Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Customer Service
• Employee Care
• Community Engagement
• Governance and Compliance

Environmental Achievements

• Promoted paperless operation, increasing Internet banking users by 12.7% and mobile banking users by 39.2%
• Installed more computers at branches to facilitate online banking and reduce counter service queues
• Installed LED energy-saving light pipes in newly renovated offices
• Participated in the Charter on External Lighting, switching off external light signboards after 11 p.m.
• Recycled 100 tonnes of waste paper, 809 pieces of electronic waste, and 1,006 toner cartridges

Social Achievements

• Enhanced Employee Medical Insurance Plan, increasing covered consultations
• Achieved almost equal male-to-female employee ratio (49.6% female)
• Established the Chong Hing Bank Volunteer Team, contributing nearly 230 volunteer hours and over HKD 220,000 in donations
• Won the "Best SME’s Partner Award" for the ninth consecutive year
• Implemented initiatives to facilitate customers with disabilities (doorbells, ramps)

Governance Achievements

• 99.5% of eligible employees completed anti-fraud training (800 hours)
• 95% of eligible new recruits completed anti-bribery training (130 hours)
• Implemented a Whistleblowing Policy
• No bribery or corruption-related litigation cases in 2017
• Strict compliance with the Banking Ordinance and Prevention of Bribery Ordinance

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact of supply chain
• Maintaining high service quality and responding to customer feedback
• Protecting customer data privacy
• Ensuring occupational health and safety

Mitigation Strategies

• Stringent procurement practices prioritizing suppliers with environmental certifications and environmentally friendly products
• Established customer feedback handling mechanisms (comment boxes, hotline, email)
• Issued "Customer Data Protection Policy" and "Practical Guidelines", appointed a Data Protection Officer, and provided employee training
• Formulated an Occupational Health and Safety Policy, provided safety training, and implemented measures to reduce safety hazards

Supply Chain Management

Responsible Procurement

• Prioritizing suppliers with environmental certifications and environmentally friendly products
• Considering product/service quality, reputation, financial condition, governance, and occupational health and safety performance

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEX’s Environmental, Social and Governance Reporting Guide

Awards & Recognition

• "Charter on External Lighting" – Platinum Award
• "Best SME’s Partner Award"
• "Employee of Choice Award 2017"
• "10 Years Plus Caring Company Logo"
• "Raffle Tickets Selling Award" (Runner-Up)

Environmental Metrics

ESG Focus Areas

• Good Banking Practice
• Customer Care
• Employee Care
• Community Engagement
• Environmental Protection
• Response to climate change risks and opportunities
• Promoting financial inclusion

Environmental Achievements

• Energy consumption decreased by 3.3% compared to the previous year (5,874.7 MWh)
• Paper consumption decreased by 11% compared to the previous year (61,131.1 kg)
• Awarded the “Green Office” Label by the World Green Organisation

Social Achievements

• Number of customer appreciation increased by 45.9%
• Online and mobile banking service users increased by 24.7%
• Total amount of volunteering hours increased by 8.1%
• Awarded multiple awards for employee care and community engagement

Governance Achievements

• Established an ESG management structure led by the Board
• Reviewed terms of reference for Board, Risk Committee, Executive Committee, and Risk Management Committee
• Formulated sustainable finance-related policies to facilitate monitoring of climate-related risks
• Implemented anti-corruption training for employees and board members

Environmental Challenges

• Impacts of COVID-19 pandemic on business operations and the economy
• Decline in interest rates and other economic parameters
• Increasing threat of climate risks

Mitigation Strategies

• Launched relief measures for personal and corporate banking customers affected by the pandemic
• Accelerated optimization of online banking and Fintech platforms
• Enhanced digital banking business transformation
• Actively responded to the Hong Kong Monetary Authority’s initiative to develop green and sustainable finance
• Formulated sustainable finance-related policies to facilitate monitoring of climate-related risks
• Implemented various energy-saving and paperless measures

Supply Chain Management

Responsible Procurement

• Referred to the “Operation Manual of the Procurement and Logistics Management Department”
• Considered social and environmental performance of suppliers
• Conducted assessments on health and safety management systems and environmental certifications
• Required suppliers to provide supporting documents and conducted on-site inspections
• Prioritized suppliers with better environmental awareness and products with environmental certifications (e.g., FSC certified paper, Grade 1 energy label appliances)
• Selected local service providers and product suppliers whenever possible

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: HKEX’s ESG Reporting Guide

Awards & Recognition

• Best SME’s Partner Gold Award
• Best Reward & Recognition Strategy Award
• Best Innovative L&D Initiative Award
• Happy Company
• Eco-Healthy Workplace Label
• Good MPF Employer Award
• Caring Company Logo
• Social Capital Builder Logo Award
• Green Office Award

Environmental Metrics

ESG Focus Areas

• Good Banking Practice
• Commitment to Customers
• Caring for Employees
• Community Engagement
• Environmental Protection
• Sustainable Finance

Environmental Achievements

• Reduced paper consumption by 3.9% compared to 2020.
• Achieved "Green Office" Label from World Green Organisation.
• Implemented energy-saving measures (LED lights, zonal lighting).

Social Achievements

• Awarded "Happy Company" logo and "Employer of the Year".
• Provided employee counselling services (24/7, expanded to Macau).
• Organized various employee engagement activities (team building, quizzes).

Governance Achievements

• Established a clear ESG management structure with Board oversight.
• Participated in HKMA's climate change stress test pilot exercise.
• Implemented robust risk management framework (three lines of defense).

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business operations and community.
• Expanding ESG reporting scope to include Mainland China business.
• Managing climate-related risks.

Mitigation Strategies

• Launched various support measures for SME and personal customers.
• Optimising internal information collection system for broader reporting.
• Formulating climate-change risk management framework and participating in HKMA's stress test.

Supply Chain Management

Supplier Audits: 273 suppliers; 235 (86%) based in Hong Kong

Responsible Procurement

• Purchase and Vendor Management Policy considering social and environmental performance.
• Prioritising products with environmental certifications (FSC, energy labels).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix 27 to the Rules Governing the Listing of Securities on Stock Exchange of Hong Kong)

Awards & Recognition

• Best SME’s Partner Gold Award
• Happy Company logo
• Employer of the Year (Grand)
• Best Employer Branding Video Award (Grand)
• The HKIB Talent Development Award
• Good MPF Employer
• 10 Years Plus Caring Company Logo
• Social Capital Builder Logo Award
• Raffle Sales Outstanding Award
• Green Office Label

Environmental Metrics

ESG Focus Areas

• Green Finance
• Social Finance
• Sustainability

Environmental Achievements

• Launched Sustainable Strategic Statement with ambition to drive transition to low-carbon economy
• Active participation in HKMA's climate risk stress test pilot exercise
• Internal credit risk assessment based on environmental risks

Social Achievements

• Supporting customers' transition to climate-resilient and sustainable business models
• Special lending arrangements for corporates and projects demonstrating positive environmental impacts

Governance Achievements

• Established clear ESG management structure with Board oversight
• ESG Working Group manages ESG strategy, risk, and opportunities

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Green Loan Principles, Sustainability Linked Loan Principles, The Equator Principles, SDG Finance Taxonomy (China) [2020 Edition]

Third-party Assurance: HKQAA (Second Party Opinion)