Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Compliance with Laws and Regulations
• Workplace Quality
• Health and Safety
• Community Involvement

Environmental Achievements

• Implemented measures to mitigate emissions in Group’s offices (controlled use of chiller units, LED lamps, switching off lifts).

Social Achievements

• Provided on-the-job training and development opportunities to enhance employees’ career progression.
• Organised charitable and staff-friendly activities (outings, cookery class, health talks).

Governance Achievements

• Established policies and procedures for compliance with the Corporate Governance Code.
• Established an Audit Committee and a Remuneration Committee.

Climate Goals & Targets

Environmental Challenges

• Lower revaluation gain from investment properties.
• Decrease in results of Media Asia Group Holdings Limited due to fewer large-scale films and events, and exchange loss from depreciating Renminbi.
• Depreciation of Renminbi affecting reported results.

Mitigation Strategies

• Lai Fung Group’s rental-led strategy demonstrated resilience.
• Continued expansion of media and entertainment businesses in Mainland China.
• Prudent and flexible approach in growing landbank and managing financial position.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Corporate Governance Code

Environmental Metrics

ESG Focus Areas

• Emissions
• Use of resources
• People
• Employment
• Health and safety
• Development and training
• Labour standards
• Supply chain management
• Product responsibility
• Intellectual property rights
• Anti-corruption
• Community investment

Environmental Achievements

• Reduced greenhouse gas emissions in cinema operations (from 2,440 tonnes CO2e to 1,773 tonnes CO2e), and reduced hazardous waste disposed intensity (from 0.0069 kg/m2 to 0.0041 kg/m2) in cinema operations. Lower environmental footprint due to cinema closures from COVID-19 and social unrest.
• Reduced greenhouse gas emissions in entertainment operations (from 185.96 tonnes CO2e to 162.42 tonnes CO2e).

Social Achievements

• Signed the Good Employer Charter of the Labour Department.
• Organised health awareness talks, interest classes, and film screenings for employees.
• Implemented preventive measures against COVID-19 at cinemas (masks, temperature checks, disinfection).

Governance Achievements

• Established a risk management framework involving the Board, Audit Committee, and Risk Management Taskforce.
• Revised Audit Committee terms of reference to extend the cooling-off period for appointing a former partner of the external auditor.

Climate Goals & Targets

Environmental Challenges

• Cinema operation disruptions due to social unrest and COVID-19, leading to decreased box office performance.
• Impairment of right-of-use assets and property, plant, and equipment in certain cinemas.
• Delays in film production and movie launches, postponement of concerts due to health concerns.

Mitigation Strategies

• Renovation of STAR Cinema and opening of a new cinema at Cyberport.
• Cautious approach in evaluating expansion opportunities and focusing on high-quality, commercially viable projects.
• Tightening cost control procedures.
• Investing in original productions with Chinese themes.
• Actively seeking new talent and collaborations in Greater China and Asia.

Supply Chain Management

Responsible Procurement

• Purchases food only from authorized suppliers to ensure food source traceability and control.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Environmental Metrics

ESG Focus Areas

• Energy
• Waste management
• Water resources
• People
• Employee relationship
• Recruitment and retention
• Occupational health and safety
• Training and development
• Equal opportunities
• Supply chain management
• Customer satisfaction
• Product/service quality and safety
• Intellectual property
• Marketing and labelling
• Customer/tenant privacy
• Anti-corruption
• Legal compliance
• Community investment

