ABOUT CRYSTAL OUR ENVIRONMENT OUR PEOPLE OUR RECOGNITIONS

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1 2017 ABOUT CRYSTAL OUR ENVIRONMENT OUR PEOPLE OUR RECOGNITIONS

2 CONTENTS ABOUT CRYSTAL INTERNATIONAL GROUP LIMITED Our vision is to be the leading sustainable enterprise in our industry globally. OUR ENVIRONMENT OUR PEOPLE Andrew Lo Chief Executive Officer OUR RECOGNITIONS 2017

3 ABOUT CRYSTAL ABOUT THIS PUBLICATION ABOUT CRYSTAL INTERNATIONAL GROUP LIMITED This publication released in December 2017 introduces our sustainable development strategy, selected key performance indicators, and highlights of our performance in We welcome your feedback on our sustainability performance and reporting. You may contact us by at or write to us: Corporate Quality and Sustainability Department 4/F Crystal Industrial Building 71 How Ming Street Kwun Tong Hong Kong Founded in Hong Kong in 1970, Crystal International Group Limited (SEHK: 2232) was listed on the Main Board of the Stock Exchange of Hong Kong on November 3, The Company owns and operates a portfolio of 20 apparel manufacturing facilities in Asia, with a focus on delivering lifestyle wear, denim, intimate, sweater, and sportswear and outdoor apparel to global brand customers. We believe in creating shared value for stakeholders through our business process. To this end, we take a holistic approach to sustainability, defining our idea of sustainable development using five pillars: Environment Innovation Product Integrity Employee Care Community Engagement

4 ABOUT CRYSTAL AT A GLANCE

5 GLOBAL PRESENCE HEADQUARTERS Hong Kong OFFICE OPERATIONS Macau Singapore United Kingdom MAJOR MARKETS PRODUCTION BASES Bangladesh Cambodia China Sri Lanka Vietnam United States Europe REVENUE BY LOCATION 35% 40% 22% 3% United States Asia Pacific Europe Others Japan GARMENTS PRODUCED Lifestyle Wear QUALITY INDICATORS Denim PRODUCT TYPES 0.01 % Pieces Sportswear & Outdoor Apparel TURNOVER US$ Intimate Sweater 1.76B Customer Complaint Target: 0% 1.4 % Observed Quality Level (OQL) Target: 4% 99.5 % Customer Final Inspection Pass Rate (CFIR) Target: 99%

6 OUR ENVIRONMENT Crystal International Group Limited is committed to implementing comprehensive environmental management and practices, and to making continuous improvements through prudent investment, innovation and by using the most appropriate technology. These commitments allow us to achieve cost effectiveness while preserving the environment for future generations. Since 2007, we have set five-year global environmental targets to ensure we use resources efficiently and minimise adverse environmental impacts. We are now on our second set of the targets, with eight measurable and time-bound goals to be achieved by 2017.

7 CRYSTAL GLOBAL 5-YEAR ENVIRONMENTAL TARGETS ( ) 2016 PERFORMANCE -12% Reduce carbon footprint per garment by 6% -15% Reduce paper consumption by 10% -25% Reduce fresh water consumption per garment by 10% 46% Increase the use of renewable energy to between 5% and 10% 51% Increase the use of recycled water to 50% IN PROGRESS Send ZERO operational waste to landfill -18% Reduce energy consumption per garment by 5% 935,853 Plant 1 million trees *base year: 2012

8 In 2016, although our energy consumption increased due to capacity expansion, our year-on-year carbon intensity decreased by 18 per cent. We also used seven per cent more renewable energy than the previous year. Our total water use increased with our production capacity during the year. However, we have increased the use of recycled water to 51 per cent across our global operations, exceeding our ambitious target. ENERGY CONSUMPTION (GJ) WATER CONSUMPTION (M³) 2014 Total: 1,062, Total: 1,176, Total: 1,271,597 DIRECT 2014: 34% 2015: 31% 2016: 23% 2014: 38% 2015: 39% 2016: 46% 2014 Total: 3,493, Total: 3,730, Total: 4,476, RENEWABLE ELECTRICITY 2014: 29% 2015: 30% 2016: 31% RECYCLED WATER 2014: 49% 2015: 48% 2016: 51% FRESH WATER 2014: 51% 2015: 52% 2016: 49% PRODUCT FOOTPRINT CARBON (KG CO²e PER PIECE OF GARMENT) PRODUCT FOOTPRINT WATER (LITRE PER PIECE OF GARMENT)

