Climate Change Data

Environmental Metrics

ESG Focus Areas

• Project quality control
• Employees’ rights and care
• Operation compliance
• Employees’ development and training
• Occupational health and safety
• Efficiency use of resources
• Supply chain management
• Labour standards
• Anti-corruption
• Environmental and natural resources management
• Waste management
• Greenhouse gas emission

Environmental Achievements

• Reduced total greenhouse gas emissions to 86.82 tonnes CO2e in 2021 from 149.51 tonnes CO2e in 2020
• Reduced non-hazardous waste produced to 5.02 tonnes in 2021 from 8.96 tonnes in 2020

Social Achievements

• Implemented key performance indicators assessment scheme to boost performance and operational efficiency
• Introduced share option schemes to recognise and reward employees
• Held regular team building activities to promote social interaction and physical wellbeing

Governance Achievements

• Established Regulatory Compliance Licence Management System
• Established a comprehensive quality control system with ISO 9001:2015 quality standard
• Implemented effective internal Anti-corruption policies and measures, including a Whistleblowing Policy and regular anti-corruption trainings

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19 pandemic, resulting in delayed delivery and decline in product quality of construction materials
• Significant delay in the delivery of construction material parts by some suppliers
• Quality of certain construction material parts from new suppliers failed to meet requirements
• Delays in façade construction projects and alterations to construction plans due to COVID-19
• Substantial increase in purchase costs of raw materials and appreciation of RMB
• Loss recorded from a façade construction project in Kwun Tong due to unexpected substantial modification and delay

Mitigation Strategies

• Incurred additional subcontracting charges and material costs to speed up installation and replace defective materials
• Engaged new approved suppliers to reduce supply chain impact
• Incurred additional subcontracting charges to maintain sufficient manpower and manage logistics arrangements
• Implemented eco-friendly measures to reduce carbon footprints, including regular vehicle maintenance, route optimization, and promoting public transport
• Implemented several measures to reduce greenhouse gas emissions, including encouraging energy-saving habits, using energy-efficient appliances, and promoting office recycling
• Formulated policy in relation to several emergency scenario on extreme weather condition and different contingency arrangements

Supply Chain Management

Supplier Audits: Annual appraisals conducted by representatives of Project Management Team

Responsible Procurement

• Formal pre-qualification assessments of suppliers; transparent and independent procurement and subcontracting process; promoting competitiveness

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather-related events (typhoons, heavy rains) impacting project operations and equipment stability

Transition Risks

• Policy risk, technology risk, reputational risk, potential losses from climate-related disasters

Opportunities

• Temporary inspection and maintenance projects on buildings or construction sites due to extreme weather

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green building construction materials; new energy including solar energy, hydrogen energy and energy storage system

Awards & Recognition

• Five Stars Certificate of Quality Contractor (ACME Metal Works)

Environmental Metrics

ESG Focus Areas

• Operation compliance
• Employee welfare and care
• Employee training and development
• Project and product quality control
• Caring for the society
• Safeguarding intellectual property
• Supply chain management
• Efficient use of resources

Environmental Achievements

• Reduced greenhouse gas emissions (Scope 1, 2, and 3) from 86.82 tonnes CO2e in 2021 to 58.74 tonnes CO2e in 2022. Reduced non-hazardous waste from 5.02 tonnes in 2021 to 1.26 tonnes in 2022.
• Launched green energy technology business with the brand “SUNEWTRAL”

Social Achievements

• Donated HK$6,000 to support local community development.
• Sponsored Vocational Training Council’s Outstanding Enterprise Internship Scholarship Scheme.

Governance Achievements

• Established robust ESG governance framework including an ESG Committee and ESG Working Group.
• 100% board engagement in anti-corruption training.

Climate Goals & Targets

Environmental Challenges

• Discontinued Façade Works Business due to continuous losses and uncertain outlook for Hong Kong’s construction industry.
• Delays in construction plans for BMU systems business due to COVID-19 outbreaks.

Mitigation Strategies

• Liquidated Acme Metal Works (International) Limited (Façade Works Business).
• Reallocated resources and management efforts to BMU systems and new energy businesses.
• Closely monitoring market conditions and adjusting business strategies.

Supply Chain Management

Supplier Audits: Annual appraisals by Project Management Team representatives.

Responsible Procurement

• Formal pre-qualification assessments; transparent and independent procurement process; promoting competitiveness; establishing a vertically integrated supply chain management system; prioritizing suppliers with green certifications; encouraging ethical practices.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, heavy rains) impacting project operations and equipment stability.

Transition Risks

• Policy risks, technology risks, reputational risks, potential losses from climate-related disasters.

Opportunities

• Increased demand for temporary inspection and maintenance projects; opportunities in the new energy business.

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Solar energy solutions and equipment.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Employee welfare and care
• Operation compliance
• Occupational health and safety
• Employee training and development
• Project and product quality control

Environmental Achievements

• Reduced total emissions (Scope 1, 2, and 3) from 58.74 tonnes CO2e to 49.29 tonnes CO2e.
• Reduced non-hazardous waste produced from 1.26 tonnes to 1.47 tonnes.

Social Achievements

• Organised donation of used clothing to the impoverished and mooncakes to nursing homes.
• Encouraged employee participation in voluntary activities.
• Implemented a whistle-blowing mechanism for employees to report violations and concerns.

Governance Achievements

• Established robust ESG governance framework with Board oversight and ESG Committee and Working Group.
• Implemented a Regulatory Compliance Licence Management System.
• Implemented robust internal anti-corruption policies and practices, including a whistleblowing policy and regular anti-corruption training.

Climate Goals & Targets

Environmental Challenges

• Continued high-interest rates putting pressure on private residential demand and housing prices.
• Uncertainty in the pace of real estate development and stringency of construction cost controls.
• Potential risks associated with extreme weather events disrupting project timelines and affecting equipment stability.

Mitigation Strategies

• Closely monitoring market conditions and adjusting business strategies.
• Adhering to quality of excellence and safety to achieve sustainable development.
• Developing a comprehensive policy to address emergency scenarios resulting from severe weather conditions.
• Promoting public transport and fuel-efficient travel options to reduce emissions.

Supply Chain Management

Supplier Audits: Annual reviews by members of the Project Management Team.

Responsible Procurement

• Fair and open assessment process considering price, quality, delivery, and service support.
• High ethical standards, ban on bribery.
• Regular disclosure of information.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency of extreme weather events (typhoons, heavy rains).

Transition Risks

• Policy changes, technological advancements, reputational risk.

Opportunities

• Growing demand for new energy solutions and energy transformation.

Reporting Standards

Frameworks Used: Appendix C2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• SUNEWTRAL solar energy solutions and equipment.

Awards & Recognition

• Not disclosed