Climate Change Data

Environmental Metrics

ESG Focus Areas

• Catering to Customers
• Empowering Our Employees
• Focusing on Food
• Preserving the Planet

Environmental Achievements

• Introduced energy-efficient dishwashers in Hong Kong and Mainland China, saving around 20-30% in electricity consumption.
• Implemented boiler waste heat recovery in Mainland China, saving around 23,000 m3 of natural gas annually.
• Avoided the generation of 4,700 glass bottles and around 3,500 paper boxes of packaging per year through bulk purchasing.
• Increased the use of a high-frequency defroster at the manufacturing plant, saving an estimated 10 tonnes of water per day.
• Completed the second phase of a waste audit across different brands.

Social Achievements

• Offered more than 6,600 part-time positions to people who require a flexible working schedule.
• Extended career opportunities to more than 1,990 ‘young-old’ who have re-joined the workforce.
• Hired and trained 273 individuals with physical and intellectual challenges.
• Introduced the Continuous Leadership Development Programme and Development Centres.
• Provided over 609,000 hours of training.
• Contributed more than HK$27.9 million through the Lo Tang Seong Education Foundation to support the university education of 633 children of staff.

Governance Achievements

• Upholding high standards of integrity and business ethics with zero tolerance for misconduct.
• Providing anti-corruption training.
• Establishing a Protocol on Malpractice Reporting and Investigation.
• Adopting the latest technologies to prevent, detect and respond to cyberattacks.
• Implementing ISO 27001-certified Information Security Management System.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting global community and rapidly evolving market conditions.
• Supply chain disruptions due to COVID-19 and other factors (e.g., African Swine Fever).
• Decreased revenue in Hong Kong due to adverse market conditions and COVID-19.

Mitigation Strategies

• Swiftly adapted to new consumer preferences and enhanced hygiene standards.
• Strengthened digital and technological applications to enhance customer convenience.
• Implemented precautionary measures to make customers feel safe.
• Formulated contingency plans to minimise supply chain disruptions.
• Secured stable raw materials and products.
• Improved operation productivity and efficiency to adapt to the new market environment.

Supply Chain Management

Supplier Audits: 85% of targeted strategic suppliers in Mainland China received factory audits.

Responsible Procurement

• Supplier Code of Conduct
• Food Safety Policy
• Direct procurement from first-tier suppliers (32.5% of food supplies).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 27001 (Information Security Management System), ISO 22000 (Food Safety Management System), ISO 9001 (Quality Management System)

Sustainable Products & Innovation

• Antibiotic-free and no-added-hormones meal options
• Sustainable seafood
• Plant-based meat dishes
• Plant-based milk options

Awards & Recognition

• Hang Seng Corporate Sustainability Benchmark Index constituent (AA- rating)
• MSCI ESG Ratings (A rating)
• Other awards listed in the report (page 83-84)

Environmental Metrics

ESG Focus Areas

• Catering to Customers
• Empowering our Employees
• Focusing on Food
• Preserving the Planet

Environmental Achievements

• Installed energy-saving dishwashers in 100% of Mainland China stores
• 74.5% of seafood sourced in Hong Kong from certified sustainable sources
• Established food waste reduction targets in Hong Kong and Mainland China
• Rolled out food waste collection in all outlets

Social Achievements

• Launched food assistance program “Bon Appétit Café”, providing HK$12 million in food assistance to 3,000 beneficiaries
• Donated HK$500,000 worth of dining vouchers to community organizations
• Over 975,000 hours of training undertaken by employees in Hong Kong
• Club 100 membership > 1 million

Governance Achievements

• Established Group Sustainability Committee and China Sustainability Committee in July 2021
• Received an “A” rating from MSCI ESG Ratings
• Received “AA” rating and selected as a constituent of the Hang Seng Corporate Sustainability Benchmark Index for the seventh consecutive year

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic disruptions, including the fifth wave, impacting operations and supply chain
• Strict dine-in restrictions and social distancing measures in Hong Kong
• High infection rate and stringent quarantine policy affecting manpower

Mitigation Strategies

• Implemented health and safety protocols, flexible working arrangements, and provided free rapid antigen test kits and protective gear to employees
• Suspended dine-in service at most quick service restaurants
• Mobilized resources to maintain uninterrupted service at hospital canteens
• Introduced food assistance program and donated dining vouchers
• Established climate change policy and initiated climate risk assessment

