Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Human Capital
• Community Contribution
• Value Chain Management
• Anti-corruption

Environmental Achievements

• Replaced main engines and generators of ferry fleet with more energy-efficient hardware, improving efficiency by 10-15%
• Implemented an Energy and Carbon Management Programme at The Hong Kong Shipyard Limited and The Hongkong and Yaumati Ferry Company Limited
• Purchased three new forklift trucks meeting EU and US emission standards
• Gradually replacing old generators with environmentally-friendly ones
• Implemented energy efficiency measures at the Principal Office (solar film, solar thermal paint, energy-efficient light tubes)
• 20% of coaches used in tour operations are green coaches using Ultra Low Sulphur Diesel (ULSD)
• Waste oil recycled to produce high-quality green lubricants
• Designated contractors appointed for scrap metal classification and recycling
• Implemented measures to reduce food waste at Harbour Cruise – Bauhinia, preventing 8,555 metric tonnes of wastewater discharge into the sea per year

Social Achievements

• Provided 7,300 training hours to employees
• Organized staff outings and recreational activities to boost morale
• Established a staff leisure corner
• Implemented a five-day work week and flexible working hour arrangements
• No incidences of non-compliance with regulations governing labour practices
• Hosted Hong Kong Ferry Innovation Talent Competition
• Established a Safety Committee at The Hong Kong Shipyard Limited
• Implemented a well-established safety policy at the Shipyard
• Signed up to the Workplace Hygiene Charter
• Arranged medical check-ups for employees
• Invited Chinese herbalists to hold seminars on healthy living habits
• Implemented anti-corruption measures, including seminars by ICAC officers and a whistle-blowing policy
• Offered apprenticeship programmes at the Shipyard for over 30 years
• Provided internship programmes for students
• Spent over 400 hours on volunteer services and HK$500,000 on community programmes

Governance Achievements

• Implemented a Code of Conduct requiring employees to abide by anti-corruption regulations
• Implemented a whistle-blowing policy
• No confirmed cases of corruption or non-compliance with anti-corruption rules

Climate Goals & Targets

Environmental Challenges

• Emissions from dangerous goods vehicular ferry services
• Energy consumption
• Waste management
• Maintaining a safe working environment

Mitigation Strategies

• Replacing old engines and generators with more efficient ones
• Implementing an Energy and Carbon Management Programme
• Implementing energy efficiency measures at the Principal Office
• Recycling waste oil and scrap metals
• Reducing food waste at Harbour Cruise – Bauhinia
• Establishing a Safety Committee and implementing a safety policy at the Shipyard
• Regular safety inspections and training

Supply Chain Management

Supplier Audits: Annual or quarterly Supplier Evaluation Report and Supplier Performance Review

Responsible Procurement

• Adherence to environmental and safety regulations
• Monthly joint safety inspections with contractors
• Requirement for contractors to implement construction/demolition waste management plans
• Preference for local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: Hong Kong Q-Mark, Caring Company, ISO 9001:2008

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Hong Kong Q-Mark
• Caring Company
• Happy Company 2015
• Heart to Heart Company
• Hong Kong Top Brand Mark
• ISO 9001:2008
• Manpower Developer 1st Award
• Outstanding Caring Award
• The 4th Outstanding Corporate Social Responsibility Award
• The 6th Hong Kong Corporate Citizenship Logo

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Human Capital
• Community Contribution
• Value Chain Management
• Anti-corruption

Environmental Achievements

• Replaced traditional fluorescent tubes with energy-efficient LED tubes, reducing energy consumption.
• Replaced halogen lamps with LED High Bay lighting, further reducing energy consumption.
• Installed motion sensors and timer switches to reduce energy consumption.
• Completed engine and generator replacement program on five vessels, resulting in environmentally friendly operations.
• Improved cleaning practices at The Hong Kong Shipyard Limited, considerably lessening water consumption.
• Installed automatic water tap sensors in the Principal Office, enhancing water efficiency.
• Harbour Cruise – Bauhinia reduced water consumption by 15% by installing automated water faucets.
• Installed a rainwater harvesting tank at The Hong Kong Shipyard Limited, collecting 30 cubic meters of rainwater annually for various uses.
• Converted used oil into high-quality green lubricants at The Hong Kong Shipyard Limited.
• Implemented a strict wastewater management system at Harbour Cruise – Bauhinia, securely discharging 8,950 metric tonnes of wastewater annually.

