Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Community Engagement
• Youth Development
• Sports, Arts and Culture

Environmental Achievements

• Purchased two 45-seater electric coaches for KITEC, replacing conventional coaches.
• Installed charging stations for electric taxis at Hopewell Centre, KITEC, and Panda Place.
• Replaced all T5 lighting tubes with LED lighting tubes at G/F Atrium of Panda Place.
• Replaced all spotlights with LED lights in both rooms and public areas of GardenEast.
• Replaced all conventional low-mast sodium lamps on the 122.8km main alignment of the GS Superhighway JV with LED lights.
• Completed the Condensate Pump upgrade for Unit 1 of the power generating units in Heyuan Power Plant to enhance energy efficiency.
• Completed the electrostatic precipitation upgrade for Unit 1 of the power generating units in Heyuan Power Plant to reduce energy consumption and dust emissions.
• Completed the force draft fan and induced fan upgrade for Unit 1 of the power generating units in Heyuan Power Plant to reduce electricity consumption.

Social Achievements

• Offered jobs to people with disabilities and provided necessary facilities and support.
• Recruited a former elite athlete as one of our Management Trainees.
• Organised training for managerial staff on anti-discrimination ordinances.
• Provided on-the-job training and various training courses and seminars.
• Developed a structured Management Trainee programme with all-round support.
• Performed regular analysis of staff turnover and recruitment on a monthly basis.
• Our premises pledged support to the Workplace Hygiene Charter.
• Our highway JV companies organised Safety Operation Month to promote safety awareness.
• HH Social Club organised various volunteer activities and interest classes for staff.
• Employee Assistance Programme offered counselling services as well as seminars and workshops on physical and mental health.
• Regularly organised birthday parties for employees and other social activities such as Christmas party.
• Annual QRE Festival in Wan Chai.
• Supported the preservation of local heritage through the ongoing 200 Queen’s Road East Project in Wan Chai.
• Corporate volunteering team visited around 130 units of singleton elderly residing in various districts in Hong Kong during Tuen Ng Festival.
• Organised the “Hopewell-Playright Chinese New Year Playday” at Panda Hotel for around 100 young hospital patients and their families.
• Installed and modified facilities at our premises to facilitate barrier-free access for disabled customers and employees.
• Supported the “Hong Kong Tree Planting Day 2014”.
• Participated in the “Coastal Cleanup Challenge 2013”.

Governance Achievements

• Established an independently-reviewed stakeholder engagement process and a Sustainability Steering Committee.
• Issued an independently verified Sustainability Report under the Global Reporting Initiative (GRI) Sustainability Reporting Framework.
• Complied with all the code provisions as set out in the CG Code, except for deviations from code provisions A.5.1 and A.5.6 (explained in the report).

Climate Goals & Targets

Environmental Challenges

• Slowdown of Guangdong Province’s electricity consumption growth (Heyuan Power Plant).
• Decline in the number of group tour customers from Mainland China following the implementation of the new PRC Tourism Law (Panda Hotel).
• Decline of 5% in the average daily toll revenue of the GS Superhighway in the second half of FY14 due to the full opening of the Coastal Expressway.

Mitigation Strategies

• Cost control measures for corporate administrative costs.
• Diversification of customer mix for Panda Hotel (Cambodia, Laos, Russia, and India).
• Strengthening Panda Hotel’s MICE business.
• Continuous monitoring of the situation regarding the Coastal Expressway's impact on GS Superhighway.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1, Hong Kong Exchanges and Clearing Limited (HKEx) ESG Reporting Guide

Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA)

Awards & Recognition

• Caring Organisation for Retired Athletes Certificate
• Lifetime Achievement Award (Sir Gordon Ying Sheung WU)
• Hong Kong Outstanding Corporate Citizenship Logo
• Caring Company Logo
• 4th Asian Excellence Recognition Awards 2014 & Asia’s Best CEO (Investor Relations)
• 5th Manpower Developer Award Scheme
• Family-Friendly Employers Award Scheme
• Hang Seng Corporate Sustainability Index constituent stock
• Hang Seng Corporate Sustainability Benchmark Index constituent stock

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection
• Community Investment
• Workplace Practices
• Stakeholder Engagement
• Youth Development
• Sports, Arts and Culture

Environmental Achievements

• Held a green trip to an organic farm for employees and their families.
• Launched Go Green Workplace campaign.
• Engaged in environmental programs to raise employee awareness.
• Organised a food saving activity with Food Grace for primary school students.
• Engaged customers in energy conservation programs.
• Setting up of Tesla Supercharging Station at Hopewell Centre.
• Installed EV charging stations at various buildings and highways.
• Purchased and operated electric buses.
• Supported research project on EV quick charger.
• Promoted green driving habits among employees.
• Participated in the “Carbon Audit • Green Partner” program.
• Relocated core server room to reduce electricity consumption.
• Replaced aging air-conditioning units and ventilation fans in Hopewell Centre.
• Replaced lighting tubes and lamps with LED lights in KITEC and GS Superhighway.
• Installed roof-top solar panels at Heyuan Power Plant.
• Participated in the Wastewi$e Label Programme.
• Implemented source separation of waste programs.
• Worked with computer recycler on recycling scheme.
• Participated in the Yan Oi Tong Plastic Recycling Partnership Scheme.
• Collected food waste and used cooking oil for recycling.
• Collected used bottles for manufacturing into eco-bricks.
• Cooperated with WWF-Hong Kong to source sustainable seafood.

Social Achievements

• Provided over 6,300 hours of internal and external training courses and seminars.
• Organised public events.
• Launched a new Hotel Service Elites Selection Programme.
• HH Social Club organised various volunteering activities and interest classes for staff.
• Employee Assistance Programme offered counselling services, seminars and workshops on physical and mental health.
• Supported the Workplace Hygiene Charter.
• Organised Safety Operation Month to promote safety awareness.
• Developed a structured Management Trainee Programme.
• Hiring of graduates under a 24-month Management Trainee Programme.
• Hiring of summer interns.
• Regularly assess the barrier-free environment at our shopping arcades, engaging with disability groups to better understand people with special needs.
• Completed facade renovation at Hopewell Centre.
• Conducted monthly laboratory tests on high risk food products at Panda Hotel, Xi Shan and MENU to ensure food quality.
• Conducted “Management Service Survey” at Hopewell Centre, QRE Plaza, KITEC and Panda Place, achieving an average satisfaction rate of 94.2% on the overall performance of property management service.
• Follow up on every customer’s feedback in a timely manner through guest comment cards and online feedback form.
• Launched Elite Club at Hopewell Centre and KITEC.
• Reward members with privileges and engage them through social media.

Governance Achievements

• Established a Sustainability Steering Committee.
• Issued an independently verified Sustainability Report under the Global Reporting Initiative (GRI) Sustainability Reporting Framework.
• Complied with all code provisions as set out in the CG Code, except for deviations from code provisions A.5.1 and A.5.6.
• Established the Committee of Executive Directors.
• Established the Audit Committee and the Remuneration Committee.
• Adopted the Inside Information Policy.
• Adopted the Model Code for Securities Transactions and an employees’ share dealing rules.
• Adopted the Shareholders Communication Policy.

Climate Goals & Targets

Environmental Challenges

• US Federal Reserve concluded its Quantitative Easing Programme and poised to increase US dollar interest rate.
• Fewer sales recognition of residential units at Hopewell New Town.
• Decreased electricity sales of Heyuan Power Plant.
• Decreased toll revenue from GS Superhighway.
• Diversion impact from the Coastal Expressway on the GS Superhighway.
• Anti-parallel trading and appreciation in Hong Kong dollar posed challenges for Panda Hotel and the tourism industry in Hong Kong.
• Slower growth in tourist arrivals as a result of the appreciation in Hong Kong dollar, anti-parallel trading from March 2015 onwards and Occupy Central.
• Continuous rise in labour cost in the market.

