Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy saving
• Environmental protection
• Carbon emission reduction

Environmental Achievements

• Achieved 148,155,000 kWh of electricity reduction, equivalent to 104,119,778 kg CO2 reduction

Social Achievements

• Launched Management Trainee Program
• Maintained zero work injuries and fatalities
• Supported various community initiatives (WGO, Friends of the Earth, Green Sense, HKICPA)

Governance Achievements

• Transferred listing from GEM to Main Board of the Stock Exchange
• Established three Board committees (Audit, Nomination, Remuneration)
• Complied with the Corporate Governance Code

Climate Goals & Targets

Environmental Challenges

• Fluctuation in demand for consultancy services
• Reliance on subcontractors
• Reliance on key management personnel
• Changes in consumer preferences for green technologies
• Exposure to interest rate and foreign currency risks

Mitigation Strategies

• Expansion into overseas markets
• Development of a systematic way to record freight activities
• Implementation of a comprehensive Safety Management System
• Monitoring foreign exchange exposure and considering hedging
• Conservative strategy regarding risk management

Supply Chain Management

Supplier Audits: Onsite audit and interview performed; developing standardised assessment criteria

Responsible Procurement

• Supplier assessment procedure based on company structure, track record, technical capability, operation capability, financial capability, managerial capability, and product warranty

Climate-Related Risks & Opportunities

Opportunities

• Growth in demand for energy saving and environmental protection services and products

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Sustainable Products & Innovation

• Award-winning energy-efficient LED luminaires
• Customised and patented “starter” control switch
• Synergy LED Media Display

Awards & Recognition

• Social Caring Awards for Green Excellence (UN and SERI)
• BOCHK Corporate Environmental Leadership Awards
• WGO Sustainable Business Award
• Forbes China Top 100 Most Promising Public Listed Company

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• CO2 Emissions Reduction 595,981,135 kgCO2e
• Energy Reduction 752,969,092 kWh
• No. of Trees Planted 27,373,240

Social Achievements

• Cultivated a pleasant and motivated working environment
• Enriched its talent pool with increasing levels of female workforce participation
• Introduced the “360 Feedback ” scheme

Governance Achievements

• Complied with the code provisions as set out in the Corporate Governance Code
• Established three committees: Audit Committee, Nomination Committee and Remuneration Committee
• Complied with the Securities Dealing Code and the Model Code

Climate Goals & Targets

Environmental Challenges

• Drop in customer demand and delays in product delivery due to negative economic effects from international trade policy uncertainty, global financial conditions, and the COVID-19 outbreak.
• Inability to repay overdue borrowings, resulting in statutory demands from creditors.
• Delays in major projects due to COVID-19.

Mitigation Strategies

• Exploring means to enhance the financial position of the Group, including debt restructuring and equity/debt financing.
• Discussions with creditors to restructure outstanding indebtedness.
• Closely monitored the recoverability of receivables and followed up with customers.

Supply Chain Management

Supplier Audits: Annual assessment

Responsible Procurement

• Green procurement practices; Electronic means for purchase transactions

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)

Sustainable Products & Innovation

• LED lightings retrofit; Cooling optimization; Energy storage solutions; Cloud-based platform; Solar power plant solutions

Awards & Recognition

• Award of Hong Kong Green Organisation
• Hong Kong Awards for Environmental Excellence Certificate of Merit
• BOCHK Corporate Environmental Leadership Awards – EcoChallenger
• Deloitte Hong Kong Technology Fast 20 and Rising Star Award
• IFMA Asia Pacific Award of Excellence Certificate of Excellence
• Sustainable Business Award
• Forbes China Up-and-Comers List Top 100 Best Listed Company
• Social Caring Awards for Green Excellence
• The Excellence Brand Award
• Sustainable Business Awards
• BOCHK Corporate Environmental Leadership Awards – EcoPartner
• Green Partners EARTH
• United Nations Millennium Development Goals Green Office Awards Labelling Scheme
• Green Manufacturing Network Appreciation
• Caring Company Certificate
• Green Enterprise Award
• Productwi$e Label of the Hong Kong Awards for Environmental Excellence
• Prime Awards for ECO Business
• Outstanding Green Excellence Awards
• The Best SME Partners
• Outstanding Chinese Patented Invention Award

Environmental Metrics

ESG Focus Areas

• Carbon Neutrality
• Energy Efficiency
• Renewable Energy
• Community Investment
• Employee Development
• Supply Chain Management
• Anti-Corruption

Environmental Achievements

• Reduction of over 50,000 tonnes of CO2e from previous and ongoing projects verified globally.
• Cumulative CO2 emissions reduction of 696,966,657 kgCO2e over the past decade (estimated).
• Energy reduction of 871,635,981 kWh over the past decade (estimated).

Social Achievements

• Zero workplace injuries and fatalities since establishment.
• Increased female workforce participation.
• Donation of LED lights to Hong Kong Council of Social Service and Po Leung Kuk Lam Man Chan English Primary School.
• Implementation of share option scheme for employees.

Governance Achievements

• Establishment of an ESG committee under the Board of Directors.
• Implementation of anti-corruption training for all new directors and employees.
• Compliance with anti-corruption and anti-bribery laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Potential disruption of operations due to extreme weather events (physical climate risks).
• Increasingly stringent regulations for climate change compliance (transition climate risks).

Mitigation Strategies

• Development of contingency plans to reduce negative impacts of extreme weather.
• Regular exploration of upcoming trends and development of green solutions to ensure compliance with climate change regulations.

Supply Chain Management

Supplier Audits: Annual assessment for existing suppliers and contractors.

Responsible Procurement

• Prioritization of suppliers with established environmental, health & safety, labor management, and quality management systems.
• Use of electronic means for purchase transactions.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting operations and supply chain.

Transition Risks

• Failure to meet compliance requirements for climate change.

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: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• LED lighting solutions; energy storage solutions; renewable energy solutions.

Awards & Recognition

• Various awards listed in section 4 of the report.