Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Economic Responsibility

Environmental Achievements

• Launched "Green Monday" initiative in five hotels, promoting vegetarian menus.
• Implemented energy-saving measures aiming for a 2% reduction in emissions compared to 2016.
• Replaced T8 fluorescent tubes with LED lights in guest rooms and public areas.
• Participated in Earth Hour.
• Implemented water-saving measures such as using recycled cooling water for toilets and installing automatic faucets and toilets.
• Reduced food waste through better ordering practices and partnerships with food banks.
• Used environmentally certified cleaning products.

Social Achievements

• Participated in "Storytelling Family Fun" program.
• Organized hotel tours for students.
• Volunteered at Ronald McDonald House.
• Participated in "Save Our Sevens" event.
• Organized a charity cookie sale with the Children's Cancer Foundation.
• Organized seven day trips for disabled youth with the Hong Kong Young People with Disabilities Association.
• Participated in "Walk for the Disabled" fundraising event.

Governance Achievements

• Adherence to all relevant laws and regulations.
• Adoption of a compliance manual.
• Independent trustee overseeing Regal REIT's assets and management activities.
• Board of directors overseeing overall governance.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Regular assessments based on a supplier code of conduct.

Responsible Procurement

• Outsourcing conduct guidelines
• Safety and supplier conduct guidelines
• Green procurement policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Hong Kong Exchanges and Clearing Limited's Environmental, Social and Governance Reporting Guidelines

Certifications: EarthCheck, ISO 14064-1, ISO 22000, ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Business Traveller awards
• Travel Weekly Asia awards
• TTG Asia Media awards
• TripAdvisor awards
• Hong Kong Tourism Board awards
• Hong Kong Tatler awards
• agoda.com awards
• Rakuten Travel awards
• Hong Kong Federation of Small and Medium Enterprises awards
• CLP Power's Environmental Energy Saving Organization Commendation Scheme awards
• ESDLife awards
• Hong Kong Islamic Trust Fund Association awards
• Labour Department awards
• Booking.com awards

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Economic Responsibility

Environmental Achievements

• Regal Airport Hotel, Regal Hongkong Hotel, Regal Kowloon Hotel, Regal Oriental Hotel and Regal Riverside Hotel attained Gold certification from EarthCheck.
• Three iclub Hotels attained Silver Certification from EarthCheck.
• Energy intensity reduced from 0.12 GJ/equivalent guest night in 2017 to 0.10 GJ/equivalent guest night in 2018.
• Water intensity reduced from 0.25 m3/guest night in 2017 to 0.23 m3/guest night in 2018.

Social Achievements

• Recognised as a “Caring Company” by The Hong Kong Council of Social Service for the 16th consecutive year.
• Recognised in “The 9th Hong Kong Outstanding Corporate Citizenship Awards”.
• Donated 1,405 kg of unconsumed food to Foodlink Foundation.
• Contributed 1690.5 volunteer hours.

Governance Achievements

• Adherence to all relevant laws and regulations with a high standard of corporate governance.
• Adoption of the compliance manual as the customary requirement for all REITs in Hong Kong.

Climate Goals & Targets

Environmental Challenges

• Minimising waste generation in hospitality operations.
• Managing energy consumption and carbon emissions effectively.
• Reducing water consumption in hotels.

Mitigation Strategies

• Implementing energy management systems and improvement measures (LED lighting, automatic induction devices, energy-efficient equipment).
• Implementing water-saving measures (recycling air-conditioning water, automatic faucets, dual-flush toilets).
• Estimating and procuring food based on guest numbers, collaborating with vendors to recycle food waste, and donating unconsumed food.