Mitigation Strategies

• Implemented cost control measures to strengthen competitiveness.
• Implemented improvement plans and asset enhancement measures to maintain competitiveness and raise rental rates.
• Replaced some retail tenants with high quality F&B and lifestyle stores.
• Revamped the property’s podium façade.
• Implemented marketing plan to strengthen Panda Hotel’s MICE business.
• Refurbishment and renovation program for guestrooms and introduce an additional catering venue on M3 at Panda Hotel.
• Formulate and implement cost-control measures for the Group’s corporate administrative costs to enhance shareholder’s value.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines, Environmental, Social and Governance (ESG) Reporting Guide of the Hong Kong Exchanges and Clearing Limited (HKEx)

Third-party Assurance: Hong Kong Quality Assurance Agency

Awards & Recognition

• Hang Seng Corporate Sustainability Index constituent stock (2 consecutive years)
• Hang Seng Corporate Sustainability Benchmark Index constituent stocks (4 consecutive years)
• Hong Kong Outstanding Corporate Citizenship Logo (Enterprise Category)
• Bronze Award (Volunteer Team Category) in the 5th Hong Kong Corporate Citizenship Program
• HKIE Gold Medal (Sir Gordon Ying Sheung WU)
• Caring Company Logo 2014/2015 (HHL and ten subsidiaries)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection
• Community Investment
• Workplace Practices
• Stakeholder Engagement

Environmental Achievements

• Received World Green Organisation’s “Green Office” label and United Nations Millennium Development Goals’ “Better World Company” label
• Active participation in Government’s campaigns to reduce environmental impact (Waste Check Charter, Charter on External Lighting, Energy Saving Charter on Indoor Temperature, Carbon Reduction Charter)
• Heyuan Power Plant launched a new exhibition room to educate the public on energy efficiency and environmental protection measures.

Social Achievements

• Sponsored Lingnan University Fundraising Walkathon 2015, Wan Chai Sports Federation Soccer Team, Winter Garden Exhibition, and participated in various community events.
• Implemented Employee Assistance Programme and various employee social functions.
• Developed Management Trainee Programme, Summer Internship Programme and Hospitality Service Elite Selection Scheme.
• Collaborated with local social enterprise Green Monday to promote green lifestyle.

Governance Achievements

• Complied with all code provisions as set out in the CG Code, except for deviations from A.5.1 and A.5.6 (explained in the report).

Climate Goals & Targets

Environmental Challenges

• RMB depreciation causing exchange losses (GS Superhighway JV’s US Dollar loan and RMB deposit)
• Decreases in Heyuan Power Plant’s electricity sales, treasury income, and hospitality revenue.
• Slowdown in high-end retail in Hong Kong affecting retail rental income.
• Anti-parallel trading and appreciation of Hong Kong dollar impacting tourism and Panda Hotel's room revenue.
• Potential impact from toll-free implementation of Nanguang Expressway and Shenzhen section of Longda Expressway on GS Superhighway.

Mitigation Strategies

• Formulating and implementing cost-control measures for corporate administrative costs.
• Flexible marketing strategy for Panda Hotel to secure more advanced bookings and diversify customer mix.
• Continuous asset enhancement and tenant mix refinement for Hopewell Centre and QRE Plaza.
• Repositioning of E-Max as an entertainment hub.
• Closely monitoring the impact of toll-free expressways on GS Superhighway traffic.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Constituent stock of Hang Seng Corporate Sustainability Benchmark Index (5 consecutive years)
• 6th Hong Kong Outstanding Corporate Citizenship Merit Award (Enterprise Category)
• 6th Hong Kong Corporate Citizenship Logo (Volunteer Category)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection
• Community Investment
• Workplace Practices
• Stakeholder Engagement

Environmental Achievements

• Planned investment of more than RMB300 million to upgrade a flue gas emission system at Heyuan Power Plant.
• Completed Unit 2 upgrade at Heyuan Power Plant and commenced operation in March 2016.
• Installed approximately 2MW of rooftop solar panels at major buildings.
• Replaced deteriorated insulation at KITEC.
• Replaced fluorescent tubes with LED tubes at Panda Place.
• Installed Asia’s first City Tree outside Hopewell Centre.
• Installed more electric vehicle chargers at properties.
• Recycled 208kT of pulverized fuel ash, 46kT of gypsum, 17kT of slag, 0.3kT of crystalline salt, 0.6kT of pebble coal and 4.5kT of mud/sludge.
• Replaced low-mast sodium lamps with LED lights on GS Superhighway.
• Refitted high-pole lamps with energy-saving lights for GS Superhighway JV.
• Adopted energy-saving LED lights along all tunnel sections and toll plazas of Phase III West.

Social Achievements

• Awarded Merit Award (Enterprise Category) and HH Social Club received Corporate Citizenship Logo (Volunteer Category) of the 6th Hong Kong Corporate Citizenship Program.
• HHL and ten subsidiaries received the Caring Company Logo 2015/16.
• HHL was presented Manpower Developer 1st (2010-2018) of the 6th ERB Manpower Developer Award Scheme.
• HHL won Best IR Company – Mid Cap of the HKIRA 2nd Investor Relations Award.
• HHL received Family-Friendly Employer 2015/16 awards.
• Over 8,800 training hours provided in FY16.
• Employee Assistance Programme offered stress management and wellness-related training and counselling services.
• Donation of HK$969,000 for charitable purposes.

Governance Achievements

• Established a Sustainability Steering Committee.
• Formal stakeholder engagement process implemented.
• Independently verified Sustainability Report issued under GRI and HKEx ESG Reporting Guide.
• Compliance with all code provisions of the CG Code except for deviations from A.5.1 and A.5.6 (explained in the report).

Climate Goals & Targets

Environmental Challenges

• Uncertainty in the global economy due to US interest rate hike and Brexit.
• Sluggish external demand and weak tourism impacting Hong Kong's economy.
• RMB depreciation causing exchange losses.
• Decreased electricity sales at Heyuan Power Plant.
• Decreased revenue in hospitality business.
• Anti-parallel trading and appreciation of HK Dollar impacting tourism.
• Softening demand and challenging economic environment impacting GardenEast.
• Ship collisions impacting GS Superhighway.

Mitigation Strategies

• Defensive rental strategy for office spaces focusing on renewing leases with flexible terms.
• Increasing the proportion of F&B in retail portfolio to capture local consumption.
• Asset enhancement initiatives at E-Max to attract renowned brands.
• Flexible marketing strategy and diversification of customer mix at Panda Hotel.
• Ongoing refurbishment and renovation program at Panda Hotel.
• Upgrading operational efficiency and installing automated equipment at GS Superhighway.
• Organizational structure review at GS Superhighway to streamline workforce.
• Installing energy-saving LED lights at GS Superhighway.
• Implementing precautionary measures at GS Superhighway navigable bridges to reduce ship collision possibility.
• Reducing RMB exposure to mitigate exchange risk.

Supply Chain Management

Responsible Procurement

• Supplier assessment

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines, HKEx Environmental, Social and Governance (ESG) Reporting Guide

Third-party Assurance: Hong Kong Quality Assurance Agency

Awards & Recognition

• Hang Seng Corporate Sustainability Benchmark Index constituent stock (5 consecutive years)
• Honorary Fellowship of Lingnan University (Thomas Wu)
• Merit Award (Enterprise Category) and Corporate Citizenship Logo (Volunteer Category)
• Caring Company Logo 2015/16 (HHL and 10 subsidiaries)
• Manpower Developer 1st (2010-2018)
• Best IR Company – Mid Cap
• Family-Friendly Employer 2015/16 awards

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection
• Community Investment
• Workplace Practices
• Stakeholder Engagement

Environmental Achievements

• Installed a “super-low” emissions system and 24-hour continuing monitoring system of air pollutants at Heyuan Power Plant.
• Recycled around 150,000 kg of food waste and 55,000 litres of used cooking oil from Panda Hotel and IT Catering and Services Limited.
• Recycled more than 6,000 kg of used glass bottles into eco-bricks.
• Adopted renewable energy device, such as roof-top solar panels which generated over 2 GWh of energy in FY18 at Heyuan Power Plant.

Social Achievements

• Awarded Merit Award (Enterprise Category) and HH Social Club received the Corporate Citizenship Logo (Volunteer Category) at the 8th Hong Kong Corporate Citizenship Program.
• HHL and ten of its subsidiaries received the Caring Company Logo 2017/18 from the Hong Kong Council of Social Service.
• HHL received the Happy Company Label 2018.
• HHL was presented Manpower Developer 1st (2010-2020).
• Organised the Tuen Ng Volunteer Programme for eight consecutive years, serving nearly 7,000 singleton elderly.
• Organised the Hopewell Junior Volunteers Programme for the third consecutive year.
• Supported numerous community programmes and initiatives through donations, fundraising and in-kind sponsorships, involving around 100 programmes and around HK$3,000,000 in value.

