Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental responsibility
• Employment and labour practices
• Operating practices
• Community and other

Environmental Achievements

• Reduced air pollutant emissions (NOx, PM) compared to the previous reporting period.
• Recycled and reused 214 kg of wastepaper.
• Implemented measures to reduce energy and water consumption.

Social Achievements

• No complaints received regarding products and services; no product recalls.
• Established a comprehensive training system for employees.
• Maintained compliance with labor laws and regulations; no child labor or forced labor.

Governance Achievements

• No reported legal cases regarding corrupt practices.
• Implemented anti-corruption training and policies.
• Established policies for intellectual property rights and customer privacy protection.

Climate Goals & Targets

Environmental Challenges

• Reducing GHG emissions, air pollutants, wastewater, and solid waste.
• Managing environmental and social risks in the supply chain.
• Ensuring compliance with various laws and regulations across different regions.

Mitigation Strategies

• Implemented various measures to reduce emissions and save resources across all business units.
• Established a general management system manual to manage suppliers/subcontractors.
• Implemented policies and training programs to ensure compliance with laws and regulations.

Supply Chain Management

Responsible Procurement

• Subcontractor/Supplier Engagement and Evaluation Policy
• Annual reassessment of approved suppliers
• Multiple subcontractor proposals for fair tendering
• Backup suppliers for supply chain resilience
• Prioritization of local suppliers to reduce transportation emissions
• Environmental protection requirements in commercial agreements

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO 9001:2008, OHSAS 18001:2007, ISO14001:2004

Sustainable Products & Innovation

• Kitchen waste treatment technologies

Environmental Metrics

ESG Focus Areas

• Environmental responsibility
• Employment and labour practices
• Operation practices
• Community and other

Environmental Achievements

• Reduced GHG emissions (Scope 1 and 2) to 9,736.71 tonnes CO2e
• Implemented measures to reduce air emissions, wastewater, and solid waste in offices, construction sites, and kitchen waste treatment plants
• New Concepts Foundation Limited awarded three prizes at the Hong Kong Green Awards 2019 for outstanding operational environmental management

Social Achievements

• Established an internal human resources policy to protect employee benefits
• Implemented a transparent and clear recruitment process
• Provided anti-corruption training courses to employees
• Donated HK$100,000 to the Caring for Children Foundation and HK$200,000 to the Construction Industry Caring Campaign

Governance Achievements

• Established internal guidelines to ensure precise product descriptions and information in sales and marketing
• Formulated an internal policy to set out guidelines on customer information protection
• Implemented anti-corruption policies and whistle-blowing procedures

Climate Goals & Targets

Environmental Challenges

• Difficulties in data collection due to the COVID-19 outbreak in Europe and the subsequent enforcement of pledged shares of Vimab Holding AB
• Challenges from different business environments

Mitigation Strategies

• Actively enhancing ESG data collection and management system
• Continuing to evaluate the possibility to conduct related collection work in future reports

Supply Chain Management

Responsible Procurement

• Fair and open procurement
• Win-win cooperation
• Open tendering
• Suppliers satisfactory assessment
• Selection of subcontractors/suppliers based on financial background, product/service quality, price, customer service quality, reputation, past experience, environmental and social performances, delivery time, and annual evaluation results

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide

Certifications: ISO 9001:2015, OHSAS 18001:2007, ISO 14001:2015, ISO 50001:2011

Awards & Recognition

• Hong Kong Green Awards 2019 (three prizes for New Concepts Foundation Limited)

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Employment and Labour Practices
• Operational Practices

Environmental Achievements

• Reduced energy consumption by 1% in the Construction Business.
• Reduced fuel consumption and relevant NOx and PM emissions by 60% compared to machinery without approval label in the Construction Business.
• Utilized 3,395,000 cubic meters of biogas to power plants and reduce emissions from fuel in the kitchen waste treatment business.
• Successfully recycled 34.92 kilograms of wastepaper.