Supply Chain Management

Responsible Procurement

• Contractor Code of Conduct and Safety
• Supplier Code of Conduct
• Green Purchasing Policy (prioritising environmentally committed suppliers, using eco-certified products).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: The Stock Exchange of Hong Kong Limited’s ESG Reporting Guide

Certifications: EarthCheck

Awards & Recognition

• EarthCheck Gold and Silver certifications
• Caring Company Award
• Hong Kong Outstanding Corporate Citizenship Awards
• Other awards listed in Appendix I

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Economic Responsibility
• Corporate Governance

Environmental Achievements

• All hotels retained EarthCheck certification (Gold for five Regal Hotels, Silver for four iclub Hotels)
• Implemented various energy efficiency measures (LED lighting, automatic induction devices, energy audits)
• Water-saving initiatives (recycling air-conditioning water, automatic faucets, dual-flush toilets)
• Waste reduction and recycling programs (food donation, used cooking oil recycling, reduction of disposable amenities)

Social Achievements

• Leased Regal Oriental Hotel to the Hong Kong Government for use as a COVID-19 holding facility
• Three hotels enrolled in the Designated Quarantine Hotel Scheme
• Donated food to Foodlink Foundation (47,412 kg)
• Donated soap to NGOs (199 kg)
• Organized various community programs and volunteer activities (86 volunteer hours, HK$442,556 in donations)

Governance Achievements

• Adopted a comprehensive compliance manual
• Complied with the Code on Real Estate Investment Trusts and the Listing Rules
• Maintained a high standard in its corporate governance system

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted hotel operations, leading to decreased occupancy and increased hygiene measures
• Business disruption caused by the COVID-19 pandemic suspended target setting for energy and emission reduction in 2020.

Mitigation Strategies

• Adjusted business strategies and introduced digital technology to facilitate hotel operations and Sustainability Programmes
• Implemented staff retrenchment and no-pay leave programs to reduce operating costs
• Strengthened preventive and monitoring measures to protect hotel guests and employees from potential virus infection

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Green Purchasing Policy
• On-site Evaluation Checklist
• Preference for ISO 9001 certified contractors
• Sourcing of FSC-certified paper, eco-certified cleaning products, biodegradable plastics
• Local sourcing of vegetables and fruits

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoon, flooding)

Reporting Standards

Frameworks Used: The Stock Exchange of Hong Kong Limited’s ESG Reporting Guide

Certifications: EarthCheck (Gold and Silver), ISO 14064-1, ISO 22000, ISO 50001

Awards & Recognition

• Family-friendly Good Employer 2020
• 15 Years+ Caring Company
• Various awards for individual hotels (see Appendix I)

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Waste Management
• Community Investment and Engagement
• Anti-corruption
• Product and Service Quality

Environmental Achievements

• Regal Airport Hotel, Regal Hongkong Hotel, Regal Kowloon Hotel, Regal Oriental Hotel and Regal Riverside Hotel attained EarthCheck Gold Benchmarking Certificates; iclub Fortress Hill Hotel, iclub Ma Tau Wai Hotel, iclub Sheung Wan Hotel and iclub Wan Chai Hotel attained EarthCheck Silver Benchmarking Certificate.
• Implementation of various environmental-friendly measures, including replacing quartz lamps/fluorescent lamps with LED lights, participating in Automated Demand Response Programmes, replacing aged plants and installing new equipment, installing a new Building Management System (BMS), signing performance-based contracts with specialist contractors for energy saving programs, incorporating frequency controllers on replacement of air conditioning systems and hot or cold water pumps, appointing registered waste collectors to handle the disposal of electrical appliances.

Social Achievements

• Partnering with 19 non-profit organisations and other institutes; Organised 13 volunteer activities; Total volunteer hours contributed by employees: 286 hours; Amount of donation and sponsorship: HK$656,500

Governance Achievements

• Compliance with the Prevention of Bribery Ordinance (Cap. 201 of Laws of Hong Kong) and the Competition Ordinance (Cap. 619 of the Laws of Hong Kong). No legal cases regarding corrupt practices were brought against Regal REIT in 2021.
• Adoption of a comprehensive compliance manual setting out guidelines for key processes, systems, policies and procedures applicable to Regal REIT’s business and operations.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting hotel operations and leading to increased energy and water consumption due to enhanced hygiene measures.
• Climate transition risks, particularly policy and legal risks related to Hong Kong’s Climate Action Plan 2050.
• Physical risks such as strong winds, tropical cyclones and coastal flooding.

