Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental practices and their performance
• Commitments to employees
• Recruiting, engaging and retaining talents
• Commitments to customers
• Building trusts through quality and reliability of services and products with customers
• Protecting customers privacy
• Anti-corruption prevention
• Community support and contribution

Environmental Achievements

• Implemented Green Environmental Policy and Procedure to minimize environmental impact, reduce waste, and conserve resources.
• Reduced indirect GHG emissions of CO2 from electricity use in Singapore and Vietnam offices (target to lower by 5% in the coming year).

Social Achievements

• Maintained a safe working environment with zero occupational accidents in 2019.
• Provided regular occupational safety training to employees.
• Offered internal and external training programs to enhance employee skills and capabilities.
• Complied with all relevant labor laws and regulations in Singapore and Vietnam.
• Contributed to society by employing 32 young professionals and supporting community involvement.

Governance Achievements

• Established three Board committees: Audit, Remuneration, and Nomination.
• Complied with most code provisions of the Corporate Governance Code (CG Code), except for the separation of Chairman and CEO roles.

Climate Goals & Targets

Environmental Challenges

• Challenging industry sector due to uncertain global environment (US-China trade war, rising costs, coronavirus outbreak).
• High employee turnover rate in civil and engineering consulting business due to project-specific skills.

Mitigation Strategies

• Continuously evaluating business strategies and capital use to improve overall performance.
• Actively seeking to diversify revenue sources through acquisitions.
• Implementing measures to reduce employee turnover (improving talent search, offering competitive pay, enhancing skills, developing career paths).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizes local suppliers to support local economy.
• Considers quality, fair pricing, and environmental friendliness when selecting suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Global warming
• Conservation of fresh water

Transition Risks

• Not disclosed

Opportunities

• Designing and developing green buildings and projects.

Reporting Standards

Frameworks Used: GEM Listing Rules ESG reporting guide

Certifications: ISO 9001: 2015, ISO 14001:2015

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Green buildings and projects

Awards & Recognition

• 2019 BCA Construction Productivity Awards — Advocates (Consultant) Gold Award, Singapore

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2e emissions by approximately 26% due to the Singapore government lowering its CO2 emission factor, along with the replacement of computers to more power efficient units.
• Green buildings and projects have been awarded recognitions by authoritative organizations for its environmental friendliness and sustainability

Social Achievements

• Zero work-related accidents or safety issues in 2020.
• 9.40% of employees received internal training and 36.91% received external training in 2020.
• No labor disputes or litigations were reported in 2020.
• Approximately HK$264,000 used for scholarships, HK$40,000 donated to Run for the Heart, and HK$15,000 donated to the CapitaLand Hope Foundation.

Governance Achievements

• Established three committees: Audit Committee, Remuneration Committee, and Nomination Committee.
• Complied with all code provisions as set out in the Corporate Governance Code (except Provision A.2.1).

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted global business environment, disrupting supply chains and construction projects.
• Slowdown in economy due to COVID-19 pandemic.
• Social unrest in Hong Kong and COVID-19 pandemic delayed the utilization of Net Proceeds from the Share Offer.

Mitigation Strategies

• Actively engaging in projects beneficial to the long-term development of the Group.
• Continuously evaluating business strategies and financing performance.
• Actively looking to diversify revenue sources.
• Implementing measures to reduce electricity consumption, fresh water consumption, and paper consumption.
• Implementing measures to reduce employee turnover.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Tries to purchase items which are environmentally friendly and legally compliant.

Climate-Related Risks & Opportunities

Physical Risks

• Global warming
• Conservation of fresh water

Transition Risks

• Not disclosed

Opportunities

• Designing and developing green buildings and projects

Reporting Standards

Frameworks Used: ESG reporting guide (Appendix 20 of the GEM Listing Rules), Hong Kong Stock Exchange’s principles

Certifications: ISO 9001: 2015, ISO 14001:2015

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Green buildings and projects

Awards & Recognition

• 2019 BCA Construction Productivity Awards — Advocates (Consultant) Gold Award, Singapore

Environmental Metrics

Environmental Challenges

• COVID-19 pandemic and subsequent quarantine measures, travel restrictions, and slowdown in project progress due to construction industry shutdowns.
• Social unrest in Hong Kong and US-China trade war impacting global demand and rising costs in operating regions.