Social Achievements

• No cases of non-compliance with labour regulations reported.
• Maintained a harmonious work environment free from discrimination.
• Provided competitive compensation packages and fringe benefits, including maternity and paternity leave and medical insurance.
• Implemented a fair recruitment process.
• Offered a 5-day work week for office staff and a flexi-time system for on-site workforce.
• Provided opportunities for social interaction and team building.
• Employees benefited from approximately 4,087 training hours.
• Conducted annual gap analysis to determine training needs.
• Provided sponsorship for external accredited courses.
• Maintained a strong focus on workplace health and safety with no non-compliance issues.
• Implemented clear safety protocols and regular safety inspections.
• Promoted a cohesive safety culture through morning group exercise sessions and seminars.

Governance Achievements

• Implemented a Code of Conduct prohibiting corruption and malpractice.
• No confirmed cases of non-compliance with anti-corruption regulations.
• Provided staff with regular anti-corruption seminars.
• Established a whistle-blowing policy.

Climate Goals & Targets

Environmental Challenges

• Managing environmental and social risks in the supply chain.
• Maintaining high customer satisfaction rates.

Mitigation Strategies

• Engaging and collaborating with suppliers and contractors to conform to ethical business practices.
• Implementing management controls to detect and prevent bribery and malpractice.
• Developing long-term relationships with key suppliers.
• Conducting comprehensive inspections on suppliers with substandard performance.
• Prioritizing local procurement to mitigate environmental impacts.
• Actively seeking customer feedback and implementing rigorous quality assurance systems.

Supply Chain Management

Supplier Audits: Annual or quarterly review through Supplier Evaluation Report and Supplier Performance Review.

Responsible Procurement

• Fair and open competition during procurement and tendering procedures.
• Management controls to detect and prevent bribery and malpractice.
• Adherence to Hong Kong environmental and safety regulations by suppliers and contractors.
• Monthly joint safety inspections with in-house contractors.
• Prioritization of local procurement.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: ISO 9001:2008 (Harbour Cruise – Bauhinia, The Hongkong and Yaumati Ferry Company Limited, The Hong Kong Shipyard Limited)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards and recognitions listed in the report (page 41).

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Human Capital
• Community Investment
• Supply Chain Management
• Anti-Corruption

Environmental Achievements

• Reduced electricity consumption by around 15% at Principal Office and Shipyard in 2019.
• Decreased overall energy consumption by 6.9% and GHG emissions by 7.9% compared to 2018.
• Recycled 5,800 liters of waste diesel oil.
• Avoided discharge of 8,470 tonnes of wastewater into the harbour.
• Introduced "SmartWasher" reducing cleaning fluid use by 360 liters.

Social Achievements

• No reported cases of non-compliance with labour regulations.
• Provided approximately 4,747 training hours to employees.
• Organized company-wide staff recreational activities.
• Implemented Substance Use Policy at the Shipyard.
• No reported cases of non-compliance with occupational health and safety laws.

Governance Achievements

• No confirmed cases of non-compliance with anti-corruption regulations.
• Implemented a whistle-blowing policy.
• Regularly reviewed whistle-blowing policy by the Internal Audit Manager.
• Arranged biennial seminars and talks with the Independent Commission Against Corruption (ICAC).

Climate Goals & Targets

Environmental Challenges

• Staff recruitment challenges
• Regulatory compliance

Mitigation Strategies

• Apprenticeship and engineer training programs
• Regular review and monitoring of sustainability risks in accordance with risk management process and internal control systems.

Supply Chain Management

Supplier Audits: Intermittent supplier reviews, monthly joint safety inspections with onsite contractors for property development operations.

Responsible Procurement

• Code of Conduct, supplier selection considering environmental and social impacts, prioritization of local suppliers (83% local procurement rate).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

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

Certifications: ISO 9001:2015 (Harbour Cruise – Bauhinia, The Hongkong and Yaumati Ferry Company Limited, The Hong Kong Shipyard Limited)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Environmental Leadership Charter on External Lighting Platinum Award, EcoPartner and 5 Years+ EcoPioneer Certificate (The Hong Kong Shipyard Limited and The Hongkong and Yaumati Ferry Company Limited), Energy Saving Charter 2019, Friends of EcoPark – Certificate of Appreciation, 2018 Hong Kong Awards for Environmental Excellence – Certificate of Appreciation, Indoor Air Quality Certificate, Quality Water Supply Scheme for Buildings – Fresh Water Certificate, Rechargeable Battery Recycling Programme – Certificate of Appreciation, Programme on Source Separation of Commercial and Industrial Waste Certificate, Caring Company 15 years + Award, ERB Manpower Developer Award Scheme – Manpower Developer 1st Award, Good MPF Employer 5 Years and MPF Support Award, Partner Employer Award, CSR Recognition Scheme Industry Cares 2019 – 5+ Year Award, Heart To Heart Company, Social Capital Builder Logo Award, The 10th Hong Kong Outstanding Corporate Citizenship Logo, Quality Services 2019 APAC Business Awards, Food Safety Charter Certificate

