Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced vehicle emissions by using vehicles with small engine displacements and regular maintenance.
• Implemented waste reduction initiatives such as using reusable dishware and encouraging recycling.
• Encouraged employees to take direct flights to reduce greenhouse gas emissions.

Social Achievements

• Established a sound recruitment system ensuring equal employment opportunities.
• Provided competitive remuneration packages and various benefits to employees.
• Organized leisure activities to promote employee well-being and foster a sense of belonging.

Governance Achievements

• Strict adherence to anti-corruption laws and regulations.
• Implemented measures to protect customer information and maintain data integrity.
• Established clear safety policies for handling and reporting of emergency, accident and occupational disease.

Climate Goals & Targets

Environmental Challenges

• Reducing construction waste generated on site.
• Minimizing energy and water consumption.
• Maintaining high safety standards on construction sites.

Mitigation Strategies

• Encouraging contractors to reuse materials.
• Implementing energy-efficient practices and encouraging employees to conserve resources.
• Requiring contractors to comply with health and safety regulations and provide safety training.

Supply Chain Management

Responsible Procurement

• Careful selection of experienced and qualified contractors based on certifications, qualifications, and safety production licenses.

Climate-Related Risks & Opportunities

Reporting Standards

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

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Welfare
• Community Engagement
• Governance

Environmental Achievements

• Reduced Nitrogen Oxides, Sulphur Oxides, and Particulate Matter emissions from vehicles compared to 2018.
• Reduced total greenhouse gas emissions compared to 2018.
• Reduced total non-hazardous waste compared to 2018.
• Implemented waste reduction initiatives in offices (reusable dishware, waste paper recycling).

Social Achievements

• Established a sound recruitment system ensuring equal employment opportunities.
• Provided competitive remuneration packages and benefits (insurance, retirement schemes).
• Organized leisure activities for employees to promote well-being.
• Implemented occupational health and safety measures and training.

Governance Achievements

• Board of directors responsible for formulating and overseeing ESG strategies.
• Strict adherence to anti-corruption laws and regulations.
• Implemented measures to protect customer personal data.

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact from construction activities.
• Managing waste generation from office operations and construction sites.
• Maintaining high safety standards on construction sites.

Mitigation Strategies

• Requiring contractors to comply with environmental laws and regulations.
• Implementing waste reduction and recycling programs.
• Requiring contractors to hold valid safety production licenses and implement safety training programs.

Supply Chain Management

Responsible Procurement

• Careful examination of certifications and testing reports from potential suppliers
• Higher priority given to suppliers with ISO certificates

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (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

• Reduced vehicle emissions of Nitrogen Oxides, Sulphur Oxides, and Particulate Matter.
• Reduced total greenhouse gas emissions from 270 tonnes CO2e in 2019 to 323 tonnes CO2e in 2020 (increase attributed to factors explained in the report).
• Reduced paper usage in annual report by one-fourth compared to the previous year through layout optimization.
• Implemented energy-saving measures such as using energy-efficient printers and encouraging employees to switch off lights and air conditioning when not in use.

Social Achievements

• Established a sound recruitment system ensuring equal employment opportunities.
• Provided various employee benefits including compensation insurance, medical insurance, and personal accident insurance.
• Organized leisure activities for employees to promote well-being and foster a sense of belonging.
• Implemented disease control and prevention measures in response to the COVID-19 pandemic.

Governance Achievements

• Established an ESG governance structure with the board of directors responsible for formulating and overseeing ESG strategies.
• Implemented strict anti-corruption policies and procedures in compliance with relevant laws and regulations.
• Implemented measures to protect customer personal data in compliance with the Personal Data (Privacy) Ordinance.

Climate Goals & Targets

Environmental Challenges

• Greenhouse gas emissions increased from 270 to 323 tonnes CO2e, primarily due to increased vehicle usage and other indirect emissions.
• Supply chain disruptions (not explicitly stated but implied through the focus on supplier management).

Mitigation Strategies

• Purchased vehicles with small engine displacements and regularly maintained them to reduce emissions.
• Encouraged employees to use public transport and ride-sharing, and prioritized direct flights for business trips to reduce greenhouse gas emissions.
• Regularly conducted supplier and contractor performance assessments to ensure quality and compliance.

Supply Chain Management

Supplier Audits: Regular supplier and contractor performance assessments

Responsible Procurement

• Careful examination of certifications and testing reports from potential suppliers; higher priority given to suppliers with ISO certificates.

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

• Achieved “Level One Certification” of the IHG Green Engage™ system by the IHG Corporate Responsibility Team in Kaifeng, PRC hotel operation.

Social Achievements

• Established a sound recruitment system ensuring equal employment opportunities.
• Provided various benefits to employees, including employee’s compensation insurance, medical insurance and personal accident insurance (Hong Kong) and Five Social Insurances and One Housing Fund (PRC).
• Organized leisure activities for employees to promote well-being and a sense of belonging.

Governance Achievements

• Strict compliance with major commercial laws and regulations relating to anti-corruption, including the Prevention of Bribery Ordinance (Hong Kong), the Anti-Unfair Competition Law of the PRC and the Criminal Law of the PRC.
• Encouraged employees to report any suspicious business practice or impropriety via reporting systems.

Climate Goals & Targets

Environmental Challenges

• Potential climate-related risks, including higher frequency and intensity of extreme weather events.
• Supply chain disruptions (implied).

Mitigation Strategies

• Established natural disaster emergency plans.
• Formulated various management measures for climate-related risk management.
• Careful assessments, selections and evaluations of suppliers and contractors.
• Preference given to local suppliers to reduce carbon footprint.

Supply Chain Management

Responsible Procurement

• Careful assessments, selections and evaluations of suppliers and contractors; preference given to suppliers with relevant ISO certifications; local sourcing for perishable products in hotel operations; examination of certifications and product test reports from suppliers of medical equipment and home security products.

Climate-Related Risks & Opportunities

Physical Risks

• Higher frequency and intensity of extreme weather events

Transition Risks

• Changes in customer preference for environmentally-friendly goods and services; changes in demand for goods and services as well as the revenue mix and sources.

Opportunities

• Potential changes in customer preference for environmentally-friendly goods and services.

Reporting Standards

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

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Welfare
• Supply Chain Management
• Community Investment
• Anti-corruption

Environmental Achievements

• Achieved “Level One Certification” of the IHG Green Engage™ system for hotel operation in Kaifeng, PRC.
• Reduced total greenhouse gas emissions from 673 tonnes CO2e in 2021 to 601 tonnes CO2e in 2022.
• Reduced total non-hazardous waste from 5,319 kg in 2021 to 3,739 kg in 2022.
• Reduced total water consumption from 14,313 m3 in 2021 to 15,897 m3 in 2022 (increase likely due to increased hotel operations).

Social Achievements

• Established a sound recruitment system ensuring equal employment opportunities.
• Provided various employee benefits including insurance and paid leaves.
• Organized leisure activities for employees to promote well-being.
• Provided safety and awareness training to site workers.

Governance Achievements

• Established communication channels for internal business divisions to ensure cooperation on ESG initiatives.
• Appointed third-party ESG consultants to conduct a materiality assessment.
• Implemented strict compliance with anti-corruption laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Potential climate-related risks such as extreme weather events.
• Supply chain disruptions (not explicitly stated, but implied by the focus on supplier management).

Mitigation Strategies

• Established natural disaster emergency plans.
• Careful assessment, selection, and evaluation of suppliers and contractors.
• Regular performance reviews of suppliers considering environmental, health, and safety performance.

Supply Chain Management

Responsible Procurement

• Careful assessment, selection, and evaluation of suppliers and contractors.
• Prioritization of suppliers with relevant ISO certifications.
• Regular performance reviews.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Opportunities

• Potential changes in customer preference for environmentally-friendly goods and services.

Reporting Standards

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

Certifications: IHG Green Engage™ Level One Certification (for Kaifeng hotel)

Awards & Recognition

• ListCo Excellence Awards 2021

Environmental Metrics

ESG Focus Areas

• Environmental Compliance
• Prevention and Handling of Environmental Incidents
• Employment Compliance
• Remuneration and Benefits
• Working Hours and Rest Periods
• Diversity and Equal Opportunity
• Occupational Health and Safety
• Prevention of Child Labour and Forced Labour
• Operational Compliance
• Responsible Sales and Marketing
• Customer Service Management
• Anti-corruption

Environmental Achievements

• Achieved “Level One Certification” of the InterContinental Hotels Group (IHG) Green Engage™ system in Kaifeng hotel operation.
• No non-compliance with environment-related laws and regulations.

Social Achievements

• Appointed a new independent non-executive director, increasing the total number of independent non-executive directors from three to four.
• No child or forced labour was employed.
• No work injuries or lost days due to work injuries were recorded.
• No work-related fatalities have been reported in the past three years.

Governance Achievements

• Established a committee of the Board of Directors to enhance the Board’s engagement in ESG issues.
• No cases of corruption, extortion, fraud and money laundering occurred within the Group.

Climate Goals & Targets

Environmental Challenges

• Potential climate-related risks (extreme weather events)
• Supply chain disruptions

Mitigation Strategies

• Established natural disaster emergency plans
• Formulated various management measures for climate-related risk management
• Conduct thorough selections and evaluations of suppliers and contractors
• Regular performance reviews of suppliers and contractors

Supply Chain Management

Responsible Procurement

• Thorough selections and evaluations of suppliers and contractors; prioritising suppliers with ISO quality management certifications; local sourcing for perishable products in hotel operations; strict adherence to receiving guidelines and rejection of substandard food ingredients.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Opportunities

• Changing customer preferences for environmentally friendly goods and services

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (ESG Guide) contained in Appendix C2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (HKEX)

Certifications: ISO 13485:2016

Awards & Recognition

• President with Platinum Distinction for Tse Hoi Ying (Rotary Club Hong Kong)