Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Community Investment
• Employee Well-being

Environmental Achievements

• Employees participated in Earth Hour 2013 and implemented energy-saving measures, reducing office expenses.
• Adopted CLP's tips for environmental protection and encouraged employee suggestions for waste reduction and energy saving.

Social Achievements

• Participated in Dress Casual Day 2012, Skip Lunch Day 2013, ORBIS World Sight Day 2012, Medecins Sans Frontieres Day 2012, and UBCAA Ocean Park Field Trip 2013.
• Sponsored Ocean Park Field Trip for children of Shamshuipo Kaifong Welfare Association Primary School in March 2013.

Governance Achievements

• Maintained high standards of corporate governance, complying with the Corporate Governance Code (except for specified deviations).
• Established Audit, Remuneration, and Nomination Committees.

Climate Goals & Targets

Environmental Challenges

• Decline in turnover due to the European debt crisis and the recovery of the United States’ economy.
• Postponement of fund raising and IPO activities due to global financial market volatility.
• Intense competition in the brokerage business.

Mitigation Strategies

• Strengthened sales force by hiring experienced account executives.
• Opened a new securities broking branch in North Point.
• Diversified core business into mortgage financing.
• Optimized operational procedures by installing a new Loan Management Solution.
• Enhanced credit control functions to mitigate fraudulent activities.
• Explored business opportunities arising from China's new economic development policies.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labor Practices
• Operating Practices
• Community Investment

Environmental Achievements

• Reduced electricity consumption by approximately 0.35% compared to FY2019.
• Implemented energy-saving measures (switching off equipment when not in use, using energy-efficient appliances, utilizing natural light, etc.).
• Collected waste paper for recycling.
• Complied with government requirements under environmental protection legislation in property development project.

Social Achievements

• Implemented employee programs and work safety measures.
• Adopted a "work from home" policy during the COVID-19 outbreak, paying staff full salaries.
• Provided hand sanitizers and face masks to staff.
• Conducted temperature checks for staff and visitors.
• Complied with the Hong Kong Employment Ordinance.
• Maintained a five-day work week.
• Organized regular staff gatherings.

Governance Achievements

• Strengthened internal control system to comply with the "Prevention of Bribery Ordinance".
• Established policies and procedures for handling client complaints.
• Implemented anti-money laundering policy and procedures.
• Provided training to employees on anti-money laundering and counter-terrorism techniques.
• Complied with the Securities and Futures Ordinance and Money Lenders Ordinance.

Climate Goals & Targets

Environmental Challenges

• Hong Kong economy slipped into recession due to social unrest, US-China trade war, and COVID-19 outbreak.
• Market turbulence affected the brokerage business.
• Economic uncertainty in the property market posed a challenge to the mortgage financing business.
• COVID-19 outbreak required clients and staff to work from home.

Mitigation Strategies

• Implemented a backup plan to provide brokerage services during the COVID-19 outbreak.
• Adopted a more conservative strategy and streamlined operations to reduce costs and increase efficiency.
• Tightened credit controls over margin ratios to minimize market risks.
• Monitored margin levels of margin financing clients.
• Implemented COVID-19 preventive measures (providing hand sanitizers and face masks, temperature checks, work-from-home policy).

Supply Chain Management

Responsible Procurement

• Selecting suppliers with good credit history, reputation, service quality, environmental compliance, and social responsibility.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Listing Rules)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labor Practices
• Operating Practices
• Community Investment
• Corporate Governance

Environmental Achievements

• Reduced electricity consumption by approximately 8.03% compared to the previous year (107.54 MWh vs 116.93 MWh)
• Reduced gasoline consumption by approximately 38.14% compared to the previous year (3.65 tonnes vs 5.90 tonnes)
• Increased paper consumption by approximately 14.24% compared to the previous year (3.45 tonnes vs 3.02 tonnes)

Social Achievements

• Continued to enforce COVID-19 preventive measures in the workplace, including mask mandates, temperature checks, and work-from-home arrangements
• Provided one day of paid leave for employees receiving one dose of the COVID-19 vaccine and two days for those receiving both doses
• No employees were laid off due to COVID-19

Governance Achievements

• Complied with the Corporate Governance Code (CG Code) as contained in Appendix 14 to the Listing Rules
• Maintained a board with a balance of skills and experience, including half independent non-executive directors
• Held 13 board meetings and three general meetings of the Company during FY2021

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted the HKSAR’s economy and the Group’s businesses
• Fluctuations in the Hong Kong stock market due to macroeconomic factors
• Growing concerns about existing local property market conditions

Mitigation Strategies

• Successfully tackled operational challenges due to COVID-19
• Enhanced the usage of financial technology trading systems and mobile apps
• Implemented effective credit control procedures and complied with tightened margin-financing rules
• Adopted a prudent and conservative approach to manage credit policy and maintain reasonable loan-to-value ratios
• Fine-tuned business strategy to adapt to market changes

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Select service providers and business partners that have good credit history, good reputation, high service quality, proven track records of environmental compliance and sound commitment to social responsibility

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide set out in Appendix 27 to the Rules Governing the Listing of Securities on the Stock Exchange

Certifications: Null

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
• Employee Well-being
• Community Investment
• Corporate Governance

Environmental Achievements

• Reduced electricity consumption by approximately 5.16% compared to FY2021.
• Reduced paper consumption by approximately 14.78% compared to FY2021.

Social Achievements

• Continued employee programs, operating practices and community investments.
• No employee layoffs due to COVID-19; compensation and welfare remained unchanged.
• Implemented various COVID-19 preventive measures to protect employee health and safety.
• Supported charitable events like Love Teeth Day and Green Low Carbon Day.

Governance Achievements

• Established a clear ESG governance structure with defined roles and responsibilities.
• Conducted stakeholder engagement to identify and prioritize material ESG issues.
• Complied with relevant laws and regulations regarding employment, health and safety, and labor standards.
• Maintained high standards of corporate governance in accordance with the CG Code.

Climate Goals & Targets

Environmental Challenges

• Fifth wave of COVID-19 in Hong Kong.
• Softening of the Hong Kong economy.
• Changing landscape in global and local financial markets.
• Supply chain disruptions and rise in commodity and oil prices driving up inflation.

Mitigation Strategies

• Implemented work-from-home policy, increased virtual meetings, and adjusted operational systems to adapt to the COVID-19 pandemic.
• Strategically adjusted downward the size of its mortgage loan portfolio to minimize exposure to market volatility.
• Implemented effective credit control procedures and complied with tightened margin-financing rules.
• Maintained a healthy brokerage loan portfolio and kept bad debt provision at an immaterial level.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Selection of service providers and business partners based on credit history, reputation, service quality, environmental compliance, and social responsibility.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the 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

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employee well-being
• Community contributions
• Corporate governance
• Compliance

Environmental Achievements

• Reduced electricity consumption by approximately 15.03% compared to the previous year.
• Reduced paper consumption by approximately 21.43% compared to the previous year.
• Compliance with environmental protection legislation in property development project.

Social Achievements

• No employee layoffs due to COVID-19; compensation and welfare remained unchanged.
• Implemented various COVID-19 preventive measures to protect employee health and safety.
• Donated HK$10,000 to charitable events (Love Teeth Day and Skip Lunch Day).

Governance Achievements

• Updated corporate purpose, values, strategy, and culture.
• Implemented effective internal control systems for operations.
• Compliance with the Securities and Futures Ordinance, Money Lenders Ordinance, and Insurance Ordinance.

Climate Goals & Targets

Environmental Challenges

• Weakened investor sentiment due to geopolitical tension and interest rate hikes.
• Reduced activities in the IPO market and decrease in average daily turnover for the Hong Kong stock market.
• Sluggishness of the IPO market in Hong Kong.
• COVID-19 pandemic and interest rate hikes bringing hurdles and uncertainties to the global economy.

Mitigation Strategies

• Efforts in building up client base (42% increase in active clients compared to FY2022).
• Maintaining a healthy loan portfolio and effective credit control procedures.
• Implementing effective credit control procedures and complying with tightened margin-financing rules.
• Adopting a prudent and cautious approach in running the mortgage financing business by maintaining a conservative loan-to-value ratio.
• Closely monitoring the effect of interest rate hikes on the valuation of investment property and the impact on the securities trading business.
• Re-utilizing proceeds from the disposal of Sai Kung Property towards other investments and business development opportunities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Selection of service providers and business partners with good credit history, reputation, service quality, environmental compliance, and social responsibility.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Changes in government policies and regulations related to climate change.

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Listing Rules)

Third-party Assurance: Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Energy and resource management
• Climate change management
• Employee and community well-being
• Corporate social responsibility

Environmental Achievements

• Reduced paper consumption by 40.7% compared to the previous year.
• Implemented robust waste management protocols during the Fei Ngo Shan Road redevelopment project, minimizing landfill disposal and maximizing reuse and recycling.

Social Achievements

• Maintained a strong focus on implementing robust prevention and control measures to safeguard the workforce during the COVID-19 pandemic.
• Placed a strong emphasis on the continuous development and growth of employees through professional training programs and development workshops.
• Improved employee well-being by promoting a good work-life balance and focusing on physical and mental health.

Governance Achievements

• Established a comprehensive talent management mechanism to attract and retain competent talents.
• Strengthened the internal control system to comply with the Prevention of Bribery Ordinance and other applicable laws and regulations.
• Implemented robust protocols for the proper handling and disposal of hazardous waste.

Climate Goals & Targets

Environmental Challenges

• Increased market volatility and unfavorable market conditions, along with rising interest rates, impacted global IPO activities and the Hong Kong stock market.
• The geopolitical tension and interest rate hikes continued to bring hurdles and uncertainties to the global economy as well as the market sentiment in Hong Kong.
• Climate change causing extreme weather events more frequently and severely, often causing catastrophic damage.

Mitigation Strategies

• Implemented cautious and prudent measures to face possible market changes and look for potential investment opportunities.
• Maintained a healthy portfolio as its first priority with a view to preserving its financial strength aiming for long-term profitability when the economy recovers.
• Undertook a thorough assessment and evaluation of the potential physical and transition risks that may impact business operations to develop robust strategies and plans to enhance the resilience of the organisation.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Select service providers and business partners that have good credit history, good reputation, high service quality, proven track records of environmental compliance and sound commitment to social responsibility.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Prolonged periods of excessive heat

Transition Risks

• Changes in government policies, regulations, or laws aimed at reducing carbon emissions and promoting sustainability
• Customers may shift their demand for sustainable investments

Reporting Standards

Frameworks Used: ESG Reporting Guide

Third-party Assurance: Not disclosed