Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Replaced standard lighting with LED fixtures and regularly maintained the ventilation system in the casino to save energy.
• Installed drip irrigation system to increase irrigation efficiency and used recycled water to wash bottles, saving 30,000 tonnes of water annually.
• Incorporated green building features in the Mackenzie Creek Project in Canada to minimize energy and water consumption.
• Yuquan Winery successfully recycled around 93% of used water and produced 10,210 tonnes of recycled water from 10,890 tonnes of sewage.
• Sold organic wine production ingredient wastes to farmers as fertilizer.

Social Achievements

• Established policies on employee recruitment, remuneration and benefits, attendance, training and development, performance appraisal, etc.
• Provided free medical checkups, menstrual leave, lactation breaks, family leave, flexible working hours, and accommodation subsidies to employees.
• Provided various trainings in different areas such as corporate culture, administration, human resources, insurance, brewing, wine tasting, bartending, sales service, project cost management, and anti-corruption.
• Shangri-la Winery set up an “Occupational Disease Prevention Leading Group” to safeguard employees’ health and provided safety training.
• Sponsored international sports events and donated to local communities in Jeju Island.

Governance Achievements

• Established a stringent internal control system and conducted regular internal audit reviews.
• Required suppliers and customers to sign the “Integrity Agreement” to reduce the likelihood of improprieties.
• Established procedures and measures to fight against and prevent corruption in business activities and set up a telephone hotline for reporting suspicious activities.

Climate Goals & Targets

Environmental Challenges

• Patent infringement of baijiu products by a competitor.
• Supply chain management across various locations.

Mitigation Strategies

• The dispute was dealt with by the related management team according to standardized procedures.
• Evaluations and verifications of the supply chain were conducted; subsidiaries followed the Group’s procurement policies and systems, ensuring compliance with all relevant local laws and regulations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Evaluations and verifications of the supply chain were conducted; subsidiaries followed the Group’s procurement policies and systems, ensuring compliance with all relevant local laws and regulations. Suppliers were evaluated based on price, quality of raw materials, quality of goods or services, after-sales service, business reputation, and relevant food safety management certifications.

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO 9001:2008, HACCP

Third-party Assurance: Not disclosed

Awards & Recognition

• Shangri-la Winery: Gold prize (Shangri-La International Wine Competition and The Famous Yunnan Wine Competition)
• Yuquan Winery: Gold-Medal Winery in China, 2nd level Honor Work Safety Standardisation, National Honest Wine Demonstration Corporation Award

Environmental Metrics

ESG Focus Areas

• Environment
• Employees
• Business Operation
• Community

Environmental Achievements

• Implemented energy-saving measures (LED lighting, motion sensors, energy-efficient equipment replacement) in various business sectors.
• Adopted dripping irrigation system in Qinhuangdao winery, saving over 30% water annually.
• Recycled 7,500 tonnes of wastewater at Heilongjiang site.
• Sold 211.5 tonnes of grape skins and stems to local farmers for use as organic fertilizer.
• Achieved 46% reduction in paper use at Korean entertainment venue through electronic approval system.

Social Achievements

• Refined employment practices and addressed issues related to work plans, recruitment, attendance, vacation, business travel, rewards, and punishments.
• Provided various support for work-life balance, including lactation breaks, family leave, and flexible working hours (South Korea); marriage leave and condolence leave (PRC).
• Implemented “Health, Safety and Environmental Manual” in real estate sector and formed “Occupational Disease Prevention Leading Group” in winery sector to improve safety.
• Provided regular body check-ups to employees in integrated resorts sector.
• Offered various trainings based on job nature (food safety, brewing, wine tasting, resort development, security, etc.).

Governance Achievements

• Established “Tender and Procurement Management Policy” to ensure fairness and justice in tendering process.
• Implemented stringent supplier selection and management process, including qualification assessments and regular performance reviews.
• Established “Accountability Policy” to define senior management responsibility for compliance with laws and regulations.
• Implemented “Product Safety Policy” and obtained HACCP System and Quality Management System certifications for winery sector.
• Established a whistle-blowing policy to address concerns about suspicious activities.

Climate Goals & Targets

Environmental Challenges

• GHG emissions from purchased electricity, winery production, and vehicle fuels.
• Air pollutants emissions (SOx, NOx) from coal combustion in winery production.
• Wastewater generation from winery operations.
• Resource consumption (electricity, water, coal, packaging materials).

Mitigation Strategies

• Implemented GHG emission management program, tracking coal, electricity, and fuel consumption.
• Adopted oil boiler in Qinhuangdao winery to reduce SOx emissions.
• Implemented wastewater treatment system in Qinhuangdao winery.
• Implemented resource optimization initiatives (energy-saving measures, water conservation plan, paper reduction, recycling program).

Supply Chain Management

Supplier Audits: 64 suppliers engaged; stringent supplier qualification assessment conducted before engagement.