Social Achievements

• Honourably awarded four prizes in Hong Kong Green Awards 2020 (three awards related to Green Management and one in Environmental, Health and Safety Award).
• Established an indoor rest area for sanitation workers, drivers and support workers of food waste collection and transportation in PRC.
• Provided training on the use of forklift trucks at Hefei Plant.
• Conducted a chemical spill safety drill in May 2020.
• Conducted a fire drill at Hefei Plant in November 2020.

Governance Achievements

• Formulated the Whistleblowing Policy and the Fraud Prevention & Detection Policy.
• Introduced anti-bribery clauses in all commercial agreements at Taiyuan Plant.
• Implemented measures to maintain fair competition among competitors in tendering process.
• Did not receive any reported legal cases regarding corrupt practices against the Group or its employees during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Potential negative impacts on business operations due to increasing frequency of extreme weather events related to climate change.
• Potential environmental and social risks from subcontractors and suppliers.
• Noise from construction sites causing nuisance to surrounding areas.
• Managing the environmental and social risks associated with suppliers.

Mitigation Strategies

• Established standard procedures on inspection before typhoons and heavy rainstorm.
• Formulated internal policies in managing the selection procedures and the performance of subcontractors and suppliers.
• Implemented noise reduction measures such as noise barriers, purchasing quieter equipment, and reducing concurrently running equipment.
• Implemented supplier evaluations to ensure compliance with internal requirements and local regulations.

Supply Chain Management

Supplier Audits: 142 suppliers engaged during the reporting period.

Responsible Procurement

• General Management System Manual
• Subcontractor/Supplier Engagement and Evaluation Policy
• Supplier Management System (Taiyuan Plant)
• (Tentative) Procurement Management Approach (Hefei Plant)
• Construction Site Environmental Protection Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, heavy rainstorms)

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide

Certifications: ISO 9001, ISO 14001:2015, ISO 50001:2011

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Organic fertilizers, grease, biogas from kitchen waste treatment.

Awards & Recognition

• Four prizes in Hong Kong Green Awards 2020
• Sustained Performance (5 years +) in Hong Kong Green Awards

Environmental Metrics

ESG Focus Areas

• Communication with stakeholders
• Disaster and emergency planning and response
• Compliance operation
• Anti-corruption
• Health and safety relating to products/services
• Product quality control and management
• Employee remuneration and benefits
• Equal opportunities, diversity, and anti-discrimination
• Employee development and training
• Occupational health and safety
• Air emissions
• Waste handling
• Wastewater treatment
• Use of energy
• Greenhouse gases emissions
• Use of water

Environmental Achievements

• Hefei Plant obtained High and New Tech Enterprise certifications.
• Hefei Plant and Beijing Office obtained ISCC certifications.
• Reduced exhaust emissions through adoption of air pollution prevention and control technologies.
• Reduced office carbon emissions by replacing and reducing energy-intensive equipment and activities.
• Reduced overall energy consumption by integrating energy-saving concepts in projects and offices.
• Strengthened waste reduction at the sources by formulating Group’s level energy management system and internal energy management policy.
• Increased investment in water-saving equipment and improved water utilization rate.
• Reduced average water consumption by implementing water-saving measures.

Social Achievements

• Established internal human resources policy to protect employee rights and benefits.
• Provided reasonable and competitive employees’ remuneration and benefits.
• Provided equal opportunities in the workplace.
• Provided adequate rest time and benefits to protect employees’ mental and physical health.
• Implemented transparent and clear procedures for recruitment.
• Provided promotion opportunities for high-calibre employees.
• Promoted anti-discrimination and equal opportunities in all human resources and employment decisions.
• Implemented measures to prevent child and forced labour.
• Provided comprehensive talent development programmes.
• Maintained a safe and healthy work environment.
• Formulated the Policy Statement for Safety and Health.
• Established safety committees for every project.
• Implemented safety measures for prevention and awareness promotion.
• Established Plant Emergency Responding Mechanism and relevant measures to effectively prevent and properly respond to the occurrence of emergency accidents.