Environmental Achievements

• Reduced GHG emissions (Scope 2) in cinema operations from 1,773 tonnes CO2e to 1,601 tonnes CO2e; reduced GHG emissions intensity in cinema operations from 0.08 tonnes CO2e/m2 to 0.06 tonnes CO2e/m2; reduced general waste in cinema operations from 38,058 kg to 27,977 kg; reduced general waste intensity in cinema operations from 1.62 kg/m2 to 1.06 kg/m2; reduced water consumption in cinema operations from 4,131 m3 to 3,724 m3; reduced water consumption intensity in cinema operations from 0.18 m3/m2 to 0.14 m3/m2; implemented typhoon and extreme weather condition work arrangement guideline; procured energy-saving equipment; introduced group-wide and business unit-specific abatement procedures and control measures to manage emissions; implemented waste reduction, reuse, sorting and recycling measures; reduced food waste in cinema operations by suspending the sale of products with shorter shelf life; implemented energy-saving initiatives such as installation of energy-efficient lighting and automatic induction devices in some cinemas.
• Reduced GHG emissions (Scope 1 & 2) in entertainment operations from 162 tonnes CO2e to 115 tonnes CO2e; reduced GHG emissions intensity in entertainment operations from 0.07 tonnes CO2e/m2 to 0.05 tonnes CO2e/m2; reduced non-hazardous waste in entertainment operations from 2,880 kg to 2,880 kg; reduced energy consumption in entertainment operations from 362,512 kWh to 333,418 kWh; reduced energy consumption intensity in entertainment operations from 152.30 kWh/m2 to 140.08 kWh/m2

Social Achievements

• Signed the Good Employer Charter of the Labour Department in Hong Kong; offered attractive welfare packages including MPF, medical or commercial insurance, social security and housing fund; provided additional holidays, vaccination leave, annual health check-up and allowances; arranged film screenings and monthly “Lunch Talk” for employees; provided masks and sanitisers at all operations; introduced vaccination leave to encourage employees to receive the COVID-19 vaccine; organised wellness activities such as “Lunch Talk” on health awareness; implemented health and safety preventive and control measures; provided relevant trainings, reminders and protective equipment; established a solid cooperative relationship with business partners; implemented a series of measures to safeguard the health of customers and employees; complied with crowd control and social distancing rules; took additional disinfection steps to maintain a safe and hygienic environment; implemented infection prevention and control measures; provided hand sanitisers at the ticketing kiosk, snack bar and entrance for customers; maintained food safety by purchasing food from authorised suppliers; complied with Chapter 486 Personal Data (Privacy) Ordinance; provided Personal Information Collection Statement and Privacy Policy Statement; adopted various data handling measures including the Information Protection & Cyber Security Policy and the Information Protection Awareness Guide; complied with the Payment Card Industry Data Security Standard; clearly defined “advantages” and outlined relevant procedures to guide employees to prevent the possible violation of bribery, corruption and conflicts of interest; established a whistleblowing procedure; supported Konica Minolta Green Concert; collaborated with ICBC (Asia) and Caritas Hong Kong to organise “Step for Love” virtual charity walk; donated gift sets containing daily necessities and distributed meal boxes to the elderly and people who need assistance.

Governance Achievements

• Established policies and procedures for compliance with the principles and code provisions set out in the Corporate Governance Code; established specific committees with written terms of reference to assist the Board in the efficient implementation of its functions; delegated the day-to-day management of the Company’s businesses to the management and the Executive Committee; adopted a nomination policy; revised the terms of reference of the Audit Committee; adopted a board diversity policy; adopted a Code of Practice for Securities Transactions by Directors and Designated Employees; established a risk management framework; outsourced the internal audit function to an independent advisor; adopted a Shareholders’ Communication Policy; adopted a dividend policy.

Climate Goals & Targets

Environmental Challenges

• Cinema operation disruption due to COVID-19 pandemic, including mandatory closures in Hong Kong and Mainland China; delay in releases of blockbuster movies; social distancing measures such as restrictions on seating capacity and bans on eating and drinking in cinemas; unprecedented challenges to the media and entertainment industry due to COVID-19 pandemic, affecting entertainment spending; resurgence of Delta variant cases in Mainland China; potential material impacts on Hong Kong businesses due to flooding; stringent policies and initiatives likely to be implemented by the government to meet carbon emission reduction targets and net zero ambitions, leading to higher operating costs and equipment replacement needs; potential tropical cyclones causing property damages and economic losses.

