Climate Change Data

Environmental Metrics

ESG Focus Areas

• Consumer privacy
• Anti-corruption
• Employee composition & turnover
• Employee training & development
• Occupational health & safety
• Environmental benefits derived from corporate business

Environmental Achievements

• Secured ISO 14001:2004 certification for its environmental management system.
• 99.6% of non-hazardous waste was recycled.

Social Achievements

• Became the first and only service provider in Hong Kong to secure NAID AAA Certification for plant-based operation including both paper and non-paper destruction service.
• Recruited several employees through Hong Chi On-the-Job Training Program for people with intellectual disabilities.
• Established a Safety Committee to facilitate communication between all employees and management on Occupational Safety and Health (OSH).

Governance Achievements

• Implemented a whistle-blowing policy.
• No bribery cases reported during the year.

Climate Goals & Targets

Environmental Challenges

• High employee turnover rate (44.3%)
• Work-related injuries (11 cases, 543 lost days)

Mitigation Strategies

• Implemented various training courses for employees (internal and external).
• Established a Safety Committee and implemented safety management system including risk assessment, safety rules, safe operation procedures, and emergency response exercises.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Selecting local suppliers where possible.
• Assessment procedures to evaluate and select suppliers based on price, quality, response time, delivery, environmental performance, and quality assurance.

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 Main Board of The Stock Exchange of Hong Kong Limited)

Certifications: ISO 9001, ISO 14001:2004, ISO 27001:2013, NAID AAA Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental benefits derived from corporate business
• Customer privacy protection
• Customer satisfaction
• Environmental compliance
• Anti-corruption

Environmental Achievements

• Recycled 84,983 tonnes of paper and 2,905 tonnes of plastics, saving 1,444 thousand mature trees, 120 thousand tonnes of fuel oil, and 279,088 m3 of landfill space; Conserving 2,284 thousand tonnes of water and 365 million kWh of electricity; Producing 68 thousand tonnes of recycled paper.
• Achieved annual environmental objectives of participating in more than 4 environmental protection initiatives and receiving zero external environmental complaints.
• Adopted a closed loop water recycling system reducing freshwater consumption.

Social Achievements

• Maintained an 86% average customer satisfaction rate.
• Continued hiring people with intellectual disabilities through Hong Chi On-the-Job Training Program.
• Provided 389 person-times of employee safety training (average 1.7 hours).

Governance Achievements

• Secured NAID AAA Certification for plant-based operations including both paper and non-paper destruction services.
• Certified under ISO 27001: 2013 Information Security Management System.
• No reports of non-compliance with laws and regulations relating to bribery, extortion, fraud and money laundering.

Climate Goals & Targets

Environmental Challenges

• Reduced usage of medium and heavy trucks leading to a decline in air emissions.
• Increased production of recycled plastic pellets leading to increased energy and water consumption.
• Increased consumption of packaging materials due to expanding businesses.

Mitigation Strategies

• Establishment of guidelines for the use and operation of company vehicles.
• Adoption of thermal insulation technology during plastic recycling to reduce heat loss and electricity consumption.
• Promoting water recycling and avoiding excessive use; exploring new materials and equipment models with greater water efficiency.
• Using recyclable polypropylene bags to reduce plastic bags consumption; reusing plastic bags and pelletising them into raw materials.

Supply Chain Management

Supplier Audits: Annual sample assessment on 46 suppliers

Responsible Procurement

• Prioritising ISO14001 certified suppliers for equipment repair, facility maintenance and pest control.
• Communicating policies and requirements to suppliers before evaluating eligibility.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, Appendix 27 to the Rules Governing the Listing of Securities on the Main Board of The Stock Exchange of Hong Kong Limited

Certifications: ISO 14001:2015, ISO 9001:2015, ISO 27001:2013, NAID AAA Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 12
• Goal 13

The Group has aligned its initiatives with SDGs, striving to take further actions for promoting sustainable business practices in the industry.

