Climate Change Data

Environmental Metrics

ESG Focus Areas

• Technological Innovation
• Environmental Protection

Environmental Achievements

• Reduced coal usage on site to zero
• Recycled 6,000 kg of food waste into animal feed
• Recycled 229.69 tonnes of waste (92% steel scrap)
• Converted coal-fired boiler to a 4-tonne vacuum gas boiler, reducing estimated 16.5 tonnes of particulate matter and 13 tonnes of SO2
• Converted oil burners to three natural gas burners in paint rooms, reducing estimated 11.5kg of particulate matter and 436 kg of SO2
• Replaced two 45-seat diesel buses with two electric buses, reducing estimated 7.6 tCO2e- annually

Social Achievements

• Conducted first comprehensive employee satisfaction survey
• Implemented “Care for Women” commercial insurance benefit for female employees (starting 2016)
• Zero fatal incidents
• 1.3 Lost Time Injury Rate (LTIR)
• 22 summer interns from local high schools
• Supported Langfang City Labor Union’s “Workers’ Mutual Aid Donation Day”

Governance Achievements

• Implemented a formal Code of Conduct for all employees
• Established whistle-blowing procedures
• All suppliers required to sign an integrity agreement

Climate Goals & Targets

Environmental Challenges

• Data collection system did not encompass regional sales offices
• Anticipation of more stringent environmental regulations

Mitigation Strategies

• Plan to expand sustainability reporting scope to include all operations
• Complying with all applicable laws and regulations while integrating environmental considerations into the business
• Following requirements and guidance of national standard for environmental management systems for continual improvement

Supply Chain Management

Supplier Audits: Annual monitoring and assessment

Responsible Procurement

• Approved supplier list based on product quality, technical support, environmental, health and safety performance; 93% of raw materials, components and parts sourced from local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007, CE mark

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Recycling plants, DG Leap system

Awards & Recognition

• Top 10 Best PRC After-Sales Service Enterprises, Top 50 PRC Construction Machinery Leasing Enterprises, Annual Outstanding Asphalt Pavement Equipment Manufacturers, Small and Medium Enterprise Brand Products of Hebei Province, Influential Brand of Asphalt Mixing Plant in China, China Top 50 Construction Machinery Manufacturer

Environmental Metrics

ESG Focus Areas

• Emissions
• Use of resources
• Employee-related issues
• Anti-corruption
• Product responsibilities

Environmental Achievements

• Awarded a certificate of Sustainable Agriculture Guiding Principles (SAGP) by a world leading beverage company in December 2016 for its orange plantations.
• Maintained top quality in environmental management and operations during the reporting period.
• Implemented various energy conservation programs and utilized more green energy, reducing consumption of water, electricity, coal, and diesel.
• Improved production processes to enhance energy utilization efficiency and reduce emissions of greenhouse gases, pollutants, and wastes.
• Introduced video conferencing to decrease carbon emissions from business travel.

Social Achievements

• Maintained employee turnover rate below 5% for long-term service staff.
• No work-related injuries or deaths during the reporting period.
• Organized 4 internal training seminars.
• Developed a labour management system in accordance with PRC laws and regulations, strictly prohibiting child and forced labour.
• Actively participated in various social welfare activities and encouraged employee participation in community activities.

Governance Achievements

• Clearly stipulated a “Code of Corporate Governance Practices” and strictly enforced anti-corruption laws.
• Established a reporting mechanism for employees to report suspicious activity.
• No breaches of anti-corruption laws or involvement in corruption cases during the reporting period.
• Implemented a complete intellectual property management mechanism.

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions
• Efficient use of resources (energy, water)
• Managing hazardous and non-hazardous waste
• Maintaining high product quality and preventing recalls
• Ensuring compliance with environmental and labor regulations

Mitigation Strategies

• Implemented measures for resources and energy usage, exhaust gas, wastewater, and solid waste operations.
• Improved production processes for energy efficiency and emission reduction.
• Introduced energy-saving projects in processing plants.
• Implemented strict quality control standards and hygiene standards throughout the production process.
• Developed operating guidelines and conducted regular safety inspections and training.

Supply Chain Management

Supplier Audits: At least once every year

Responsible Procurement

• Assessment of suppliers based on location, transportation, packaging, and supply history.

