SEM Holdings Limited
Climate Impact & Sustainability Data (2016-12 to 2018-12, 2023)
Reporting Period: 2016-12 to 2018-12
Environmental Metrics
Climate Goals & Targets
Short-term Goals:
- Establish an E&M maintenance department within one year after listing.
Environmental Challenges
- Concentration of revenue from top five customers (particularly Customers A and B).
- Non-recurring nature of projects.
- Potential for delays and defaults in payments from customers.
- Requirement for performance bonds.
- Potential labor shortages.
- Potential for construction and labor disputes.
- Potential for defects in works.
- Potential for delays in project completion.
- Potential for uninsured losses.
- Potential increase in depreciation and amortization expenses.
- Potential need for additional capital.
Mitigation Strategies
- Strengthening financial position to undertake larger projects.
- Establishing an E&M maintenance department.
- Strengthening manpower.
- Diversifying customer base.
- Active exploration of new tendering opportunities.
- Stringent selection of suppliers and subcontractors.
- Effective quality control measures.
- Insurance policies (though limitations acknowledged).
Supply Chain Management
Responsible Procurement
- Maintaining an internal approved list of suppliers, regularly reviewed based on various factors.
Climate-Related Risks & Opportunities
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:83.06 tonnes CO2e
Scope 1 Emissions:1.75 tonnes CO2e
Scope 2 Emissions:83.06 tonnes CO2e
Scope 3 Emissions:10.56 tonnes CO2e
Total Energy Consumption:72,579.00 kWh
Water Consumption:730.00 m3
Waste Generated:12.35 tonnes
ESG Focus Areas
- Environmental protection
- Employment and labour practices
- Operational practices
- Community investment
Environmental Achievements
- Signed the “BEC Netzero Carbon Charter – Action Signatory” to embark its decarbonisation journey toward net zero.
Social Achievements
- Established occupational health and safety management system to minimise accidents in the workplace
- Offered a total of 3,260 hours of internal safety training courses to 244 workers
- Enrolled in the “Mental Health Workplace Charter” and participated in workshop jointly organised by the Department of Health, the Labour Department and the Occupational Safety and Health Council
Governance Achievements
- Adopted the principles, the mandatory disclosure requirements and the applicable code provisions as set out in the Corporate Governance Code
Climate Goals & Targets
Long-term Goals:
- Net zero emissions
Environmental Challenges
- Loss-making project in Macau SAR
- Increased labour costs in Hong Kong and Macau markets due to prolongation of projects
- Lower profit margins as a result of higher labour costs and material costs in Macau and Hong Kong market and fierce competition in the construction market
- Workforce shortages and project delays
Mitigation Strategies
- Strategically expanded its E&M maintenance department
- Actively pursuing additional E&M engineering projects, particularly in the Hong Kong market
- Restructuring its project management team and digitised the workflow
Supply Chain Management
Responsible Procurement
- Standard acceptance procedures such as obtaining attainment and business registration documents, sample testing and site visiting
Climate-Related Risks & Opportunities
Physical Risks
- Storm, fold and heatwave
- Extreme weather events