Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Occupational Health and Safety
• Supply Chain Management
• Anti-Corruption
• Community Engagement

Environmental Achievements

• Reduced water consumption by approximately 40,000 tonnes per year through effluent recycling.
• Invested RMB 650,000 in a spray paint effluent treatment facility.
• Improved product design to reduce waste generation and volatile organic compound emissions.
• Installed solar panels on rooftops of production facilities.
• Initiatives to replace diesel with natural gas and traditional lighting with LED lighting.

Social Achievements

• No reported incidents of child or forced labor.
• No reports of discrimination in 2016.
• Strengthened training system focusing on managerial, professional, and operational skills.
• Developed a new bridging course for managerial staff.
• Hired 32 outstanding fresh graduates.

Governance Achievements

• Established a trade union to represent employee interests.
• Implemented a complaint management system, resulting in a 23% drop in complaints compared to 2015.
• Established policies for preventing corruption and promoting ethical business practices, including a whistleblowing mechanism.
• Implemented a comprehensive range of data security procedures to protect business and customer data.

Climate Goals & Targets

Environmental Challenges

• Tougher challenges in the energy and chemical industry due to new policies.
• Growing competitive pressure.
• Risk of talent drought.
• Need to strengthen safety management systems in some subsidiaries.

Mitigation Strategies

• Keeping abreast of policy developments and aligning with stakeholder goals.
• Undertaking initiatives to manage effluent and waste generation in preparation for the Environmental Protection Tax Law.
• Allocating more resources to R&D and optimizing production facilities.
• Strengthening the training system and developing a bridging course for managerial staff.
• Implementing a group-level safety management system in subsidiaries, establishing HSE committees, holding monthly meetings, issuing an emergency response guideline, and conducting more safety trainings.

Supply Chain Management

Supplier Audits: Annual audits conducted.

Responsible Procurement

• Criteria for supplier selection based on product offerings, operational scale, development strategies, and environmental and social performance.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Stock Exchange ESG Reporting Guide

Certifications: ISO 9001 (multiple subsidiaries), OHSAS 18001 (seven subsidiaries), ISO 14001 (some subsidiaries)

Sustainable Products & Innovation

• Exhaust gas purification tank

Awards & Recognition

• Included as eligible listed shares for Southbound trading under Shanghai-Hong Kong Stock Connect
• Included as eligible listed shares for Southbound trading under Shenzhen-Hong Kong Stock Connect
• Fourth place among the “2014 Top 50 Energy Enterprises with the Most Promising Growth Potential”

Environmental Metrics

ESG Focus Areas

• Climate
• Water
• Waste
• People
• Communities
• Governance
• Human Rights
• Biodiversity
• Sustainable Procurement

Environmental Achievements

• Reduced GHG emissions by 56.6% to 8.4 million tonnes of CO2e in 2020 (largely due to decreased jet fuel consumption by Cathay Pacific).
• Cathay Pacific's fuel efficiency improved by 11.5% compared to 2019.
• Four Airbus A350s delivered, 25% more fuel-efficient than existing wide-body fleet.
• Reduced indirect emissions (primarily from purchased electricity) by 5.6% to 621 thousand tonnes of CO2e.
• 97% of Swire Properties' portfolio certified or provisionally certified as green buildings.
• Swire Properties reduced annual energy consumption in Hong Kong by 77.8 million kWh and in mainland China by 28.1 million kWh (meeting 2020 targets).
• Reduced water consumption by 3% to 17.8 million cubic meters.

Social Achievements

• Reduced staff turnover rate to 13.9% (from 16.7% in 2019).
• Decreased lost time injury rate (LTIR) by 58.7% to 0.83 from 2.01 in 2019.
• Women in senior management roles reached 24% (target of 30% by 2024).
• Introduced TrustTomorrow, a community initiative and funding programme, distributing approximately HK$68 million.

Governance Achievements

• Converted a HK$2 billion revolving credit facility into a sustainability-linked loan.
• Established SwireTHRIVE, a sustainable development strategy focusing on climate, water, waste, people, and communities.
• Implemented ESG policies covering human rights, biodiversity, and sustainable procurement.
• Aligned reporting with TCFD recommendations.

Climate Goals & Targets

Environmental Challenges

• Decreased business activity due to COVID-19 significantly impacted emissions and water usage.
• Increased water intensity at Swire Coca-Cola due to increased beverage variety and equipment cleaning.

Mitigation Strategies

• Capacity reductions due to COVID-19.
• Retrofitted buildings and improved operational procedures to reduce energy consumption.
• Swire Coca-Cola aims to return to the environment water in amounts equivalent to those which it uses in its products.
• New Life Plastics joint venture to operate a plastic recycling facility in Hong Kong.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable procurement policy
• Supplier Corporate Social Responsibility Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards Core Option, ESG Reporting Guide for listed companies (Stock Exchange of Hong Kong)

Certifications: ISO 14001

Third-party Assurance: Deloitte Touche Tohmatsu (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Down Sourcing
• Employee Well-being
• Supply Chain Management
• Product Quality
• Brand Enhancement
• Community Investment
• Corporate Governance

Environmental Achievements

• 100% of down apparel obtained Responsible Down Standard (RDS) certificates
• 70% of down apparel obtained OEKO-TEX® certificates
• 48% of down apparel obtained bluesign® certificates
• Photovoltaic power generation of the logistics park in East China was 960MWh
• Reduced market disability rate standard to below 0.08% (high-end products below 0.035%)
• Replaced 1.3 million pieces of plastic packaging with paper out-fillers

Social Achievements

• Employee satisfaction reached more than 90%
• Granted six tranches of equity incentives, covering 178 key employees (1,319.2 million share options and award shares)
• Over 49.0% of management are female
• Total training hours exceeded 260,000 hours
• Accumulative value of cash and materials donated by the Bosideng Foundation exceeded RMB1.2 billion, benefiting approximately 1.192 million people

Governance Achievements

• Established a comprehensive ESG governance structure
• MSCI’s ESG rating upgraded to “A” level
• CDP’s Climate Change rating of “B-” (best for Chinese textile and apparel enterprises)
• Conducted business ethics and anti-corruption training for middle and senior employees
• 100% closed-loop resolution of complaints, satisfaction rate reached 98.1%

Climate Goals & Targets

Environmental Challenges

• Repeated COVID-19 delays
• Geopolitical impact
• Sluggish world economic growth
• Intensifying climate change
• Supply chain disruptions

Mitigation Strategies

• Integrated ESG concept into business management
• Improved energy efficiency
• Expanded use of renewable electricity
• Used more environmentally friendly fabrics
• Developed alternative sourcing strategies
• Implemented a robust risk management system

Supply Chain Management

Supplier Audits: 245 suppliers reviewed (100% coverage)

Responsible Procurement

• Responsible Down Standard (RDS) certification
• OEKO-TEX® and bluesign® certifications
• Supplier Cooperation Manual
• Supplier Evaluation Standards
• Environmental and social responsibility open letter

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, GRI Sustainability Reporting Standards, UN 2030 Agenda for Sustainable Development

Certifications: ISO 14001, ISO 45001, ISO 14064-1:2018, RDS, OEKO-TEX®, bluesign®

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 15 (Life on land)
• Goal 17 (Partnerships for the goals)

Initiatives aligned with these goals through various programs and policies

Sustainable Products & Innovation

• Recyclable light down apparel
• GORE-TEX polyethylene (ePE) film-based eco-friendly technology fabric

Awards & Recognition

• MSCI ESG rating of A
• CDP Climate Change rating of B-
• Various other awards (see report)

Environmental Metrics

ESG Focus Areas

• Climate
• Waste
• Water
• People
• Communities

Environmental Achievements

• 30% reduction in scope 1 and 2 emissions against a 2018 baseline.
• 20.5% of total electricity used by the Group generated from renewable sources.
• 61% of total waste generated by the Group recycled, reused, or recovered.
• 8% reduction in water use compared to a 2018 frozen efficiency baseline.

Social Achievements

• 31% women on the Board.
• 28% women in senior leadership.
• Over HK$84.8 million provided to companies across the Group to finance sustainability projects.
• Average training hours per employee increased by 5% to 40 hours.

Governance Achievements

• Updated several policies in line with internal policy review process (Biodiversity Policy, Carbon Offset Policy, Sustainable Building Design Policy, Sustainable Water Policy).
• Converted three revolving credit facilities totaling HK$4.2 billion into sustainability-linked loans.
• 59 cases of whistleblowing and five reports of breaches of the Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• 11% increase in scope 1 and 2 emissions compared to 2022 (largely due to business recovery from COVID-19 and expansion).
• 42% increase in value chain emissions driven by Cathay Pacific's post-pandemic recovery and inclusion of HAECO's full scope 3 emissions.
• Limited availability of renewable energy in some markets.
• Water use ratio (WUR) increased to 1.88, up 7% from 2022.

Mitigation Strategies

• Implementing internal carbon pricing (ICP) mechanism.
• Investing in modern, fuel-efficient aircraft.
• Investing in renewable energy sources (solar PV systems, renewable energy purchasing).
• Implementing energy-saving measures (upgrading systems, energy-saving retrofits, smart energy management platform).
• Implementing water-saving technologies and leak repairs.
• Replenishing natural water sources through partnerships.

Supply Chain Management

Supplier Audits: Approximately 460 suppliers reviewed in 2023 (Swire Coca-Cola); 100 suppliers underwent ESG assessment (Swire Properties).

Responsible Procurement

• Swire Pacific Sustainable Procurement Policy
• Swire Pacific Supplier Code of Conduct
• Integration of SwireTHRIVE principles into supplier selection and retention.
• Preference given to suppliers with ISO-certified management systems.

Climate-Related Risks & Opportunities

Physical Risks

• Coastal and fluvial flooding
• Extreme temperatures and heat stress
• Water stress and drought

Transition Risks

• Carbon pricing
• Carbon taxes
• More ambitious national decarbonisation plans
• Reputational damage
• Greenwashing accusations

Opportunities

• Resource efficiency
• Increased market demand for climate-resilient products and services
• Sustainable financing

Reporting Standards

Frameworks Used: GRI Standards, HKEX ESG Reporting Guide, TCFD, GHG Protocol, UNGC

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 14

Initiatives contributing to these goals are described throughout the report.

Sustainable Products & Innovation

• Green buildings
• Energy-efficient cold drink equipment
• Biodiesel
• Recycled packaging materials

Awards & Recognition

• Best ESG Issuer in Asia (Swire Properties)
• Awards for green dim sum bonds (Swire Properties)
• UL2799 Zero Waste to Landfill validation (Swire Coca-Cola)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Product Quality and Customer Rights Protection
• Supply Chain Management
• Employee Well-being
• Responsible Business Practices

Environmental Achievements

• 100% of down apparel obtained Responsible Down Standard (RDS) certificates
• 75% of down apparel obtained OEKO-TEX® certificates
• 58% of down apparel obtained Bluesign® certificates
• Photovoltaic power generation of the logistics park was approximately 900 MWh
• Initiated Phase IV of the Alxa carbon neutral forest project, with a planned total afforestation area of 1,000 mu
• Reduced plastic packaging by approximately 1.5 million pieces

Social Achievements

• Percentage of female management exceeded 50%
• 100% employee training coverage, with 178,000 total training hours
• RMB10 million invested in employee training by Bosideng Business School
• Seventh tranche of equity incentives granted, covering 170 core employees
• Supplier audit coverage rate of 100%
• Eight supplier training sessions conducted, covering 144 suppliers

Governance Achievements

• Established a comprehensive and rigorous "1+3+X" ESG strategic framework and governance structure
• Business ethics and anti-corruption training provided for all mid- and senior-level employees
• Prepared the Task Force on Climate-Related Financial Disclosures (TCFD) Report for the first time
• Obtained independent practitioners' limited assurance report

Climate Goals & Targets

Environmental Challenges

• Extreme weather events impacting supply chains and consumer demand
• Stricter environmental regulations and increased disclosure requirements
• Technological challenges in developing green technologies
• Water shortages affecting down supply
• Consumer preference shifts towards sustainable products
• High public expectations for corporate social responsibility

Mitigation Strategies

• Developing climate-resilient supply chains and diversified sourcing strategies
• Proactive communication with regulators and participation in standards development
• Investing in R&D of green technologies
• Cooperating with suppliers to find innovative solutions to reduce water dependency
• Investing in sustainable materials and environmentally friendly technologies
• Open and transparent communication with stakeholders and regular ESG reporting

Supply Chain Management

Supplier Audits: 100% coverage

Responsible Procurement

• Policy for Responsible Procurement
• Supplier Chemicals Control Manual
• Requirements for RDS, OEKO-TEX®, and Bluesign® certifications

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Typhoons and flooding
• Water shortages
• Ecosystem destruction

Transition Risks

• Increasing regulatory pressure
• Increased disclosure requirements
• Technological challenges in developing green technologies
• Market shifts due to consumer preferences

Opportunities

• Development of climate-resilient products
• Expansion into new markets
• Development of energy-efficient products and processes
• Enhancement of brand reputation

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, GRI Sustainability Reporting Standards, UN 2030 Agenda for Sustainable Development

Certifications: ISO 14064-1:2018, OHSAS 18001, ISO 45001

Third-party Assurance: Independent Practitioners' Limited Assurance Report

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives aligned with SDGs through various programs and policies

Sustainable Products & Innovation

• Eco-friendly zero-pressure down apparel
• New degradable fabric
• Recyclable and lightweight down apparel

Awards & Recognition

• MSCI ESG A rating
• CDP B grade for Climate Change
• S&P Global Sustainability Yearbook (China Edition) 2024
• New Benchmark Enterprise Award for ESG
• China Industrial Carbon Peak Pioneer Enterprise
• German Red Dot Design Award
• ISPO Textrends awards
• ISPO Global Design Award
• German Design Award