Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced total GHG emissions by about 2.7% compared with 2016.
• Installed energy-efficient LED lighting across offices, expected to reduce lighting-related energy usage by more than 10%.
• Replaced all incandescent light bulbs with energy-saving bulbs.
• Adopted higher energy-efficiency office equipment.
• Approximately 98% of paper purchased was sustainably certified.
• Awarded the “Wastewise Certificate” by the Hong Kong Green Organisation Certification.

Social Achievements

• Awarded the “Family-Friendly Employers” designation by the Family Council.
• Organised 14 Continuous Professional Training seminars for all licensed staff members.
• Maintained policies for recruitment, compensation, promotion and training of staff.
• Continued cooperation with the Chinese Young Men’s Christian Association (YMCA) of Hong Kong, participating in various charitable activities.
• Awarded the “5 Year Plus Caring Company” designation by the Hong Kong Council of Social Service.

Governance Achievements

• Established a Board-level Risk Committee and an executive-level Risk Management Committee.
• Adopted a “three lines of defence” model for risk management and internal control systems.
• Established an employee whistleblowing procedures on financial reporting improprieties.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Selects reliable vendors…that act in a socially responsible manner and within ethical expectations.
• Procure electrical appliances with higher energy efficiency and eco-friendly toner cartridges.
• Suppliers with environmental certifications or caring company qualifications will win priority consideration.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Wastewise Certificate

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Wastewise Certificate
• Family-Friendly Employers
• 5 Year Plus Caring Company

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced total GHG emissions by about 3.39% compared with 2018.
• Maintained approximately 98% of sustainably certified paper purchased.
• Awarded the “Wastewise Certificate” by the Hong Kong Green Organisation Certification.

Social Achievements

• Awarded the “Family-Friendly Employers” designation by the Family Council.
• Organised 14 Continuous Professional Training seminars for all licensed staff members.
• Awarded the “5 Years Plus Caring Company” designation by the Hong Kong Council of Social Service.

Governance Achievements

• Met all code provisions stipulated in Appendix 14, Corporate Governance Code and Corporate Governance Report, of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) except for Code Provision A.6.7.
• Established a shareholders communication policy.
• Adopted the Board Diversity Policy and Director Nomination Policy.

Climate Goals & Targets

Environmental Challenges

• Uncertain factors of continued US-China trade friction, uncertain prospects of Brexit, and social unrest in Hong Kong affected the turnover of the Hong Kong stock market.
• Increased competition in the Hong Kong securities industry, especially from internet brokers, led to decreasing overall commission rates.
• New policy of The Securities and Futures Commission of Hong Kong restricted the scope of margin loan business.

Mitigation Strategies

• Shifted focus from traditional fee-based brokerage business to comprehensive wealth management business.
• Improved the construction of wealth management platform, increased product types and quantities, established investment advisory service system, and optimized product introduction procedure and sales channels.
• Actively explored high-net-worth customers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Selecting reliable vendors that act in a socially responsible manner.
• Purchasing sustainable and efficient products and services (e.g., energy-efficient appliances, eco-friendly toner cartridges).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: Wastewise Certificate, Family-Friendly Employers, 5 Years Plus Caring Company

Third-party Assurance: KPMG Certified Public Accountants

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Wastewise Certificate
• Family-Friendly Employers
• 5 Years Plus Caring Company

Environmental Metrics

ESG Focus Areas

• Fair and responsible marketing communication and information
• Information security
• Employee benefits
• Compliance with laws and regulations
• Customer services
• Work-life balance
• Advertising, labelling and sales

Environmental Achievements

• Reduced total GHG emissions (Scope 1 and 2) by about 1.4% compared with the 2021 Target(s) due to consolidation of server facilities
• Reduced total GHG emissions from non-recycling paper consumption by about 14.4% as compared with 2021 Target(s) as a result of an increase in recycling of paper in 2021
• Increased waste paper collected for recycling purpose by approximately 23% from 1.97 tonnes in 2020 to 2.43 tonnes in 2021
• 99% of paper used was FSC certified printing paper

Social Achievements

• Awarded the “Family-Friendly Employers” designation by the Family Council
• Awarded the “5 Years Plus Caring Company” designation by the Hong Kong Council of Social Service
• Organised a total of 18 Continuous Professional Training seminars for all licensed staff members

Governance Achievements

• Established an ESG Committee to oversee and review important strategies and policies
• Established an ESG Working Group to implement and execute the Group’s ESG-related strategies and policies
• Included ESG-related risks into the Group’s risk management system

Climate Goals & Targets

Environmental Challenges

• Weak performance of the China’s offshore dollar bond market in the second half of the year, resulting in dragging down the performance of the institutional services and trading business
• Intensifying market competition and increasing regulatory efforts, plus the recurrence of COVID-19 pandemic

