Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Recycled 1,030 kg of paper waste.

Social Achievements

• Established a welfare system for employees including subsidies, leaves, and allowances.
• Implemented various employee engagement activities (annual dinner, competitions, trips, awards).

Governance Achievements

• Established an "Anti-Corruption Management Practice" and a whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Minimizing environmental impact as a real estate owner and developer.
• Managing carbon footprint by minimizing energy and water consumption.
• Reducing solid waste from paper, documents, and food waste.

Mitigation Strategies

• Implemented "Environmental Facilities Operation and Management System" for emission control.
• Adopted policies and procedures for efficient resource use (energy saving management system).
• Improved efficient use of paper to reduce consumption.
• Engaged a specific recycler to handle paper waste.

Supply Chain Management

Responsible Procurement

• Stringent selection criteria for contractors (including safety).
• "Tendering, Procurement Management Handbook" for supply chain management.
• Evaluation of potential suppliers based on criteria and site inspections.

Climate-Related Risks & Opportunities

Reporting Standards

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

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Established “Environmental Facilities Operation and Management System” to manage emissions and implemented measures to reduce environmental impacts.
• Implemented energy saving policies and procedures (detailed in “Use of Resources” section) to reduce GHG emission.
• Introduced waste management measures to minimize waste generation and environmental impact; recycled non-hazardous waste.

Social Achievements

• Implemented a comprehensive human resources management framework, including policies on recruitment, promotion, working hours, equal opportunities, compensation, and benefits.
• Organized employee activities to enhance team spirit and promote work-life balance.
• Implemented a “Safety Management System” to strengthen safety controls.
• Launched a series of training programs for employees.

Governance Achievements

• Established “Prohibition on Commercial Bribery Management Procedures” and conducted anti-corruption training.
• Established a whistleblowing policy to provide a confidential platform for raising concerns about misconduct.

Climate Goals & Targets

Environmental Challenges

• Low risk of occupational health and safety associated with business operations.
• Difficulty in providing comprehensive water consumption data due to centralized water management by property management companies.

Mitigation Strategies

• Implemented measures to mitigate water consumption (reminders to employees and hotel guests).
• Implemented “Safety Management System” to strengthen safety controls and minimize risks.

Supply Chain Management

Responsible Procurement

• Tendering, Procurement Management Handbook; selecting suppliers based on compliance, price, quality, stability of supply.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the rules governing the listing of securities on The Stock Exchange of Hong Kong Limited – “Environmental, Social and Governance Reporting Guide”

Awards & Recognition

• Good MPF Employer Award (2016-17)
• e-Contribution Award (2016-17)
• Support for MPF Management Award (2016-17)

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced air pollutants emission in 2019 mainly due to the disposal of hotel business in Japan.
• Reduced total GHG emission in 2019 mainly due to the disposal of hotel operation business in Japan and effective implementation of electricity saving strategies.
• Reduced non-hazardous waste disposal in 2019 due to the disposal of hotel operation business in Japan and effective implementation of waste management strategies.

Social Achievements

• Continued to receive “Good MPF Employer Award” for 2018-19.
• Received “e-Contribution Award” and “Support for MPF Management Award” for 2018-19.
• Organised employee activities to enhance team spirit and strengthen relationship between employees and the Group.

Governance Achievements

• Established “Environmental Facilities Operation and Management System” to manage emissions.
• Established “Safety Management System” to strengthen safety controls.
• Established “Employee Training Management System” to provide different trainings to employees.

Climate Goals & Targets

Environmental Challenges

• No significant challenges mentioned in the report.

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• The Group prefers choosing local suppliers and contractors whenever possible with environmental consideration in the supply chain management.
• The Group’s “Tendering, Procurement Management Handbook” has been established to set up principles for selecting suppliers and monitoring suppliers’ performance.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, Global Reporting Guidelines

Certifications: Good MPF Employer Award, e-Contribution Award, Support for MPF Management Award, Good Employer Charter

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Good MPF Employer Award
• e-Contribution Award
• Support for MPF Management Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Established “Environmental Facilities Operation and Management System” to manage emissions.
• Implemented measures to reduce environmental impacts and enhance environmental protection awareness among employees.
• Encouraged contractors to adopt responsible construction practices to reduce air pollutants emission.
• Effective implementation of non-hazardous waste management strategies led to a decrease in the amount of non-hazardous waste generated in 2021.

Social Achievements

• Implemented “Safety Management System” to strengthen safety controls.
• Organized regular fire drills.
• Carried out regular site visits and inspections to ensure construction site safety.
• Organized various forms of cultural, sports and recreational activities and club activities for employees.
• Continued to receive “Good MPF Employer Award” for 2020-21.

Governance Achievements

• Established a dedicated safety and environmental protection department (“ESG Working Group”) to implement specific safety and environmental protection work.
• Board oversees climate-related issues and risks regularly during board meetings.
• Established “Tendering, Procurement Management Handbook” to set up principles for selecting suppliers and monitoring suppliers’ performance.
• Established “Construction Quality Control Operation Guideline” to monitor the quality of construction work.
• Established “Customer Satisfaction Investigation Management Procedure” to carry out customer satisfaction surveys.
• Established “Customer Information File Management System” on collection, use and processing of customer data.
• Established whistleblowing policy to provide employees with a confidential platform to raise concerns.

Climate Goals & Targets

Environmental Challenges

• Increased GHG emission in 2021 mainly attributable to increased canteen fuel use and increase in number of employees.
• Increased water consumption in 2021 mainly attributable to the increase in the number of employees in the PRC office.
• Gaps in understanding how climate risks and opportunities may impact operations, assets and profits.
• Potential environmental and social risks associated with the supply chain.

Mitigation Strategies

• Targets to reduce the emission of air pollutants by 10% by 2025 and GHG emission by 10% by 2025.
• Set a reduction target of 10% in water consumption by 2025.
• Set inclusive total energy consumption reduction target by 10% by 2025.
• Set a 10% reduction target in non-hazardous waste generation by 2025.
• Planned to adopted scenario analysis to disclose an organization’s planning under future scenarios, most notably one with in a “2°C scenario”.
• Established a natural disasters emergency plan.
• Planned to be involved in carbon trading and adoption of clean energy in the operations to reduce the carbon emissions.
• Monitor the updates of the relevant climate-related environmental policies.
• Planned to invest in the innovations of energy saving products.
• Examined the feasibility and benefits of applying the latest low-carbon and energy-saving technologies into our operation.
• Tightened the control of the environmental hazardous materials in our products/services and studied the application of recycled materials.
• Supported the green productions.
• Fulfilled the social responsibility by organizing more activities or executing actions to demonstrate how we place importance on climate change.

Supply Chain Management

Responsible Procurement

• Established “Tendering, Procurement Management Handbook”.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather events
• Increased likelihood and severity of wildfire
• Prolonged hot weather

Transition Risks

• Energy efficiency requirements
• Carbon-pricing mechanisms
• Policies to encourage sustainable land use
• Mandates on and regulation of existing products and services
• Tightened environmental and safety laws and standards
• Increased insurance premiums for the construction sites
• Enhanced emissions-reporting obligations
• Abrupt and unexpected shifts in energy costs
• Changing input prices and output requirements
• More customers are considering climate-related risks and opportunities

Opportunities

• Reduce more packaging material usage
• Reduce water usage and consumption
• Use of lower-emission fuel sources
• Use of supportive policy incentives
• Use of new technologies
• Development of climate adaptation and insurance risk solutions
• Access to new markets
• Participation in renewable energy programs and adoption of energy-efficiency measures
• Resource substitution or diversification

Reporting Standards

Frameworks Used: ESG Reporting Guide

Awards & Recognition

• Good MPF Employer Award
• e-Contribution Award
• Support for MPF Management Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced air pollutant emissions (Nitrogen oxides, Sulfur dioxide, Particulate matter) compared to 2021.
• Reduced GHG emissions (Scope 1 and 2) compared to 2021.
• Decreased non-hazardous waste generation in 2022 compared to 2021.

Social Achievements

• Continued to receive “Good MPF Employer 5 Years+ Award”, “e-Contribution Award”, and “Support for MPF Management Award” for 2021-22.
• Organized various staff activities to promote team building and employee well-being.
• No work injury or fatality cases during the Reporting Period.

Governance Achievements

• Established a dedicated safety and environmental protection department (ESG Working Group).
• Conducted annual materiality assessment to understand stakeholder expectations.
• Implemented robust risk management and business planning processes overseen by the Board.

Climate Goals & Targets

Environmental Challenges

• Climate change poses risks to operations, supply chain, and financial planning.
• Gaps in understanding how climate risks and opportunities may impact operations, assets, and profits.

Mitigation Strategies

• Adopted scenario analysis (including a “2°C or lower scenario”) to disclose planning under future scenarios.
• Established a natural disasters emergency plan.
• Promoting the reduction of non-renewable energy in daily operation.
• Investing in innovations of energy-saving products.
• Monitoring updates of climate-related environmental policies.

Supply Chain Management

Supplier Audits: 12 suppliers (2022 and 2021)

Responsible Procurement

• Tendering, Procurement Management Handbook established.
• Selection criteria include compliance, price, quality, and stability of supply.
• Preference for local suppliers with environmental considerations.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather events.
• Increased likelihood and severity of wildfire.
• Prolonged hot weather increasing energy consumption.
• Climate change uncertainties affecting property development and sales.
• Prolonged climate change impacting human health.

Transition Risks

• Energy efficiency requirements and carbon pricing increasing costs.
• Mandates and regulations on products and services increasing compliance costs.
• Increased insurance premiums for construction sites.
• Increased emissions-reporting obligations.
• Changes in customer demand for products.
• Uncertainty in market signals.
• Increased cost of raw materials.
• Abrupt shifts in energy costs.
• Changing input prices and output requirements.
• Unable to fulfil customer expectations, damaging reputation.

Opportunities

• Resource efficiency leading to operating cost reductions.
• Use of lower-emission fuel sources and supportive policy incentives reducing operating costs.
• Use of new technologies and lowest cost abatement reducing operating costs.
• Returns on investment in low-emission technology increasing.
• Development of climate adaptation and insurance risk solutions increasing revenue.
• Access to new markets increasing revenue.
• Resilience planning increasing market valuation and revenue.

Reporting Standards

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

Awards & Recognition

• Good MPF Employer 5 Years+ Award (2021-22)
• e-Contribution Award (2021-22)
• Support for MPF Management Award (2021-22)