Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Anti-Corruption
• Waste Management

Environmental Achievements

• 60% decrease in hazardous waste due to the shift from using diesel engine oil to 100% electric when operating crusher and other heavy equipment.
• Average omission reduction of 5.16% across nitrogen oxides, sulphur oxides and particulate matters.
• Produced more than 30,000m3 of GGBS concrete in 2021, reducing CO2 emissions by 5,838.3 tonnes.
• 32% reduction in diesel consumption

Social Achievements

• Retained a zero-accident record with an accident frequency rate of 0 per 100,000 man-hours worked.
• Awarded the Merit Award from the Workplace Best Practices Awards (Enterprise/Organisation Category).
• Increased the percentage of vaccinated company staff from 66% to 93%
• Average of 5.65 hours of training to each employee in 2021, a 9% increase from 2020.

Governance Achievements

• No legal cases regarding corrupt practices or violations of the Prevention of Bribery Ordinance were brought against Wai Kee or its employees.

Climate Goals & Targets

Environmental Challenges

• Continued impact of the COVID-19 pandemic on employees and operations.
• Competitive environment in the construction market.
• Uncertainty in operation of concrete plant at Yau Tong due to unsettled issue of specified process licence.
• Substantial reduction of production capacity of concrete plant due to additional stringent environmental control measures.

Mitigation Strategies

• Implemented various COVID-19 safety measures, including compulsory testing and vaccination.
• Strategy of not competing only on price but also on technical excellence and quality of work.
• Consolidated resources of production plants at Lam Tei Quarry after termination of lease of the concrete plant at Yau Tong.
• Established additional concrete batching facilities after the relocation of concrete plants at Lam Tei Quarry.

Supply Chain Management

Responsible Procurement

• Supplier selection process considers environmental and social performance.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Adopting low-temperature binders in asphalt mixing
• Migrating to a greener mode of logistics

Reporting Standards

Frameworks Used: HKEx Appendix 27 of the Main Board Listing Rules

Certifications: ISO 14001:2015, ISO 9001:2015

Sustainable Products & Innovation

• GGBS concrete

Awards & Recognition

• Merit Award from the Workplace Best Practices Awards
• Bronze Award for Corporate and Employee Contribution Program

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Workplace health and safety
• Community engagement
• Health and Safety
• Product Responsibility
• Critical Incident Risk Responsiveness

Environmental Achievements

• Retained a zero-accident record for three years in a row with an accident frequency rate of 0 per 100,000 man-hours worked
• Planted 1,623 trees across approximately 1,962 square metres through hydroseeding.
• Produced more than 40,000m3 of GGBS concrete in 2023 with the estimated reduction of CO2 emissions 7,784.4 tonnes

Social Achievements

• Zero work-related injuries in 2023
• Offered an average of 6.50 hours of training to each employee in 2023, a 4% increase from 2022
• Awarded the Outstanding Award from the Joyful @ Healthy Workplace Best Practices Awards (Enterprise/Organisation Category)

Governance Achievements

• Complied with the code provisions in Part 2 of Corporate Governance Code (the “Code ”) set out in Appendix C1 of the Listing Rules, except for a half-year delay in implementing code provision B.2.4(b) of the Code

Climate Goals & Targets

Environmental Challenges

• Tight financial condition and concern that the speed of new projects being rolled out for tenders might be adversely affected
• Pressure on tender price and profit margin in the construction industry due to increased participation of Mainland China construction companies
• Difficulties and fierce competition in the asphalt business due to aggressive pricing strategies of competitors
• Reduction of sales quantities of aggregates due to lower than expected volume of rock imported to Lam Tei Quarry

Mitigation Strategies

• Prudent cost control measures and commitment to providing high-quality services to strengthen competitiveness
• Monitoring the performance of investments and reviewing the investment strategy periodically
• Conservative approach in making new investment decisions
• Strengthened recycling of wastewater to minimize increase in wastewater amount despite increased concrete production

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Consideration of environmental and social performance of suppliers in selection process

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products, migrating to greener logistics, adopting low-temperature binders in asphalt mixing

Reporting Standards

Frameworks Used: Appendix C2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 14001:2015, ISO 9001:2015

Third-party Assurance: Deloitte Touche Tohmatsu

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• GGBS concrete

Awards & Recognition

• Outstanding Award from the Joyful @ Healthy Workplace Best Practices Awards
• Bronze Award for Corporate and Employee Contribution Program
• 3rd Highest Donation Award of Donation Drive for Employee Contribution Programme
• Outstanding Award for Employee Contribution Programme