Mitigation Strategies

• Proactively and calmly responded to the situation, effectively conducted risk management and took various risk mitigation measures to minimise the impact of systemic risks from the China’s dollar bond market on the Group
• Promptly studied the development trend of the market and the pandemic, actively sought development opportunities amidst the challenges, effectively conducted risk and compliance management, improved infrastructure construction, strengthened the backing for development and continuously improved the business continuity plan to ensure overall operations remained stable

Supply Chain Management

Supplier Audits: 207 key suppliers

Responsible Procurement

• Suppliers who provide environmentally friendly products, or operate their business in an environmentally friendly manner, will become one of our evaluation criteria; Those Suppliers with environmental certifications or caring company qualifications will win priority consideration.

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory requirements, shift from fossil based energy consumption, technology developments and industry practices

Opportunities

• Green finance

Reporting Standards

Frameworks Used: HKEx's ESG Reporting Guide, Sustainability Accounting Standards Board's Materiality Map®

Certifications: Wastewise Certificate

Awards & Recognition

• Wastewise Certificate
• Family-Friendly Employers
• 5 Years Plus Caring Company

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Energy Consumption
• Water Consumption
• Paper Consumption and Disposal
• Hazardous Waste
• Climate Change Risk and Mitigation
• Employee Composition
• Employee Benefits
• Health and Safety
• Development and Training
• Labour Standards
• Supply Chain Management
• Fair and Responsible Marketing Communication and Information
• Client Information Security
• Product Responsibility
• Compliance with Laws and Regulations
• Anti-corruption
• Social Services

Environmental Achievements

• Reduced direct GHG emissions generated by the Group’s company car amounted to 5.72 tonnes of carbon dioxide, approximately 4.7% decrease from last year.
• Reduced indirect GHG emissions generated by the Group’s electricity consumption amounted to 550.25 tonnes of carbon dioxide, representing a reduction of 8.8% compared with 2021.
• Reduced indirect GHG emissions generated by electricity consumption per employee amounted to 1.27 tonnes, representing a reduction of 13% compared with 2021.
• Reduced indirect GHG emissions generated by electricity consumption per unit amounted to 0.103 tonnes of carbon dioxide, representing a reduction of 27% compared with 2021.
• Reduced indirect GHG emissions generated by paper consumption amounted to 17.94 tonnes of carbon dioxide, representing a 42.7% reduction compared with 2021.
• Office paper consumption amounted to 5.58 tonnes, approximately 23.6% decrease from last year.
• Office paper consumption per employee amounted to 0.015 tonnes, approximately 31.8% decrease from last year.
• Paper for statement of clients amounted to 0.92 tonnes, approximately 44.6% decrease from last year.
• Increased waste paper collected for recycling purpose by approximately 13.6% from 2.43 tonnes in 2021 to 2.76 tonnes in 2022.
• Approximately 99% of the paper used was FSC certified printing paper.

Social Achievements

• Continued cooperation with Chinese Young Men’s Christian Association (YMCA) of Hong Kong, organized in various charitable and care activities.
• Awarded the “10 Years Plus Caring Company” designation by the Hong Kong Council of Social Service.

Governance Achievements

• Established an ESG Committee composed of three executive directors and two independent non-executive directors.
• Established an ESG Working Group to implement and execute the Group’s ESG-related strategies and policies.
• Incorporated material ESG risks considerations into the decision-making process for investment or lending or other business activities.
• Held 22 Continuous Professional Training seminars for all licensed staff members.

Climate Goals & Targets

Environmental Challenges

• Sluggish Chinese-issued US Dollar bond market and sharp fluctuation in the securities market which dragged down the enterprise finance and wealth management businesses.
• Increase in the expected credit loss provision of fixed income products in the institutional services and trading business.
• Slowdown in the Hong Kong IPOs and offshore US Dollar bond market.
• Continued outbreak of COVID-19 pandemic.

Mitigation Strategies

• Actively and calmly responded to huge fluctuations in the Chinese Mainland and Hong Kong stock markets, as well as the credit events in the Chinese US dollar bond market.
• Took various risk mitigation measures, and actively resolved existing risks.
• Timely researched and judged on the market development trend, actively sought development opportunities in challenges.
• Shaped the connotative growth competitiveness through improving service level and working efficiency, process optimization, system construction and other refining management efforts.
• Adopted a more conservative and defensive trading strategy, continued to reduce its real estate position and increased its overall investment grade position, actively diversified the portfolio’s geographical distribution, effectively hedged interest rate risk, and reduced the volatility of portfolio income.
• Re-established its fixed income sales team and expanded to over 300 domestic and international investors.
• Actively controlled the risks of the existing projects while promoting business transformation and expanding back-to-back business.
• Launched several back-to-back notes with a number of innovative terms, and the back-to-back off-market A-share option business was actively traded, becoming a new revenue growth point for the financial innovation business.
• Launched the fixed income repurchase/reverse repurchase business.
• Expanded its foreign exchange, interest rate and other macro transactions, and added CDS products.

