Thanh Cong

TCM’s ESG

Thanh Cong towards the sustainable development

“Sustainable development is development that meets the needs of the present without compromising the ability of meeting needs of future generations”

(From Brundtland Committee)

The development of society brings a lot of benefits to the community but also brings many challenges. The whole world is facing a lot of consequences and serious problems such as polluted environment, food safety and hygiene, new diseases, depletion of resources as well as the warming process of the Earth causes natural disasters, storms, floods... To limit and solve the above problems, it is necessary to have close cooperation and coordination and consensus of all people and businesses as well as support of authorities. Each individual, each organization is a cell of society. The development of each individual, each business also contributes to the development of society. Each of us needs to raise awareness of the issue of sustainable development and act responsibly towards the community and society. We believe that this doing is necessary and useful not only for each of us personally but also to contribute to make the present society and future generations brighter and better.

As a textile garment enterprise with more than 46 years of establishment and development, Thanh Cong has become one of the leading Textile and Garment enterprises in Vietnam. The Company's products have been exported to most major markets in the world such as the US, EU, Japan, Korea... Thanh Cong has been making constant efforts to create products that meet the customers’ requirements and keep up with fashion trends in the world. Being deeply aware of the influence of businesses on society as well as the challenges facing the whole society, Thanh Cong defines the business principle as a harmonious connection between the company’s business goals and responsibilities with society, towards sustainable development. Thanh Cong implements responsibility toward all stakeholders and makes constant efforts to bring more and more value.

In order to concretize the orientation and goals of sustainable development, Thanh Cong has been focusing on 3 core factors of Environment - Society - Governance as follows:

About the environment – Thanh Cong focuses on

1.Products

Recognizing the world's fashion and consumer trends towards sustainable development, since 2017 Thanh Cong has promoted and focused on investing in R&D, research and development of eco-friendly product lines from recycled materials, sustainable materials. At Thanh Cong, we have been developing 3 types of materials: Polyester, Viscose, and Recycled Cotton.

Recycle Polyester

In terms of origin, polyester is a synthetic fiber from petroleum - causing resource depletion and taking a long time to decompose in the ecological environment. Therefore, the reusing or finding an alternative source of materials is an important goal that the textile garment industry sets. Recycled Polyester materials, we have 3 products from: plastic bottles, sugar cane and corn, old clothes containing polyester ingredients.

RECYCLE: A type of fiber recycled from plastic bottles

BIO POLYESTER: This is a product that uses recycled materials from molasses instead of petroleum materials, which minimizes the use of natural resources and reduces CO2 emissions to the outside environment.

BIO DEGRADABLE CORN : This is a product that uses ingredients created from corn. For this product, when buried in the soil, the decomposition ability is up to 68.8% after 180 days. While ordinary polyester takes 500-1000 years to completely decompose. Therefore, BIO DEGRADABLE CORN reduces the burden on the environment greatly.

RE-NEW POLYESTER :Is a product created by taking advantage of materials from old fabrics or clothes, then filtering the polyester component and then recycling it.

Recycle Rayon

In parallel with Polyester, Viscose also captures a lot of consumer tastes. Viscose is a semi-synthetic material derived from cellulose that undergoes various chemical treatments to form fibers. Thanh Cong's viscose products have received environmental certifications (EU ECOLABEL) and sustainable development (Sustainable Apparel Coalition), reducing emissions and water consumption compared to conventional viscose.

ECO WOOD – Viscose recycled sourced from sustainable wood and pulp, coming from certified and controlled sources. The production of ECO WOOD yarn produces 50% lower emissions and water impact than generic viscose.

Recycle Cotton

RECYCLE COTTON: is an item that brings comfort to the wearer. Cotton materials are carefully selected by Thanh Cong from cotton fields with little use of harmful pesticides, meeting high quality requirements. However, the amount of waste cotton is still unavoidable in the spinning process. These waste fibers will normally be thrown away, causing harm to the environment. Therefore, at Thanh Cong, these waste cotton will be selected again to use for spinning, avoiding waste.

Moreover, we use a cotton that has been modified with DNA to produce different colors. From colorful cotton, we spin the fabric and sew the product without going through the dyeing process. Products include:

NATURAL BROWN : Cotton gets its color from color deposition during cotton seed dissociation and growth. Therefore, without going through the toxic dyeing process, we still get the desired colors.

2. Minimizing factors affecting the environment

As a leading textile garment manufacturer in Vietnam, Thanh Cong is always aware that any production activity has impacts on the surrounding environment. Therefore, we are always trying to find solutions to minimize negative impacts on the environment and find ways to use resources and energy efficiently. All solutions are aimed at the main purposes: efficient use of inputs (materials, energy, water) and control outputs to minimize impacts on the environment. Detail is the company effectively uses energy sources through improving management quality, increasing the use of clean and renewable energy sources such as using solar power systems for factories in Vinh Long and is researching and widely applying it to other factories of the Company in the near future and using energy-saving lighting equipment instead of old ones.