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

Certifications: ISO22000, HACCP, SGS, SGF, SAGP

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 Management
• Occupational Health and Safety
• Sustainable Procurement
• Stakeholder Engagement
• Community Involvement
• Climate Change
• Waste Management
• Energy Consumption
• Water Conservation
• Air Emissions
• Employee Well-being
• Corporate Governance

Environmental Achievements

• 85% of waste recycled
• 10.16 t CO2e/RMB’M revenue
• 17.04 MWh (‘000)/RMB’M revenue
• Application of geothermal heat pumps in the Research and Development Centre
• Upgrade water efficiency equipment to prevent water leakage
• Install new hazardous waste treatment facilities to improve hazardous waste management
• Continuous replacement of more energy-efficient machines
• Use of high-solid paint in 2020 reduced VOC emissions by approximately 12,715kg
• Purchased and upgraded a laser cutting machine, which saved around 46,800 kWh of electricity in 2020
• Improved the painting process of small parts, created and used paint hangers, which saved energy consumption by 33%

Social Achievements

• Zero work fatality rate for 6 consecutive years
• Staff Training: 258.2 hours
• Caring Company
• EcoChallenger
• Hong Kong Green Awards 2020
• Established a Safety Leading Group to ensure the health and safety of employees
• Implemented prevention measures in response to COVID-19
• Donated a total of RMB 55,000
• Continued the five years of "D&G Machinery Scholarship"
• Signed "Industry-University-Research Cooperation Agreements"

Governance Achievements

• ISO45001:2018 Occupational Health and Safety Management certification
• ISO 14001:2015 Environmental management system certification
• ISO 9001:2015 Quality management system certification
• Established the ESG committee
• Adopted green financing
• Included SDGs set by the United Nations for the first time in the Sustainability Report
• Formulated policies to eliminate anti-competitive or monopolistic behaviour

Climate Goals & Targets

Environmental Challenges

• Global pandemic outbreak
• COVID-19 pandemic and global economic instability
• Resource supply sustainability
• Overseas markets management
• Financial credit reliability
• Environmental compliance

Mitigation Strategies

• Adopted various measures to protect the health of employees (pandemic prevention and control system, work from home, disinfection, health monitoring)
• Formulated internal risk management policies and measures to prevent and control significant risks
• Consider operational, environmental and social factors when making business decisions
• Internal risk management system for risk assessments and risk management measures
• Risk control, risk aversion, risk transfer, risk taking
• Stringent management control departments, processes and policies
• Regular sustainable trainings arranged by the government
• Improved the "Risk Identification, Evaluation and Response Measures"
• Add EHS requirements to the contract signed with the supplier

Supply Chain Management

Supplier Audits: Several times a year

Responsible Procurement

• Comprehensive supplier environmental and social assessment
• Regular site visits
• Continuous improvement of sustainable procurement mechanism
• Sustainable procurement charter

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI standards (core option), Appendix 27 Environmental, Social and Governance Reporting Guide (HKEx)

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 9001:2015, CE, EAC

Third-party Assurance: Allied Environmental Consultants Limited

UN Sustainable Development Goals

• SDG 3
• SDG 9
• SDG 11
• SDG 12
• SDG 13

The Group has preliminarily mapped its core business and actions with five SDGs

Sustainable Products & Innovation

• Recycling plants (10-50% reclaimed asphalt pavement)

Awards & Recognition

• Caring Company
• EcoChallenger
• Hong Kong Green Awards 2020
• 5 Years+ EcoPioneer
• Several T50 Summit of World Construction Machinery Industry Awards
• Contract and Trustworthy Enterprise Certificate
• China Enterprise Credit Service Public Platform Certificate of Enterprise Credit Grade
• Technology Giant Certificate
• Industry Cares 2020
• High Technology Enterprise Certificate
• Corporate Environmental Leadership Awards
• China Mixing Plant Innovative Technology Award
• China Mixing Sustainable Product Award
• China Mixing Equipment Advance Manufacturing Award
• World Top 100 (Plus 50) Construction Machinery Manufacturer Certificate
• China Top 50 Specialized Construction Equipment Manufacturers
• Corporate Green Governance Award 2020
• Sustained Performance 5 years +

Environmental Metrics

ESG Focus Areas

• Green Production
• Caring Workplace
• Stringent Operation Management
• Community Investment

Environmental Achievements

• Reduced GHG per million Hong Kong dollar revenue by more than half.
• Planted 15,576 trees (compared to 12,012 in the previous period).
• Decreased wastewater discharged from 1,420,123m3 to 1,200,000m3.
• Maintained fruit pomace and waste paper at similar amounts as the previous period, cutting waste intensity by more than half.

Social Achievements

• Zero employee turnover rate.
• No work-related injuries or deaths for the past three years.
• Provided training to 43 employees (average 20 hours per employee).