Supply Chain Management

Supplier Audits: 258/year

Responsible Procurement

• Suppliers who provide environmentally friendly products, or operate their business in an environmentally friendly manner, will become one of our evaluation criteria.
• Those Suppliers with environmental certifications or caring company qualifications will win priority consideration.

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory requirements, shift from fossil based energy consumption, technology developments and industry practices.

Opportunities

• Green finance; focus on green and low-carbon industries including clean energy, low carbon technology, green building, green traffic and transformation of high-carbon industry to a low one.

Reporting Standards

Frameworks Used: ESG Reporting Guide

Certifications: Wastewise Certificate

Awards & Recognition

• “10 Years Plus Caring Company” designation

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Energy Consumption
• Water Consumption
• Paper Consumption and Disposal
• Hazardous Waste
• Climate Change Risk and Mitigation
• Employee Composition
• Employee Benefits
• Health and Safety
• Development and Training
• Labour Standards
• Supply Chain Management
• Fair and Responsible Marketing Communication and Information
• Client Information Security
• Product Responsibility
• Compliance with Laws and Regulations
• Anti-corruption
• Social Services

Environmental Achievements

• Reduced direct GHG emissions generated by the Group’s company car by approximately 14.5% compared to last year (4.89 tonnes of carbon dioxide)
• Reduced indirect GHG emissions generated by electricity consumption by 8.89% compared with 2022 (501.32 tonnes of carbon dioxide)
• Reduced indirect GHG emissions generated by paper consumption by 9% compared with 2022 (16.33 tonnes of carbon dioxide)
• Reduced office paper consumption by approximately 24.2% from last year (4.23 tonnes)
• Reduced paper for statement of clients by approximately 35.9% from last year (0.59 tonnes)
• 99% of paper used was FSC certified printing paper
• Awarded the “Wastewise Certificate” issued by the Hong Kong Green Organization Certification (HKGOC)

Social Achievements

• Continued cooperation with Chinese Young Men’s Christian Association (YMCA) of Hong Kong, participating in various charitable and care activities
• Organized a mooncake making activity for low-income families
• Awarded the “10 Years Plus Caring Company” designation by the Hong Kong Council of Social Service

Governance Achievements

• Established an ESG governance structure including a Board of Directors, ESG Committee, ESG Working Group, and Risk Committee
• Conducted multiple reviews on risk management and internal control management in 2023
• Implemented a comprehensive system of internal control and stringent policies for anti-corruption and anti-fraud

Climate Goals & Targets

Environmental Challenges

• Tightening of regulatory policies on cross-border business and sharp fluctuation in the securities market affected brokerage business
• Slowdown in Hong Kong IPOs market and significant decline in US dollar bond issuance affected enterprise finance business
• Complex changes in the external environment and shrinking business demand affected asset management business
• Weakening US dollar bond market affected institutional services and trading business
• Increased market volatility resulted in high estimation uncertainty in management’s assessment of the valuation of financial instruments held

Mitigation Strategies

• Actively developed new products and new businesses and deepened cross-border business synergies to enhance its comprehensive service capabilities
• Enhanced risk management capabilities and strengthened efforts in risk identification, assessment, measurement and decision-making support
• Strengthened system construction, improved internal control system, and enhanced management efficiency
• Adopted a more conservative defensive strategy, expanded the bond agency trading business, and reduced portfolio size
• Expanded macro transactions such as foreign exchange and interest rates, and promoted the development of CDS products
• Accelerated the pace of product issuance and strictly managed investment risks in asset management business

Supply Chain Management

Supplier Audits: 237/year

Responsible Procurement

• Suppliers who provide environmentally friendly products or operate their business in an environmentally friendly manner will become one of our evaluation criteria; those Suppliers with environmental certifications or caring company qualifications will win priority consideration

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory requirements, shift from fossil based energy consumption, technology developments and industry practices

Opportunities

• Green finance; focus on green and low-carbon industries including clean energy, low carbon technology, green building, green traffic and transformation of high-carbon industry to a low one

Reporting Standards

Frameworks Used: Hong Kong Listing Rules, ESG Reporting Guide, Sustainability Accounting Standards Board’s Materiality Map®

Certifications: Wastewise Certificate

Third-party Assurance: KPMG

Awards & Recognition

• Wastewise Certificate
• “10 Years Plus Caring Company”