Novacon Technology Group Limited

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023-04-01 to 2024-03-31)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:44.2 tCO2e/year

Scope 1 Emissions:Not disclosed

Scope 2 Emissions:43.3 tCO2e/year

Scope 3 Emissions:0.9 tCO2e/year

Renewable Energy Share:Not disclosed

Total Energy Consumption:69,850 kwh/year

Water Consumption:5.44 m3/year

Waste Generated:0.2 tons/year

Carbon Intensity:Not disclosed

ESG Focus Areas

Environmental
Social
Governance

Environmental Achievements

Reduced electricity consumption from 92,996 kwh in 2019 to 69,850 kwh in 2020. Implemented energy-saving measures such as turning off air conditioning at night, maintaining office temperature at 25 degrees Celsius in summer, and using LED lights.
Reduced total greenhouse gas emissions from 73.6 tonnes in 2019 to 44.2 tonnes in 2020. Implemented waste reduction measures and encouraged recycling.

Social Achievements

Maintained compliance with all applicable Hong Kong labor laws and regulations.
Provided regular training to employees to ensure they have the appropriate skills to handle their daily job responsibilities. Employees are encouraged to participate in a variety of self-development skill training courses.
Implemented sound workplace measures to ensure all risk-bearing activities are monitored and supervised, and newly joined employees would receive comprehensive orientation on the work safety procedures.

Governance Achievements

Established an Audit Committee, Remuneration Committee, and Nomination Committee.
Complied with all applicable code provisions as set out in the CG Code.

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

Establish a research and development center by November 2020.
Pursue selective acquisitions.

Short-term Goals:

Develop HTML5 version of AUTON in late 2020.

Environmental Challenges

Research and development risk due to rapidly changing technology and customer demands.
Retention of customers due to short-term service agreements.
Retention of staff in a competitive financial technology industry.
Concentration of suppliers, creating potential disruptions or security risks.

Mitigation Strategies

Closely tracking technology changes and customer demands, conducting thorough feasibility studies, and providing quality maintenance and support services.
Offering competitive remuneration packages, providing training and development, and organizing team-building activities.
Timely payment of suppliers’ invoices and regular evaluation and monitoring of supplier performance.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

Careful evaluation and regular monitoring of suppliers based on price, scope of services, quality, and technical capabilities.

Climate-Related Risks & Opportunities

Physical Risks

Not disclosed

Transition Risks

Not disclosed

Opportunities

Not disclosed

Reporting Standards

Frameworks Used: Appendix 20 to the GEM Listing Rules

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

Not disclosed

Awards & Recognition

Not disclosed

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:38.8 tCO2e/year

Scope 1 Emissions:Not disclosed

Scope 2 Emissions:38.3 tCO2e/year

Scope 3 Emissions:0.5 tCO2e/year

Renewable Energy Share:Not disclosed

Total Energy Consumption:67,178 kwh/year

Water Consumption:5.19 m3/year

Waste Generated:0.1 tons/year

Carbon Intensity:Not disclosed

ESG Focus Areas

Environmental
Social

Environmental Achievements

Reduced paper consumption from 0.2 tonnes in 2020 to 0.1 tonnes in 2021.
Implemented energy saving measures such as turning off air conditioning at night, maintaining office temperature at 25 degrees Celsius in summer, and using LED lights.

Social Achievements

Maintained compliance with all applicable Hong Kong labor laws and regulations.
Provided regular training to employees to ensure they have the appropriate skills to handle their daily job responsibilities.
Made charitable donations of approximately HK$2,000.

Governance Achievements

Established Audit Committee, Remuneration Committee, and Nomination Committee.
Complied with all applicable code provisions as set out in the CG Code.

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

Not disclosed

Short-term Goals:

Not disclosed

Environmental Challenges

Rapidly changing technology and customer requirements in the financial technology industry.
Maintaining revenue stream depends on retaining existing engagements and securing new ones, given short-term service agreements.
Retaining and attracting qualified technical and managerial staff.
Potential supply disruptions from major suppliers.

Mitigation Strategies

Closely tracking technology changes and communicating with customers.
Conducting thorough feasibility studies before development projects.
Providing quality maintenance and support services.
Offering competitive remuneration packages, training, and team-building activities.
Timely payment of suppliers’ invoices and regular monitoring of supplier performance.

Supply Chain Management

Supplier Audits: Regularly monitored

Responsible Procurement

Suppliers are carefully evaluated based on price, scope of services, quality, and technical capabilities.