Governance Achievements

• Zero corruption cases or breaches of anti-corruption laws for the past two years.
• Strict compliance with relevant laws and regulations regarding intellectual property, customer information privacy, advertising, and labeling.

Climate Goals & Targets

Environmental Challenges

• Surge in business activities impacting GHG emission reduction target.
• COVID-19 pandemic limiting physical gatherings for training and community events.

Mitigation Strategies

• Careful energy use control despite business surge.
• Implementation of video conferencing to reduce carbon emissions from business trips.
• Encouraging public transport use by employees.
• Continued efforts to improve energy-saving management and phase out high-energy-consumption equipment.

Supply Chain Management

Supplier Audits: At least once a year

Responsible Procurement

• Consistent and clear criteria in evaluation mechanism for potential and existing suppliers, covering pricing, service, quality, reputation, past business history, after-sales support, and environmental protection considerations.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEX’s ESG Reporting Guidance on Environmental KPIs and ESG Reporting Guidance on Social KPIs

Certifications: ISO22000, HACCP, SGS, SGF

Environmental Metrics

ESG Focus Areas

• Environmental compliance
• Climate change
• Talent management
• Employee safety and health
• Employee training and development
• Employee benefits and rights
• Employee communications
• Diversity and equal opportunity
• Business ethics
• Anti-corruption
• Legitimate business
• Community engagement
• Supply chain management
• Product and service quality management
• Customer satisfaction

Environmental Achievements

• Implemented energy-saving initiatives, including using electric vehicles and online conferences; installed energy-efficient lighting systems (LED lamps); introduced motion-sensor devices to reduce electricity usage in unmanned areas; regularly analyzed electricity consumption and set interim goals to improve energy efficiency; enhanced communication with tenants, publicizing the idea of energy-saving practices.
• Implemented water conservation measures, including encouraging employees to reduce water use; introducing equipment with high water-saving performance; regularly inspecting water pipe quality; closing the water supply system when the market has a rest period; developing a wastewater discharge management system; developing targets for reducing wastewater discharge and reducing wastewater discharge through reuse of wastewater; putting resources into research and introducing more advanced wastewater reuse facilities to increase wastewater reuse rates.
• Implemented waste management guidelines ensuring that all waste is properly collected and handled according to local laws and regulations; adopted the “5R” principle (Replace, Reducing, Reuse, Recycle, and Repeat); reviewed the amount of waste generation and recycled hazardous and non-hazardous wastes on a regular basis and set targets for reducing waste emissions.

Social Achievements

• Developed a Human Resources Management Manual and a Staff Manual specifying management approaches to decisions pertaining to remuneration and dismissal, recruitment and promotion, working hours, holidays, equal opportunities, diversity, anti-discrimination, and other benefits and welfare.
• Implemented a performance management system and an employee reward and punishment system; conducted annual performance reviews; put in place various communication mechanisms to guarantee that employees can freely voice their ideas or register complaints.
• Implemented an institutionalized management approach to mitigate occupational risks; put in place a Manual on Human Resources Management and the Staff Manual to give employees clear information on health and safety management systems and controls; organized annual health screenings for office assistants and drivers.
• Provided internal and external training, including anti-corruption and induction training for new employees; subsidized the fees of continuing education and training courses certified by the Education Bureau; provided financial assistance to staff for membership of professional institutes.

Governance Achievements

• Established an ESG Committee responsible for ensuring the effective implementation of the ESG Policy; implemented an anti-corruption policy and provided anti-corruption training to employees; established a whistleblowing system to deal confidentially with any reports of commercial bribery and other improprieties.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (physical risks such as more frequent extreme weather events and transition risks such as stricter emission standards and new policies encouraging renewable energy)
• COVID-19 pandemic impacting business operations

Mitigation Strategies

• Conducting climate-related risk assessments for each business; adopting energy-saving, waste reduction, and resource-saving measures; reducing GHG emissions by developing environmental targets; incorporating climate change considerations into the procurement process.
• Implementing COVID-19 preventive measures in the office, including flexible working hours, mandatory mask-wearing, daily temperature checks, work-from-home arrangements, health declarations, and provision of free self-test kits.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Requires suppliers to abide by business ethics and fulfil their corporate social responsibilities; monitors the quality of their products and services and their performance in general; maintains ongoing communication with suppliers to identify and review the environmental and social risks of the supply chain.

