Climate Change Data

Environmental Metrics

ESG Focus Areas

• Workplace Quality
• Environmental Protection
• Operating Practices
• Community Involvement

Environmental Achievements

• Launched Carbon Emission Offsetting Programme in cooperation with Shell Hong Kong Limited, becoming the first and only engineering company to neutralize carbon released from construction sites and achieve zero carbon dioxide emission in Hong Kong.
• Recycled and reused over 90% of construction waste.
• Implemented various eco-friendly actions in offices and project sites, including using B5 bio-diesel, energy-saving lighting, and wastewater reuse.

Social Achievements

• Partnered with Wheel For Oneness to promote social integration of able-bodied and disabled persons.
• Organized the “Photalkgraphers” Charitable Photo Exhibition, raising over HK$2.4 million for Lifewire.
• Organized the “Lifewire Run 2018”, raising over HK$1.7 million for Lifewire.
• Provided scholarships to tertiary students studying engineering and quantity surveying.
• Made donations to various charities, totaling approximately HK$1.7 million.

Governance Achievements

• Complied with all code provisions of the Corporate Governance Code.
• Implemented stringent quality control measures and received ISO 9001 and ISO 10002 certifications.
• Adopted policies and guidelines to avoid any breach of the Prevention of Bribery Ordinance.
• Implemented data protection and privacy policies in compliance with the Personal Data (Privacy) Ordinance.

Climate Goals & Targets

Environmental Challenges

• Challenging business environment in the construction industry, hampered by internal and external factors, including slow funding approval process for public works projects and fluctuations in the Hong Kong economy.
• Intense competition in the construction sector.

Mitigation Strategies

• Took a prudent approach towards business development, regularly examining other facets of operation to optimize returns.
• Adjusted property portfolio and invested in major projects in Hong Kong through joint ventures to mitigate risk and reduce financial outlays.
• Continued to look for opportunities in major development projects in the Greater Bay Area.
• Bolstered professional services operation, including security and facility management and tunnel management businesses.
• Continued diversification efforts, including examining possibilities of developing projects pertaining to education in the region.

Supply Chain Management

Responsible Procurement

• Stringent selection process for qualified suppliers; regular inspections and evaluations; cease cooperation with unqualified suppliers.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Rapid Repairing Mortar Materials (R2M2)

Awards & Recognition

• Caring Company Logo (14 consecutive years)
• Caring Company 10+ logo (for City Security and City Professional Management)
• 9th Hong Kong Outstanding Corporate Citizenship Award
• Family-Friendly Employers Award
• Partner Employer Award
• Caring Certificate in the sixth annual “Industry Cares” recognition scheme
• Various safety and health awards (over 60)
• Safety Management System Award – Construction (Bronze Award)
• Hong Kong Awards for Environmental Excellence – Construction Industry (1 Bronze Award and 2 Certificates of Merit)
• Hong Kong Awards for Environmental Excellence – Outstanding Green Leadership Award
• The 24th Considerate Contractors Site Award Scheme awards
• CIC Sustainable Construction Award
• Hong Kong Green Awards 2018 awards
• Hong Kong Construction Environmental Awards 2018 Environmental Merit Award

Environmental Metrics

ESG Focus Areas

• Training and Development
• Employee Health and Safety
• Environmental Performance
• Product/Service Responsibility
• Anti-corruption

Environmental Achievements

• Achieved a decreasing trend in accident frequency rate of construction work within 5 years.
• Recycled and reused over 90% of construction waste.
• Implemented various eco-friendly actions in offices and project sites (e.g., energy-saving lighting, reuse of wastewater).

Social Achievements

• Chun Wo Construction and Engineering Company Limited has been certified by the Hong Kong Institution of Engineers as a Scheme A Graduate Training approved organisation.
• Various business units garnered more than 40 safety and health awards.
• Implemented Harmony Community Programme, with 134 colleagues participating and 333 volunteer service hours recorded.
• Donated over 200,000 surgical masks and HK$400,000 to support various fields in the battle with the COVID-19 pandemic.

Governance Achievements

• Complied with all the code provisions of the Corporate Governance Code.
• All Directors have confirmed full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers.

Climate Goals & Targets

Environmental Challenges

• Highly challenging business conditions and intense competition resulting from various social and political factors in Hong Kong.
• Economic downturn in Hong Kong impacting the overall performance in the construction industry and increasing price competition.
• Delays in funding approval for large-scale infrastructure projects.
• Social movements in Hong Kong affecting the non-franchised bus services business.
• COVID-19 pandemic further impacting the local and global economy.