Governance Achievements

• Established a robust ESG governance framework overseen by the Board.
• Conducted ESG risk assessment to further explore potential ESG risks.
• Formulated a more progressive ESG management strategy.
• Established clear procedures to deal with violations.
• Complied with laws and regulations relating to preventing anti-behaviors.
• Prohibited bid-rigging and strictly abided by the rules in tendering processes.
• Implemented the Whistleblowing Policy and the Fraud Prevention & Detection Policy.
• Organised training on ethical and governance roles of directors and senior management.

Climate Goals & Targets

Environmental Challenges

• Industrial risks (man-made disasters)
• Infectious diseases
• Climate change and extreme weather
• Tightened environmental protection policies, laws, regulations, and industry standards
• High turnover rate in the construction industry

Mitigation Strategies

• Developed Safety and Health Policy Statement, regular safety inspections and drills, provision of protective equipment, customised safety policies and systems for subsidiaries.
• Implemented effective epidemic prevention and control works, flexible work hours, work from home measures, full disinfection, sufficient anti-epidemic materials, virtual video meetings, and OA systems.
• Established standard procedures for pre-typhoon and rainstorm inspections, formulated Production Safety Accident Response Plan, regular training and drills.
• Rich experience in the environmental industry and excellent compliance practices, continuous monitoring of compliance-related issues, and active preparations to minimise compliance risks.
• Review of the high turnover rate issue by management.

Supply Chain Management

Supplier Audits: 239 suppliers engaged

Responsible Procurement

• Green procurement
• Supplier evaluations
• Internal qualified supplier list
• Annual review of supplier qualification
• Subcontractor/Supplier Engagement and Evaluation Policy
• Supplier Management System
• (Tentative) Procurement Management Approach

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoons, rainstorms, etc.)

Transition Risks

• Tightened environmental policies

Opportunities

• Further development in environmental protection business

Reporting Standards

Frameworks Used: ESG Reporting Guide

Certifications: ISO 9001, ISO 14001:2015, ISO 50001:2011, ISCC

Sustainable Products & Innovation

• Organic fertilisers
• Biogas

Awards & Recognition

• Hong Kong Green Award 2021 (Green Management and Environmental, Health and Safety Award)

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Employment and Labour Practices
• Operational Practices
• Occupational health and safety
• Use of energy
• Use of water
• Employee compensation and benefits
• Anti-corruption

Environmental Achievements

• Strengthened waste reduction at the source
• Reduced exhaust emissions
• Improved air pollutants management
• Invested in and adopted clean energy
• Reduced office carbon emissions
• Reduced overall energy consumption
• Increased investment in water-saving equipment
• Strengthened sewage treatment
• Reduced average water consumption
• Recycled paper waste (20 kg)

Social Achievements

• Held 4 trainings related to rules and regulations (Board training, Senior Team building, Compliance training, ESG training)
• Hefei Plant certified as a High-Tech Enterprise
• Implemented measures to review employment practices to avoid child and forced labour
• Provided comprehensive talent development programs
• Conducted safety training in the field of construction business
• Launched public education on environment and resources for universities in Hefei

Governance Achievements

• Established a strong ESG governance framework
• Conducted ESG risk assessment
• Formulated risk response strategies for ESG risks
• Improved ESG governance structure
• Established preventative and detection measures against unethical behavior
• Developed the Whistleblowing Policy and the Fraud Prevention and Detection Policy
• Maintained fair competition in the market
• Improved and strengthened employees’ understanding and awareness of ethical behavior

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate change-induced extreme weather events
• Transition risks (policy changes, technological innovation, market sentiment)
• Tightening of domestic environmental protection policies