Sustainable Products & Innovation

• Recycled plastic pellets

Awards & Recognition

• Green Hero Alliance Program
• Sustainable Product Supplier
• Hong Kong Green Organisation – Wastewi$e Certificate (Basic Level)

Environmental Metrics

ESG Focus Areas

• Customer privacy protection
• Environmental benefits derived from corporate business
• Customer satisfaction
• Environmental compliance
• Anti-corruption
• Occupational health and safety
• Quality products and services
• Energy saving
• Waste management
• Employee communication

Environmental Achievements

• Recycled 61,533 tonnes of paper and 6,742 tonnes of plastics, saving 1,046 thousand mature trees, 98 thousand tonnes of fuel oil, and 308,470 m3 of landfill space.
• 8% increase in the amount of plastic recycled due to improved recycling practices and worker incentives.
• Installed 649 solar panels, generating 165,033 kWh of solar power.
• Recycled 98% of non-hazardous waste generated from operations.

Social Achievements

• Achieved an average customer satisfaction score of 85.9% for CMDS services and 94.5% for waste management services.
• Recruited 2 employees through Hong Chi On-the-job Training Programme for social inclusion.
• Provided 291 person-times of safety training with an average of 1.3 hours per employee.

Governance Achievements

• Passed external audits from 12 customers regarding information security management system.
• No reports of noncompliance with laws and regulations relating to bribery, extortion, fraud, and money laundering.

Climate Goals & Targets

Environmental Challenges

• Unfavorable economic environment and the outbreak of COVID-19 pandemic adversely affected operations, including temporary suspension of recycled LDPE plastic pellet production.

Mitigation Strategies

• Diversified business through new joint venture project for recycled engineering plastic pellets and investment in hazardous waste treatment in Mainland China.
• Implemented a pilot trial on the use of electric cars to promote green commuting.

Supply Chain Management

Supplier Audits: Annual sample assessment on existing suppliers.

Responsible Procurement

• 4R principle (Reduce, Recycle, Reuse and Replace)
• Priority given to ISO 14001 certified suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2015, ISO 9001:2015, ISO 27001:2013, NAID AAA Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 12
• Goal 13

Initiatives aligned with SDGs through water recycling, energy efficiency improvements, waste reduction, and GHG emission reduction.

Sustainable Products & Innovation

• Recycled engineering plastic pellets

Awards & Recognition

• Green Hero Alliance Program
• Sustainable Product Supplier
• Hong Kong Green Organisation – Wastewi$e Certificate (Basic Level)

Environmental Metrics

ESG Focus Areas

• Environmental benefits derived from corporate business
• Customer privacy protection
• Customer satisfaction
• Environmental compliance
• Anti-corruption

Environmental Achievements

• Reduced energy consumption by 54% year-on-year (253,764 kWh of renewable energy generated)
• Recycled 13,480 tonnes of paper and 4,377 tonnes of plastics
• Achieved wastewater reduction target of 800 liters per month at RGF
• Deployed electric vehicles, estimated to save 2,061.62 liters of petrol and 5.48 tCO2e in Scope 1 GHG emissions

Social Achievements

• Average customer satisfaction rate exceeding targets (81% for CMDS, 95% for RGF)
• No reported incidents of privacy breach and data leakage
• No reported cases regarding work-related fatalities or occupational illness
• 358 person-times of employees received safety training

Governance Achievements

• Passed 12 customer audits on information security management system
• No reports of non-compliance of relevant laws and regulations relating to bribery, extortion, fraud and money laundering
• ICAC anti-corruption talk delivered to Directors and management

Climate Goals & Targets

Environmental Challenges

• Reduced use of machineries and vehicles resulting in decreased energy consumption and emissions (due to shutdown of recovered paper business)
• Potential hazards and risks during operation of machinery in waste management and recycling business
• Environmental non-compliance resulting in a fine (fire incident caused by flammable chemical waste)

