Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsible Investments
• Corporate Governance
• Compliance
• Business Integrity and anti-corruption
• Risk Management
• Corporate Social Responsibility
• Training and development

Social Achievements

• Low staff turnover with a large percentage of employees having between 5 and 20 years of service. An employee received her long service award for 5 years of dedicated service in 2019. 100% of employees received an annual performance review with salary adjustments in line with industry standards and inflation. All employees with professional memberships attended relevant continuing professional education courses with an average of 23 hours per employee.
• Charitable donations and sponsorships of community activities in Singapore such as the SGX Bull Run and the Singapore Repertory Theatre.
• PCCW and HKT engaged in philanthropic and volunteer work including employee engagement in community service. They are also committed to bridging the digital divide in their local communities.

Governance Achievements

• No fines or sanctions under laws and/or regulations governing social or economic matters in 2019.
• Zero reported incidents on corruption or bribery in the 2019 financial year.
• Zero whistle-blowing reports of any impropriety in the 2019 financial year.

Climate Goals & Targets

Environmental Challenges

• Hong Kong's economic environment deteriorated rapidly in the second half of 2019, mainly due to social unrest. Sluggish consumer market sentiment and cautious spending by enterprises.
• Slowdown of projects in mainland China.

Mitigation Strategies

• PCCW recorded steady operational performances across its businesses despite economic setbacks in Hong Kong.
• PCCW Solutions continued to secure contracts on mission-critical systems in Hong Kong’s public sector and built up a substantial order book of secured contracts, partly attributable to significant longer-term managed services projects commissioned by government agencies in Singapore.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Environmental Metrics

ESG Focus Areas

• Responsible Investments
• Corporate Governance
• Compliance
• Business Integrity and anti-corruption
• Risk Management
• Corporate Social Responsibility
• Training and development

Social Achievements

• Continued low staff turnover with a large percentage of employees having between 5 and 20 years of service. One employee received a long service award for 25 years of service.
• 100% of employees received an annual performance review with salary adjustments in line with performance, industry standards and inflation.
• All employees with professional memberships attended relevant continuing professional education courses. Due to COVID-19, staff attended courses through e-learning online.

Governance Achievements

• No fines or sanctions faced under laws and/or regulations governing social or economic matters.
• Zero reported incidents of corruption or bribery.
• Zero whistle-blowing reports of impropriety.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic affected operations in Singapore, Hong Kong, and India, resulting in border closures, production stoppages, workplace closures, and movement controls.
• Slowdown in PCPD's hospitality and entertainment businesses in Niseko, Hokkaido due to COVID-19.

Mitigation Strategies

• Precautionary measures taken to ensure employee safety during the COVID-19 pandemic (social distancing, temperature taking, face masks, hand sanitizers, work-from-home procedures).
• PCPD shifted business focus from international to domestic travelers for Park Hyatt Niseko Hanazono Hotel and ski center.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity
• Transparency
• Responsible Investments
• Corporate Social Responsibility
• Training and Development
• Business Integrity
• Risk Management
• Compliance

Social Achievements

• Continued to take precautionary measures to ensure employee safety during the Covid-19 pandemic.
• Maintained low staff turnover with a large percentage of employees having between 5 and 25 years of service.

Governance Achievements

• Maintained high standards of compliance, professionalism, integrity and commitment at all levels, underpinned by strong internal controls and risk management systems.
• No fines or sanctions faced under laws and/or regulations governing social or economic matters in 2021.
• No reported incidents of corruption or bribery in 2021.
• No whistleblowing reports of any impropriety in 2021.

Climate Goals & Targets

Environmental Challenges

• Global issues such as Covid-19 and climate change.
• Climate change as an emerging risk to the Group.

Mitigation Strategies

• Implemented all necessary measures, including those prescribed by the authorities and encouraged all staff to complete their vaccination and booster shots.
• Incorporated ESG issues into the investment analysis and decision-making process.
• Regularly monitor the sustainability performance of key investment companies.
• Strengthened internal controls, including a review of their effectiveness and close scrutiny on high-risk areas such as cash balances and payment transfers, as well as educating employees on fraud prevention.

Supply Chain Management

Responsible Procurement

• PCCW’s Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SGX Sustainability Reporting Guide

Environmental Metrics

ESG Focus Areas

• Responsible Investments
• Corporate Governance
• Corporate Social Responsibility
• Training and Development

Environmental Achievements

• PCCW has taken steps to reduce energy consumption, including setting up solar panels on exchange buildings and natural cooling for cell sites.
• PCCW has committed US$2 billion towards sustainability-linked loan facilities.

Social Achievements

• PCCW Group has provided free hotline and Internet services for COVID-19 isolation facilities and underprivileged individuals.
• Over 100 volunteers also participated in the Government’s Strive and Rise Programme as mentors for disadvantaged youth.
• PCCW partnered with Mastercard to support reforestation through the Priceless Planet Coalition.
• PCCW’s long-term efforts to bridge the digital divide by providing tailored services to the elderly became more meaningful.

Governance Achievements

• PCRD has complied with the principles of the Code of Corporate Governance 2018 and, substantially, with the provisions as set out in the Code.
• No material weaknesses in the systems of risk management and internal controls were identified by the Board or the Audit Committee in 2022.
• In 2022, PCRD did not face any fines or sanctions under laws and/or regulations governing social or economic matters.
• The Company did not have any reported incidents of corruption or bribery in the 2022 financial year.
• The Company also did not receive any whistleblowing reports of any impropriety in the 2022 financial year.

Climate Goals & Targets

Environmental Challenges

• Global economic conditions are expected to remain uncertain and volatile. Inflation persists in many economies and a return to price stability is unlikely in the near term.
• Uncertainties arising from geopolitical factors, the continuing Russia-Ukraine conflict and interest rate hikes will remain in 2023.
• The fifth wave of COVID-19 significantly impacted Hong Kong.
• Climate change can significantly affect the business operations of the Group’s investments if climate-related risks are not properly assessed.
• The impact of climate change is considered to be an emerging risk to the Group.

Mitigation Strategies

• PCRD will continue to seek new opportunities to improve its performance.
• PCRD, as a responsible investment holding company, recognises the importance of sustainability when considering new business opportunities.
• The Company is committed to observing high standards of governance and integrity in all aspects of its business.
• It will also continue to keep a watchful eye on its investments by overseeing and managing their ESG-related risks.
• PCRD continued to take precautionary measures to ensure our employees remain safe.
• PCRD is committed to continually provide a safe and healthy working environment and to ensure all necessary measures, including those prescribed by the authorities, are adhered to and encourages all staff to complete their vaccination and booster shots.
• PCCW has leveraged technology to facilitate reducing GHG emissions, enhancing operational and energy efficiency, and promoting sustainable resource consumption.
• PCCW will continue improving its environmental performance and collaboration with various stakeholders, including industry leaders, customers, the Hong Kong Government and other organisations to deliver its sustainability agenda.

Supply Chain Management

Responsible Procurement

• PCCW is committed to sourcing and monitoring suppliers who are committed and adhered to adopting sustainable practices.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SGX Sustainability Reporting Guide, TCFD

Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA) (for PCCW and HKT's environmental and social data)