9 100% HIGG INDEX FACILITY ENVIRONMENTAL MODULE ADOPTION Crystal International Group Limited has been a member of the Sustainable Apparel Coalition (SAC) since By 2016, all wholly-owned factories adopted Higg Index Facility Environmental Module (FEM) to measure environmental performance. Looking forward, Crystal factories will adopt Higg Index FEM 3.0 by 2018.

10 Since 2007, Crystal has planted 1.96 million of trees in communities where we have a presence. OUR ENVIRONMENT

11 OUR ENVIRONMENT OUR PEOPLE We strive to provide comprehensive care to our people ensuring that their basic physiological and occupational safety needs are supported, along with their needs to succeed and realise their full potential. With community engagement being one of the five pillars of the Group s sustainability framework, we never forget to mobilise our huge workforce to support meaningful causes. The aim is to bring lasting benefits to the communities for a better world.

12 EMPOWERING WOMEN Females account for nearly 70 per cent of the Group s workforce. We believe in providing opportunities that enhance both their managerial and their life skills, enabling women to move upwards and to take on bigger roles. By advancing their careers, we empower women to be part of the growth of our company. BENEFITTING 40,000 WOMEN BY 2020 In view of this, Crystal has launched a female empowerment initiative since 2012 the award-winning Gap Inc. s P.A.C.E. (Personal Advancement and Career Enhancement) Programme with the promise to advance the lives of up to 40,000 female workers by P.A.C.E. LICENSEE In 2016, Gap Inc. awarded us the programme license for our commitment in running this initiative, which has been introduced to our female workers in China, Vietnam and Sri Lanka. They take part in seven life skills learning modules: Water & Hygiene Health Financial Literacy Communication Problem Solving & Decision Making Time & Stress Management Execution Excellence In the coming year, we will further expand the programme to our facilities in Bangladesh and Cambodia, and even teenage girls in the communities where we operate.

13 WORKFORCE BY GENDER Crystal International Group Limited always cherishes our people as the most valuable capital. Our holistic people-oriented management approach is to invest our global talents in different aspects which help to create values for our people, their families, the company and to the bigger community. FEMALE 67% WORKFORCE BY LOCATION 29% MALE 33% CHINA US$2M People development investment 8,261 Number of staff received annual performance reviews 18% CAMBODIA GLOBAL EMPLOYEES APPROX. 70,000 VIETNAM 33% 102 Number of community services US$477K Cash contribution in community 8% SRI LANKA BANGLADESH 12% 140,000+ Number of people benefitted from our worldwide community engagement initiatives

14 OUR PEOPLE

15 OUR RECOGNITIONS We are honoured to be recognised by some of the most influential organisations around the world. OUR PEOPLE

16 NUMBER OF AWARDS 13 Environment 9 Business 24 CSR & Employee Care

17 HOW CRYSTAL CHANGES THE WORLD? TEACHING WOMEN VITAL JOB SKILLS 17 TH ON FORTUNE MAGAZINE S CHANGE THE WORLD LIST 2016 Launching female empowerment programmes with an aim of advancing the lives of up to 40,000 workers by HELPING THE DENIM INDUSTRY CURE ITS POLLUTION BLUES We came in 17 th on Fortune Magazine s Change the World List 2016, which ranks the top 50 global companies for making an important social or environmental impact through profit-making strategy and operations. Pioneering a water-and chemical-less lasering method for bleaching and dry-processing demin jeans.

18 Crystal Group Crystal Headquarters Vietnam Lifestyle Wear Factory China Lifestyle Wear Factory Change Ourselves Change our Company Change the World Kenneth Lo Chairman China Sweater Factory China Denim Factory OUR RECOGNITIONS

19 OUR RECOGNITIONS Designed by Katie Leung