Supply Chain Management

Supplier Audits: Annual sample assessment of existing suppliers

Responsible Procurement

• 4R principle (Reduce, Recycle, Reuse and Replace)
• Priority given to suppliers certified with ISO 14001
• Requesting further certification from suppliers if necessary
• Testing materials by requesting suppliers to provide reports to ensure all materials adhere to the Restriction of Hazardous Substances (RoHS) standards

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Reporting Standards

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

Certifications: ISO 14001:2015, ISO 9001:2015, ISO 27001:2013, NAID AAA Certification

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 12
• Goal 13

Initiatives aligned with UN SDGs include wastewater reduction, energy efficiency improvements, waste reduction, and climate change preparedness.

Sustainable Products & Innovation

• Recycled engineering plastic pellets

Awards & Recognition

• Sustainable Product Supplier
• Hong Kong Green Organisation – Wastewi$e Certificate (Basic Level)

Environmental Metrics

ESG Focus Areas

• Waste Management
• Environmental Protection
• Occupational Health and Safety
• Employee Well-being
• Information Security
• Supply Chain Management
• Anti-corruption
• Community Involvement

Environmental Achievements

• Recycled 10,814 tonnes of paper and 1,428 tonnes of plastics
• Generated 362,134 kWh of renewable energy (48.3% YoY increase)
• Reduced GHG emissions intensity by maintaining renewable energy use at 7.6%
• Reduced water consumption by 38% compared to the previous year
• Obtained Hong Kong Green Organisation Certification: Wastewi$e Certificate - Excellent Level

Social Achievements

• RGF certified as an OSH Star Enterprise
• CMDS certified as an OSH Progressive Enterprise
• Provided 243 hours of safety training to 390 employees
• Average customer satisfaction score of 85% in IWS and 87.5% in RGF
• Participated in community activities such as Earth Hour and Job Shadowing Mentorship Scheme

Governance Achievements

• Established an ESG Working Group
• Implemented a Climate Change Policy aligned with the TCFD framework
• Conducted regular audits and assessments to ensure normal operation
• Provided 26 hours of anti-corruption training to 7 directors and 17 employees
• CMDS operations certified to ISO 27001:2013 Information Security Management System

Climate Goals & Targets

Environmental Challenges

• Climate change related risks (extreme weather impacting supply chain, business operations, and employee safety; rising sea levels damaging facilities; increasing temperatures affecting employee health and productivity)
• Transition risks (technology risks related to green building and electric vehicles; market risks due to changing consumer and government preferences for recycling; policy and legal risks from changing regulations; reputational risks from failure to meet climate change compliance requirements)

Mitigation Strategies

• Implemented a Climate Change Policy to identify and manage climate change risks
• Conducted climate risk assessment using scenario analysis
• Took mitigation actions such as reducing GHG emissions, improving energy efficiency, increasing renewable energy use, and reducing waste in the supply chain
• Took adaptation actions such as engaging with stakeholders, increasing awareness and capacity building, improving infrastructure, and developing extreme weather and risk management plans

Supply Chain Management

Supplier Audits: 100% coverage for IWS and RGF

Responsible Procurement

• Quality and Environment Management Manual
• Supplier and Contractor Evaluation Procedures
• Office Green Procurement
• 4R approach (Reduce, Recycle, Reuse, Replace)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Rising sea levels
• High temperatures

Transition Risks

• Technology changes
• Market shifts
• Policy and legal changes
• Reputational risks

Reporting Standards

Frameworks Used: TCFD, UNSDGs

Certifications: ISO 14001:2015, ISO 9001:2015, ISO 27001:2013 (CMDS), NAID AAA certification (CMDS)

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 12
• Goal 13
• Goal 8
• Goal 16

Actions taken in FY2023 aligned with relevant SDGs, as detailed in the report.

Sustainable Products & Innovation

• Recycled engineering plastic pellets

Awards & Recognition

• Wastewi$e Certificate - Excellent Level
• OSH Star Enterprise (RGF)
• OSH Progressive Enterprise (CMDS)