Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Water Treatment
• Biomass Power Generation

Environmental Achievements

• Revenue from operations in the PRC segment increased by HK$4.7 million or 18.8% to HK$29.7 million for the Period from HK$25.0 million for the Last Corresponding Period.

Social Achievements

• The Group had 219 employees as at 30 June 2018 (31 December 2017: 227 employees). Employee costs, including Directors’ emoluments, amounted to approximately HK$10.0 million for the Period (six months ended 30 June 2017: HK$8.5 million).

Governance Achievements

• The Company strives to maintain a high standard of corporate governance, and has applied the principles and complied with all applicable code provisions as set out in the Corporate Governance Code contained in Appendix 14 to the Listing Rules (the “CG Code”) throughout the Period.

Climate Goals & Targets

Environmental Challenges

• Intensifying competition made it increasingly difficult to secure new wastewater treatment projects with satisfactory expected return.
• Pending water tariff adjustments by local authorities made the Group’s business environment increasingly challenging.
• Biomass power generation plant in Indonesia failed to achieve the expected utilization rate due to intense competition from local coal-fired power plants and unexpectedly low levels of energy consumption and demand.
• Significantly increasing wastewater facility costs and capital expenditure.

Mitigation Strategies

• Disposal of Rugao Honghao Facility to provide funding for future business development.
• Discussions with local governments to raise water tariffs for wastewater treatment plants.
• Investment in improvement works in the power generation facility to increase generating efficiency and reduce sales costs.
• Continuous monitoring of power plant performance and local developments, and communication with customers and business partners on increasing the utilization of the biomass power plant.
• Maintaining stable operations, strengthening internal controls and carrying forward successful operation concepts to consolidate its business foundation and maintain a strong business performance and competitiveness.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKAS 34 Interim Financial Reporting

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Wellbeing
• Corporate Governance

Environmental Achievements

• Reduced COD by 8,113.49 tonnes in 2021
• Treated 25,328,000 cubic meters of wastewater in 2021
• Daily wastewater treatment capacity of 80,000 cubic meters

Social Achievements

• Maintained harmonious workplace and respected labor rights
• Provided various employee benefits (holidays, allowances, bonuses, insurance)
• No work-related fatalities in the past three years; one minor work-related injury in Indonesia resulting in 1 man-day lost

Governance Achievements

• Established three Board committees (Audit, Remuneration, Nomination)
• Complied with the Corporate Governance Code
• Maintained adequate public float

Climate Goals & Targets

Environmental Challenges

• Fierce competition in overseas environmental protection industry
• Uncertainties from the volatile pandemic situation
• Potential insufficiency of biomass raw material for Bangka Project
• Potential incapability of new staff in Bangka Project
• Delay in payments from local government authorities
• Increase in operating costs not fully compensated by tariff adjustments

Mitigation Strategies

• Actively seeking new opportunities in overseas environmental protection business
• Formulating strategies beneficial to the Group and in coordination with national policies
• Thorough feasibility studies on Bangka Project
• Close monitoring of construction progress by industry experts
• Hiring professional consultants to monitor operation and train new staff
• Negotiating long-term purchase agreements with local suppliers
• Maintaining sufficient cash flow
• Regular impairment reviews
• Negotiating water tariffs with local government
• On-going cost control

Supply Chain Management

Supplier Audits: 51 suppliers in Mainland China

Responsible Procurement

• Established Code of Conduct for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, damage to buildings and facilities)
• Long-term climate change (repeated flooding)

Transition Risks

• Increase in ESG-related policies and legal requirements

Opportunities

• Increase in market demand for wastewater treatment and new energy

Reporting Standards

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

Sustainable Products & Innovation

• Biofuel pellets

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Wellbeing
• Corporate Governance

Environmental Achievements

• 86.3% of national surface water assessment sections showed excellent water quality (Grade I~III) in 2022.
• 13,506,632 cubic meters of wastewater treated in 2022.
• 4,911 tonnes of COD removed in 2022.

