Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Employment Practices
• Safe and healthy working environment
• Training and development
• Anti-corruption
• Protecting customer privacy
• Protecting intellectual property rights

Environmental Achievements

• Reduced GHG emissions to 655 tCO2e from 1024 tCO2e in 2020. Significant decrease due to the closure of the catering segment and some landscape architecture offices.
• Reduced air emissions significantly due to the closure of the catering segment in 2021.
• Increased hazardous waste recycling to 26,596,370 kg from 13,035 kg in 2020. Significant increase due to greater business activities in the graphene segment.
• Improved data collection system leading to a significant increase in total non-hazardous waste generated.

Social Achievements

• Held anti-corruption training for 100% of directors and 11% of general staff.
• Invited 7 university students to intern at the Group.
• Reduced employee turnover rate to 24.8% from 37.8% in 2020.
• Increased percentage of employees trained to 52.2% from 36.7% in 2020.

Governance Achievements

• Established a Board Diversity Policy.
• Implemented a Nomination Policy.
• Complied with the Model Code for Securities Transactions by Directors.
• Established appropriate and effective risk management and internal control systems.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic negatively affected business operations.
• Slowdown in real estate development in China reduced landscape architecture revenue.
• Global supply chain disruptions.
• Inability to settle obligations as they fall due.

Mitigation Strategies

• Implemented various cost control measures, including closing underperforming restaurants.
• Formulated contingency plans to sustain business operations during the pandemic.
• Exercised rigorous cost control on landscape architecture business.
• Closely monitored liquidity and cash flow position.
• Engaged in fund-raising exercises in Hong Kong and the United States.
• Developed alternative sourcing strategies.

Supply Chain Management

Supplier Audits: Ad-hoc basis

Responsible Procurement

• Office Handbook
• Code of Conduct
• ESG Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Municipal Waste Charging Scheme (Hong Kong)

Opportunities

• Growing market for low-carbon and climate-robust infrastructure and properties

Awards & Recognition

• IFLA Asia-Pacific Landscape Architecture Awards- Honourable Mention (Wuxi Bodu Canal)
• Global Habitat Design Awards 2020-2021- Excellent award (Greenland Ganzhou Intercity Space Station)
• Hong Kong Institute of Urban Design Awards (Restoration of Maozhou River)
• Shanghai Landscape Architectural Association awards
• IDEA-KING HKILA Landscape Architecture Contribution Award (Fangshan Wisdom Farm)
• HKILA Landscape Architecture Contribution Award (Restoration of Maozhou River)

Environmental Metrics

ESG Focus Areas

• Responding to climate change risk
• Energy management
• Water management
• Employment practices
• Safe and healthy working environment
• Training and development
• Anti-corruption
• Protecting customer privacy
• Protecting intellectual property rights

Environmental Achievements

• Reduced total GHG emissions to 642.2 tonnes of carbon dioxide equivalent (tCO2e) in 2022 from 543.1 tCO2e in 2021.
• Reduced total hazardous waste generated to 13,035,260 kg in 2022 from 26,756,620 kg in 2021.
• Recycled 12,927,530 kg of hazardous waste in 2022 from 26,596,370 kg in 2021.

Social Achievements

• Invited 9 university students to intern at the Group.
• Implemented COVID-19 measures to ensure business resilience and employee safety.
• Held staff welfare activities such as Mid-Autumn Afternoon Tea Party, Halloween party, Birthday Party-cum-Happy Hours, and Christmas party.

Governance Achievements

• Adopted the new requirements under the amended CG Code.
• Complied with the Model Code for Securities Transactions by Directors.
• Established a Board Diversity Policy.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic caused interruptions on logistics and production.
• Slowdown in real estate development in China affected Landscape Architecture business.
• Inability to settle obligations as they fall due due to economic downturn.

Mitigation Strategies

• Implemented cost control measures.
• Negotiated with corporate bondholders to extend repayment dates.
• Engaged in discussions with potential investors for raising new capital.

Supply Chain Management

Supplier Audits: Ad-hoc basis

Responsible Procurement

• Office Handbook, Code of Conduct, and ESG Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Municipal Waste Charging Scheme

Opportunities

• Growing market for low-carbon and climate-robust infrastructure and properties.

