Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced number of physical branches in Mainland China from 46 to 30, decreasing environmental impact.
• Established energy and resource conservation initiatives at head office, including a paper-free office initiative and online banking.
• UAF joined the “Charter on External Lighting” to minimize light nuisance and energy wastage.
• Actively participated in recycling schemes and the “Enough Plastic” campaign.

Social Achievements

• Launched unlimited paid leave scheme to improve work-life balance.
• Invested in technology infrastructure to enable remote and flexible work.
• UAF launched a “No Show” personal loan product to reduce paper usage.
• 49% of new loans at UAF originated through electronic channels.
• Implemented electronic statements to replace paper statements.

Governance Achievements

• Established a Whistle Blower Policy to report unlawful conduct and corruption.
• Implemented an internal control framework with stringent policies to enforce against corruption.
• All relevant staff completed Anti-Money Laundering & Counter-Terrorist Financing e-learning courses.

Climate Goals & Targets

Environmental Challenges

• Significant energy usage and emissions from UAF's physical branch operations.
• Managing paper usage across the group.

Mitigation Strategies

• Consolidated UAF's consumer finance branches in Mainland China and increased online presence.
• Implemented paper-free initiatives, online banking, and electronic statements.
• Encouraged use of teleconferencing to reduce emissions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Procurement decisions based on pricing, suitability, delivery time, reputation, and experience of suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Caring Company Award (SHK & Co. and UAF)
• Good MPF Employer Award (SHK & Co.)
• ERB Manpower Developer Award Scheme (UAF)
• Social Capital Builder Award (UAF)
• Partner Employer Award (UAF)
• The Hong Kong Corporate Citizenship Logo (UAF)
• Environmental Bureau – The Charter on External Lighting Award Ceremony (UAF)
• Hong Kong Green Organization Certification – Wastewise Certificate (UAF)
• Happy Company (UAF)
• Good Employer Charter (UAF)
• Racial Diversity & Inclusion Charter (UAF)
• Family-Friendly Employers Award (UAF)
• Volunteer Movement Participating Organization (UAF)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Business Integrity and Ethics
• Compliance with Laws and Regulations
• Risk Management
• Customer Engagement and Relations
• Data Privacy and Security
• Product and Service Quality
• Responsible Marketing
• Talent Recruitment and Retention
• Development and Training
• Diversity and Equal Opportunities
• Employee Health and Wellbeing
• Community Investment and Engagement
• Community Partnership
• Climate Change Adaptation
• Energy and Resource Use
• Paperless Operations
• Investment in Green Finance

Environmental Achievements

• 8% decrease in electricity consumption due to a slight reduction in branch network
• 19% decrease in water consumption due to fewer employees working in offices and branches because of COVID-19
• UAF awarded Hong Kong Green Organisation Certification — Wastewi$e Certificate (Basic Level) in 2020 by the Environmental Protection Department
• Head office located in a Final Platinum certified building under Hong Kong’s BEAM Plus Existing Buildings Certification (Commercial Building)

Social Achievements

• SHK&Co. named a “Good MPF Employer” by Manulife for over six years
• UAF continued to sign the “Good Employer Charter” organised by the Labour Department
• UAF continued to pledge to “The Racial Diversity and Inclusion Charter for Employers,” run by the “Equal Opportunities Commission”
• SHK&Co. and UAF Hong Kong were awarded the “Manpower Developer” from the Employees Retraining Board for three and eight consecutive years respectively
• 17,787 hours of training completed by Group’s frontline and supporting employees (2019: 14,390 hours)
• SHK&Co. has been named a “Caring Company” for the 5th consecutive year, and UAF for the 16th consecutive year

Governance Achievements

• Established an ESG Working Committee under the Risk Management Committee to advise on ESG vision, objectives, and strategy, and monitor compliance with laws, regulations, and international standards
• No complaints or legal cases alleging any form of corruption during the Reporting Period
• 88 employees of UAF completed 44 hours of Anti-Money Laundering and Counter-Terrorist Financing training; 611 employees completed 305.5 hours of anti-bribery training

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting community activities and in-person training
• Potential disruptions to daily operations due to changes in weather patterns and increased severity of extreme weather events

Mitigation Strategies

• Implemented work-from-home arrangements, alternate-day office attendance, provided masks and self-testing kits, hardship allowance for junior staff (SHK&Co. and Sun Hung Kai Credit)
• Developed decision-tree and checklist for different risk scenarios to help employees determine whether it was appropriate to proceed business-as-usual (UAF)
• Developed emergency protocols to handle extreme weather events (outlined in the Employee Handbook)

Supply Chain Management

Responsible Procurement

• Suppliers selected based on pricing, reputation, track record, and value-added service; for UAF, also considers violation record and conflict of interest

