Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced sewage discharged from 235,167 cubic meters in 2016 to 214,792 cubic meters in 2017.
• Reduced solid waste disposed of from 416,412 kg in 2016 to 382,412 kg in 2017.
• Reduced greenhouse gas emissions from 13,418,881 kg CO2e in 2016 to 13,768,503 kg CO2e in 2017 (Note: Scope 3 emissions excluded as minimal).

Social Achievements

• Implemented a ban on shark fin in all food outlets.
• Provided more than 3,800 hours of employee training.
• Maintained employee count at approximately 300.

Governance Achievements

• Established an executive committee, audit committee, nomination committee, and remuneration committee.
• Adopted the Model Code for Securities Transactions by Directors.
• Maintained directors' liability insurance.

Climate Goals & Targets

Environmental Challenges

• Decrease in revenue from leasing of properties due to new casinos.
• Decrease in hotel revenue due to decrease in room revenue and average room rate.
• Tax disputes with the Bureau of Internal Revenue in the Philippines.

Mitigation Strategies

• Considering a renovation plan to improve properties and attract more guests.
• Exploring new business opportunities and investment strategies.
• Actively defending tax disputes with legal counsel.

Supply Chain Management

Responsible Procurement

• Fair supplier selection procedures
• Prioritising local suppliers for food and beverage ingredients

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the Listing Rules

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Supply Chain Management
• Personal Privacy and Protection of Personal Data
• Anti-Corruption
• Community Investment

Environmental Achievements

• Reduced greenhouse gas emissions from 13,768,503 kg CO2e in 2017 to 6,799,393 kg CO2e in 2018. This includes direct emissions (Scope 1) and energy indirect emissions (Scope 2).
• Reduced waste production through initiatives like promoting waste reduction among employees, implementing solid waste and effluent waste control, and recycling paper and plastic.
• Installed VFDs to regulate large capacity motors, replaced incandescent lighting with ESL and LED lights, adopted thermal controls, and reduced the overall number of light tubes in the hotel to reduce energy consumption.
• Repaired water pipes to address water leaks and implemented water conservation plans.
• Successfully achieved zero fatalities in workplace safety.

Social Achievements

• Maintained a zero-tolerance policy on unethical employment terms involving child or forced labour. Obtained certificate of compliance on general labor standards and occupational safety and health standards.
• Employee turnover rate of 7.7% in the Philippines.
• Average training hours completed by employees: 23.65 hours for Senior, 13.25 hours for Middle-level, and 10.00 hours for General.
• Implemented a Supplier Code of Conduct requiring suppliers to promote safe and healthy working conditions, use fair hiring practices, and adhere to environmentally responsible practices.
• Donated Php 300,000 to Kythe Foundation and Php 112,779 to Room to Read through various internal donation drive activities.

Governance Achievements

• Established a whistle-blowing policy to encourage reporting of misconduct.
• Implemented policies to prevent bribery, extortion, fraud, and money laundering.
• Complied with the code provisions of the Corporate Governance Code, except for minor deviations related to director attendance at meetings.

Climate Goals & Targets

Environmental Challenges

• Economic growth and competition in the market.
• Changes in economic, political, and social conditions.
• Changes in relevant laws and regulations.
• Currency risk due to assets and liabilities denominated in HK$, USD, and Peso.
• Uncertainties regarding tax disputes with the BIR in the Philippines.

Mitigation Strategies

• Continue to focus on existing business operations and investments in the Philippines.
• Renovate properties and facilities to enhance customer loyalty and expand the customer base.
• Actively diversify the business portfolio.
• Monitor foreign currency exposure and consider appropriate hedging policies in the future.
• Address tax disputes with the BIR.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Operating Practices
• Community Investment

Environmental Achievements

• Use LED light in the hotel areas and guestrooms
• Install variable-frequency drive to regulate motors
• Reduce numbers of light tubes
• Drive less and carpool
• Dispose the waste by Wet/Organic and Dry/Non Organic categories
• Recycle the waste by type, with separate containers for metal, paper and plastic
• Clean and sanitise the plastic bins for the waste after time of usage before putting it back to its area of origin
• Install sewage treatment plant and equipment to recycle the plant effluent
• Recorded disposal of used oil and took pictures prior disposal
• Reduced injury rate by 52.2% from 2018 due to increased staff awareness of preventing incidents
• Reduced lost day rate by 50.0% due to increased awareness of preventing injury incidents
• Successfully achieved our goal of zero fatalities