Mitigation Strategies

• Developed alternative sourcing strategies
• Established standard procedures for inspecting construction sites before extreme weather
• Improved climate change resilience
• Formulated a more progressive ESG management strategy
• Developed a detailed Production Safety Accident Response Plan
• Actively carried out relevant preparations work to minimise compliance risks

Supply Chain Management

Supplier Audits: 463 suppliers

Responsible Procurement

• Green procurement concept
• Stipulated requirements relating to environmental protection in commercial agreements
• Supplier evaluations
• Subcontractor/Supplier Engagement and Evaluation Policy
• Supplier Management System

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Changes in related policies and industrial structures

Opportunities

• Further development in Environmental Protection Business

Reporting Standards

Frameworks Used: ESG Reporting Guide

Certifications: ISO 9001, ISO 14001, ISO 50001

Awards & Recognition

• Hong Kong Green Award 2022

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Use of energy
• Operational compliance
• Use of water
• Compensation and welfare
• Exhaust emissions

Environmental Achievements

• Yixing Plant obtained two-stars certification in Green Building for its newly-built environmental protection industrial park, achieving 72% energy conservation.
• Hefei plant strengthened technical upgradation and reconstruction work covering kitchen waste treatment facilities, oil extraction facilities, and waste gas treatment facilities. Improved production efficiency and enhanced equipment effectiveness.
• Reduction in air pollutant emissions (NOx, SOx, CO, PM10) compared to the previous year at Hefei Plant.

Social Achievements

• Organised trainings on business integrity for all staff at Tianjin Office and Shenzhen Huamingsheng.
• Implemented various employee care initiatives, including team-building events and gatherings.
• Launched a public education program on environment and resources for students from Anhui University at Hefei Plant.

Governance Achievements

• Conducted ESG risk assessment, identifying 7 material ESG risks and developing response strategies.
• Established comprehensive waste management system for administrative offices, construction sites, and environmental protection operation.
• Strictly adhered to laws and regulations related to environmental pollution, labour standards, health and safety, anti-corruption, and information security. No incidents of violation occurred.

Climate Goals & Targets

Environmental Challenges

• Noise and waste emission pollution from construction activities and environmental protection operations.
• Global energy crisis leading to supply chain disruptions.
• Industrial safety risks from human-induced accidents.
• Compliance challenges and shifts in policies related to environmental regulations.
• Potential impacts of extreme weather events (physical risks) and policy changes (transition risks) related to climate change.

Mitigation Strategies

• Implemented noise monitoring, low-noise equipment, and comprehensive waste management systems.
• Established Energy Management Manual, implemented biomass power generation, and applied for rooftop photovoltaic projects.
• Regular safety inspections, emergency plans, and safety training programs.
• Strict adherence to laws and regulations, establishment of operating procedures, and environmental safety training.
• Developed comprehensive preventive and emergency measures to minimise the impact of extreme weather events, formulated detailed emergency response plans, and set short-term and long-term goals to address transition risks.

Supply Chain Management

Supplier Audits: 109 suppliers engaged during the Reporting Period

Responsible Procurement

• Supplier selection, evaluation, and procurement practices based on quality, reliability, and compliance with internal standards and regulatory requirements.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting operations.

Transition Risks

• Changes in policies and industrial structures impacting businesses and asset valuations.

Opportunities

• Development and use of green energy (biogas, solar).

Reporting Standards

Frameworks Used: ESG Reporting Guide

Certifications: ISO9001, ISO14001, ISO50001, ISO45001

Sustainable Products & Innovation

• Biogas, anode materials.

Awards & Recognition

• 2023 Organic Waste Investment and Operation Benchmark Enterprise of the Year
• High-Tech Enterprise Certificate (Hefei Plant)
• Tianjin Emerging Enterprise (Tianjin Office)
• Advanced Collective in Safety Work (Xuancheng Plant)
• Advanced Material Enterprise and Advanced Technological Innovation Unit (Shenzhen Huamingsheng)