Reporting Standards

Frameworks Used: ESG Reporting Guide

Certifications: ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 11, Goal 13, Goal 3, Goal 7, Goal 15

Central Market and Wan Chai Promenade projects align with these SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• QS Awards (Innovation) 2022 – Silver, Special Architectural Award – Heritage & Adaptive Re-use 2022, The Hong Kong Institute of Planners (HKIP) Awards 2021 – Silver Award, Urban Design Awards 2021 – Built Project Merit Award, Second-class Award in Design & Planning 2022, Science and Technology Progress Award 2022, Master Planning – Platinum Winner 2022, Concept Design – Gold Winner 2022

Environmental Metrics

ESG Focus Areas

• Responding to climate change risk
• Energy management
• Water management
• Employment practices
• Safe and healthy working environment
• Training and development
• Anti-corruption
• Protecting customer privacy
• Protecting intellectual property rights

Environmental Achievements

• Reduced energy consumption by implementing energy efficiency measures in factories and offices. In 2023, operations consumed 1,686 MWh of energy (2022: 1,011.4 MWh).
• Reduced water consumption in landscape business segments to 1,087.2 m3 (2022: 820 m3).
• Reduced hazardous waste generation to 12,120,852 kg (2022: 13,035,260 kg) and recycled 12,022,602 kg (2022: 12,927,530 kg).

Social Achievements

• Invited 9 university students to intern at the Group.
• Implemented various policies and measures on supply chain management, product responsibility and anti-corruption.
• Conducted annual performance review to assess employee performance and determine future promotion and training.

Governance Achievements

• Established a Code of Conduct to combat corruption.
• Developed Office Handbook, Code of Conduct and ESG Policy to standardize supplier selection process.
• Implemented an inside information policy and procedures to enhance the Group’s system of handling inside information.

Climate Goals & Targets

Environmental Challenges

• Slowdown in real estate development market in China impacting landscape architecture business.
• Product price drop and exchange rate factors affecting graphene products revenue.
• Long outstanding accounts receivables increasing credit risk and liquidity risk.

Mitigation Strategies

• Exercised tight cost control on landscape architecture design business.
• Implemented various cost control measures to tighten the costs of operations.
• Regular meetings to discuss client’s payment status, issuing written payment reminders, and seeking legal advice for long outstanding accounts receivables.
• Closely monitoring the liquidity and cash flow position of the Group to fulfill all debt obligations.

Supply Chain Management

Supplier Audits: Ad-hoc basis

Responsible Procurement

• Office Handbook
• Code of Conduct
• ESG Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Municipal Waste Charging Scheme (Hong Kong)

Opportunities

• Growing market for low-carbon and climate-robust infrastructure and properties (landscape architecture segment)

UN Sustainable Development Goals

• SDG #11
• SDG #9
• SDG #3
• SDG #15

Design strategies actively contribute to the achievement of these goals through creating thriving urban spaces, resilient communities, good health and well-being, and ecosystem restoration.

Awards & Recognition

• HKGBC Green Building Award 2023 – Grand Award
• 2023 Asian Townscape Award – Townscape Award
• Landscape Architecture Awards 2023: Residential Category – Outstanding Award
• International Federation of Landscape Architects: Asia-Pacific Region Landscape Architecture Awards 2023: Cultural and Urban Landscape Category – Awards of Excellence
• International Federation of Landscape Architects: Asia-Pacific Region Landscape Architecture Awards 2023: Cultural and Urban Landscape Category – Honourable Mention
• 2023 WLA Awards: Commercial Residential Design Category – Merit Award
• Loop Design awards 2023 – Category Winner: Landscape Design Concept
• The Eighth Shanghai Society of Landscape Architecture Award of Excellent Landscape Architecture Planning and Design – Recognition Award
• The Eighth Shanghai Society of Landscape Architecture Award of Excellent Landscape Architecture Planning and Design – Second Award
• The Eighth Shanghai Society of Landscape Architecture Award of Excellent Landscape Architecture Planning and Design – Third Award