Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Aspect
• Corporate Governance

Environmental Achievements

• Design of hot water system in Empire Hotel Causeway Bay divided into three zones for optimal gas supply and energy saving.
• Air cool chiller system of Empire Hotel Hong Kong and Empire Hotel Kowloon replaced by water cool chiller system, resulting in greater energy efficiency.
• Air conditioning in Empire Hotel Causeway Bay and Empire Hotel Kowloon has a zone valve to switch off electricity supply on idle floors.
• Empire Hotel Kowloon's latest renovation floors have an individual electric heater supply system that can be switched off individually.
• New hotel development in Causeway Bay achieved BEAM Plus NB final assessment certification.
• New hotel development in Tsim Sha Tsui received provisional certificates of BEAM Plus NB.
• Daily monitoring of energy and fuel consumption to identify areas for energy conservation.
• Phased replacements of chillers, fan coil units, air handling units, laundry and kitchen equipment, electrical appliances and lighting with more energy-efficient models.
• Water consumption reduced through green program for guestroom linens (changing towels and bedsheets upon request).

Social Achievements

• Launched "The Art of Caring" Community Care Program in conjunction with SAHK, supporting local children and youth with special needs.
• Organized various events to give back to the community.
• Made donations of HK$5,110,000 to a number of charitable organisations.
• Awarded the Caring Company title for a ninth year in a row by The Hong Kong Council of Social Service.
• OLE2 Program provided real-life work experience to five about-to-graduate secondary school students.

Governance Achievements

• Revised and adopted terms of reference for the Remuneration Committee in compliance with the Code.
• Revised and adopted terms of reference for the Audit Committee in compliance with the Code.
• Established internal audit function.
• All Directors confirmed full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers.

Climate Goals & Targets

Environmental Challenges

• Significant decrease in profit attributable to shareholders (60%) mainly due to unrealised fair value loss on investments in financial assets.
• Risks pertaining to Hotel and Travel Operations: government regulation, changes in market conditions, competition, excess hotel supply, reduced demand, foreign exchange fluctuations, interest rates, and other natural and social factors.
• Risks pertaining to Hotel or Property Developments: performance of external contractors, delays in obtaining government approvals.
• Risks pertaining to Financing: availability of capital, increase in costs of funding, currency fluctuation.
• Risks pertaining to Financial Investments: changes in interest rates, foreign exchange rates, credit spreads, equity prices, and overall economic performance.

Mitigation Strategies

• Asset portfolio optimisation for cost effectiveness and efficiency.
• Monitoring business performance and assessing economic conditions.
• Maintaining an open and proactive relationship with the banking community, arranging different terms of loan facilities.
• Close monitoring of investments and their relevance to long-term strategic plans.
• Maintaining sufficient cash and marketable securities, and adequate credit facilities.

Supply Chain Management

Responsible Procurement

• Tender process for most procurements.
• Supplier approval process and spot checks on delivered goods.
• Reviewing options to purchase more products from organic and/or sustainably managed sources, environmentally superior products, and local or regional companies.

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: BEAM Plus NB

Awards & Recognition

• Caring Company title (9th consecutive year)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Aspect
• Corporate Governance

Environmental Achievements

• Replaced air cool chiller systems with water cool systems in Empire Hotel Hong Kong (2012) and Kowloon (2017), improving energy efficiency.
• Implemented energy-saving measures such as phased replacements of equipment with energy-efficient models and daily monitoring of energy and fuel consumption.
• Incorporated various environmental initiatives in hotel operations to reduce waste generation, including a green program for guestroom linens and use of electronic communications.

Social Achievements

• Launched "The Art of Caring" Community Care Program in 2009, supporting local children and youth with special needs.
• Awarded the “10 Years + Caring Company Logo” by the Hong Kong Council of Social Service in 2019 for community contributions.
• Made donations of HK$1,097,000 to various charitable organizations.

Governance Achievements

• Maintained corporate governance standards emphasizing transparency, independence, accountability, responsibility, and fairness.
• Established and implemented policies that promote a fair and respectful workplace.
• Complied with all relevant laws and regulations relating to health and safety, preventing child and forced labor, and anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Significant impact on hotel performance due to local socio-political instability and the COVID-19 pandemic.
• Weakened tourism sentiment impacting hotel sales.
• Decreased occupancy levels in the 4th quarter due to worldwide lockdowns.

Mitigation Strategies

• Immediate action to reduce operational costs, update capital spending plans, preserve cash resources, and retain adequate banking facilities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Most procurements undergo a tender process; assessment methods ensure quality of supplied products and services; review options to purchase more products from organic, sustainably managed sources, environmentally superior products, and local/regional companies.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• “10 Years + Caring Company Logo” by the HKCSS (2019)