Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Sustainability
• Corporate Governance

Environmental Achievements

• Reduced Scope 1 GHG emissions due to regulation of official vehicle use.
• Dramatic decline of GHG emissions per economic growth (FY2019: 5.57×10 -3 tonnes/HK$’000; FY2018: 1.82×10-2 tonnes/HK$’000)
• Implemented 'Anti-pollution and Anti-noise Construction Scheme' in all property development and water mining projects.
• Significant efforts made to reduce wastewater generated from onsite operations in water business.
• Nearly 22% lower paper usage compared to FY2018.

Social Achievements

• Provided employment injury insurance to employees.
• Organized various employee activities (annual banquet, Christmas party).
• Implemented 'Supplier Management Approach' to manage and evaluate suppliers.
• Complied with laws and regulations to prohibit child and forced labor.
• Established an effective grievance mechanism to protect whistle-blowers.

Governance Achievements

• Board assumes overall responsibility for ESG strategy, management, and reporting.
• Board integrates ESG-conducive policies into codes, rules, and guidance.
• Two-way engagement with stakeholders for ESG information gathering.

Climate Goals & Targets

Environmental Challenges

• High demand of electricity for construction work in property development and investment business.
• Waste management, especially waste generated during construction work and water business.
• Potential climate-related risks.

Mitigation Strategies

• Embedded 'Saving Electricity' into business strategy and daily operations.
• Implemented 'Anti-pollution and Anti-noise Construction Scheme'.
• Strengthened monitoring mechanisms to track material consumption.
• Developed crisis management plans for health and safety incidents.
• Exploring new business models for retrofit and investing and innovating on the way to the zero-carbon economy.

Supply Chain Management

Responsible Procurement

• 'Green Procurement'
• 'Supplier Management Approach'

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 – Environmental, Social and Governance Reporting Guide of Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 9001:2015, ISO 45001: 2018, ISO 14001:2015, ISO 37001: 2016

UN Sustainable Development Goals

• Goal 3 (Good health and well-being)
• Goal 6 (Clean water and sanitation)
• Goal 10 (Reduced inequality)
• Goal 12 (Responsible consumption and production)

The Group has committed to laying the emphasis on the specific targets under these four goals.

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Sustainability
• Governance

Environmental Achievements

• Reduced total GHG emissions intensity by 36.60% compared to FY2019
• Reduced electricity consumption by 45.24% compared to FY2019
• Reduced water consumption by 53.74% compared to FY2019
• Zero work-related injury or fatality cases

Social Achievements

• Implemented numerous measures to safeguard employee well-being during the COVID-19 pandemic
• Provided mandatory social insurance and medical insurance schemes for employees
• Organized various training programs for employees
• Complied with all applicable laws and regulations related to employment

Governance Achievements

• Complied with the requirements under Appendix 27 – Environmental, Social and Governance Reporting Guide of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited
• Board referred to the Guide for Board and Directors published by the Stock Exchange in March 2020 in strengthening its oversight of the Group’s ESG management
• Established a two-way ESG dialogue mechanism

Climate Goals & Targets

Environmental Challenges

• GHG emissions due to the consumption of electricity and fossil fuels
• Generation of commercial solid wastes and sewage
• Waste management, especially waste generated during construction work and water business

Mitigation Strategies

• Implementing effective policies and measures in construction work to minimize GHG emissions
• Adopting energy-efficient measures during daily operations
• Implementing internal policy “Anti-pollution and Anti-noise Construction Scheme”,
• Investing in and exploring new business models for retrofit in an environmentally friendly manner
• Strengthening monitoring on site on the quality and quantity of discharged sewage and waste management
• Establishing a real-time platform and building a professional team comprised of experts in waste management

Supply Chain Management

Responsible Procurement

• Internal “Supplier Management Approach”

Climate-Related Risks & Opportunities

Transition Risks

• Market changes due to rising environmental awareness

Reporting Standards

Frameworks Used: Appendix 27 – Environmental, Social and Governance Reporting Guide of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

UN Sustainable Development Goals

• Goal 3 (Good health and well-being)
• Goal 4 (Quality education)
• Goal 6 (Clean water and sanitation)
• Goal 10 (Reduced inequality)
• Goal 12 (Responsible consumption and production)

The Group has meticulously evaluated its interconnections with these five objectives and resolves to focus on the following areas for improvement

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Pollutant Emission
• Use of Energy and Resources
• Climate Change
• Employment and Equality
• Employee Remuneration and Benefit
• Occupational Health and Safety
• Development and Training
• Supplier Management
• Quality Assurance
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced direct GHG emissions (Scope 1) from 13.59 tCO2e to 6.10 tCO2e.
• Maintained zero cases related to work-related injuries or deaths.
• Achieved zero employee casualties for three consecutive years.

Social Achievements

• Implemented an equal opportunity policy against discrimination.
• Provided 148 hours of training to employees.
• Maintained zero lost days due to work-related injuries.

Governance Achievements

• Established effective whistle-blowing mechanisms.
• Provided anti-corruption training to all directors.
• Implemented zero tolerance against any corruption or fraud.

Climate Goals & Targets

Environmental Challenges

• Waste management, especially waste generated from property development and water operations.
• Potential impact of climate change on the Group’s business and operations.
• Increased frequency and severity of extreme weather events.