Water is an important resource to serve for human life and for the production process in the context of depletion and pollution of groundwater. Being aware of this, Thanh Cong is aiming to use water efficiently and save the most by reusing water through the water recirculation system.

Well control and treat waste water and emissions into the environment: With the goal of minimizing the impact on the environment, Thanh Cong focuses on wastewater and emissions right from the investment stage by investing in a high-tech water treatment system, ensuring and controlling the output wastewater to meet environmental standards and managing as closely as possible on this issue during its operation. In addition, Thanh Cong has been planning to change the boiler fuel from coal to Bio-mass biomass or use electric boilers to replace low-capacity boilers to reduce CO2 emissions to environment for some factories. In addition, Thanh Cong aims to ZDHC “No Discharge of Hazardous Chemicals (ZDHC) Program” to control incoming chemicals with BVE3 “Online Chemical Inventory Management Tool” and works towards achieving ZDHC.

Environmental activities need the cooperation of the whole society, so besides focusing on its production and business activities, Thanh Cong is also interested in propaganda activities for the purpose of raising awareness for the whole employees through training in knowledge of environmental protection and practical action programs, contributing to a clean environment. "The program to collect used batteries" at Thanh Cong has received the enthusiastic response of the Company's employees, is also one of the activities in the sustainable development orientation of the Company.

About Society – Thanh Cong focuses on
1. Employees:

For Thanh Cong, the most important and valuable resource contributing to the sustainable and long-term development of the Company is the workforce. Therefore, the Company always respects and is grateful to employees for their great contributions throughout the Company's development. Thanh Cong's leaders is constantly researching and improving its labor policies peroperly, ensure fully the rights of employees, and at the same time have new remuneration policies to attract, retain talents to serve production and business activities of the Company. At Thanh Cong, employees can work in a safe environment and receive health care, the Company develops a diverse workforce that respects differences and does not discriminate. Employees are guaranteed all the rights prescribed by law, the employee's labor value is recognized and adequately compensated. Extracurricular activities and training are periodically organized by the Company to improve and develop professional skills in each department, and the Company also organizes inspection and evaluation sessions to take training measures suitable workforce, improving the professional qualifications of the whole Company.

2. Community support and development

Corporate social responsibility (CSR) is now increasingly becoming a trend of public companies in their sustainable development strategy towards the standards and good practices of developed countries. Thanh Cong has started with a number of community-oriented activities since 2009 with the motto of accompanying the locality where the Company's factories are located in the process of taking care and supporting people in difficult circumstances. contributing to the social welfare programs of the local government. In addition, the Company cooperates with the Trade Union in taking care of the lives of employees in the Company through a series of CSR programs.

During the process of formation and development, Thanh Cong has always focused on social activities of the local community. Every year, the Company always deducts a part of its profits to contribute to charity funds. In addition, the CSR fund also receives additional contributions from the Company's Board of Directors with a deduction of 10% of the total annual remuneration, or from strategic shareholders with a contribution of 10% of dividends in cash, all of these amounts aim to contribute to improving the lives of disadvantaged people in the localites where the Company operates. Besides, the Company also regularly organizes to visit and presents gifts to the orphans at districts where there are many disadvantaged and difficult circumstances.

In addition, the Company always accompanies the local authorities to support the care of the poor, the elderly alone, and award annual scholarships to local children with difficult circumstances and overcoming difficulties. Responding to actively participating in social responsibility activities with the City during the recent Covid epidemics and contributing to joining hands with localities to overcome natural disasters, storms and floods...

About Governance – Thanh Cong focuses on
1. Law enforcement activities & information transparency

As a public company and listed on the Ho Chi Minh Stock Exchange since 2006, the Company operates in compliance with the legal regulations on labor, governance, and compliance in information disclosure for the listed company. Ensure that the reported data and statistics provided to the authorities are accurate, truthful, complete and timely. Actively participate in government initiatives to stabilize and develop the economy. Fully fulfill tax obligations and other obligations as prescribed by the laws of Vietnam and the countries where Thanh Cong has import-export transactions.

2. Transparency in transactions, fair treatment among suppliers

In business, the Company committes to provide products and services that satisfy the requirements and expectations of quality and create a better life value for everyone. Comply with the Competition Law, do not participate in or support anti-competitive behavior, unfair competition. Do not engage in or support behavior that is contrary to business ethics standards, causing damage or may cause damage to the interests of the State, the legitimate rights and interests of other businesses or consumers. The Company commits to fair treatment in transactions among suppliers. Always create trust and aim for a sustainable cooperation relationship.