Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Issues
• Corporate Governance

Environmental Achievements

• Reduced electricity consumption to approximately 209 MWh
• Reduced paper consumption by encouraging electronic statements and implementing a service charge for physical statements
• Recycled approximately 3.855 tonnes of paper and participated in a computer recycling program

Social Achievements

• Maintained a diverse workforce with women holding senior positions
• Provided free professional training for SFC licensed staff and subsidized other training courses
• Supported various social service activities, including World Vision's Skip-A-Meal program and the Hong Kong News Award

Governance Achievements

• Maintained high standards of corporate governance practices
• Established Board Committees (Audit, Compensation, Nomination, Corporate Governance)
• Implemented a whistle-blowing policy and strict Know-Your-Client procedures to comply with anti-money laundering regulations

Climate Goals & Targets

Environmental Challenges

• Challenges in the proprietary investment divisions due to negative market sentiment, trade wars, and interest rate hikes
• Lack of economies of scale in the asset management business
• Increased market volatility due to trade wars and US interest rate hikes

Mitigation Strategies

• Strengthened the balance sheet through a capital fund raising
• Continued to build corporate advisory teams to handle increased demand
• Exploring different channels to increase assets under management, including partnering with other boutique fund managers

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Consideration of suppliers’ environmental and energy policies

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: The Stock Exchange of Hong Kong Limited’s Environmental, Social and Governance Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Caring Company designation (10+ years)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Issues
• Good Corporate Governance

Environmental Achievements

• Minimised paper usage by encouraging electronic statements and charging for physical statements.
• Upgraded computer equipment to energy-efficient models.
• Implemented energy-efficient cooling system.
• Engaged in a computer-recycling program, donating equipment to Caritas Computer Workshop.
• Recycled waste electrical equipment and printing cartridges.

Social Achievements

• Awarded Caring Company designation for over 10 consecutive years.
• Supported World Vision’s Skip-A-Meal program.
• Title sponsor of the Hong Kong News Award.
• Sponsored the Hong Kong Philharmonic Orchestra’s National Day Celebration Concert.
• Supported World Vision’s Used Book Recycling Campaign.
• Implemented equal opportunities policies and anti-discrimination measures.
• Provided free professional training for SFC licensed staff (at least 5 hours per year).

Governance Achievements

• Established a clear division of responsibilities between the Board and management.
• Established Audit, Compensation, Nomination, and Corporate Governance Committees.
• Complied with the Corporate Governance Code (with one deviation regarding non-executive director appointment terms).
• Implemented a Compliance Monitoring Program.
• Adopted a Dividend Policy.
• Established policies and procedures to promote integrity, impartiality, and honesty, including an anti-corruption and anti-money laundering policy and a whistle-blowing policy.

Climate Goals & Targets

Environmental Challenges

• Volatile Hong Kong market due to escalating trade disputes between China and the US, weakening renminbi, and capital outflows.
• Slowdown in the IPO market for mid and small cap companies.
• Increased volatility leading to losses in trading portfolios and impairment of unlisted investments.
• Social unrest in Hong Kong causing business disruptions.

Mitigation Strategies

• Shifting business focus to the Greater Bay Area (application for a full-licensed securities company joint venture in Chongqing and acquisition of a private equity fund manager in Guangdong province).
• Adopting a more conservative approach in Hong Kong.
• Tightening credit limits of brokerage clients.
• Exploring different channels to increase assets under management, including partnering with other boutique fund managers.
• Investing in different investment products managed by external investment managers to stabilize returns.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Consideration of suppliers’ environmental and energy policies.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: The Stock Exchange of Hong Kong Limited’s Environmental, Social and Governance Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Listed Enterprise Excellence Awards 2018 – Excellent Performance

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Issues
• Good Corporate Governance

Environmental Achievements

• Reduced energy consumption to approximately 187 MWh, a slight decrease from last year.
• Reduced paper consumption to approximately 2.655 tonnes, a slight decrease from last year.
• Achieved approximately 60% of existing customers receiving electronic statements instead of paper statements.
• Engaged in a computer-recycling program, donating used equipment to Caritas Computer Workshop.

Social Achievements

• Awarded the Caring Company designation by the Hong Kong Council of Social Services for over 10 continuous years.
• Supported various social service activities including World Vision’s Skip-A-Meal program and COVID-19 Global Response.
• Title sponsor of the Hong Kong News Award for the sixth consecutive year.
• Sponsor of the Hong Kong Philharmonic Orchestra’s National Day Celebration Concert.
• Supported the Used Book Recycling Campaign organized by World Vision Hong Kong.

Governance Achievements

• Complied with the principles and code provisions of the Corporate Governance Code.
• Established an Audit Committee, Compensation Committee, Nomination Committee, and Corporate Governance Committee.
• Maintained a high standard of corporate governance practices.
• Provided training and development for directors and staff on various topics including compliance, regulatory updates, and business ethics.

Climate Goals & Targets

Environmental Challenges

• Social unrest in Hong Kong.
• Increased tension between the US and China.
• Coronavirus pandemic and global lockdown.
• Travel restrictions.
• Economic recession and uncertainties from the coronavirus.
• Drop in rental income and valuation of investment properties.
• Increased expected credit loss.

Mitigation Strategies

• Prudent financial management.
• Minimal gearing and strong balance sheet.
• Focus on asset allocation to achieve positive investment returns.
• Fully funded factoring subsidiary in Guangzhou.
• Implemented aggressive fiscal and monetary policies.
• Implemented a series of measures to reduce the risk of COVID-19 infection among staff, including split-team arrangements and work-from-home arrangements.
• Developed and implemented a Compliance Monitoring Program.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Consideration of suppliers’ environmental and energy policies

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: The Stock Exchange of Hong Kong Limited’s Environmental, Social and Governance Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Caring Company designation