Climate Change Data

Environmental Metrics

ESG Focus Areas

• Growing our business responsibly
• Serving our customers
• Developing our people
• Contributing to our community
• Enhancing our environmental performance
• Climate change risks
• Carbon emissions targets

Environmental Achievements

• 1.4% reduction in electricity consumption in two main Hong Kong office buildings (exceeding the 1.1% target)
• 2% overall reduction in electricity consumption in Hong Kong
• Completed installation of an anti-scale water treatment system, reducing chiller plant electricity consumption by 5% and water consumption by 10%
• Replacement of halogen floodlights with LED lights, offering energy reductions of up to 70% per year

Social Achievements

• Launched a new talent development framework
• Invested HK$27.3 million in training and development, providing over 41 hours of training on average per employee
• 2.7% year-on-year fall in turnover rate for permanent full-time staff
• BEA won the 8th Hong Kong Volunteer Award — Corporate Award
• Launched BEA Flash mobile account opening app

Governance Achievements

• Strengthened supply chain management by integrating Supplier Code of Conduct into procurement process
• Implemented a new two-factor authentication process for Corporate Cyberbanking
• Enhanced lending policies incorporating climate-related risk assessment

Climate Goals & Targets

Environmental Challenges

• Declining public trust in the financial services industry
• Rising cybersecurity attacks
• Climate change risks (physical and transitional)
• Managing ESG risks across a decentralized procurement function
• High employee turnover in the financial services industry

Mitigation Strategies

• Established robust governance structure and Code of Conduct
• Enhanced security measures and cybersecurity training
• ESG risk assessment and integration into business decisions
• Implemented a Supplier Code of Conduct and ESG risk calculator
• Competitive remuneration, benefits, and development opportunities for employees

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• ESG risk calculator

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts, stranded assets, credit risk

Opportunities

• Green and sustainable finance market

Reporting Standards

Frameworks Used: GRI Standards, Core option, HKEX ESG Reporting Guide

Certifications: FSC (Forest Stewardship Council) for office paper

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Caring Company
• 8th Hong Kong Volunteer Award — Corporate Award
• Financial Education Champion
• Various other awards listed in Appendix

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Growing Our Business Responsibly
• Serving Our Customers Better
• Developing Our People
• Contributing to Our Community
• Enhancing Our Environmental Performance

Environmental Achievements

• Reduced carbon emissions (Scopes 1 and 2) by 9.1% compared to 2019
• Reduced energy intensity by 9.1%
• Reduced paper consumption by 7.5%
• Recycled 12.4 tonnes of IT waste
• Set a Group-wide absolute carbon emissions reduction target of 32% by 2030

Social Achievements

• Increased customer satisfaction to 72% (+1 percentage point compared with 2019)
• Received 173% more compliments from customers compared to 2019
• Reduced turnover rate for permanent full-time staff members by 2.4 percentage points
• Invested HK$24.7 million in training and development
• Delivered over 38 hours of training (on average) per employee
• Established a Sustainability Section
• Provided HK$6.5 million in financial aid for PPE for vulnerable members of society

Governance Achievements

• Established a Board-level ESG Committee
• Established an ESG Steering Committee
• Established an ESG Work Group
• Issued a Responsible Investment Statement
• Developed a roadmap for green and sustainable banking
• Developed a 3-year roadmap for sustainable lending and investing
• Issued a Group Human Rights Policy

Climate Goals & Targets

Environmental Challenges

• Climate change and its impact on business
• Supply chain risks
• Cybersecurity threats to customer data
• Maintaining high levels of customer satisfaction in a competitive market
• Retaining talent in a high-turnover industry
• COVID-19 pandemic and its impact on operations and community engagement

