Casablanca : Environmental, Social Aand Governance Report 2016

CASABLANCA

GROUP LIMITED

(INCORPORATED UNDER THE LAWS OF THE CAYMAN ISLANDS WITH LIMITED LIABILITY)

STOCK CODE: 2223

ENVIRONMENTAL, SOCIAL and GOVERNANCE REPORT 2016 Contents About Casablanca 2 Reporting Standard and Scope 2 A: Environmental 3

• Pollutant Emissions 4

• Greenhouse Gases Emissions 5

• Use of Resources 7

• Solid-waste Disposal 7

• Packaging Material Consumptions 8

  B: Social 10

• Employment and Labour Practices

B1: Employment 10

B2: Health and Safety 14

B3: Development and Training 14

B4: Labour Standards 15

- Operating Practices

B5: Supply Chain Management 16

B6: Product Responsibility 17

B7: Anti-corruption 18

- Community

B8: Community Investment 19

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About Casablanca

Since its establishment in Hong Kong in 1993, Casablanca Group Limited (the "Company") and its subsidiaries (the "Group") have been principally engaged in designing, manufacturing, distribution and retailing of bedding products under its proprietary "Casablanca", "Casa Calvin" and "CASA-V" brands, striving to provide consumers in the People's Republic of China (for the purpose of this report, excluding Hong Kong, Macau and Taiwan)(the "PRC"), Hong Kong and Macau (collectively the "Greater China Region") with quality bed linens, duvets and pillows, and home accessories. The Group's business and products are closely related to consumers' daily lives. Therefore, the board of directors (the "Directors") of the Company (the "Board") places great importance to environmental, social and governance issues.

Reporting Standard and Scope

The Company has prepared the Environmental, Social and Governance Report (the "Report") to help the shareholders, investors, consumers and the general public to familiarize with the Group's environmental and social policies and practices.

The Report has been prepared in compliance with relevant provisions of the Environmental, Social and Governance Reporting Guide as set out in Appendix 27 of the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"), which covered the period from 1 January 2016 to 31 December 2016 (the "Year" or "Review Period"). The Report is mainly divided into two parts: A. "Environmental" and B. "Social". Data and contents in part A. "Environmental" have been verified and endorsed by TomiFuji EMC Limited, the external environmental consulting company of the Company. The part B. "Social" was jointly prepared by the working group comprising representatives from various departments of the Group.

The data of the following subsidiaries and businesses have been included in the Report due to their significant contributions to the Group:

Name of subsidiary	Business	Region	Scope of data included in the Report
Casablanca Hong Kong Limited ("Casablanca Hong Kong")	Sales of bedding products	Hong Kong	Office and self-operated retail stores in Hong Kong
Casablanca Home (Shenzhen) Limited ("Casablanca Shenzhen")	Sales of bedding products	PRC	Office and self-operated retail stores in the PRC
Casablanca Home (Huizhou) Company Limited ("Casablanca Huizhou")	Manufacturing of bedding products	PRC	Huizhou Plant in Guangdong Province, the PRC

The Report has been approved by the management and the Board of the Company. We would like to extend our gratitude to all parties who have participated in the preparation of the Report.

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Casablanca Group Limited Environmental, Social and Governance Report 2016

A: Environmental

The Group established a fundamental policy which governs the environmental activities that all employees should take part in. Various measures are conducted according to the environmental policies and environmental management systems.

The basic environmental principle is to:

promote conservation activities and ascertain the benefits and impact of our business activities on natural ecosystems; and

develop and procure products which utilise properly managed resources in consideration of sustainability.

We strive to improve the energy efficiency during production and reduce the emission of greenhouse gases in all phases of our products' supply chain, aiming to realise a low-carbon society and encourage a low-carbon living style among our customers.

By established a management system in accordance with the national laws and regulations, the Group constantly monitor and review the air pollution, water pollution and solid waste pollution during production, through strictly controls of the emissions, in order to minimising its impact to the ecosystem.

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