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Human Capital
• Community Contribution
• Supply Chain Management
• Responsible Products and Services

Environmental Achievements

• Reduced electricity consumption by around 18% at Principal Office and Shipyard in 2020
• Decreased overall energy consumption by 15.9% and GHG emissions by 14.4% from 2019 levels
• Reduced sulphur content in diesel to 0.001% for dangerous goods vehicular ferries
• Installed a solar photovoltaic system at the Principal Office with an estimated annual power yield of 50,537 kWh
• Introduced a Wasted Filter Pressing Treatment Plant at the Shipyard to reduce waste volume

Social Achievements

• Provided 4,219 training hours to employees in 2020
• Employee turnover rate less than 5%
• No reported cases of non-compliance with labour regulations
• No reported cases of non-compliance with occupational health and safety laws
• No confirmed cases of non-compliance with anti-corruption regulations
• Organized online anti-corruption training with the ICAC
• Conducted health talks to enhance staff well-being with over 40 participants

Governance Achievements

• Established a zero-tolerance approach for fraudulent or unethical conduct
• Implemented a whistle-blowing policy with confidential reporting channels
• Regularly reviewed whistle-blowing policy by the Internal Audit Manager
• ESG working group drives management of ESG-related risks and opportunities

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on operations
• Climate emergency challenges

Mitigation Strategies

• Implemented weekly strategic meetings and response plans addressing employee, customer, and subcontractor health and safety
• Enhanced cleaning protocols, implemented flexible work practices, provided PPE, arranged health awareness seminars, minimized business travel, installed air purifiers and nano antiviral coating

Supply Chain Management

Supplier Audits: Annual safety audits for property development operations; regular reviews of suppliers with findings recorded in Supplier Evaluation Report and Supplier Performance Review

Responsible Procurement

• Code of Conduct outlining ethical standards, human and labour rights, and environmental practices; prioritization of local suppliers (82% local procurement rate in 2020)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide, Appendix 27

Certifications: ISO 9001:2015 (Harbour Cruise - Bauhinia, The Hongkong and Yaumati Ferry Company Limited, The Hong Kong Shipyard Limited)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards listed in section 4 of the report (Environmental Leadership Charter, Energy Saving Charter, Corporate Environmental Leadership Awards, Hong Kong Green Organisation Certification, Hong Kong Awards for Environmental Excellence, Caring Company, Good Employer Charter, etc.)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Employee Well-being
• Community Engagement
• Supply Chain Sustainability
• Occupational Health and Safety
• Anti-Corruption

Environmental Achievements

• Achieved an overall local procurement rate of 84% for the 7th consecutive year.
• Implemented energy-saving measures such as LED lighting and solar panels, enhancing energy efficiency.
• Reduced sulphur content in diesel to 0.001% for dangerous goods vehicular ferries.
• Installed a third rainwater harvesting tank for water reuse.
• Recycled various materials including spent oil, cooking oil, zinc alloy, aluminium, steel, bronze, and oily water.

Social Achievements

• Maintained an employee turnover rate of less than 13%.
• Provided 4,344 hours of employee training, including ESG-related topics.
• Participated in 13 community programs and contributed 426 volunteer hours.
• Achieved a customer satisfaction rate of over 90% for Harbour Cruise - Bauhinia for 8 consecutive years.
• Implemented COVID-19 response measures including enhanced cleaning, flexible work practices, and provision of anti-epidemic supplies.

Governance Achievements

• Established and reviewed Climate Change Policy, Environmental Policy, Anti-Corruption and Bribery Policy, and Business Ethics and Code of Business Conduct Policy.
• Established and/or restructured whistleblowing procedures and Whistleblowing Committee.
• No confirmed cases of non-compliance with anti-corruption regulations.

Climate Goals & Targets

Environmental Challenges

• Climate change risks, including rising sea levels and increased frequency of tropical cyclones.
• Supply chain disruptions due to the COVID-19 pandemic.

Mitigation Strategies

• Developed mitigating strategies for climate change risks, such as monitoring weather conditions and temporary relocation during extreme weather.
• Incorporated ESG-related supplier certifications into the supplier review process.
• Attended training on improving supply chain management and food hygiene and safety amid the pandemic.

Supply Chain Management

Supplier Audits: Annual safety audits for property development, quarterly supplier evaluations for other operations.

Responsible Procurement

• Climate Change Policy
• Environmental Policy
• Code of Conduct
• ESG-related supplier certifications (Energy Audit, Carbon Audit, GRI)

Climate-Related Risks & Opportunities

Physical Risks

• Rising sea water level
• Increasing frequency of tropical cyclone

Transition Risks

• Upgrading extreme-weather resistant properties and equipment
• Increased compliance costs

Opportunities

• Development of energy-efficient products

Reporting Standards

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

Certifications: ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards and certifications listed in the report (Environmental Leadership Awards, Green Organisation certifications, etc.)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Employee Well-being
• Occupational Health and Safety
• Supply Chain Management
• Community Investment
• Anti-corruption
• Corporate Governance

Environmental Achievements

• Achieved a local procurement rate of 85% for the 8th consecutive year, exceeding 80%
• Reduced sulphur content in diesel for dangerous goods vehicular ferries to 0.001% since January 2020
• Installed rooftop solar panels, wall-mounted solar lights, and a solar system on two floating pontoons at the shipyard
• Successfully substituted 13 generators and 10 engines on board with environmentally friendly alternatives
• Installed an electric vehicle charging system

Social Achievements

• Provided 4,548 hours of employee training
• Maintained a customer satisfaction rate over 90% for 9 consecutive years (Harbour Cruise - Bauhinia)
• Organized various employee well-being activities, including birthday parties, autumn travel, and a Christmas party
• Participated in 20 volunteer activities and community events, contributing 596 engagement hours and benefiting more than 2,100 people
• Received the “Top 10 Highest Volunteer Hours Award” at the Hong Kong Volunteer Award 2023

Governance Achievements

• Established a Whistleblowing Policy
• No confirmed cases of non-compliance with anti-corruption regulations in 2023
• No reported cases of non-compliance with relevant laws and regulations in respect of product and service quality in 2023
• No reported cases of non-compliance with relevant laws and regulations relating to compensation and dismissal, recruitment and promotion, working hours, rest periods, equal opportunity, diversity, anti-discrimination, other benefits and welfare, and preventing child and forced labour that had a significant impact on the Group in 2023.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks: rising sea water levels, increased frequency of tropical cyclones, reputational risks tied to changing customer perceptions, and regulatory changes
• Occupational health and safety incident resulting in employee fatality

Mitigation Strategies

• Developed strategies to mitigate climate-related risks, including reducing vessels berthed alongside during tropical cyclones, securing vessels with high-strength slings, monitoring sea level rise, replacing yard areas with waterproof facilities, and monitoring announcements from the Hong Kong Observatory
• Reinforced safety protocols with the Labour Department, confirmed a code of practice for working at height, expanded the Safety Committee, and engaged an external consultant to review safety management systems

Supply Chain Management

Responsible Procurement

• Code of Conduct
• ESG-related supplier certifications (Energy Audit, Carbon Audit, GRI) incorporated into supplier review process since 2021

Climate-Related Risks & Opportunities

Physical Risks

• Rising sea water levels
• Increased frequency of tropical cyclones

Transition Risks

• Reputational risks
• Regulatory changes

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 9001:2015

Awards & Recognition

• BEAM Plus New Buildings V1.2 – Final Silver Rating
• BOCHK Corporate Low-Carbon Environmental Leadership Awards 2022
• Hong Kong Green Organisation – Green Code Plaza certifications
• Quality Water Supply Scheme for Buildings awards
• Indoor Air Quality Certificate (Good Class)
• Umbrella Bags Reduction Accreditation Program 2023 – Diamond Level
• Energy Saving Charter 2022
• Commendation Scheme on Source Separation of Commercial and Industrial Waste (2022/2023) – Gold Award
• Caring Company 20 years+ Logo
• Good MPF Employer 5 Years+ and MPF Support Award
• Happy Company 2023 and 10 Years+ Certificate
• ERB Manpower Developer Award Scheme – Super MD Award
• Heart To Heart Company
• Hong Kong Volunteer Award 2023 – Top 10 Highest Volunteer Hours Award
• Social Capital Builder Logo Award
• Hong Kong Q-Mark Certificate for Harbour Cruise - Bauhinia
• Hong Kong Top Brand Mark Scheme – Ordinary & Premier Mark