Climate Change Data

Environmental Metrics

ESG Focus Areas

• Customer Privacy and Company Data Protection
• Intellectual Property Protection
• Customer Complaint Management
• Project Quality Management
• Employment practices and compliance
• Employee Retention
• Employee Health and Safety
• Labor Standards
• Staff Development and Training
• Business Ethics and Ethics
• Anti-Corruption
• Resource Use and Efficiency
• Supply Chain Management
• Energy Management
• Control emissions
• Environmental Compliance
• Water Resources Management
• Waste Management
• Community Investment
• Climate Change Response
• Material Use and Packaging
• Environment and Natural Resources

Environmental Achievements

• Maintained total GHG emissions intensity for 2024 to be not more than the 2023 baseline.
• Reduced total non-hazardous waste intensity by 3% by 2028 compared to the 2023 baseline.
• Reduced total energy consumption intensity by 3% by 2028 compared to the 2023 baseline.
• Conducted or participated in awareness-building activities related to water conservation annually from 2024 onwards.

Social Achievements

• Implemented a robust and transparent recruitment process.
• Implemented a value-based and performance-based compensation system.
• Provided comprehensive welfare plan for its employees, including social insurance, supplementary medical insurance, housing fund, annual physical examination, statutory holidays and other welfare.
• Established a work injury management response team.
• Developed specific health checkup programs based on industry characteristics and employees’ health conditions.
• Developed its annual training plan and established its internal learning platform.
• Implemented a rank system internally to help each employee to better understand his/her current position, provide each employee with a clearer promotion and development path and help each employee to better understand the ability requirements of each development path.
• Established the ISO27001 information security management system and set up the information security management committee.

Governance Achievements

• Established three committees: Audit Committee, Remuneration Committee, and Nomination Committee.
• Adopted the board diversity policy.
• Established a sound process for dealing with and handling customer complaints.
• Established the intellectual property rights protection policies and implementation procedures.
• Implemented the anti-corruption and bribery requirements in its staff handbook and established reporting procedures and whistleblower protection measures.

Climate Goals & Targets

Environmental Challenges

• Decrease in revenue derived from the integrated IT solutions services segment due to the decrease in the number of integrated IT solutions projects.
• Delay of the tendering progress of certain potential integrated IT solutions projects.
• Increase in trade receivables balance due to the increase in revenue for FY2023 and a significant portion of projects were merely completed around the 2023 year end and such trade receivables were not yet due as at 31 December 2023; and the increase in long-aged trade receivables as a result of the extended payment period granted by the Group for certain projects and the delay in settlement of trade receivables due from certain customers for FY2023.
• Increased frequency and severity of extreme weather events that can disrupt operations.
• Increasing requirements of climate-related information disclosures.
• Stricter environmental laws and regulations that may expose enterprises to higher risks of claims and lawsuits.
• High employee turnover rate (approximately 44%).

Mitigation Strategies

• Continuous investment in research and development.
• Expansion of presence through undertaking projects in Hunan, Sichuan, Shaanxi and other provinces in the PRC.
• Internal precautions to minimise effect of the extreme weather, such as checking electrical circuits regularly, closing doors and windows, reminding employees to turn off the appliance after work and pay attention to personal safety when working outdoor.
• Flexible working arrangements and precautionary measures during bad or extreme weather conditions.
• Regular monitoring of existing and emerging trends, policies and regulations relevant to climate.
• Implementation of various safety management measures, such as potential accident investigation and management system.
• Providing good working conditions, such as reasonable working space and easy-to-use meeting systems.
• Promoting flexible working hours.
• Providing a clean, tidy and hygienic workplace.
• Providing fitness equipment in the designated areas in its offices.
• Carrying out indoor or outdoor activities regularly and organising various associations, etc.
• Providing supplemental commercial insurance and annual body check for employees.

Supply Chain Management

Supplier Audits: 416 suppliers reviewed

Responsible Procurement

• Prohibiting commercial bribery
• Establishing a reporting channel to allow its suppliers to communicate complaints, feedback, suggestion and supervision
• Ensuring confidentiality and requiring its suppliers to sign the agreement with the Group and agree to the confidentiality clause therein such that both parties agree not to disclose any information in relation to the cooperation to third parties in order to protect the Group’s business secrets.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of extreme weather such as typhoons, storms and heavy rains that can disrupt operations.

Transition Risks

• Stricter environmental laws and regulations that may expose enterprises to higher risks of claims and lawsuits.
• Corporate reputation may also decline due to failure to meet the compliance requirements for climate change.

Reporting Standards

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

Awards & Recognition

• Guangxi Strategic Emerging Industry Enterprises in 2022
• Nanning SME Credit Rating A-class Enterprises in 2023
• Top 100 Excellent Cases of Data Management in 2023
• Second prize of the Achievement Award granted by Guangxi Computer Society in 2023