Climate Change Data

Environmental Metrics

ESG Focus Areas

• Traffic Safety
• Environmental Protection
• Community Engagement
• Energy Reduction

Environmental Achievements

• Replaced T8 fluorescent tubes with T5 tubes, saving around 30% electricity at GS Superhighway management center and staff living areas.
• Installed energy-saving LED lights at all toll plazas of the GS Superhighway, saving approximately 70% of electricity consumed.
• Introduced a petrol-electric hybrid vehicle into the GS Superhighway JV car fleet.
• Installed two test charging points for electric vehicles along the GS Superhighway.

Social Achievements

• Increased the number of surveillance cameras on the GS Superhighway from 34 to 167.
• Expanded the patrol and rescue team from a few dozen to over 200 professionals.
• Invested RMB9 million in new patrol and towing vehicles.
• Increased the number of changeable message signboards from 12 to 75.
• Co-organized a large-scale traffic safety education campaign with the distribution of 110,000 copies of educational literature.
• Expanded toll plazas at Fuyong and Huocun on the GS Superhighway.
• Added greenery along the main alignment of the Guangzhou and Dongguan sections of the GS Superhighway.
• Regularly inspects and cleans vacant spaces under bridges.
• Upgraded the drainage system at Xinqiao interchange.
• Held a yearly large-scale company campaign to enhance service standards and staff morale.
• Established volunteer teams participating in various community services (several thousand man-hours, over 350 staff).

Governance Achievements

• GS Superhighway awarded the title of “Model Highway of Civilized Traffic Management”.

Climate Goals & Targets

Environmental Challenges

• Maintaining smooth traffic flow on busy sections of the GS Superhighway.
• Reducing energy consumption and emissions.

Mitigation Strategies

• Widening of Taiping-Wudianmei and Fuyong-Hezhou sections of the GS Superhighway.
• Implementation of energy-reduction initiatives, including installation of energy-efficient lighting systems and use of fuel-efficient vehicles.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• “Model Highway of Civilized Traffic Management” for GS Superhighway.
• Best Paper Award and Outstanding Poster Award at ANQ Congress 2012 for GS Superhighway JV.

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Workplace practices
• Human rights
• Environmental considerations
• Consumer issues
• Community involvement and development

Environmental Achievements

• Reduced electricity consumption by 14.4% on GS Superhighway (equivalent to 4,000 tons of CO2 emission reduction)
• Completed replacement of conventional low-mast sodium lamps with LED lights on GS Superhighway, resulting in a 20.9% year-on-year reduction in electricity consumption for main alignment lighting
• Replaced more than 10,000 T8 fluorescent lamps with energy-efficient T5 lamps in GS Superhighway offices, resulting in a 14.3% reduction in electricity consumption
• Installed energy-saving LED lights and sodium lights at Phase III West tunnels and toll plazas
• Implemented energy-saving lighting systems controlled by a centralized system in Phase III West tunnels
• Used thicker-than-requirement road surface and better construction materials in Phase III West to increase road durability
• Landscaping and highway alignment design in Phase III West to preserve natural scenery
• Additional greenery works along GS Superhighway and Western Delta Route
• Installed noise barriers along GS Superhighway to minimize noise impact on residential areas

Social Achievements

• Awarded the title of “Model Highway of Civilized Traffic Management” for GS Superhighway
• Won a 3-star award at the 36th International Convention on Quality Control Circles for traffic management on GS Superhighway
• Launched a free mobile application providing road users with real-time traffic information (over 100,000 downloads)
• Launched an official website providing real-time traffic information and trip planning assistance
• Increased the number of changeable message signboards on GS Superhighway from 12 to 75
• Maintained a 24-hour emergency service hotline
• Organized various sports and interest groups for staff
• Organized activities such as sports games, competitions, festive celebrations, and group wedding ceremonies for staff
• Implemented programs and policies to enhance work safety awareness among workers
• Provided practical training for toll collectors, rescue staff, and patrol staff
• Improved living and working environments at GS Superhighway JV and West Route JV
• Participated in WWF Earth Hour 2013

Governance Achievements

• Included in the Hang Seng Corporate Sustainability Benchmark Index for three consecutive years (2011-2013)
• Awarded “Best Small-Cap Equity Deal” by FinanceAsia
• Awarded the Caring Company Logo by The Hong Kong Council of Social Service for 5 years
• National Employment Advanced Enterprise Award received by GS Superhighway JV

Climate Goals & Targets

Environmental Challenges

• Increased occupational injuries in GS Superhighway JV and West Route JV
• Increasing traffic volumes on expressways

Mitigation Strategies

• Launched programs and policies to enhance work safety awareness
• Strict requirements for contractors to comply with national work safety regulations
• Provided professional training to staff on business etiquette, emergency incident handling, and heavy traffic management
• Held internal contests to enhance service quality and staff morale

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Contracts with construction suppliers requiring compliance with national work safety regulations and timely wage payments
• Contracts incorporating environmental protection terms

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI) G3.1

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Hang Seng Corporate Sustainability Benchmark Index (3 years)
• Best Small-Cap Equity Deal (FinanceAsia)
• Caring Company Logo (5 years)
• National Employment Advanced Enterprise Award (GS Superhighway JV)
• 3-star award at the 36th International Convention on Quality Control Circles (GS Superhighway JV)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection
• Community Investment
• Workplace Practices
• Road Safety & Traffic Efficiency

Environmental Achievements

• Replaced conventional low mast sodium lamps with LED lights on the GS Superhighway, maintaining low electricity consumption.
• Refitted high-pole lamps with energy-saving lights on the GS Superhighway.
• Adopted energy-saving LED lights in tunnels and toll plazas on Phase III West.
• Reduced fuel consumption by 11.6% year-on-year through effective car usage management.
• Operated 26 surveillance cameras powered by micro wind and solar power on the Western Delta Route.
• Installed an additional 1.1km of noise barriers along the Western Delta Route (over 6km in the past three years).

