management practices. Going forward, we will further enhance waste reporting and our waste management approach by providing more granular data regarding different waste categories and recovery statuses. In turn, this will serve our goal of generating less waste, diverting more waste away from disposal and towards recovery. Our waste reporting approach is based on a pilot project conducted in Thailand in 2021. During this pilot, Thai distribution centers completed monthly reports quantifying waste generation, disposal, and recovery. The data was categorized by material type and whether the waste was hazardous. During 2022, we successfully fine-tuned and stabilized data collection, leading to the initiative being rolled out in the markets mentioned above. In recent years, we have also made strides in our digitalization journey by automating certain customer transactions. Using digital technologies, we have created paperless systems to enhance efficiency and accuracy while reducing our environmental footprint by eliminating paper usage and printing. One example is mPay, a digital payment system used in Vietnam. mPay was the subject of a successful customer pilot in select locations from mid-2021. The system was then extensively rolled out to cover all cash-on-delivery (COD) payments for our Consumer Goods and Healthcare businesses in all Vietnam locations from 2022 onwards. Continuous enhancements have always been part of the roadmap. One key new feature provided flexible split payments to overcome transaction limits and increase tool adoption. mPay has seen steady growth in cash-to-digital payment conversion in recent months and years. Besides offering environmental benefits, this system provides added convenience and security while reducing the possibility of fraud with reduced cash handling. As tracking is made easier, this increases transparency and improves the efficiency of the collection reconciliation process.Building on this success, we are now extending the digital functionality to our current mobile credit collection tool, mCollector, which focuses on credit collection. We have enhanced mCollector to include a digital payment option using a QR-pay method. mCollector has been piloted in Thailand and Singapore, and we are considering rolling it out to other markets.%u2023 GRI 306-1, GRI 306-2, GRI 306-3Safe Storage, Handling, and Transportation of Dangerous Goods and Hazardous ChemicalsWe ensure that the dangerous goods and hazardous chemicals we distribute are stored, handled, and transported safely. We have standardized our approach across our global business by releasing our Dangerous Goods and Hazardous Chemicals Guidelines in early 2021 as part of our environmental management system. This system is established in line with the precautionary principle. It sets clear standards and due diligence procedures and guides staff with assigned roles and responsibilities. Where appropriate, we rely on the services of carefully selected specialized outsourcing service providers while retaining oversight of our suppliers%u2019 performance. %u2023 GRI 2-23Reducing Product Waste in Business Unit Consumer GoodsSustainability is an essential issue for our Business Unit Consumer Goods. In 2021, the team created a sustainability organization comprising Sustainability Champions from each market to identify sustainability priorities and mobilize action through coordinated activities. Reducing product waste was identified as the core topic to be addressed. We developed and deployed a Product Waste Reduction Toolkit in early 2022. Since 2023, the toolkit has been successfully implemented in all our Business Unit Consumer Goods markets. It provides guidelines for reducing product write-offs and maximizing donations, decreasing product waste, and increasing food donations. In 2023, Business Unit Consumer Goods raised its food and non-food donations to 166 metric tons (from 132 metric tons in 2022).In March 2022, DKSH signed an agreement with the Global FoodBanking Network (GFN), a non-profit organization that develops and supports food banks in more than 40 markets. This partnership aims to scale up efforts to recover and distribute surplus food and non-food products throughout the Asia Pacific region. To kick off this partnership, we made donations to SOS Thailand and Feeding Hong Kong, the GFN%u2019s partners in Thailand and Hong Kong. These endeavors will be continued and will be rolled out to other GFN local food banks in more markets.