Supply Chain Management

Supplier Audits: 96 (2021/22)

Responsible Procurement

• Supplier Code of Conduct covering labour practices, human rights, OSH, and business ethics
• Direct sourcing from first-tier suppliers
• Promoting products with no added antibiotics or hormones
• Procuring sustainable seafood

Climate-Related Risks & Opportunities

Physical Risks

• Rising temperatures and sea levels
• Changing precipitation patterns
• Frequent extreme weather

Transition Risks

• Increasingly stringent environmental and climate regulations

Opportunities

• Technological innovations for low carbon footprints
• Sustainable materials and resources

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 22000, ISO 27001, ISO 9001, ISO 14001 (Luncheon Star)

Sustainable Products & Innovation

• Plant-based meat and milk options
• Vegetarian meals
• No added MSG items

Awards & Recognition

• Hang Seng Corporate Sustainability Benchmark Index constituent (AA rating)
• MSCI ESG Ratings A rating
• Various awards for customer satisfaction, employee well-being, food quality, and environmental initiatives

Environmental Metrics

ESG Focus Areas

• Catering to Customers
• Empowering our Employees
• Focusing on Food
• Preserving the Planet

Environmental Achievements

• 100% of our Hong Kong stores implemented food waste separation
• Some Hong Kong stores started food waste recycling with government and landlord support
• 72.8% sustainable seafood procurement rate in Hong Kong operation
• 100% of our Mainland China stores have installed energy-saving dishwashers
• 512,176 litres of used cooking oil recycled
• 27% of 6,700 tonnes of food waste produced at our Hong Kong operation recycled

Social Achievements

• Launched initiatives to recruit and retain talent
• Introduced food assistance programme “Bon Appetit Café”, offering HK$12 million worth of food support to 3,000 beneficiaries
• More than 1,200 employees received “Give Me Five” long service award
• Lo Tang Seong Educational Foundation provided more than HK$3.2 million to support the university education of 182 staff members’ children
• Over 253 branches were recognised in the Labour Department’s Catering Industry Safety Inspiration Programme

Governance Achievements

• Established anti-corruption training for all employees
• Information Security Management System in Hong Kong holds ISO 27001 certification
• Regularly review and update the waste management plan

Climate Goals & Targets

Environmental Challenges

• Significant shortage of labour
• High temperatures and extreme meteorological events
• Climate-related risks (physical and transition risks)

Mitigation Strategies

• Launched initiatives to recruit and retain talent
• Conducted a climate risk assessment to evaluate the Group’s adaptability to various extreme climate events, and developed mitigation plans
• Proactively minimising our carbon footprint and water consumption from our operations
• Implemented various energy saving measures
• Investing in technologies that enhance dining experience and customer service
• Collaborate with suppliers to develop and identify cost-efficient options
• Explore alternative sources of raw materials
• Maintain relationships with suppliers to ensure a stable supply chain
• Conduct feasibility study of using renewable energy
• Install LED lighting, heating, ventilation, and air conditioning (HVAC) system and building management system (BMS)
• Provide more healthy and green menu options
• Practice sustainable food ingredient sourcing from eco-friendly suppliers
• Upgrade logistic fleets to Euro VI vehicles
• Explore electric truck options
• Set up carbon reduction targets
• Invest in low carbon technologies

Supply Chain Management

Supplier Audits: 197/year (Hong Kong), 69/year (Mainland China)

Responsible Procurement

• Purchasing Manual
• Corporate Food Safety Policy
• Supplier Code of Conduct
• GS1 traceability

Climate-Related Risks & Opportunities

Physical Risks

• Extreme Wind and Flooding
• Extreme Heat
• Water shortage

Transition Risks

• More stringent climate disclosure requirements
• Increasing regulation on packaging and plastic waste
• Fluctuation in yield and price of agricultural products
• Introduction of carbon pricing
• Changing customer behavior
• Transition to low emission transportation
• Increasing regulation on carbon neutrality target

Opportunities

• Development of energy-efficient products and services
• Use of renewable energy

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 27001 (Information Security Management System), ISO 22000 (Food Safety), ISO 9001 (Quality Management), ISO 14001 (Environmental Management)

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Plant-based menu options
• Sustainable seafood dishes

Awards & Recognition

• Hang Seng Corporate Sustainability Benchmark Index (AA rating)
• MSCI ESG Ratings (A rating)
• Numerous other awards (see report)

Environmental Metrics

ESG Focus Areas

• Catering to Customers
• Empowering our Employees
• Focusing on Food
• Preserving the Planet

Environmental Achievements

• Achieved four key reduction targets (GHG emission, energy and water consumption, food waste) in Hong Kong operations ahead of the 2024/25 timeline.
• Increased food waste recycling rate in Hong Kong operations to 40% (2,643 tonnes).