Mitigation Strategies

• Formulated operating policies and procedures for extreme weather events.
• Engineering staff training to handle emergencies.
• Implementation of various improvement measures to increase energy efficiency and reduce greenhouse gas emissions (detailed in the report).
• Climate risk assessment conducted by a third-party consultant to identify and evaluate material climate transition and physical risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Following a well-developed system to monitor suppliers’ compliance with relevant laws, regulations and standards; Minimising negative environmental and social impacts.

Climate-Related Risks & Opportunities

Physical Risks

• Strong winds
• Tropical cyclones
• Coastal flooding

Transition Risks

• Policy and legal risks related to Hong Kong’s Climate Action Plan 2050

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: EarthCheck Gold and Silver

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Various awards and recognitions for individual hotels (listed in Appendix I)

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Energy Efficiency
• Waste Management
• Water and Effluent Management
• Climate Change Adaptation and Mitigation
• Responsible Investment and Financial Performance
• Product and Service Quality
• Health and Safety
• Green Building Operating Practices
• Ethical and Transparent Business
• Supply Chain and Sourcing Management
• Community Investment and Engagement
• Compliance
• Fraud/Risk Management

Environmental Achievements

• Achieved 32% reduction in absolute greenhouse gases emissions in 2022 compared to 2018
• Achieved “Gold” EarthCheck Rating for five Initial Hotels in 2022
• Recycled 1,731 kg of plastic bottles in 2022

Social Achievements

• Number of partnering non-profit organisations and other institutes: 6
• Number of organised volunteer activities: 15
• Total volunteer hours contributed by employees: 292 hours
• Amount of donation and sponsorship: Approximately HK$9,500,000 (including donations of approximately HK$4,000,000 on various charitable events by the REIT Manager)
• Offered guests staying in Regal REIT’s quarantine hotels complimentary nightly mindfulness classes

Governance Achievements

• Complied with the Prevention of Bribery Ordinance (Cap. 201 of Laws of Hong Kong) and the Competition Ordinance (Cap. 619 of the Laws of Hong Kong). No legal cases regarding corrupt practices were brought against Regal REIT or the REIT Manager in the reporting period.

Climate Goals & Targets

Environmental Challenges

• Potential physical risks influencing the hotel business operations (storms, flooding and sea level rise)
• Policy and legal risks related to climate change (Hong Kong’s Climate Action Plan 2050)
• Increase in energy intensity in 2022 despite absolute value decrease
• Increase in used cooking oil and food waste due to resumption of business activities in catering services in all hotels in the 4th quarter of 2022

Mitigation Strategies

• Comprehensive management approaches and action plans to strengthen the hotel portfolio’s resilience against climate change
• Replacing non-LED lighting with LED lighting and diesel-powered equipment with natural gas-powered ones
• Implementing Intelligent Building Management System (iBMS) by 2030
• Conducting carbon audit for the five Initial Hotels and four iclub Hotels in Hong Kong by year 2025 and 2028, respectively
• Implementing energy saving projects progressively in the hotels according to the recommendations in the energy audit reports
• Adopting quartz sand in boiler tanks for water filtration to reduce the frequency of pool water refill and enables water conservation

Supply Chain Management

Supplier Audits: Selected suppliers audited as part of risk management process

Responsible Procurement

• RHIHL Group’s anti-corruption and fair competition rules
• Green Purchasing Policy
• Sourcing printing and copying paper certified by the Forest Stewardship Council or equivalent council
• Sourcing cleaning chemicals that are ISO 14001 certified
• Replacing plastic takeaway items with those made by Cornstarch Based biodegradable materials
• Replacing plastic bags with bio-degradable materials

