Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Staff Care
• Operational Management
• Community Investment

Environmental Achievements

• Achieved zero fire hazards.
• 100% collection and disposal rate of hazardous solid waste.
• Noise emissions complied with Class II Standard.

Social Achievements

• Provided annual body checks for all staff.
• Provided vocational safety and occupational health training to new staff.
• Provided over RMB29,000 in scholarships for 17 local students.

Governance Achievements

• Established internal quality management system (ISO 9001:2008 certified).
• Established "Management Process of Procurement Department" specifying supplier cooperation standards.
• Actively advocated corporate culture with honesty and integrity; established a reward and punishment system to prevent corruption.

Climate Goals & Targets

Environmental Challenges

• Relatively high rate of industrial accidents (21 occupational injuries).
• Relatively high staff turnover rate.
• No carbon footprint assessment conducted.

Mitigation Strategies

• Consolidating and monitoring implementation of safety management system.
• Reviewing and improving employment system to attract and retain employees.
• Carbon footprint assessment included in 2017 work plan; measuring greenhouse gas emissions annually to formulate carbon reduction objectives.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• "Management Process of Procurement Department" established, specifying cooperation standards.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (issued by The Stock Exchange of Hong Kong Limited)

Certifications: ISO 14001:2004, ISO 9001:2008

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-permeable concrete products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Community Care
• Employment
• Training and Development
• Product Responsibility
• Utilization of Resources

Environmental Achievements

• Installed an economiser to the existing boiler system and a waste steam recycling system, improving the utilization efficiency of residual heat and reducing coal consumption by nearly 30%
• Recycled 804.2 cubic meters of concrete residual materials, generating a recycling economic benefit of RMB160,300
• Upgraded the concrete sand and gravel separation and recycling system and optimized the separation and screening of aggregates

Social Achievements

• Organized employee activities including birthday parties and sports days to strengthen team cohesiveness and sense of belonging
• Provided training opportunities for employees at different career steps, including senior and middle management, general staff, and new recruits
• Implemented a year-end assessment for employee performance appraisal and evaluation, used as a basis for promotion and salary adjustments

Governance Achievements

• Formulated policies and guidelines related to sustainable development, including Environmental Management and Operation Control Procedures, Human Resources Management Procedures, Product and Service Requirement Control Procedures, and Compliance Assessment Control Procedures
• Established an internal quality management system and obtained ISO 9001:2015 certification
• Implemented an internal occupational health and safety management system based on the 18001:2007 standard

Climate Goals & Targets

Environmental Challenges

• Rising raw material prices
• Fluctuating market conditions
• Intensified competition in the building materials industry
• Maintaining a balance between male and female workers due to labor-intensive work
• Greenhouse gas emissions increased due to increased production

Mitigation Strategies

• Diversifying its business and improving its all-round competition advantages
• Planning to optimize production facilities by implementing automated operation to help more females join the industry
• Selecting raw materials locally from neighboring areas and promoting employees’ awareness of energy conservation
• Installing additional economiser and waste steam recycling system to improve energy efficiency
• Upgrading dust collection system and reusing collected dust as concrete admixture

Supply Chain Management

Supplier Audits: 4 suppliers, 75% execute relevant practices

Responsible Procurement

• Review of suppliers’ certifications (discharge permits, employment permits, quality system certificates)
• Sample requests and quality inspection
• Quarterly assessments of qualified suppliers

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

Certifications: ISO 9001:2015, ISO 14001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-permeable concrete products
• Manufactured sand

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• Greenhouse gas emissions decreased by 21% compared to the previous reporting period.
• Energy consumption decreased by 21% compared to the previous reporting period.
• Water consumption decreased by 9% compared to the previous reporting period.
• Upgraded concrete sand and gravel separation and recycling system.

Social Achievements

• Implemented a salary adjustment scheme.
• Organized staff birthday parties and staff sports days.
• Remodelled the aerated brick workshop to enable operation by female employees.
• Improved the environment and facilities to be disabled-friendly.
• Work-related injury rate decreased by 30.9% compared to 2018.
• All employees received safety training at least once a quarter.

Governance Achievements

• No violations of relevant laws and regulations that have a significant impact on the Group during the reporting period.
• Established reporting channels to deal with suspected corruption cases.
• No cases of corruption litigation against itself or employees during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Potential risks posed by suppliers to the Group’s operations (delays in transportation, loss of goods due to natural disasters, substandard raw materials).
• Greenhouse gas emissions from external purchase of electricity.
• Noise pollution from equipment operation.

Mitigation Strategies

• Developed measures to mitigate the impact of every risk exposure of the Group.
• Equipment modifications in the aerated brick workshop.
• Adopted flue gas purification system to treat air pollutants.
• Uses pulsed dust collector to purify dust and recycles collected powder.
• Regularly inspects and maintains production facilities to prevent leakage and waste of raw materials.
• Planted sound-insulating green belts around the factory and regularly monitored production noise levels.

Supply Chain Management

Supplier Audits: Quarterly evaluations of qualified suppliers

Responsible Procurement

• Review of suppliers’ licenses (sewage permit, labour permit, quality system certificate, etc.)
• Review of business reputation, production management and product quality

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO 9001:2015, ISO 14001:2015

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth

Committed to providing a desired working environment for employees, in line with the UN Sustainable Development Goal of “Promoting Inclusive and Sustainable Economic Growth, to Achieve the Comprehensive and Productive Employment”.

Sustainable Products & Innovation

• Independently developed manufactured sand

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• Obtained ISO14001:2015 environmental management system certification.
• Upgraded concrete sand and gravel separation and recycling system.