Social Achievements

• Launched a ‘Go Green Workplace’ campaign.
• Organized various professional training and educational activities (over 3,000 attendances in GS Superhighway JV and 1,800 in West Route JV).
• Held a 2-day project adventure in Shenzhen for staff (228 participants from GS Superhighway JV).
• Held a fun sports competition for employees in West Route JV (over 700 participants).
• Provided Integrity Briefing training session by ICAC.
• Organized employee volunteering activities, including tree planting, blood donation, and visits to young people in custody and rural primary schools.
• Launched a month-long campaign to raise service standards and maintain customer satisfaction (free travel handbooks, emergency medicines, service consultation points, free Wi-Fi).

Governance Achievements

• Established a formal Sustainability Steering Committee.
• Adopted a Code of Conduct and a whistleblowing Policy.
• Both JV companies received national and provincial titles of honour for outstanding management, safe operation, and quality service.

Climate Goals & Targets

Environmental Challenges

• Uncertainty over the timing of the US interest rate hike and Brexit.
• RMB weakening.
• Nanguang Expressway and Longda Expressway (Shenzhen section) becoming toll-free.
• Collision incidents caused by over-height ships on GS Superhighway.
• Maintenance works on Guangzhou Northern Ring Road and Guangzhou East-South-west Ring Road.
• Planned upgrading works on Baoan section of National Highway 107.

Mitigation Strategies

• Closely monitoring the situation of toll-free expressways and their impact on GS Superhighway.
• Enforcing precautionary measures on GS Superhighway, such as installing alarm and warning systems at navigable bridges.
• Installing automated equipment at toll lanes and entry lanes on GS Superhighway.
• Streamlining workforce on GS Superhighway.
• Installing energy-saving LED lights at toll plazas and along the GS Superhighway.
• Closely monitoring the development of the Regulation on the Administration of Toll Roads (Amendment proposal).

Supply Chain Management

Responsible Procurement

• Inclusion of over 150 contractors, suppliers and service providers on a certified list.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEx Environmental, Social and Governance (ESG) Reporting Guide, Global Reporting Initiative Sustainability Reporting Framework (G3.1)

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

Awards & Recognition

• Outstanding Enterprise for Cultural Establishment in National Transportation Enterprise 2015 (GS Superhighway JV and West Route JV)
• Model Enterprise for Safety Cultural Establishment in Guangdong Province 2015 (GS Superhighway JV and West Route JV)
• Safe Highway Model (Western Delta Route)

Environmental Metrics

ESG Focus Areas

• Road Safety & Traffic Efficiency
• Employee Development
• Customers and Communities
• Environment

Environmental Achievements

• Reduced total greenhouse gas emission to 29,100 tonnes of carbon dioxide (lowest record since data collection began)
• Refitted high-pole lamps with energy-saving lights to further reduce electricity usage
• Installed six 60-kilowatt EV chargers on the GS Superhighway
• Installed more than 6.1 km of noise barriers along sections of the Western Delta Route
• Generated 29.78 MWh of renewable energy through wind and solar powered surveillance cameras

Social Achievements

• GS Superhighway JV awarded ‘Advanced Unit for the Maintenance and Management of Expressways in Guangdong Province’,
• GS Superhighway JV awarded ‘2016 Safe Highway Model in Guangdong Province’
• West Route JV awarded champion of ‘Guangdong Provincial Enterprises Management Modernized Innovation Achievement’
• Implemented a 24-hour customer service hotline
• Complaint rate reduced by half compared to the previous year (0.00014% vs 0.0003%)
• Introduced a variety of food and beverage options into Shunde service area on the Western Delta Route
• Organised various employee well-being initiatives including sports competitions, festive celebrations, and a cooking contest
• Established the “GS Superhighway Volunteer Corps” with over 1,200 volunteers

Governance Achievements

• No reported incidents of ESG-related malpractices
• All staff members support risk management process by taking responsibility to evaluate, understand and report risk issues
• Board’s risk management approach deemed effective during the reporting year
• Company complied with all code provisions as set out in the CG Code except for deviations from code provisions A.5.1 and A.5.6

Climate Goals & Targets

Environmental Challenges

• Global economic and political uncertainties
• US interest rate hike cycle
• Brexit
• Toll escape cases
• Cost increases
• Technological challenges
• Impacts from the macro environment
• Traffic noise disturbing nearby residents
• Air pollution from vehicle fuel combustion

Mitigation Strategies

• Closely monitoring the evolving market environment
• Implementing various efficiency and safety initiatives to ensure road safety and efficiency
• Installing noise barriers
• Maintaining smooth traffic conditions to reduce air pollutants
• Providing supporting facilities for EVs
• Implementing risk management measures
• Installing automated equipment at toll lanes and entry lanes
• Completing an organizational structure review to streamline workforce and improve operational efficiency

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Tender documents and contracts outline policy and requirements with regard to anti-corruption, safety, quality, environmental protection, and timely salary compensation for rural workers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: Null

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

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• ‘Advanced Unit for the Maintenance and Management of Expressways in Guangdong Province’
• ‘2016 Safe Highway Model in Guangdong Province’
• Champion of ‘Guangdong Provincial Enterprises Management Modernized Innovation Achievement’

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities