Climate Change Data

Environmental Metrics

ESG Focus Areas

• Reduce Greenhouse gas emission
• Waste management
• Employment
• Health and Safety
• Development and training
• Supply chain management
• Tenant and customer satisfaction
• Anti-Corruption and anti-money laundering
• Community investment

Environmental Achievements

• Increased energy and water consumption intensity decreased by 10% and 19%, respectively, in FY21/22 compared to FY20/21 (after adjusting for occupied gross floor area).

Social Achievements

• Launched "The Art of Caring" community care program, receiving the "10 Years Plus Caring Company Logo" from the Hong Kong Council of Social Service.
• Landmark On Robson development in Vancouver includes 83 city-owned public housing units (20% of total floor space).

Governance Achievements

• Successfully obtained its first HK$1.4 billion four-year sustainability-linked loan facility in May 2022, with interest rate discount linked to environmental performance criteria (energy and water consumption reduction).

Climate Goals & Targets

Environmental Challenges

• Travel restrictions significantly impacted the hospitality industry.
• Liquidity crisis in China’s real estate sector resulted in net investment loss.
• High employee turnover rate (45%).
• COVID-19 pandemic and related restrictions.

Mitigation Strategies

• Participation in quarantine business for hotels.
• Strict cost-cutting measures and deferral of non-essential capital expenditures.
• Implementation of anti-epidemic measures to safeguard staff and guest health.
• Refinancing unsecured bank borrowings through a sustainability-linked loan.

Supply Chain Management

Responsible Procurement

• Tender process for most procurements.
• Supplier approval process and spot checks on delivered goods.
• Review of options to purchase more environmentally responsible products from organic, sustainable, and local sources.

Climate-Related Risks & Opportunities

Physical Risks

• Major typhoons and flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

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

Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA)

Awards & Recognition

• "10 Years Plus Caring Company Logo"

Environmental Metrics

ESG Focus Areas

• Reduce Greenhouse gas emission
• Waste management
• Employment
• Health and Safety
• Development and training
• Supply chain management
• Tenant and customer satisfaction
• Anti-Corruption and anti-money laundering
• Community investment
• Public housing

Environmental Achievements

• Increased environmental initiatives to maximize energy conservation by promoting resource efficiency, energy savings, and emission reduction.
• Daily monitoring of energy and fuel consumption to identify areas for energy conservation.
• Phased replacements of equipment with more energy-efficient models.
• Direct energy and water consumption intensities decreased by 17% and 19% respectively, in FY22/23 compared to FY21/22 (adjusted for occupied gross floor area).

Social Achievements

• Implemented anti-epidemic measures to safeguard the health and safety of staff members and guests during the COVID-19 pandemic.
• Hotel operations delivered an extensive array of training programs for its staff.
• Management team and operating staff from quarantine hotels received training in “room cleaning & disinfection” and “infection control training”.
• Launched “The Art of Caring” Community Care Program in partnership with SAHK.

Governance Achievements

• Successfully obtained its first HK$1.4 billion four-year sustainability-linked loan facility.
• The Hong Kong Quality Assurance Agency (HKQAA) reviewed the hotels’ overall sustainability strategies and goals.

Climate Goals & Targets

Environmental Challenges

• Rise in hotel room occupancy led to increased energy and water demand and air and greenhouse gas emissions.
• Expansion of ventilation and exhaust fan systems increased energy consumption.
• Liquidity crisis in Mainland China’s real estate market negatively impacted financial investments.
• Persistent headwinds in the global economy, such as inflationary pressures, elevated borrowing costs, and geopolitical uncertainties.

Mitigation Strategies

• Cost management and efforts to enhance efficiency and quality of hotel services.
• Monitoring risk and managing exposures to a range of debt maturities and debt types.
• Maintaining a strong financial position with healthy liquidity and gearing.
• Debt securities investment portfolio cautiously optimistic due to government support and debt restructuring of distressed developers.

Supply Chain Management

Responsible Procurement

• Tender process for most procurements.
• Supplier approval process and spot checks on delivered goods.
• Reviewing options to purchase more products from organic/sustainably managed sources, environmentally superior products, and local/regional companies.

Climate-Related Risks & Opportunities

Physical Risks

• Major typhoons and flooding

Transition Risks

• Regulatory changes, market shifts

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)

Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA)

Awards & Recognition

• 10 Years Plus Caring Company award

Environmental Metrics

ESG Focus Areas

• Reduce Greenhouse gas emission
• Waste management
• Employment
• Health and Safety
• Development and training
• Supply chain management
• Tenant and customer satisfaction
• Anti-Corruption and anti-money laundering
• Community investment

Environmental Achievements

• Incorporated various environmental initiatives in its hotel operation through working with our employees, guests and contractors to reuse and recycle waste whenever economically practicable.
• Daily monitoring of energy and fuel consumption to identify areas for energy conservation is in place.
• Phased replacements of fan coil units, air handling units, laundry and kitchen equipment, electrical appliances and lighting have been enhanced to more energy-efficient models.

Social Achievements

• Launched “The Art of Caring Community Care Programme 2023/24” in partnership with SAHK, a rehabilitation service organization providing care, resources and support for persons with disabilities.
• Provided ongoing training and development opportunities to enhance our employees’ career progression.
• Made donation of HK$50,000 to the Suicide Prevention Services.

Governance Achievements

• Successfully obtained its first HK$1.4 billion four-year sustainability-linked loan facility in May 2022.
• The Hong Kong Quality Assurance Agency (HKQAA) has been commissioned with reviewing the hotels’ overall sustainability strategies and goals.

Climate Goals & Targets

Environmental Challenges

• Higher hotel room occupancy led to an increase in the demand for energy, resulting in an increase in air and greenhouse gases emission.
• The global economy remains uncertain due to ongoing conflicts in Ukraine and the Middle East, along with trade tensions between the US and China.
• Larger provision of expected credit losses on investments in debt securities, which is largely attributable to the wound-up orders by the HK court on a couple of our investment portfolio’s note issuers.

Mitigation Strategies

• The Group continues to pursue enhanced debt restructuring negotiations with note-issuing developers amidst the ongoing real estate-friendly policies of the PRC government.
• The Group reviews and optimises its asset portfolio to ensure that it is sufficiently cost effective and efficient.
• The Group maintains an open and proactive relationship with the banking community, arranging different terms of loan facilities from different sources with different tenures and ensures continuous assessment of counterparty risks.

Supply Chain Management

Responsible Procurement

• Most of the Group’s procurements have undergone a tender process.
• The Group implements a just and fair tender process to ensure adequate competition and adopts a series of assessment methods in relation to supplier management to ensure the quality of its supplied products and services during performance process.

Climate-Related Risks & Opportunities

Physical Risks

• catastrophic occurrences such as major typhoons and flooding

Reporting Standards

Frameworks Used: ESG Reporting Guide

Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA)

Awards & Recognition

• “15 Years Plus Caring Company” award granted by The Hong Kong Council of Social Service