Climate-Related Risks & Opportunities

Physical Risks

• Storms
• Flooding
• Sea level rise

Transition Risks

• Policy and legal risks

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: EarthCheck, GRI, UNSDGs

Certifications: ISO 50001, ISO 14064, ISO 22000

Third-party Assurance: Global Tourism Advisory Group

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 20 Years+ Caring Company
• MASTERCHEF Recommendation Restaurant
• ISO 22000: 2018 Accreditation on Food Safety Management System
• HACCP Certification
• Trusted Cleanliness Badge
• 15 Years+ Award Caring Company
• Quality Restaurant Certification
• 2022 Top Producing Hotel
• Anti-epidemic Hygiene Measures Certification
• Caring Company 2021/2022
• Travellers’ Choice Award
• Halal Certificate
• 2022 Meituan Hotel Popular Hotel of the Year
• Outstanding QTS Merchant Silver Award
• Anti-epidemic Hygiene Measures Certification
• Traveller Review Award

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Green Building
• Waste Management
• Water Management
• Talent Development
• Occupational Health and Safety
• Community Engagement
• Data Privacy and Cybersecurity
• Sustainable Procurement
• Technology and Innovation
• Anti-Corruption
• Sustainable Finance and Investment
• Wellness
• Ecosystem Building

Environmental Achievements

• Regal REIT's hotels in Hong Kong were awarded a number of well-recognised awards and certifications (EarthCheck Gold Benchmarking Certification for several hotels, ESBN Asia-Pacific Green Deal Green Badge).
• Regal Airport Hotel and Regal Kowloon Hotel recycled food waste, reducing carbon emissions and generating electricity.
• Replaced single-use toiletries, disposable plastic tableware and takeaway containers with biodegradable items (offered upon request).
• Installed in-room water filters or water refill stations to eliminate plastic-bottled water.

Social Achievements

• RHIHL Group partnered with 24 non-profit organisations, supported 35 community programs, and contributed 400 volunteer hours and approximately HK$7,800,000 in donations and sponsorships (including HK$3,800,000 from the REIT Manager).
• 1,865 complaint cases regarding hotel services were properly handled.

Governance Achievements

• Regal REIT complied with all relevant laws and regulations relating to air and GHG emissions, discharges into water and land, and generation of hazardous and non-hazardous waste.
• Regal REIT formulated an Anti-Corruption Policy.
• Regal REIT’s Whistleblowing Policy outlines best practices on whistleblower protection.

Climate Goals & Targets

Environmental Challenges

• Aging heating, ventilation, and air conditioning systems at certain properties.
• Potential climate-related risks (storms, flooding, sea level rise, policy and legal risks).
• Food waste in hotel operations.
• Managing waste from generation to final disposal.

Mitigation Strategies

• Renovation plans for aging HVAC systems.
• Implementation of climate-related risk management approaches and action plans.
• Stringent procurement control procedures to minimise food waste.
• Developing a Waste Management Policy, implementing the 5R Principle, and replacing single-use items with biodegradable alternatives.
• Installing floodgates at Regal Airport Hotel.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• RHIHL Group’s Supplier Code of Conduct.
• Green Purchasing Policy.
• Prioritization of ISO 9001 certified suppliers with HACCP system.

Climate-Related Risks & Opportunities

Physical Risks

• Storms
• Flooding
• Sea level rise

Transition Risks

• Policy and legal risks

Opportunities

• Upgrading facilities to high energy efficiency models.
• Exploring innovative energy-saving solutions.

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: EarthCheck Gold Benchmarking Certification, ESBN Asia-Pacific Green Deal Green Badge, ISO 22000:2018, HACCP

Third-party Assurance: Global Tourism Advisory Group

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 20 Years+ Caring Company
• Good MPF Employer Award
• Earth Hour Certificate
• U Favourite Food Awards
• Popular Hotel of The Year
• Outstanding Partner Award
• TTG China Travel Awards
• Business Traveller’s Best Airport Hotel
• Travellers’ Choice Award
• MASTERCHEF Recommendation Restaurant
• Restaurant Guru 2023 - Certificate of Excellence
• Halal Certificate