Governance Achievements

• Established a Sustainability Steering Committee and a CSR Sub-committee.
• Established a Sustainability Policy.
• Issued an independently verified Sustainability Report under the Global Reporting Initiative (GRI) Sustainability Reporting Standard and the Environmental, Social and Governance (ESG) Reporting Guide of the Stock Exchange.
• Implemented a Whistle Blowing Policy.

Climate Goals & Targets

Environmental Challenges

• Fall in toll road’s contribution given HHI Disposal and decrease in Hopewell New Town property sales recognition given tightening policies in PRC property market.
• Rise of trade protectionism, political uncertainties and the imminent US interest rate hike.
• Decreases in profit recognition of Hopewell New Town project and profit shared from Heyuan Power Plant.
• Softened demand given increase in office supply in Kowloon East.
• Keen competition of office rental market in Kowloon East.

Mitigation Strategies

• Realized investment in HHI to re-deploy proceeds to fund Hopewell Centre II, redevelopment of Hill Side Terrace Cluster and 153–167 QRE, strengthen working capital, and explore new investment opportunities.
• Adopting a defensive rental strategy for office rental business which will focus on securing existing lease with a flexible lease term.
• Implementing asset enhancement measures on facilities and services to maintain competitiveness and uplift rental rates.
• Exploring cost-effective ways to control the construction costs and increase the profitability at Hopewell New Town.
• Initiated further AEI to upgrade services and facilities and improve the image of KITEC.
• Formulating and implementing suitable cost-control measures at Heyuan JV.

Supply Chain Management

Responsible Procurement

• Contractor Assessment Procedure
• Environmental and Social Responsibility Code of Conduct
• Environmental Guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, ESG Reporting Guide of the Stock Exchange

Certifications: ISO 14001

Third-party Assurance: Independently verified

Awards & Recognition

• Merit Award (Enterprise Category)
• Corporate Citizenship Logo (Volunteer Category)
• Caring Company Logo 2017/18
• Happy Company Label 2018
• Manpower Developer 1st (2010-2020)
• Certificate of Excellence at the HKIRA 4th Investor Relations Awards

Environmental Metrics

ESG Focus Areas

• Community Development
• Employee Well-being
• Environmental Protection
• Responsible Supply Chain
• Corporate Governance

Environmental Achievements

• Reduced office electricity consumption by over 5% compared to 2016/17.
• Replaced over 1,300 lighting fixtures in most commercial and residential buildings with LED lights.
• Implemented a cooling system upgrade at Hopewell Centre, reducing electricity consumption by approximately 12%.
• Recycled over 430 tons of food waste over the past four years.
• Hopewell Centre Phase II project incorporated environmental and human-centric measures, including green spaces and sustainable construction techniques.

Social Achievements

• Launched the Hopewell Heart to Heart program, encouraging employee volunteerism and exceeding 3,854 volunteer hours.
• Implemented a mobile application to enhance communication between management and employees.
• Organized various recreational activities for employees and their families.
• Established a 24-hour confidential employee assistance program hotline.
• Supported the UN Children's Fund's breastfeeding campaign.

Governance Achievements

• Expanded the Sustainability Steering Committee to enhance governance.
• Implemented a comprehensive risk management framework.
• Established a clear whistleblowing policy.

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions and energy consumption.
• Managing waste effectively.
• Maintaining high standards of customer health and safety.
• Ensuring responsible supply chain management.

Mitigation Strategies

• Implemented measures aligned with Hong Kong's Urban Energy Blueprint 2015-2025+ and Climate Action Plan 2030+.
• Implemented waste reduction and recycling programs.
• Provided regular training and internal safety procedures to enhance employee safety awareness.
• Required suppliers and contractors to comply with environmental, anti-corruption, anti-discrimination, human rights, and health and safety regulations.

Supply Chain Management

Supplier Audits: Annual assessments of suppliers' environmental and safety performance (e.g., at the Royal Pacific Hotel).

Responsible Procurement

• Compliance with environmental, anti-corruption, anti-discrimination, human rights, and health and safety regulations.
• Preference for local suppliers where feasible.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (Core Option), HKEX Environmental, Social and Governance Reporting Guide

Certifications: ISO 14001 (some properties)

Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Various awards and recognitions listed in the report (e.g., Bank of China Hong Kong Corporate Environmental Leadership Award, Business in the Community Award).