Mitigation Strategies

• Compliance with work-from-home requirements.
• Leveraging government financial measures and support.
• Rent concessions from lessors.
• Continuous evaluation of business strategies and capital use.
• Actively seeking diversification of revenue sources through acquisitions (none identified as of report date).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IAS 34

Environmental Metrics

ESG Focus Areas

• Emissions
• Use of Resources
• Employment
• Health and Safety
• Development and Training
• Labour Standards
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced CO2 emission by 34% in Vietnam due to work from home policy

Social Achievements

• Provided regular occupational safety trainings to employees
• Offered anti-corruption training to employees

Governance Achievements

• Established three committees: Audit Committee, Remuneration Committee, and Nomination Committee

Climate Goals & Targets

Environmental Challenges

• Surge of COVID-19 cases in Vietnam resulting in lockdown measures and supply chain disruptions
• Construction progress slowed down due to supply chain disruptions and manpower shortages
• Rising costs in Singapore, Vietnam, and Hong Kong affecting economics
• Intellectual property rights infringement

Mitigation Strategies

• Implemented work from home policy in Vietnam
• Controlled expenditure and ensured adequate liquidity
• Actively engaged in projects beneficial to long-term development
• Sent cease and desist letter to infringing party, monitoring the situation and considering legal action

Supply Chain Management

Responsible Procurement

• Prioritising purchases with local suppliers to support local economy
• Purchasing environmentally friendly and legally compliant items

Climate-Related Risks & Opportunities

Awards & Recognition

• 2019 BCA Construction Productivity Awards — Advocates (Consultant) Gold Award, Singapore

Environmental Metrics

ESG Focus Areas

• Emissions
• Use of Resources
• Environment and Natural Resources
• Climate Change
• Employment
• Health and Safety
• Development and Training
• Labor Standards
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Implemented green office practices such as encouraging the use of recycled paper, printing on both sides, reducing energy consumption by switching off idle lights, air-conditioning and electrical appliances.
• Replaced old water taps in the office washroom with new ones that have water-efficient labels, resulting in lower water usage.
• Introduced measures to achieve energy use efficiency, such as advising staff to turn off unused electrical appliances, use natural ventilation, and not set air conditioner temperatures lower than 25°C.

Social Achievements

• Honored all obligations regarding salaries, wages, statutory benefits, and agreed benefits under employment contracts.
• Provided regular occupational safety trainings to employees.
• Organized work safety and occupational trainings to employees on a regular basis.
• Provided general medical insurance and adequate level of accident insurance to employees in Singapore and statutory insurance coverage in Vietnam.
• Implemented internal training programs in areas of occupational safety, technical skills, environment protection, and internal knowledge.
• Offered opportunities for senior managers to attend external training programs/workshops/seminars.
• Maintained strict compliance with laws related to equal employment opportunities and prevention of child or forced labor.
• Donated approximately HK$21,698 to the Memorial Blood Centers Donation 2023, HK$10,798 to the 2023 Malaysia Independence Day Event, HK$31,908 to the Run for Heart Event, and provided a sponsorship of approximately HK$2,900 to Care Community Limited.

Governance Achievements

• Maintained high corporate governance standards based on the principles and code provisions of the Corporate Governance Code.
• Complied with the Required Standard for securities transactions by directors and relevant employees.
• Established three committees: Audit Committee, Remuneration Committee, and Nomination Committee.
• Implemented a set of internal policy and guidance on its management of Investment Targets with effect from 1 April 2024.

Climate Goals & Targets

Environmental Challenges

• Global geopolitical and economic uncertainties causing disruptions of production, supply chain, logistics, interest rate hikes, and rising costs.
• Competitive industry with inflationary pressures and labor shortages, dampening profitability.
• Increased operational expenses due to labor shortage and rise in material cost.
• Difficulty obtaining sufficient appropriate audit evidence for the auditor to perform field works on EIDEA, an associate company.

Mitigation Strategies

• Implementing tight cost control measures in operations without compromising service quality.
• Actively exploring other revenue sources through business acquisitions or projects with promising outlooks.
• Further enhancing the Group’s workforce to provide quality and efficient services.
• Implementing a set of internal policy and guidance on its management of Investment Targets.
• Exploring options to resolve the audit issue with EIDEA, including renegotiation, share buyback proposal, and share sale proposal.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Giving preferential status to local suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange Environmental, Social, and Governance Reporting Guide

Certifications: ISO 9001: 2015, ISO 14001: 2015, bizSAFE Level 3 Certificate

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green buildings and projects

Awards & Recognition

• BCA Construction Productivity Awards — Advocates (Consultant) Gold Award
• SGBuilds Star Award
• Winner of the Design for Manufacturing and Assembly by IStructE
• Design and Engineering Safety Award 2023