Climate Change Data

Environmental Metrics

ESG Focus Areas

• Customer Satisfaction
• Diversity and Equal Opportunities
• Customers’ Privacy and Confidentiality
• Employment Practices
• Quality of Services and Products
• Business Ethics
• Anti-corruption Training for Management and Employees
• Safety of Services and Products
• Staff Occupational Health and Safety
• Anti-discrimination

Environmental Achievements

• Reduced total GHG emissions by approximately 11% and GHG emission intensity by 32% compared to the previous year.
• Reduced total packaging material consumption by approximately 36% and intensity by approximately 48% compared to the previous year.

Social Achievements

• Awarded “Good MPF Employer Award — e-Contribution Award and MPF Support Award” for the fourth consecutive year.
• Awarded “Eco Partner — BOCHK Corporate Environmental Leadership Awards” for the second consecutive year.
• Launched orientation training and other training activities to enhance employee capabilities.
• Upgraded medical insurance plan for employees, including increased claim amounts and extended coverage.

Governance Achievements

• Complied with the code provisions set out in the Corporate Governance Code, except for the deviation from code provision C.2.1 (separation of Chairman and CEO roles).

Climate Goals & Targets

Environmental Challenges

• Unsatisfactory performance of e-commerce business during the year.
• Potential risks associated with regulatory, technological, market, and reputational aspects of climate change.
• Three claims made in relation to image copyright infringement.
• COVID-19 pandemic presented unprecedented challenges.

Mitigation Strategies

• Engaged an independent qualified professional valuer to perform valuation of property, plant and equipment and right-of-use assets.
• Integrated climate-related risks into business strategy and risk management framework.
• Actively monitors copyrights and takes measures to comply with copyright laws.
• Implemented necessary actions to protect employees from COVID-19 infection, including upgrading medical insurance, providing psychological support, and adopting flexible work arrangements.

Supply Chain Management

Responsible Procurement

• Strict vetting and assessment process for new suppliers, including due diligence meetings, product inspections, and labor practice reviews.
• Supply Chain Management Policy encouraging suppliers to maintain high standards in various operational aspects.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events damaging assets or interrupting service delivery.

Transition Risks

• Implementation of low-carbon policies, changes in supply and demand for commodities, potential new regulations, development and use of emerging technologies, changing customer perceptions.

Opportunities

• Development of new services to help communities decarbonize, technologies to enhance operational and energy efficiency, transitioning to low-carbon economy market.

Reporting Standards

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

Awards & Recognition

• Good MPF Employer Award
• BOCHK Corporate Environmental Leadership Award — Eco Partner

Environmental Metrics

ESG Focus Areas

• Climate Change
• Employment Practices
• Diversity and Equal Opportunities
• Anti-discrimination
• Staff Occupational Health and Safety
• Staff Development and Training
• Prohibition of Child Labour and Forced Labour
• Compliance with Regulations on Marketing, Product and Service Labelling
• Customers’ Privacy and Confidentiality
• Customer Satisfaction
• Intellectual Property
• Safety of Services/Products
• Quality of Services/Products
• Business Ethics
• Anti-corruption Training for Management and Employees
• Responsible Supply Chain Management
• Environmental Friendliness on Products or Service Purchased
• Contributions to the Society
• Communication and Connection with Local Community

Environmental Achievements

• Reduced energy consumption intensity by approximately 17% and water consumption intensity by approximately 30%
• Slight decrease in non-hazardous waste generation
• Increased percentage of paper recycled (39% in 2022/2023 vs 30% in 2021/2022)

Social Achievements

• Awarded “Good MPF Employer Award — e-Contribution Award and MPF Support Award”
• Awarded “Eco Partner — BOCHK Corporate Environmental Leadership Awards”
• 100% of employees underwent training in 2022/2023

Governance Achievements

• Complied with all “comply or explain” provisions set out in the ESG Guide
• Established an inter-departmental ESG Working Group

Climate Goals & Targets

Environmental Challenges

• Postponed delivery and longer execution period for certain planned advertising campaigns
• Negative carryover effect from restrictions and COVID-19 outbreaks in Mainland China
• Gradual emergence in the rest of APAC region affecting its media and agency business
• Increase in operating expenses in headcounts and investments in long-term development projects
• Increase in cost of revenue due to increase in staff headcounts and strong performance in E-commerce and Retail Segment
• Increase in selling and marketing expenses due to new headcounts and increased spending in social media marketing
• Increase in administrative and operating expenses due to staff costs, rental costs, and travel expenses
• COVID-19 pandemic impacting physical campaign production and business activities in APAC
• One court case in relation to image copyright infringement

Mitigation Strategies

• Implemented a series of cost and efficiency measures
• Sharpened investments back to core strengths and values
• Improved workforce efficiency
• Resumed physical campaign production at nearly full capacity
• Continued to develop new editorial properties
• Expanded regional footprint globally
• Opened US flagship store
• Upgraded and invested in HBX platform
• Implemented necessary actions to protect employees from COVID-19 infection
• Established the Environmental Policy to minimize environmental impact
• Installed LED lighting fixtures, energy-efficient air conditioners, and other energy-efficient appliances
• Encouraged employees to turn off electric equipment
• Encouraged employees to initiate waste reduction practices
• Enhanced waste management system
• Formulated the Warehouse and Office Water Efficiency Policy
• Installed water-efficient filtration systems and flow controllers
• Established the Supply Chain Management Policy to encourage suppliers to maintain high standards
• Conducted a strict vetting and assessment process prior to working with new business partners
• Established written policies and procedures for handling customer complaints
• Updated Privacy Policy to reinforce commitment to protecting customers’ data
• Implemented strict access controls to customer information and protected servers behind a software firewall
• Actively promoted whistleblowing channel

Supply Chain Management

Supplier Audits: 485 suppliers

Responsible Procurement

• Supply Chain Management Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Implementation of low-carbon policies
• Changes in supply and demand for commodities
• New regulations and policies
• Development and use of emerging technologies
• Changes in customer or community perceptions

Opportunities

• Development of energy-efficient products and services
• Transitioning to low carbon economy market

Reporting Standards

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

Awards & Recognition

• Good MPF Employer Award — e-Contribution Award and MPF Support Award
• Eco Partner — BOCHK Corporate Environmental Leadership Awards