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting operations

Reporting Standards

Frameworks Used: Hong Kong ESG Guide

Certifications: Wastewi$e Certificate (Basic Level)

Sustainable Products & Innovation

• YES UA mobile app for loan applications
• No Show Personal Loan service for digital loan applications

Awards & Recognition

• SHK&Co. Listed Company Awards of Excellence (2018–2020)
• Listed Enterprises of the Year (2018–2020)
• Manpower Developer Award (2018–2020)
• Caring Company Award (2016–2021)
• Gold Award for Excellence in ESG (2013–2018, 2020)
• Good MPF Employer (2014–2020)
• Best Performance of School-Company Partnership (2007–2020)
• Caring Company Award (2005–2021)
• Charter on External Lighting (2016–2021)
• Drive for Corporate Citizenship & Volunteer Team (2017–2020)
• Family-Friendly Employers Award (2017–2020)
• Good Employer Charter (2018–2022)
• Happy Company Award (2017–2020)
• Manpower Developer Award (2012–2022)
• Partner Employer Award (2016–2020)
• Racial Diversity & Inclusion Charter for Employers (2020–2021)
• Social Capital Builder (2016–2022)
• Volunteer Movement Participating Organisation (since 2016)
• Wastewi$e Certificate (2016–2020)
• Gold Award from the “Charter on External Lighting” (UAF)

Environmental Metrics

ESG Focus Areas

• Business
• Investors and Customers
• Employees
• Communities
• Environment

Environmental Achievements

• Achieved the World Green Organisation’s “Green Office Awards Labelling Scheme”
• Reduced electricity consumption by approximately 8% compared to the previous Reporting Period
• Reduced water consumption by approximately 11% compared to the previous Reporting Period
• Reduced paper consumption by approximately 5% compared to the previous Reporting Period

Social Achievements

• SHK & Co. was named as a “Good MPF Employer” by the Mandatory Provident Fund Schemes Authority for over six years.
• SHK & Co. also received the “Happy Company Award 2021”
• UAF was awarded the “Equal Opportunity Employer Recognition Scheme — Racial Equality and Inclusion” by the Equal Opportunities Commission
• UAF continued to pledge to the “Racial Diversity and Inclusion Charter for Employers” run by the EOC

Governance Achievements

• Appointed two new independent non-executive directors to strengthen the gender, age and ethnicity inclusion on the Board
• No complaints or legal cases alleging any form of corruption received during the Reporting Period

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Extreme weather events
• Climate change risks

Mitigation Strategies

• Implemented a full range of good hygiene and sanitation measures, flexible work arrangement, vaccination lucky draw, distribution of COVID-19 testing kits
• Established a series of emergency protocols for the office to handle extreme weather events
• Conducted a preliminary climate-related risk analysis according to the TCFD framework

Supply Chain Management

Supplier Audits: 673 suppliers engaged

Responsible Procurement

• Supplier selection based on pricing, reputation, track record of good practices and value-added services
• Procurement of FSC paper

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 27001 (UAF)

Awards & Recognition

• SHK & Co. Listed Company Awards of Excellence (2018–2021)
• Listed Enterprises of the Year (2018–2021)
• The 6th Golden Hong Kong Stocks Awards (2021)
• Titanium Award of Corporate ESG Awards (2019, 2021)
• Gold Award of Corporate ESG Awards (2013–2018, 2020)
• The Asset Green Office Awards Labelling Scheme
• Good MPF Employer (2014–2021)
• Caring Company 5 Years + (2016–2021)
• Happy Company Award (2021)
• Manpower Developer Award (2018–2020)
• Best Performance of School-Company Partnership (2007–2021)
• Caring Company 15 Years + (2005–2022)
• Charter on External Lighting (2016–2022)
• Drive for Corporate Citizenship & Volunteer Team (2017–2020)
• Equal Opportunity Employer Recognition Scheme — Racial Equality and Inclusion (2021)
• Family-Friendly Employers Award (2017–2021)
• Good Employer Charter (2018–2022)
• Happy Company Award (2017–2021)
• Manpower Developer Award (2012–2022)
• Partner Employer Award (2016–2021)
• Racial Diversity & Inclusion Charter for Employers (2020–2021)
• Social Capital Builder (2016–2022)
• Volunteer Movement Participating Organisation (2016–2021)
• Wastewi$e Certificate (2016–2022)
• Outstanding Award in Best Search Campaign (2020–2021)
• Big Idea Chair
• Excellent Brand of Personal Loan Services (2021)
• Gold Award of Best e-Commerce — Financial Services (2021)
• Bronze Award of Best Use of Mobile — Financial Services (2021)
• Gold Award of Best Use of SEM Strategy (2021)
• Gold Award of Best SEM/PCC (2021)
• CAPITAL Merit of Consumer Finance Company Achievement (since 2009)
• Asia Pacific Sustainable Innovation Enterprise (APSIE) Awards (2021)
• The Most Popular Finance Company on Internet (2021)
• 14th Outstanding Brand Award — Best Mortgage Service (2021)
• The Most Popular Mortgage Company on Internet (2021)
• Excellence Award for Mortgage Service (2021)