Climate-Related Risks & Opportunities

Physical Risks

Not disclosed

Transition Risks

Not disclosed

Opportunities

Not disclosed

Reporting Standards

Frameworks Used: Appendix 20 to the GEM Listing Rules

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

Not disclosed

Awards & Recognition

Not disclosed

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:37.0 tCO2e

Scope 1 Emissions:–

Scope 2 Emissions:36.5 tCO2e

Scope 3 Emissions:0.5 tCO2e

Total Energy Consumption:64,060 kWh

Water Consumption:6.03 m3

Waste Generated:0.114 tons

Carbon Intensity:0.011 tCO2e/sq. ft.

ESG Focus Areas

product responsibility
anti-corruption
supply chain management

Environmental Achievements

Reduced electricity consumption by approximately 5% from the year ended 31 March 2021.
Maintained stable level of non-hazardous waste disposal intensity with less than 10% increase each year (though a 6% increase occurred due to increased staff).

Social Achievements

Implemented COVID-19 precaution measures in the workplace, including temperature checks, mask mandates, hand sanitization, split-team work arrangements, and virtual meetings.
Provided regular training to employees to ensure they have the appropriate skills to handle their daily job responsibilities.
Maintained zero work-related fatalities and lost days due to work injury for the years ended 31 March 2020, 2021 and 2022.

Governance Achievements

Established an Audit Committee, Remuneration Committee, and Nomination Committee.
Complied with all applicable code provisions as set out in the CG Code.
Implemented policies and procedures to minimize risks of fraud, corruption, bribery, extortion and money laundering.

Climate Goals & Targets

Medium-term Goals:

Reduce, or at most keep the electricity consumption intensity at a stable level with less than 10% increase each year.
Keep the water consumption intensity at a stable level with less than 10% increase each year.

Short-term Goals:

Keep the total emission of GHG intensity at a stable level with less than 10% increase each year.

Environmental Challenges

Shortage of information technology talent in the Hong Kong market, leading to increased staff costs.
Some customers terminated services due to uncertainties in the global and local economic and political environment.
Potential risks related to R&D, customer and staff retention, and concentration of customers and suppliers.

Mitigation Strategies

Regularly reviews remuneration and benefit policies to remain competitive.
Expands revenue sources to stabilize profit.
Conducts configuration checking, stress tests, unit tests, and internal/external user acceptance tests to ensure quality.
Provides quality maintenance support services.
Offers competitive remuneration packages, training and development, team building, and recreational activities to retain staff.
Timely payment of suppliers’ invoices and regular evaluation and monitoring of supplier performance.

Supply Chain Management

Responsible Procurement

All suppliers are carefully evaluated and regularly monitored based on price, scope of services, quality, and technical capabilities.

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather conditions (typhoons, heavy rain, flash floods) leading to productivity loss.

Reporting Period: 2023-04-01 to 2024-03-31

Environmental Metrics

Total Carbon Emissions:88.2 tCO2e/year

Scope 1 Emissions:– tCO2e/year

Scope 2 Emissions:46.5 tCO2e/year

Scope 3 Emissions:41.3 tCO2e/year

Total Energy Consumption:85,724 kWh/year

Water Consumption:7.13 m3/year

Waste Generated:0.083 tons/year

Carbon Intensity:0.015 tCO2e/sq. ft

ESG Focus Areas

Product responsibility
Anti-corruption
Health and safety
Labour standards

Environmental Achievements

Reduced paper consumption
Decreased electricity consumption intensity by approximately 7%
Decreased non-hazardous waste disposal intensity by approximately 7%

Social Achievements

Implemented sound workplace measures to ensure employee safety
Provided regular training to employees (average 17.8 hours per general staff)
Maintained zero incidents of discrimination and harassment

Governance Achievements

Established three Board committees: Audit, Remuneration, and Nomination
Complied with all applicable code provisions in the CG Code except for D.2.5 (internal audit function)
Adopted a board diversity policy

Climate Goals & Targets

Short-term Goals:

Keep the total emission of GHG intensity at a stable level with less than 10% increase each year
Reduce, or at most maintain the non-hazardous waste disposal intensity at a stable level with less than 10% increase each year
Reduce, or at most keep the electricity consumption intensity at a stable level with less than 10% increase each year
Keep the water consumption intensity at a stable level with less than 10% increase each year

Environmental Challenges

Significant drop in revenue from licensing and maintenance services and initial set up and customisation services due to decreased services provided to existing customers and termination of service contracts with several overseas customers
Increase in bad debts written off due to global inflation, military conflict, and rise in US interest rates
Concentration of customers (71.9% of total sales from top 5 customers)

Mitigation Strategies

Reorganized company resources
Acquired Max Online to provide bullion trading services
Focused on finding potential customers and terminating higher-risk customers
Optimized Group’s product to maintain competitiveness
Explored digital marketing and improved CRM features