Mitigation Strategies

• Cautiously optimistic about the fundamental demand for entertainment in the long run; evaluating opportunities to maintain and enhance market positioning; took over three sites previously operated by U A Cinema Circuit Limited; opened new cinemas with latest audiovisual technology; closely monitoring market conditions; improving overall operating efficiency; prudent approach in evaluating opportunities for further expansion; focusing on producing high-quality and commercially viable products; directing resources towards development of online content for streaming platforms and e-commerce; investing in original production of quality films with Chinese themes; exploring cooperation and investment opportunities to enrich portfolio and broaden income stream; adopting a cautious approach and evaluating business objectives from time to time; managing financial position with a prudent and flexible approach; formulating a typhoon and extreme weather condition work arrangement guideline; procuring energy-saving equipment; introducing green policies and environmental initiatives to reduce energy and water consumption and GHG emissions; monitoring electricity consumption in cinemas; implementing infection prevention and control measures in cinemas; adopting a prudent approach and evaluating business objectives from time to time; managing financial position with a prudent and flexible approach.

Supply Chain Management

Responsible Procurement

• Careful selection of suppliers based on quality, strength and experience.

Climate-Related Risks & Opportunities

Physical Risks

• Tropical cyclones
• Flooding

Transition Risks

• Policy and legal risks

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Waste Management
• Water Resources
• Employee Engagement
• Wellbeing, Occupational Health and Safety
• Supply Chain Management
• Community Investment
• Green Building
• Packaging Materials
• Forced and Child Labour
• Anti-corruption

Environmental Achievements

• Improved recycling rate for hazardous and non-hazardous waste in Mainland China properties.
• Implemented Chiller Plant Optimization at CCB Tower, increasing HVAC efficiency.
• Optimized Chiller Plant systems at Crocodile Center and Causeway Bay Plaza 2, reducing electricity consumption.
• Installed solar panels at Lai Sun Commercial Centre and Cheung Sha Wan Plaza, generating renewable energy.
• Implemented energy-saving measures at various properties in Mainland China (e.g., Palm Spring, Novotown).
• Installed rainwater collection system at Hong Kong Ocean Park Marriott Hotel for irrigation.
• Retrofitted water closets with higher water efficiency models in Mainland China hotels.
• Various properties achieved ISO and green building certifications.

Social Achievements

• Organized various employee wellbeing programs including Lunch Talks, DIY workshops, wellbeing massage sessions (Hong Kong), and festive gifts, employee birthday celebrations, staff-appreciation meetings, and Global Health Week activities (Mainland China).
• Implemented a robust screening process for all potential candidates to ensure compliance with legal standards.
• Provided training and workshops on safety-related risks for all employees.
• Extended Management Trainee Programme from 15 to 18 months.

Governance Achievements

• Established a four-step materiality assessment approach to identify and assess material ESG issues.
• Implemented a Whistleblowing Policy.
• Provided regular anti-fraud and anti-corruption trainings to all employees including directors.
• Adhered to international labour standards and local laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Climate-related physical risks, particularly tropical cyclones and floods.
• Transition risks related to stricter government policies and regulations on carbon emissions.
• Maintaining high customer satisfaction rates across all properties.

Mitigation Strategies

• Created typhoon and extreme weather condition work arrangement standards.
• Implemented emergency plans for natural disasters.
• Regular inspections of critical machinery and equipment.
• Implemented various measures to control air pollutants during construction projects.
• Prioritised building materials with lower volatile organic compounds.
• Regularly assesses the effectiveness of environmental initiatives and monitors environmental performance.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Comprehensive tendering procedure for construction projects; evaluation of contractors' environmental and safety practices; requirement for Environmental Management Plan and Safety Management Plan; standardized procurement procedure for hotel suppliers; responsible food sourcing in food and beverage services; priority given to suppliers with relevant certifications.

Climate-Related Risks & Opportunities

Physical Risks

• Tropical cyclones
• Floods

Transition Risks

• Policy and legal risks related to carbon emission reduction targets.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, TCFD

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 9001:2015, LEED

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Mapped 10 of the 17 SDGs into our contribution in respective chapters of this report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Excellent Level of Wastewise Certificate (CCB Tower)
• Green Office Award Labelling Scheme Certificate (CCB Tower)
• Indoor Air Quality Certificate (Good Class) (CCB Tower)
• Platinum Award of Charter on External Lighting (CCB Tower)
• 2022 Zhuhai Property Management Demonstration Project (Hengqin Novotown)
• Advanced Property Management Community and Excellent Unit (Zhongshan Palm Spring)
• HKQAA “Silver Seal” for Business Resilience & Community Contribution (CCB Tower)
• The Outstanding Security Partnership Award (Crocodile Center)