Environmental Metrics

ESG Focus Areas

• Greenhouse Gases
• Waste
• Electricity
• Water
• Financial Performance
• Market Presence
• Risk Management
• Corporate Governance
• Business Integrity and Ethics
• Compliance with Laws and Regulations
• Supplier Management & Procurement Practices
• Investor/Customer Engagement and Relations
• Data Privacy and Cyber Security
• Product and Service Quality
• Responsible Marketing
• Talent Recruitment and Retention
• Employee Health and Wellbeing
• Diversity and Equal Opportunities
• Development and Training
• Community Investment
• Community Partnership and Engagement
• Energy and Resource Use
• Emissions and Climate Change
• Waste and Paperless Operations
• Investment in Green Finance

Environmental Achievements

• Achieved 30% ESG investment portfolio by the end of 2022.
• Joined an industry association/coalition/partnership group to promote an ESG topic in the financial industry.
• Organized an environmental initiative that reduces or offsets environmental impact.
• Reduced paper consumption by ~3.4% compared to 2021 levels.
• Reduced electricity usage by ~8.7% compared to 2021 levels.
• Reduced petrol usage by ~29.4% compared to 2021 levels.
• Reduced water usage by ~42.5% compared to 2021 levels.

Social Achievements

• Signed The Racial Diversity and Inclusion Charter for Employers.
• Implemented an anti-bribery policy and provided mandatory training to all employees.
• Implemented a whistle-blowing policy.
• Implemented an Anti-Money Laundering (“AML”) and Counter-Terrorist Financing (“CTF”) Policy.
• Provided financial assistance during the COVID-19 pandemic through the Interbank Debt Relief Plan.
• Launched a personal loan service to improve financial accessibility.
• Implemented a mortgage scheme that allows customers to obtain mortgage loan approval within 24 hours.
• Rolled out a new Learning & Development Policy to encourage personal development.
• Held “Lunch at work” events to create a platform between employees to communicate and exchange experiences.
• Offered an advanced learning allowance for all general employees and superior employees at UAF.

Governance Achievements

• Implemented an anti-bribery policy in 2022 and provided mandatory training to all employees.
• 100% of SHK Credit and UAF employees in Hong Kong received anti-bribery training from the Independent Commission Against Corruption (ICAC).
• 205 UAF employees and over 96% of employees in SHK & Co. attended the training.
• Implemented a Climate Change Policy in 2022.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks: policy changes, stricter regulations, technology transition to low-carbon technologies, market changes in investor preferences, increased public expectations on disclosure, and investor concerns.
• Potential impacts of climate-related risks: asset depreciation, increased operating expenses, risk of investigation or fines, increased technological upgrade expenditures, decrease in value of fixed assets, decrease in revenue, and decrease in investments.

Mitigation Strategies

• Set targets to reduce electricity consumption and regularly monitor and review progress.
• Gradually replace less efficient equipment with more energy efficient ones.
• Perform investment portfolio screening and set targets to ensure a portion of our investment portfolio considers ESG aspects.
• Ensure compliance with all applicable legal requirements and regulatory frameworks.
• Make reference to international publications and standards (e.g. GRI) in reporting processes.
• Provide regular compliance training and updates to employees.
• Support technological innovation to improve the sustainability of investments.
• Provide ESG-related trainings to investment teams.
• Publicly disclose carbon footprints, carbon reduction initiatives and status annually.
• Build reputation from joining associations or global initiatives (e.g. TCFD Supporter) and collaborate with green organisations (e.g. WGO) to advocate for climate change initiatives (e.g. tree planting).

Supply Chain Management

Supplier Audits: All preferred/key suppliers with annual spend over HK$5,000,000 must follow the SCoC and complete the Supplier Due Diligence (SDD) Form.

Responsible Procurement

• Supplier Code of Conduct (SCoC)
• Supplier Due Diligence (SDD) Form
• Sustainable Procurement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather occurrences

Transition Risks

• Policy changes
• Stricter regulations
• Market changes in investor preferences

Opportunities

• Sustainable investments in next-generation technologies (sustainable buildings, electric vehicles, energy management, digital learning).