Mitigation Strategies

• Leveraging the Group’s solid reputation and business foundation to overcome challenges.
• Winning 14 new projects during the year.
• Shrewdly extending service routes of shuttle bus to mitigate the impact of social movements and COVID-19 on non-franchised bus services.
• Implementing prudent financial management policy.
• Entering into a HK$1.25 billion 3-year term loan facility agreement with five banks.

Supply Chain Management

Supplier Audits: Regular inspections and evaluations of suppliers.

Responsible Procurement

• Stringent selection of qualified suppliers ensuring their production process aligns with Group standards.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the Listing Rules

Certifications: ISO 9001, ISO 14001, ISO 45001, OHSAS 18001, ISO 50001

Third-party Assurance: Accredited Certification International Limited

Awards & Recognition

• ERB Manpower Developer Award Scheme — Grand Prize Award 2018–2020
• ERB Excellence Award for Employers 2019–2020
• Happy Company label (2013-2020)
• 15 Years Plus Caring Company logo (2019/2020)
• 10th Outstanding Corporate Citizenship Award
• Breastfeeding Friendly Workplace (2019/20)
• Partner Employer Award (5 consecutive years)
• Industry Cares 3+ recognition
• Construction Industry Caring Organisation

Environmental Metrics

ESG Focus Areas

• Training and Development
• Employee Health and Safety
• Environmental Performance
• Product/Service Responsibility
• Anti-corruption

Environmental Achievements

• Reduced emissions and resources used per HK$ million revenue by 5% every five financial years commencing from the financial year of 2021.
• Recycled and reused over 95% of construction waste.
• Disposed less than 5% waste generated.
• Received numerous Green Awards from the Green Council, including Green Management Award and Environmental, Health and Safety Award.

Social Achievements

• Launched various training programs for employees of all levels, including GLAD Program, Core Program, Elite Program, Women Leaders Program, and more.
• Implemented a safety audit system, exceeding the target of 83% with an 87% score.
• Received numerous safety and health awards from various organizations.
• Established a safety training center called “Chun Wo Safe Zone”.
• Implemented the “Harmony Community Programme” aiding approximately 3,500 beneficiaries.
• Awarded the “15 Years Plus Caring Company” logo from The Hong Kong Council of Social Service.
• Awarded the “Happy Company” logo for 8 consecutive years.
• Awarded the “Partner Employer Award” for 6 consecutive years.

Governance Achievements

• Complied with all code provisions of the CG Code.
• All Directors confirmed full compliance with the Model Code for securities transactions.
• Established various Board committees, including Audit Committee, Nomination Committee, and Remuneration Committee.
• Adopted the Share Option Scheme and the Share Award Scheme.

Climate Goals & Targets

Environmental Challenges

• Pandemic-induced disruptions to project approvals and work progress.
• Rising cost of raw materials.
• Shortage of professional talents in the construction sector.
• Decline in inbound travellers affecting non-franchised bus services.

Mitigation Strategies

• Leveraged the “Chun Wo” brand and technological prowess to secure infrastructure projects.
• Secured a HK$1.3 billion term loan and revolving credit facilities agreement.
• Proactively recruiting young talent and implementing enhanced training and retention programs.
• Redirected non-franchised bus services from tourist-related to scheduled services for organizations, schools, and property management companies.

Supply Chain Management

Supplier Audits: Regular inspections and evaluations of suppliers.

Responsible Procurement

• Stringent selection of qualified suppliers.
• Requirement for new suppliers to submit relevant documents and undergo background checks.
• New requirements for products and services to meet international standards in quality and environmental protection.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the Listing Rules

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: Accredited Certification International Limited

Sustainable Products & Innovation

• Rapid Repairing Mortar Material (“R2M2”)
• Concrete “Modular Integrated Construction” solution

Awards & Recognition

• Numerous Green Awards
• Numerous safety and health awards
• “15 Years Plus Caring Company” logo
• “Happy Company” logo
• “Partner Employer Award”

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Chun Wo Construction signed the “BEC Low Carbon Charter”, setting decarbonisation targets.

Social Achievements

• Organised dynamic activities for staff and their families; provided comprehensive hospitalisation and outpatient medical benefits, and personal leave.
• Chun Wo Construction achieved a safety audit score of 86.7%, surpassing the target of ≧85%.
• Implemented the “Harmony Community Programme”, involving staff in community activities.

Governance Achievements

• Complied with all code provisions of the Corporate Governance Code.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to border restrictions and higher costs for certain raw materials.
• Shortage of skilled labour in the construction industry.

Mitigation Strategies

• Engaged in projects with the Hong Kong Government, which has policies for compensating cost increases.
• Optimising investment portfolio by developing projects through joint ventures.

Supply Chain Management

Responsible Procurement

• Promulgated the “Non-acceptance of Advantages” policy among partners and suppliers.

Climate-Related Risks & Opportunities