Climate-Related Risks & Opportunities

Physical Risks

• More frequent extreme weather events

Transition Risks

• Stricter emission standards
• New policies encouraging renewable energy

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide set out in Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Sustainable food, particularly those without any genetic modification, or added preservatives and chemicals

Awards & Recognition

• Mr. Tang, Chairman of Wang On Group, awarded GBS on 1 July 2021 for community service.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Energy Management
• Water Management
• Waste Management
• GHG Emissions Reduction
• Food Recycling
• Employment Practices
• Health and Safety
• Labour Standards
• Supply Chain Management
• Community Investment
• Customer Service
• Anti-corruption

Environmental Achievements

• Reduced solid waste generated by market operations by 10% from 2021 to 2026 (in progress)
• Recycled a total of 500 fluorescent tubes in operating markets from 2021 to 2026 (in progress)
• Recycled approximately 60 tonnes of food
• Recycled approximately 57 tonnes of food waste through EPD's Pilot Scheme, reducing approximately 28 tonnes of GHG emissions
• Recycled approximately 2,600 kg of food through Food Angel program

Social Achievements

• Organized various sports events to promote a healthy work-life balance for employees
• Invited employees' family members to participate in company events
• Participated in “Hong Kong & Kowloon Walk for Millions 2023”, raising funds for community chest member organizations
• Provided sponsorship and organized a VIP team to participate in Walk for Millions of the Year
• Visited low-income families during Christmas, delivering festive greetings and supplies

Governance Achievements

• Established an accountability system and actively adopted environmental protection measures
• Established an internal whistleblowing system for reporting misconduct or suspected corruption
• Provided online anti-corruption training to directors and employees for a total of 57 hours

Climate Goals & Targets

Environmental Challenges

• Increased frequency and severity of extreme weather events posing physical risks to business operations
• Transition risks due to evolving regulatory, technological, and market landscapes related to climate change
• Increased energy consumption and GHG emissions due to the return to normal levels of foot traffic in fresh markets after the pandemic

Mitigation Strategies

• Established mitigation plans to minimize risks from extreme weather, including flexible working arrangements and precautionary measures
• Constantly monitoring updates of environmental regulations and global trends on climate change
• Implementing comprehensive environmental protection measures, including GHG reduction, carbon trading, and adoption of clean energy
• Implementing electricity conservation and energy-saving measures
• Regularly monitoring water consumption, inspecting water pipe quality, and preventing leakage
• Installing water-saving equipment and standardizing wastewater treatment methods

Supply Chain Management

Supplier Audits: Annual assessment of supplier performance

Responsible Procurement

• Preference for local suppliers and environmentally friendly products
• Compliance with relevant labour laws and regulations by suppliers
• Consideration of environmental assessment reports, pollution discharge permits, and work safety permits

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of extreme weather events

Transition Risks

• Tightening of national policies
• Emergence of environmentally related taxes
• Shifting customer preferences

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)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Management
• Resource Management
• Community Well-being
• Employment Practices
• Health and Safety
• Supply Chain Management
• Anti-corruption

Environmental Achievements

• Joined Food Rescue Program, recycling approximately 2,600 kg of food and 57 tonnes of food waste, reducing approximately 28 tonnes of GHG emissions.
• Reduced petrol consumption due to reduced company vehicle usage.
• Implemented various energy-saving measures, including LED lighting and motion sensors.

Social Achievements

• Organized various sports events to promote employee well-being.
• Invited employees' family members to company events.
• Participated in Walk for Millions, raising funds for community chest member organizations.
• Provided internal and external training, totaling 1,254 hours.

Governance Achievements

• Established an ESG governance framework with a Board and ESG Committee.
• Implemented an internal whistleblowing system.
• Provided online anti-corruption training (57 hours) to directors and employees.

Climate Goals & Targets

Environmental Challenges

• Increased GHG emissions due to increased fresh market activity post-pandemic.
• Increased water consumption due to increased cleaning frequency post-pandemic.
• Potential physical risks from extreme weather events.
• Transition risks from evolving climate regulations and market shifts.

Mitigation Strategies

• Implemented energy conservation and waste reduction measures.
• Developed flexible working arrangements and emergency plans for extreme weather.
• Closely monitors environmental regulations and global climate change trends.
• Adopted comprehensive environmental protection measures, including GHG reduction, carbon trading, and clean energy adoption.

Supply Chain Management

Supplier Audits: Annual assessment of supplier performance.

Responsible Procurement

• Preference for local suppliers and environmentally friendly products.
• Compliance with relevant labour laws and regulations.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, storms, heavy rains, extreme temperatures)

Transition Risks

• Tightening national policies, environmental taxes, shifting customer preferences

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)