Social Achievements

• Implemented policies covering compensation, dismissal, recruitment, promotion, working hours, rest periods, equal opportunity, diversity, anti-discrimination, and welfare to safeguard employee interests.
• Provided over 420 hours of training to employees in 2022.
• RPSL donated RP54,025,955 to support local residents and community festivals.

Governance Achievements

• Established three Board committees: Audit, Remuneration, and Nomination.
• Adopted a Board diversity policy considering gender, age, cultural and educational background, ethnicity, professional experience, skills, knowledge, and length of service.
• Maintained adequate public float (at least 25% of issued shares held by the public).

Climate Goals & Targets

Environmental Challenges

• Potential insufficiency of biomass raw material for the Bangka Power Plant.
• Incapability of new staff at the Bangka Power Plant.
• Delay in payments from local government authorities.
• Increase in operating costs not fully compensated by tariff adjustments.

Mitigation Strategies

• Thorough feasibility studies on the Bangka Power Plant project.
• Close monitoring of construction progress by industry experts.
• Hiring professional consultants to monitor operation and train new staff.
• Negotiating long-term purchase agreements with local suppliers.
• Negotiating water tariffs with local government to compensate increased costs.
• On-going cost control.
• Regular impairment review to assess the recovery of account receivables.

Supply Chain Management

Supplier Audits: 51 suppliers in Mainland China reviewed.

Responsible Procurement

• Code of Conduct requiring suppliers to uphold environmental, social, and governance principles.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing flooding and damage.
• Long-term climate change affecting operations and equipment.

Transition Risks

• Increased ESG-related policies and legal requirements.

Opportunities

• Increased market demand for wastewater treatment and new energy.

Reporting Standards

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

Sustainable Products & Innovation

• Biofuel pellets

Environmental Metrics

ESG Focus Areas

• Wastewater Treatment
• Biofuel Pellet Production
• Corporate Governance
• Employee Wellbeing
• Community Contribution
• Climate Change

Environmental Achievements

• COD removed in 2023: 13,100,838 tonnes
• Daily wastewater treatment capacity: 40,000 tonnes
• Wastewater treated in 2023: 5,160 tonnes
• Implemented comprehensive Standard Operating Procedure (SOP) for biofuel pellet production to ensure quality and minimize environmental impact.

Social Achievements

• Provided 598 hours of training in 2023.
• Implemented robust occupational health and safety measures, resulting in only 2 minor work-related injuries in Indonesia during the reporting period.
• Donated RMB 71,000 to a local charity in China and over 130,000,000 rupiah in Indonesia.

Governance Achievements

• Established risk management and internal control mechanisms to identify, evaluate, manage, and monitor ESG-related risks.
• Adopted a Board diversity policy considering gender, age, cultural and educational background, ethnicity, professional experience, skills, knowledge and length of service.
• Implemented an Anti-corruption Policy and Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• The biofuel pellet business in Jambi, Indonesia, remained loss-making in 2023.
• Potential insufficiency of biomass raw material for the Bangka Project.
• Increase in operating costs due to increased utilization of wastewater treatment facilities might not be fully compensated.
• Supply chain disruptions due to extreme weather events.

Mitigation Strategies

• Signed a framework agreement to dispose of 80% equity interest in the biofuel pellet business.
• Negotiated long-term purchase agreements with local suppliers to ensure sufficient biomass raw material for the Bangka Project.
• Negotiated water tariffs with the local government to compensate for increased operating costs.
• Adopted a diversified supplier selection strategy and reserve raw materials in advance.

Supply Chain Management

Supplier Audits: Regular assessments to ensure compliance with environmental, social, and governance principles.

Responsible Procurement

• Code of Conduct requiring suppliers to uphold ESG principles.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (super typhoons, heavy rains, floods)

Transition Risks

• More ambitious climate policies and regulations
• Increased public attention on environmental protection and climate issues

Reporting Standards

Frameworks Used: Appendix C2 to the Rules Governing the Listing of Securities (the “Listing Rules”) issued by The Stock Exchange of Hong Kong Limited