Mitigation Strategies

• Implemented the internal policy “Anti-pollution and Anti-noise operation Scheme”.
• Implemented contingency plans, including flexible working arrangements and precautions in the event of severe or extreme weather conditions.
• Actively adopts power-saving and energy-saving measures to reduce greenhouse gas emissions.
• Established waste management methods that comply with the “Administrative Measures for Urban Living Garbage” and the “Technical Code for Construction and Demolition Waste Treatment” of the PRC.

Supply Chain Management

Supplier Audits: 5 suppliers in China, 20 in Hong Kong. Site visits conducted.

Responsible Procurement

• Supplier Management Measures
• Green Procurement (prioritizing local suppliers and environmentally friendly products)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, storms, torrential rain, extreme cold or extreme hot weather)

Transition Risks

• Tightening of national policies, implementation of environment-related taxes, customer preference for greener companies

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 6 (Clean water and sanitation)
• Goal 8 (Decent work and economic growth)
• Goal 13 (Climate action)
• Goal 17 (Partnerships for the goals)

The Group's initiatives in water management, energy efficiency, employment practices, climate change mitigation, and community engagement contribute to these goals.

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Pollutant emission
• Use of energy and resources
• Climate change
• Employment and equality
• Employee remuneration and benefit
• Occupational health and safety
• Development and training
• Supplier management
• Quality assurance
• Anti-corruption
• Community Investment

Environmental Achievements

• Zero cases related to work-related injuries or deaths during the Reporting Period.
• Implemented measures to reduce fuel consumption and electricity usage, resulting in reduced GHG emissions compared to the previous year (though overall emissions increased due to business expansion).

Social Achievements

• Zero employee casualties for three consecutive years (including the Reporting Period).
• Zero lost working days due to work-related injuries during the Reporting Period.
• Provided 241 hours of employee training (2022: 148 hours).

Governance Achievements

• Established whistle-blowing mechanisms for employees to report suspected corrupt activity.
• All directors received anti-corruption training.

Climate Goals & Targets

Environmental Challenges

• Increased emissions and resource consumption due to the acquisition of new properties for lease in Suzhou.
• Potential impacts of climate change, including extreme weather events and stricter climate-related regulations.
• COVID-19 pandemic initially impacted operations, leading to lower fuel consumption and electricity usage in the previous year.

Mitigation Strategies

• Implemented contingency plans for extreme weather events.
• Regularly monitors existing and emerging climate-related policies and regulations.
• Implemented various measures to reduce fuel consumption, electricity consumption, and water consumption.
• Implemented COVID-19 prevention measures in the workplace.

Supply Chain Management

Supplier Audits: 20 suppliers (7 in China, 13 in Hong Kong)

Responsible Procurement

• Supplier Management Measures (assessing suppliers based on ESG issues, product quality, etc.)
• Green Procurement (prioritizing local and environmentally friendly suppliers)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, storms, etc.)

Transition Risks

• Stricter climate-related legislation and regulations

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 13 (Climate Action)
• Goal 12 (Responsible Consumption and Production)

The report details how the company's initiatives contribute to these goals.

Environmental Metrics

ESG Focus Areas

• Employment and equality
• Employee remuneration and benefits
• Occupational health and safety
• Supplier management
• Anti-corruption
• Development and training
• Quality assurance
• Community investment
• Environment protection
• Pollutant emission
• Use of energy and resources
• Climate change

Environmental Achievements

• Zero cases related to work-related injuries or deaths during the Reporting Period.
• Reduced GHG emissions intensity (tCO2e/employee) from 2.94 in 2023 to 2.47 in 2024.

Social Achievements

• Employee turnover rate decreased from 14.29% in 2023 to 3.54% in 2024.
• Zero employee casualties for three consecutive years, including the Reporting Period. Zero lost working days due to work-related injuries.

Governance Achievements

• Established whistle-blowing mechanisms for employees to report suspected corrupt activity.
• All directors received anti-corruption training.

Climate Goals & Targets

Environmental Challenges

• Increased exhaust gas emissions due to commencement of water mining operations in Hunan.
• Increased GHG emissions due to commencement of water mining operations in Hunan.
• Increased energy consumption due to commencement of water mining operations in Hunan.
• Increased water consumption due to commencement of water mining operations in Hunan.
• Stringent climate-related legislations and regulations increasing compliance costs.
• Reputational risks from failing to meet stakeholder expectations on climate change response.

Mitigation Strategies

• Implemented the “Anti-pollution and Anti-noise Operation Scheme” across all projects.
• Implemented power-saving and energy-saving measures.
• Implemented water conservation measures.
• Developed contingency plans for extreme weather events.
• Regularly monitors existing and emerging climate-related policies and regulations.
• Provides anti-corruption training to employees.

Supply Chain Management

Supplier Audits: 23 suppliers (2023: 20 suppliers); site inspections conducted.

Responsible Procurement

• Supplier Management Measures assessing suppliers on ESG issues, product quality, qualifications, etc.
• Green Procurement prioritizing local suppliers and environmentally friendly products.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, storms, torrential rain, extreme cold/heat).

Transition Risks

• Stringent climate-related legislations and regulations.
• Reputational risks from failing to meet stakeholder expectations.

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix C2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 13 (Climate Action)
• Goal 12 (Responsible Consumption and Production)

Initiatives described in the report contribute to these goals.