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 27001 (UAF)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

SHK & Co. supports the United Nations Sustainable Development Goals (UNSDGs) and embeds these motives in its actions.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Listed Company Awards of Excellence (2018-2022)
• Listed Enterprises of the Year (2018-2022)
• The 6th Golden Hong Kong Stocks Awards – Best Financial Stock Company (2021-2022)
• Best IR Team (2021)
• Hithink RoyalFlush Corporate Official Accounts Annual Award – IR Pioneer Award (2022)
• WIND Best Listed Companies Roadshow Awards – Best Investor Relations (2022)
• Gold Award of Corporate ESG Awards (2013-2018, 2020, 2022)
• Titanium Award of Corporate ESG Awards (2019, 2021)
• Green Office and Eco-Healthy Workplace (2021-2022)
• Good MPF Employer (2014-2022)
• Caring Company (2016-2022)
• Happy Company Award (2021-2022)
• Partner Employer Award (2022)
• The Racial Diversity and Inclusion Charter for Employers (2022)

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• 94% of office paper is certified FSC or PEFC paper.
• Reduced electricity usage by ~13% compared to 2022 levels.
• Reduced water usage by ~41% compared to 2022 levels.
• Reduced total GHG emissions (Scope 1-2) by ~8% compared to 2022 levels.

Social Achievements

• Launched Unlimited Paid Annual Leave Policy.
• 100% of employees received training on anti-corruption and compliance.
• UAF awarded “Good MPF Employer Award” and named “Caring Company” for 18 consecutive years.
• Organized various employee wellness activities (e.g., Friday at Five, Charity Poker Event).

Governance Achievements

• Strengthened controls and enhanced existing ones, resulting in reduced overall risk.
• Conducted risk training sessions and introduced an Enterprise Risk Management quarterly bulletin.
• Established an electronic system to record and monitor all risks.
• 96.7% of employees were trained on anti-corruption and compliance.

Climate Goals & Targets

Environmental Challenges

• Economic downturn and market volatility increased stakeholder concerns regarding corporate governance and risk management.
• Climate change poses various physical threats (extreme weather events) and transition risks (policy changes).

Mitigation Strategies

• Implemented additional controls and enhanced existing ones.
• Conducted risk training sessions and introduced an Enterprise Risk Management quarterly bulletin.
• Reviewed and fine-tuned the risk heat map and risk appetite.
• Established an electronic system to record and monitor all risks.
• Implemented screening processes to ensure a portion of investments adhere to ESG criteria.
• Encouraged technological innovations that enhance the sustainability of investments.
• Provided ongoing training and updates to employees on compliance matters.
• Offered specialized ESG-related training to investment teams.
• Annually disclosed information about the company’s carbon footprint and carbon reduction initiatives.
• Publicly reported the status of these initiatives on a regular basis.
• Joined and participated in associations or global initiatives like the Task Force on Climate-related Financial Disclosures (TCFD).
• Collaborated with green organizations such as the World Green Organisation (WGO) to support climate change initiatives.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Group Procurement Policy incorporating ESG considerations; Supplier Due Diligence Form for suppliers with annual spend over HKD5,000,000; sustainable sourcing of office supplies and furniture; preference for FSC and PEFC certified paper.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather events (typhoons and floods).

Transition Risks

• Future implementation of carbon pricing or emissions reduction policies; stricter local and global laws and requirements; technology transition to low-carbon technologies; changes in investor preferences to greener investments; increased public expectations on disclosure.

Opportunities

• Development of energy-efficient products and services; investment in green finance and related products.

Reporting Standards

Frameworks Used: GRI Standards 2021, HKEX ESG Reporting Guide

Certifications: BEAM Plus Existing Buildings Certification (Commercial Building)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 13 (Climate Action)
• SDG 17 (Partnerships for the Goals)

Various initiatives align with these goals, including leveraging online collaboration platforms to minimize business travel, regular inspections and maintenance of vehicle fleets, and partnerships with green organizations to promote low-carbon lifestyles.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Listed Company Awards of Excellence (2018-2023)
• Listed Enterprises of the Year (2018-2023)
• Asian Excellence Awards – Asia’s Best CFO
• Asian Excellence Awards – Best Investor Relations Company
• Asian Excellence Awards – Best Corporate Communications
• Gold Award of Corporate ESG Awards (2013-2018, 2020, 2022-2023)
• Titanium Award of Corporate ESG Awards (2019, 2021)
• Green Office Awards Labelling Scheme – Green Office and Eco-Healthy Workplace (2021-2023)
• Good MPF Employer (2014-2023)
• Caring Company (2016-2023)
• Happy Company Award (2021-2023)
• Partner Employer Award (2022-2023)
• The Racial Diversity and Inclusion Charter for Employers (since 2022)
• Supporter of Task Force on Climate-related Financial Disclosures (TCFD) (2022-2023)