Social Achievements

• Expanded honing skills in hospitality programme in 2019 that specifically trains ethnic minority youth
• No reports of discrimination in 2019
• Obtained the certificate of compliance on general labour standards issued by Department of labour and employment in National Capital Region since 2017
• 100% of employees were trained including whom taking part as senior to general
• Supported and participated in different community activities covering poverty alleviation and community caring

Governance Achievements

• Complied with the code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules
• No incidence of non-compliance with the relevant laws and regulations of the places in which the Group operates that has a significant impact on the business operations of the Group

Climate Goals & Targets

Environmental Challenges

• Significant risks and uncertainties from the economic growth and the competition in the market that the Group operates, and changes in economic, political and social conditions and changes in the relevant laws and regulations in the places that the Group operates
• Currency risk as the Group’s assets and liabilities are mainly denominated in HK$, USD, GBP, Peso and EURO and the Group primarily earns its revenue and income in HK$, USD, GBP and Peso while the Group primarily incurs costs and expenses mainly in HK$, GBP and Peso
• Uncertainties exist with regard to the tax disputes between certain subsidiaries of the Company operating in the Philippines and the Bureau of Internal Revenue in the Philippines

Mitigation Strategies

• Maintaining a high standard of corporate governance practices and enhancing the risk management and internal control systems
• Monitoring foreign currency exposure for each business segment and reviewing the needs of individual geographical area, and considering appropriate hedging policy in future when necessary

Supply Chain Management

Supplier Audits: Annual evaluations

Responsible Procurement

• Work closely with suppliers to ensure high quality and comprehensive standards
• Sustainability specifications
• Supply Chain Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 Environmental, Social and Governance Reporting Guide

Environmental Metrics

ESG Focus Areas

• Climate Change
• Emissions
• Waste Management
• Energy Consumption
• Water Consumption
• Employment Practices and Labour Standards
• Health and Safety
• Development and Training
• Supply Chain Management
• Hotel Security
• Service Quality
• Customer Privacy and Data
• Anti-corruption
• Community Investment
• Regulatory Compliance

Environmental Achievements

• Total GHG emissions intensity decreased by approximately 35.68% year-on-year to approximately 61.79 tCO2e per million HK$ revenue.
• Total energy consumption intensity decreased by approximately 39.68% year-on-year to approximately 100.65 MWh per million HK$ revenue.
• Total water consumption intensity decreased by approximately 28.37% year-on-year to approximately 848.24 m3 per million HK$ revenue.

Social Achievements

• Employee turnover rate decreased to approximately 33.0% (2021: 42.8%).
• No incidents of discrimination were reported.
• No incidents of non-compliance with laws and regulations in relation to providing a safe working environment and protecting employees from occupational hazards were reported.
• No work-related fatalities occurred between 1 July 2019 and 30 June 2022.
• All 449 key suppliers met the Group’s standards.
• Number of complaints received decreased to 0 (2021: 15).

Governance Achievements

• Maintained the sufficient public float as required under the Listing Rules.

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic on hotel and gaming operations.
• Economic uncertainty impacting future cash flow from gaming operations.
• Tax disputes with the Bureau of Internal Revenue in the Philippines.
• Climate-related risks (super typhoons and flooding in the Philippines).
• Transition risks associated with stricter climate-related laws and regulations.

Mitigation Strategies

• Cost control policies.
• Close monitoring of market situation.
• Adequate preparations for extreme weather events.
• Purchase of insurance against property loss.
• Communication of actions on climate change mitigation and adaptation.
• Efforts to reduce market risks associated with climate change (minimising single-use items, providing minimally packaged toiletries, encouraging recycling).

Supply Chain Management

Supplier Audits: 449 key suppliers audited

Responsible Procurement

• Purchase Procedures to ensure suppliers abide by environmental and social laws and regulations.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, heavy rain) adversely affecting hotel operations.

Transition Risks

• Stricter climate-related laws and regulations leading to higher operating costs.

Opportunities

• Development of energy-efficient products and services

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)