Social Achievements

• Implemented a salary adjustment scheme.
• Organized staff birthday parties and staff sports days.
• Conducted leadership and management skills training.
• Organized safety training and drills.
• Reported no work-related fatalities and a nil injury rate.

Governance Achievements

• Established a Sustainability Task Force.
• Implemented policies to manage production of sewage, dust and exhaust gas.
• Established reporting channels to deal with suspected corruption cases.

Climate Goals & Targets

Environmental Challenges

• Increased GHG emissions (23% increase in volume, 24% increase in intensity).
• Increased energy consumption (25% increase).
• Increased water consumption (1.54 times increase).
• Potential risks from supply chain disruptions due to natural disasters and substandard raw materials.

Mitigation Strategies

• Adopted flue gas purification system to treat air pollutants.
• Uses pulsed dust collector to purify dust and recycles collected powder.
• Recycles materials such as pile slurry.
• Upgraded concrete sand and gravel separation and recycling system.
• Developed measures to mitigate supply chain risks.
• Regularly inspects and maintains production facilities to prevent leakage and waste of raw materials.

Supply Chain Management

Supplier Audits: Quarterly evaluations of qualified suppliers

Responsible Procurement

• Review of suppliers’ licenses, business reputation, production management, and product quality.
• On-site assessment to ensure compliance with quality and environmental management systems.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (e.g., extreme cold or heat, heavy rain, storm, typhoon) that can disrupt operations.

Transition Risks

• Policies related to energy conservation and emission reduction, stricter emission reporting obligations and compliance requirements.

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: ISO 9001:2015, ISO 14001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-permeable concrete products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Product Quality
• Supply Chain Management

Environmental Achievements

• Reduced GHG emissions by 24% compared to 2021. Reduced energy consumption by 25% compared to 2021. Reduced water consumption by 40% compared to 2021.
• Upgraded concrete sand and gravel separation and recycling system.

Social Achievements

• Implemented a salary adjustment scheme to improve the remuneration system.
• Organized staff birthday parties and sports days.
• Remodeled the aerated brick workshop to enable operation by female employees.
• Improved the working environment to be disabled-friendly.
• Reduced work-related injury rate from 89 to 52 per 1,000 employees.

Governance Achievements

• Established a Sustainability Task Force.
• Implemented policies to manage production of sewage, dust, and exhaust gas.
• Regularly tested all company vehicles to meet emission standards.
• Obtained ISO 9001:2015 quality management certification and ISO 14001:2015 environmental management system certification.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical risks from extreme weather and transitional risks from regulatory changes).
• Supply chain risks (delays in transportation, loss of goods due to natural disasters, substandard raw materials).

Mitigation Strategies

• Risk assessment and prioritization of climate-related risks.
• Development of measures to mitigate supply chain risks (specific measures not detailed).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Review of supplier licenses (sewage permit, labor permit, quality system certificate), review of business reputation, production management, and product quality, on-site assessment of quality and environmental management systems, quarterly evaluations of qualified suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (extreme cold/heat, heavy rain, storms, typhoons) disrupting operations, damaging infrastructure, injuring staff, fire hazards.

Transition Risks

• Policies related to energy conservation and emission reduction, stricter emission reporting obligations and compliance requirements.

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: ISO 9001:2015, ISO 14001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-permeable concrete products
• Manufactured sand

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Well-being
• Product Quality
• Supply Chain Management

Environmental Achievements

• Reduced GHG emissions by 37% compared to 2022 (17,198 tonnes CO2e in 2023 vs 27,440.3 tonnes CO2e in 2022).
• Reduced energy consumption by 38% compared to 2022 (42,976.7 MWh in 2023 vs 69,457.9 MWh in 2022).
• Reduced water consumption by 31% compared to 2022 (130,286 m³ in 2023 vs 189,886 m³ in 2022).
• Upgraded concrete sand and gravel separation and recycling system.

Social Achievements

• Implemented a salary adjustment scheme to improve the remuneration system.
• Organized staff birthday parties and sports days.
• Remodeled the aerated brick workshop to enable operation by female employees.
• Improved facilities to be disabled-friendly.
• Conducted various safety training and drills, resulting in nil work-related fatalities and a reduced injury rate (28 per 1,000 employees in 2023 vs 52 in 2022 and 89 in 2021).

Governance Achievements

• Established a Sustainability Task Force.
• Implemented policies to manage production of sewage, dust, and exhaust gas.
• Regularly tested all vehicles to meet emission standards.
• Established reporting channels to deal with suspected corruption cases.
• Obtained ISO 9001:2015 quality management certification and ISO 14001:2015 environmental management system certification.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical risks from extreme weather and transitional risks from stricter regulations).
• Supply chain risks (delays in transportation or loss of goods due to natural disasters, substandard raw materials).

Mitigation Strategies

• Risk assessment and prioritization of severe impacts.
• Precaution measures to mitigate severe impacts of climate change.
• Development of measures to mitigate supply chain risks (details not specified).

Supply Chain Management

Supplier Audits: Quarterly evaluations of qualified suppliers

Responsible Procurement

• Review of supplier licenses, business reputation, production management, and product quality; on-site assessment of quality and environmental management systems.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (e.g., extreme cold/heat, heavy rain, storms, typhoons) disrupting operations and damaging infrastructure.

Transition Risks

• Stricter emission reporting obligations and compliance requirements, policies related to energy conservation and emission reduction.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix C2 to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong

Certifications: ISO 9001:2015, ISO 14001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-permeable concrete products
• Manufactured sand

Awards & Recognition

• Not disclosed