Responsible Procurement

• Stringent supplier selection and management process
• Regular performance review and monitoring

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: HACCP System, Quality Management System (winery sector)

Third-party Assurance: Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Employees
• Business Operation
• Community

Environmental Achievements

• Adopted drip irrigation in Qinhuangdao winery, annually contributing water savings of above 30%
• Recycled 604.77 tonnes of organic waste, with 168.26 tonnes used as organic fertilizer
• Phased out coal-fuel burning boiler in Qinhuangdao winery to reduce air emission

Social Achievements

• Implemented various family-friendly measures (lactation breaks, family leave, flexible working hours)
• Provided body check-up to employees in South Korea
• Implemented COVID-19 preventive measures to safeguard employee health
• Made donation to impoverished students and donated epidemic preventive materials to support medical staff and community

Governance Achievements

• Established an “Anti-Corruption Policy” and “Corporate Code of Conduct”,
• Established a whistle-blowing mechanism
• Implemented multiple administrative, physical and technical measures for data protection

Climate Goals & Targets

Environmental Challenges

• COVID-19 outbreak impacting business operations, particularly entertainment business
• Fluctuation in environmental performance data due to temporary suspension of entertainment business and decreased wine production

Mitigation Strategies

• Optimized human resources structure through reducing positions and natural attrition
• Adjusted market strategy with focus on clearance sale and fast-moving stock
• Implemented COVID-19 preventive measures

Supply Chain Management

Responsible Procurement

• Stringent supplier qualification assessment and business reference check
• Priority given to local suppliers with good track records

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited), GRI, The Sustainability Accounting Standards Board’s Materiality Map

Certifications: ISO 9001:2015, HACCP

Environmental Metrics

ESG Focus Areas

• Environment
• Employees
• Business Operation
• Community

Environmental Achievements

• Adopted drip irrigation in vineyard, resulting in over 30% water savings annually.
• Phased out coal-fuel burning boiler in Qinhuangdao winery to reduce air emissions.
• Recycled 605 tonnes of organic waste.

Social Achievements

• Implemented various family-friendly measures (lactation breaks, family leave, flexible working hours).
• Provided body check-ups to employees in South Korea.
• Conducted training sessions for Board members on corporate compliance and employees on financial crime and anti-money laundering.

Governance Achievements

• Established a three-level ESG governance structure (Board, ESG Taskforce Group, Department Units).
• Implemented a whistle-blowing mechanism for reporting malpractices.
• Complied with relevant anti-corruption laws and regulations; no reported violations.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted operations, particularly the entertainment business.
• Extreme weather events pose risks to resort construction and wine production.
• Potential for increased operating costs due to carbon pricing mechanisms and market shifts.

Mitigation Strategies

• Optimized human resources structure to reduce positions and attrition.
• Implemented COVID-19 prevention measures (daily temperature checks, mask requirements, etc.).
• Applied green rooftop and façade in Sydney property to reduce heat absorption and withstand extreme weather.

Supply Chain Management

Supplier Audits: Regular performance assessments, on-site inspections and audits.

Responsible Procurement

• Tender and Procurement Management Policy; selection criteria include supplier service quality, corporate background, legal compliance, certified quality system, after-sales services and prices.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (frost, snowstorm, hail), flooding, heatwaves

Transition Risks

• Carbon pricing mechanisms, market shifts towards environmental-friendly products, limited natural resources, higher transportation costs

Opportunities

• Development of energy-efficient products and services, exploring on-site renewable energy generation.

Reporting Standards

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

Certifications: ISO 9001:2015 (wine production)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Employees
• Business Operation
• Community

Environmental Achievements

• Adopted air source heat pump and phased out oil boiler in Qinhuangdao winery to reduce air emissions.
• Recycled 505 tonnes of organic waste from wine production.
• Implemented drip irrigation in Qinhuangdao winery vineyard to reduce water consumption.

Social Achievements

• Formulated human resources policies and management measures to manage labor affairs, including remuneration, benefits, recruitment, promotion, working hours, rest periods, equal opportunities, anti-discrimination, and work-related injury arrangements.
• Provided 6,228 hours of employee training.
• Established a whistle-blowing mechanism for reporting malpractices.

Governance Achievements

• Established a three-level governance structure consisting of the Board, the ESG Taskforce Group, and department units.
• Complied with relevant laws and regulations regarding anti-corruption, anti-bribery, and data privacy.
• Held training sessions for Board members on Board roles and corporate compliance, and for entertainment business employees on financial crime and anti-money laundering.

Climate Goals & Targets

Environmental Challenges

• Potential climate risks including extreme weather events impacting operations and increased operating costs, and chronic stressors impacting vine yield and increasing property maintenance costs.
• Transition risks such as policy risks from carbon pricing mechanisms and market risks from shifting customer preferences and increased raw material costs.

Mitigation Strategies

• Implementing energy-saving measures to improve energy efficiency and reduce carbon emissions.
• Considering recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) to integrate climate-related risks and opportunities into future risk assessments.
• Closely monitoring national policies, regulations, and market actions in response to climate change.

Supply Chain Management

Supplier Audits: 78 suppliers engaged, including on-site inspections and audits.

Responsible Procurement

• Strict management procedures to select reliable suppliers with high business integrity and product/service reliability.
• Prioritizing local suppliers with good track records in labor management, environmental and safety management, and/or providing environmentally friendly products.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (frost, snowstorm, hail)
• Chronic stressors (flooding from rising sea levels, precipitation, heatwaves)

Transition Risks

• Policy risks from carbon pricing mechanisms
• Market risks from shifting customer preferences and increased raw material costs

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed