Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced NMHC emission by achieving a 98% recycling rate through oil-gas condensation recovery devices.
• Revamped all fuel oil tanks into light oil tanks at XHIT to adapt to market transformation.
• Improved average utilization of oil tanks at XHIT to 49% in 2016 from 26% in 2015.

Social Achievements

• Maintained a workforce of approximately 470 employees (460 at terminals).
• Provided annual medical checks and safety training to all employees.
• Implemented key safety precautions at the workplace, including toxic gas detectors and emergency cut-off valves.

Governance Achievements

• Established formal procedures for the appointment and succession planning of directors.
• Adopted a board diversity policy in 2013.
• Separated the roles of Chairman and CEO in July 2016.

Climate Goals & Targets

Environmental Challenges

• Challenging oil and petrochemical market at DZIT in 2016, resulting in lower utilization of storage tanks.
• Downturn in solid chemical markets, leading to decreased cargo volume and lease-out rates.
• Depreciation of RMB during the year, affecting revenue translation.

Mitigation Strategies

• Revamped fuel oil tanks to light oil tanks at XHIT to attract new clients.
• Continued efforts to tap into market potentials and expand storage volume.
• Actively considering various financing methods to improve financial position and reduce leverage.

Supply Chain Management

Responsible Procurement

• Supplier selection based on compliance, price, quality, supply stability, and after-sales services.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the rules governing the listing of securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 14000 (Environmental Management System), ISO 9000 (Quality Management System)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Safety and Wellbeing
• Supply Chain Management
• Anti-Corruption
• Community Investment

Environmental Achievements

• Reduced GHG emission by 1.73 tonnes of CO2-e/thousand tonnes of terminal throughput to 1.29 tonnes of CO2-e/thousand tonnes of terminal throughput
• Achieved 98% recycling rate of oil-gas condensation
• Treated around 20,003.50 m3 of wastewater

Social Achievements

• Organised diversified activities for employees, including annual dinner, annual gathering, sport days and birthday parties
• Provided safety training and personal protective equipment to employees
• Participated in many charitable events and obtained outstanding social awards

Governance Achievements

• Established a set of human resources management policies and procedures
• Established “Health, Safety and Environment Policy Statement”,
• Adopted “Compliance Policies” to ensure no corruption or bribery

Climate Goals & Targets

Environmental Challenges

• Fluctuation in international oil prices
• Impact of COVID-19 pandemic
• Potential impairment of property, plant and equipment

Mitigation Strategies

• Operating on a back-to-back sale and purchase model to avoid oil price fluctuation risks
• Implementing cost-cutting measures
• Performing impairment assessments for property, plant and equipment

Supply Chain Management

Responsible Procurement

• Compliance, price, quality, stability of supply and after-sales services

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Guidelines, Appendix 27 of the Listing Rules

Certifications: ISO 14001, OHSAS 18001, ISO 9001

Awards & Recognition

• 東莞市五一勞動獎狀
• 東莞市沙田鎮進出口先進企業
• 全民創安•一呼百應「先進單位」
• 廣東省級企事業單位消防隊「先進單位」

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Safety
• Employee Well-being
• Anti-corruption
• Community Investment
• Climate Change

Environmental Achievements

• Reduced air pollutants emission in 2021 mainly due to less frequent business travels and transportation by vehicles, the use of gasoline recovery device, and effective implementation of fuel saving strategies.
• Implemented “VOCs One Enterprise One Policy Comprehensive Improvement Program” to control volatile organic compounds (VOCs) emission.
• Achieved a 98% recycling rate by installing oil-gas condensation recovery devices to reduce non-methane hydrocarbon (NMHC) emission.
• Lowered the emission of SO2 by using low-sulfur diesel (National VI standard) for the boiler.

Social Achievements

• Established “Health, Safety and Environment Policy Statement” in accordance with OHSAS18001 and ISO45001:2018.
• Provided safety training and personal protective equipment to employees.
• Provided medical insurance for staff.
• Established self-managed staff quarters and canteens.
• Implemented employee-caring scheme, “Global support for individual suffer scheme”, receiving RMB18,166 donation for an employee in need.
• Provided diversified on-the-job trainings to employees, particularly safety trainings.

Governance Achievements

• Established related investigation and whistleblowing procedure for any corruption cases.
• Provided anti-corruption training to 98% of employees.
• Adopted the board diversity policy on 29 August 2013.
• Complied with the Model Code for Securities Transactions by Directors of Listed Issuers.

Climate Goals & Targets

Environmental Challenges

• Impact of consumption tax on some oil and petrochemical products and pressure of factory relocation by customers.
• China government began to levy consumption tax on some refined oil products, hindering the Group’s expansion of light cycle oil trade business.
• Strengthened supervision of taxation on the upstream and downstream distribution of refined oil products, resulting in reduced back-to-back orders.
• Climate change related risks including extreme weather events, wildfire, prolonged hot weather, and tightened environmental and safety laws and standards.

Mitigation Strategies

• Introduced some high-quality new customers in some local state-owned enterprises.
• Changed business strategies and vigorously expanded and developed the end customers of filling stations.
• Actively expanded its import trade to drive the trading business carried out by the Group’s subsidiary in Hong Kong.
• Adjusted business model by leasing out its self-operated filling station assets.
• Implemented scenario analysis to disclose an organization’s planning under future scenarios.
• Established a natural disasters emergency plan.
• Planned improvements, retrofits, relocations, or other changes to facilities to reduce their vulnerability to climate impacts.
• Engaged with local or national governments and local stakeholders on local resilience.
• Planned to be involved in carbon trading and adoption of clean energy in the operations.
• Monitored the updates of the relevant climate-related environmental policies.
• Invested in the innovations of energy saving products.
• Examined the feasibility and benefits of applying the latest low-carbon and energy-saving technologies into our operation.
• Tightened the control of the environmental hazardous materials in our products and studied the application of recycled materials.

Supply Chain Management

Supplier Audits: 40 suppliers assessed (2021); 74 (2020)

Responsible Procurement

• Supplier Assessment Form
• Material Procurement Management Regulations
• Supplier Management Procedures
• Promoting environmentally preferable products and services
• Requiring suppliers to be certified with quality management systems (e.g., ISO9000).

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather events
• Increased likelihood and severity of wildfire
• Prolonged hot weather
• Negative impacts on workforce

Transition Risks

• Increased price of fossil fuels due to carbon-pricing mechanisms
• Policies hindering area expansion
• Tightened environmental and safety laws and standards
• Increased compliance costs
• Changes in customers’ demand for products
• Uncertainty in market signals
• Increased cost of raw materials
• Reputational risk

Opportunities

• Reduce packaging material usage
• Reduce water usage and consumption
• Use of lower-emission fuel sources
• Use of supportive policy incentives
• Use of new technologies
• Access to new markets
• Development of climate adaptation and insurance risk solutions
• Participation in renewable energy programs and adoption of energy-efficiency measures
• Resource substitution or diversification

Reporting Standards

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

Certifications: ISO 14001, OHSAS 18001, ISO 45001:2018, ISO9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Safety
• Employee Well-being
• Community Investment
• Anti-Corruption
• Supply Chain Management
• Climate Change

Environmental Achievements

• Reduced GHG emissions by implementing energy-saving strategies and technological renovations.
• Reduced hazardous waste generation through enhanced disposal efficiency and stabilized customers.
• Reduced water consumption by optimizing operational processes and stabilizing storage customers.
• Implemented VOCs One Enterprise One Policy Comprehensive Improvement Program to control volatile organic compounds (VOCs) emission.

Social Achievements

• Organized diversified activities to promote work-life balance among employees.
• Provided annual medical checks, safety training, and personal protective equipment to employees.
• Established a staff quarter and canteen to provide a comfortable working and living environment.
• Provided anti-corruption training to 98% of employees.

Governance Achievements

• Introduced Anti-Bribery and Corruption Policy and Whistleblowing Policy.
• Established formal procedures for the appointment and succession planning of Directors.
• Regularly reviewed corporate governance practices to ensure compliance with the CG Code.

Climate Goals & Targets

Environmental Challenges

• Reduced business activities due to the consumption tax on oil and petrochemical products and pandemic lockdowns.
• High volatility of oil prices affecting customer production and operating capacity.
• Potential impairment of property, plant, and equipment due to revenue decrease.
• Climate change related risks (physical and transitional).

Mitigation Strategies

• Adjusted operation strategies to minimize the impact of consumption tax and pandemic.
• Implemented cost control measures in the terminal storage business.
• Actively seeking approval for DZIT second phase development.
• Introduced new customers.
• Developed multiple future images considering climate change effects.
• Implemented robust risk management and business planning processes.
• Engaged with government and other organizations to keep abreast of regulatory changes.
• Investing in innovations of energy saving products and applying low-carbon and energy-saving technologies.

Supply Chain Management

Supplier Audits: 66 suppliers assessed using a rating system.

Responsible Procurement

• Supplier Assessment Form
• Material Procurement Management Regulations
• Promotion of environmentally preferable products and services.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather events.
• Increased likelihood and severity of wildfire.
• Prolonged hot weather increasing energy consumption.
• Climate change affecting product sales and services.
• Negative impacts on human health.

Transition Risks

• Increased fossil fuel prices due to carbon pricing mechanisms.
• Tightened environmental and safety regulations.
• Increased compliance costs.
• Changes in customer demand.
• Increased cost of raw materials.
• Reputational risks.

Opportunities

• Development of climate adaptation and insurance risk solutions.
• Access to new markets.
• Investment in low-emission technology.
• Energy efficiency gains and cost reductions.
• Revenue increases through new solutions.

Reporting Standards

Frameworks Used: GRI Guidelines

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• The ongoing Russo-Ukrainian conflict and the volatile situation in the Middle East are increasing global economic uncertainty.
• The strong emphasis on renewable energy development due to global climate change is impacting the traditional energy industry.

Mitigation Strategies

• The Group is maintaining its focus on hydrogen energy-related technologies and applications, actively engaging in research, development, and investment in hydrogen technologies (including hydrogen production, storage, and refueling).
• The Group is strengthening cooperation with major state-owned enterprises such as CNOOC Group, Sinochem Group, as well as local state-owned enterprises in Guangdong to ensure effective risk management in its trading business and filling station fuel oil distribution sector.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Renewable Energy
• Hydrogen Energy
• Zero-emission transportation

Environmental Achievements

• Introduction of Hong Kong’s first electric and first hydrogen double-deck bus into operations
• Establishment of Hong Kong’s first hydrogen refueling station

Social Achievements

• Maintaining existing core management team of Citybus
• Commitment to providing class-leading services to Hong Kong residents

Governance Achievements

• BTHL and Citybus becoming non-wholly owned subsidiaries of a public company (Hans Energy)

Climate Goals & Targets

Environmental Challenges

• Transitioning from traditional energy to renewable energy
• Economic transformation in Hong Kong and cautious market sentiment towards investment in local assets

Mitigation Strategies

• Vertical integration of energy supplier and key end-user (Citybus)
• Leveraging existing advantages in petroleum product trading and logistics to reduce fuel costs for Citybus
• Strategic development of the hydrogen industry to create synergy with Citybus’ #MissionZero goal
• Significant capital investment in local assets demonstrating confidence in Hong Kong's future

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Growth of the new energy market

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

Transition to zero-emission public transport, investment in hydrogen energy infrastructure

Sustainable Products & Innovation

• Hydrogen buses
• Electric buses