HC Group Inc.
Climate Impact & Sustainability Data (2019, 2021)
Reporting Period: 2019
Environmental Metrics
Total Carbon Emissions:2901 tonnes
Scope 1 Emissions:766 tonnes
Scope 2 Emissions:2131 tonnes
Scope 3 Emissions:4 tonnes
Total Energy Consumption:3722 MWh (Natural Gas) + 3248000 kWh (Electricity)
Water Consumption:6678 tonnes
Waste Generated:159 tonnes (Domestic Waste)
Carbon Intensity:1.78 tonnes/employee
ESG Focus Areas
- Environmental protection
- Staff performance enhancement
- Community caring
- Poverty alleviation
- Combating cybercrime
Environmental Achievements
- Actively adopted electricity conservation and energy-saving measures to reduce GHG emissions
- Reduced GHG emissions through monthly vehicle maintenance and phasing out non-compliant trucks
- Implemented waste reduction measures and encouraged staff to sort and recycle waste
- Established a digitalized office to minimize paper usage
- Implemented green procurement practices by purchasing durable products and encouraging recycling
Social Achievements
- Established a fair, reasonable, and competitive remuneration system for employees
- Conducted annual assessments and made corresponding adjustments to staff remuneration
- Signed labor contracts with 100% of employees and legally paid social insurance and housing fund
- Implemented paid leave policies and allowed employees to apply for flexible working schedules
- Provided comprehensive employee benefits and organized various recreational activities
- Established a fair and open assessment system for employee promotion and development
- Established a reserve talent pool and arranged tailor-made trainings for key employees
Governance Achievements
- Established an ESG Task Force to collect relevant information for ESG aspects
- Established a rigorous and regulated procurement system to improve transparency and manage potential risks
- Established a comprehensive data acquisition system with multiple encryption to ensure data security
- Established an anti-bribery function to formulate anti-bribery and corruption policies
- Established a whistleblowing mechanism to maintain integrity and transparency
Climate Goals & Targets
Environmental Challenges
- Potential environmental and social risks in the supply chain
- Potential bribery and corruption in the procurement process
- Maintaining a safe working environment and protecting employees from occupational hazards
Mitigation Strategies
- Established regulations on environmental, social and ethical standards for suppliers
- Established rules and regulations to regulate the procurement process
- Maintained an internal audit and inspection system to ensure health and safety
- Developed a series of code of conduct for safety management in the office
- Conducted fire drills and provided first aid kits and fire extinguishers
Supply Chain Management
Responsible Procurement
- Established regulations on environmental, social and ethical standards for suppliers
- Fair and open procurement process following relevant provisions of the “Bidding Law of the People’s Republic of China”
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: ESG Reporting Guide under Appendix 27 to the Rules governing the listing of securities on the Stock Exchange
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:378 tonnes
Scope 1 Emissions:32 tonnes
Scope 2 Emissions:316 tonnes
Scope 3 Emissions:30 tonnes
Total Energy Consumption:632 thousand kWh
Water Consumption:8612 tonnes
Waste Generated:163 tonnes
Carbon Intensity:0.56 tonnes/employee
ESG Focus Areas
- Environmental protection
- Staff performance enhancement
- Community caring
- Poverty alleviation
- Combating cybercrime
Environmental Achievements
- Set a target to reduce GHG emissions gradually throughout FY2022, using FY2021 as the baseline year.
- Set a target to reduce energy consumption gradually throughout FY2022, using FY2021 as the baseline year.
- Set a target to reduce non-hazardous wastes gradually throughout FY2022, using FY2021 as the baseline year.
Social Achievements
- Established a fair, reasonable, and competitive remuneration system for salary payments to employees.
- Implemented a fair and open assessment system to provide employees with opportunities for promotion and development.
- Established a reserve talent pool and arranges tailor-made trainings and leadership positions for key training targets.
- Actively organising various activities to enhance the sense of belongings and help employees to enjoy work-life balance.
Governance Achievements
- Established the ESG Task Force in 2017.
- Established a rigorous and regulated procurement system and selection procedures.
- Established a whistleblowing mechanism to maintain integrity and transparency.
Climate Goals & Targets
Short-term Goals:
- Reduce GHG emissions gradually throughout FY2022, using FY2021 as the baseline year.
- Reduce energy consumption gradually throughout FY2022, using FY2021 as the baseline year.
- Reduce non-hazardous wastes gradually throughout FY2022, using FY2021 as the baseline year.
Environmental Challenges
- Climate-induced extreme weather events like typhoons and rainstorms impacting business through business interruption or risks to staff and customer safety.
- Potential bribery and corruption in the procurement process.
Mitigation Strategies
- Clear work arrangement policies and constant communication with staff for better preparedness to respond to emergency situations.
- Established rules and regulations to regulate the procurement process properly.
- Established a rigorous and regulated procurement system and selection procedures.
Supply Chain Management
Supplier Audits: 60 suppliers related to administration
Responsible Procurement
- Established a rigorous and regulated procurement system and selection procedures.
- Requires suppliers to agree to the anti-bribery and anti-corruption provisions of our supply agreement.
Climate-Related Risks & Opportunities
Physical Risks
- Typhoons and rainstorms
Reporting Standards
Frameworks Used: ESG Reporting Guide under Appendix 27 to the Rules governing the listing of securities on the Stock Exchange