Mitigation Strategies

• Formalised approach to assessing climate risk exposure
• Developed a three-year roadmap for engaging with climate risk
• Developed a more robust ESG risk assessment tool for supply chain
• Implemented a suite of policies and guidelines to protect customer data privacy
• Invested in advanced technology and digital services to enhance customer experience
• Provided competitive remuneration and benefits packages to retain employees
• Implemented an Occupational Health and Safety Policy and Manual
• Provided support to employees and customers during the COVID-19 pandemic
• Introduced new governing bodies to strengthen ESG oversight

Supply Chain Management

Supplier Audits: Risk assessment tool deployed on purchase orders over a threshold value

Responsible Procurement

• Supplier Code of Conduct
• Human Rights Policy
• Sustainable Procurement Toolkit

Climate-Related Risks & Opportunities

Transition Risks

• Material exposure to climate risk on borrowers

Opportunities

• Green finance opportunities

Reporting Standards

Frameworks Used: GRI Standards – Core Option

Certifications: ISO 10002

Third-party Assurance: Hong Kong Quality Assurance Agency

Sustainable Products & Innovation

• ESG-based investment options

Awards & Recognition

• Outstanding Award for Green Loan Arranger
• Financial Education Champion
• Caring Company
• Other awards listed on pages 68-69

Environmental Metrics

ESG Focus Areas

• Climate Resilience
• Sustainable Finance
• Talent Attraction and Retention
• Community Partnerships and Volunteering
• Business Ethics
• Cybersecurity and Data Privacy
• Treating Customers Fairly
• Health, Safety, and Wellbeing
• Diversity and Equal Opportunity
• Responsible Supply Chain Management

Environmental Achievements

• 31% reduction in Scope 1 and 2 absolute emissions compared to 2019 baseline.
• Completed installation of PV panels on the roof of 33 Des Voeux Road Central building in Hong Kong and Zhangjiang Data Center in Shanghai.
• Reduced paper orders by 72% for Hong Kong operations compared to 2020 baseline.
• Only reusable cutlery and utensils provided for events since 2023.

Social Achievements

• 98% response rate to employee engagement survey with 88% of staff positively engaged.
• Launched the first Asia Impact Bond Fund.
• Organised Beyond Environmental Arts Festival, BEA Upcycles, and Golden Adventures, reaching over 17,000 beneficiaries.
• Invested over HK$12 million in staff development, providing an average of 54 training hours per employee.

Governance Achievements

• Became the first Chinese member of the Net-Zero Banking Alliance.
• BEA Union Investment became a signatory to Climate Action 100+.
• Implemented the Intelligence-Led Financial Crime Prevention initiative.
• No data breach or loss reported during the year.

Climate Goals & Targets

Environmental Challenges

• Financed emissions make up 99% of BEA’s carbon footprint.
• Softening demand for financing in a higher interest rate environment.
• Potential financial risks associated with climate change.
• Potential physical impacts of climate change on the Group’s business and operations.

Mitigation Strategies

• Developed a Scope 3 Net Zero Roadmap and a Scope 1 & 2 Net Zero Roadmap.
• Measured financed emissions in five of seven high carbon-emitting sectors and set carbon reduction targets.
• Developed a dedicated internal data platform for calculating and monitoring financed emissions.
• Enhanced GSF framework and ESG risk-related infrastructure.
• Conducted a climate risk stress test.
• Incorporated climate risk assessment into the new product approval process.

Supply Chain Management

Supplier Audits: ESG risk segmentation exercise for purchases with a value equal to HK$500,000 or more.

Responsible Procurement

• Supplier Code of Conduct
• Sustainable Procurement Policy
• Sustainable Procurement Toolkit

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, rainstorms, heatwaves) impacting assets and operations.

Transition Risks

• Regulatory changes (carbon pricing), market shifts impacting borrowers and investments.

Opportunities

• Growth of green and sustainable finance.

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD

Third-party Assurance: HKQAA

Sustainable Products & Innovation

• Green loans
• Sustainability-linked loans
• Social loans
• ESG bonds
• Green deposits
• Green mortgages

Awards & Recognition

• Numerous awards from HKQAA, TVB, CTgoodjobs, HKCSS, IFEC, etc.