Social Achievements

• Bon Appétit Café program provided food assistance of HK$12 million to over 4,000 beneficiaries.
• Lo Tang Seong Education Foundation allocated over HK$3 million to support the university education of 180 children of staff members.
• Employs 677 ethnic minorities and individuals with physical and learning challenges in Hong Kong.
• Maintained zero work-related fatalities in Hong Kong & Mainland China.

Governance Achievements

• Successful CEO transition to a more sustainable leadership model.
• No significant instances of non-compliance related to corrupt practices, intellectual property rights, or bribery.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme circumstances.
• Fluctuations in output and pricing of agricultural goods.
• Increasingly demanding climate-related disclosure requirements.
• Increasing regulation on packaging and plastic waste.
• Implementation of carbon pricing.
• Changing customer behaviour.
• Transition to low emission transportation.
• Stricter regulations regarding carbon neutrality.

Mitigation Strategies

• Contingency plans for contaminated raw materials and menu adjustments.
• Exploring alternative sources of raw materials.
• Improving governance and transparency related to climate issues.
• Collaborating with suppliers to discover economically viable alternatives.
• Implementing a food waste separation scheme.
• Conducting feasibility studies in using renewable energies.
• Implementing LED lighting, HVAC system and building management system (BMS).
• Offering a wider selection of nutritious and environmentally friendly menu items.
• Implementing sustainable practices by sourcing food ingredients from suppliers who prioritize eco-friendly methods.
• Upgrading logistics fleets to Euro VI vehicles.
• Exploring electric truck options.
• Implementing carbon reduction objectives.
• Placing more investments in low carbon technologies.

Supply Chain Management

Supplier Audits: 127 audits (Hong Kong); 163 audits (Mainland China)

Responsible Procurement

• Sustainable Procurement Policy
• Supplier Code of Conduct
• Direct relationships with first-tier suppliers
• Preference for suppliers with exceptional social and environmental practices
• Stringent criteria for raw materials in Mainland China

Climate-Related Risks & Opportunities

Physical Risks

• Extreme wind
• Flooding
• Extreme heat
• Water shortage

Transition Risks

• Increasingly demanding climate-related disclosure requirements
• Increasing regulation on packaging and plastic waste
• Fluctuations in output and pricing of agricultural goods
• Implementation of carbon pricing
• Changing customer behaviour
• Transition to low emission transportation
• Stricter regulations regarding carbon neutrality

Opportunities

• Development of energy-efficient products
• Shift in consumer preference towards green products

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, TCFD

Certifications: ISO 22000, HACCP, ISO 9001, ISO 14001

Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA)

UN Sustainable Development Goals

• Not disclosed

Nine UN SDGs integrated into sustainability approach.

Sustainable Products & Innovation

• Sustainable seafood breakfast series
• Plant-based fish fillets
• Vegetarian dishes
• Low-carbohydrate and high-protein products
• Dishes made with sustainable fish fillets certified by the Marine Stewardship Council (MSC)

Awards & Recognition

• Diamond Award under the ESG Benchmark Awards 2022/23
• Employer of Choice 2023
• MSCI ESG Rating “BBB”
• MSCI Caring Company 2022/23
• ESG Excellence Awards 2023
• Digital Ex 2023 awards
• Hong Kong Service Awards 2024
• Hong Kong Classic Brands 2023
• Kam Fan Awards 2023
• HKIM Market Leadership Award 2022/23
• HKIM Market Leadership Award 2023/24
• Quality Service Retailers of the Year
• MARKies Awards 2023
• MARKies Awards 2024
• Marketing -Interactive Awards
• HK01 awards
• TIGER ROAR Awards 2022/23
• Asian Social Caring Female Leadership Award
• Happy Company
• Best HR Awards 2023
• Quality Food Scheme 2023
• Hong Kong Quality Veggie Awards
• Swire Properties Green Kitchen Initiative awards
• MTR Malls Food Waste Reduction Pledge awards
• Friends of EcoPark 2023