(Stock code: 3)

SUSTAINABILITY
REPORT

2018

OUR BUSINESS

Revenue

HK$ 39,073 million

255 projects

outside Hong Kong

Aviation fuel:

6.76 million
tonnes

Vehicle fuel:

5 LPG refilling stations
(Hong Kong)

52 LNG/CNG
refilling stations
(Mainland China)

Liquefied
coalbed
methane:

133,822
tonnes

Hydrotreated
vegetable oil:

7,000 tonnes

Methanol:

›295,285 tonnes

Data centres:7 in Hong Kong
and mainland China

Water
customer:

›2.2 million

City-gas customer:

›27.5 million

Town gas
customer:

›1.9 million

Sales of gas appliances:

›283,000 units
(Hong Kong)

›771,000 units
(Mainland China)

Utilities

Hong Kong

Mainland
China

New Energy
and
Diversified
Businesses

GOVERNANCE AND RISK

The Board has a strong commitment to maintaining
high standards of corporate governance and has
implemented an effective risk management system.
This, in turn, creates long term benefits for our
stakeholders and hence the sustainable
development of Towngas.

Sustainability Committee
prioritised the four
Sustainable Development
Goals (SDGs)

Commitment
to UN SDGs

Founding members of the
Sustainable
Procurement
Charter

Building a
Sustainable
Supply
Chain

661.5 hours
of anti-corruption
training

Introduced an
Anti-Fraud Policy

Conducting
Our
Business
Ethically

ENSURING HEALTH AND SAFETY

Occupational Safety and Health

We are one of first city-gas companies in Asia to achieve the ISO 45001 certification.

159 safety/loss prevention inspections in Hong Kong

Archieve Zero Accidents

Accident frequency rate (Hong Kong)

0.15 employees
0.22 contractors

accident per 100,000 man-hours

Safety training hours:

12,473 (Hong Kong)

836,813 (Mainland China)

Contractor
OSH Forum

Safety and
risk management
experience sharing visit

HSE walk

Seasonal influenza
vaccination
programme

Promote Health and Safety Awareness

ENSURING HEALTH AND SAFETY

Delivering Gas Safely to Customers

ISO 55001 standard across our gas production plants and
our transmission and distribution network

Process Safety Management System
Six-stage Process Hazard Analysis
Capacity Enhancement Project

99.99% gas supply reliability
0.145 gas incidents reported by the public per 10 km of gas pipes
Emergency team average arrival time within 25 minutes achieved
6,851 km of pipeline surveyed
160,080 trench inspections across 9,825 sites

Headquarters

24-hour Grid Control Centre
›5,000 real-time telemetry and data points

1,179,089 Regular
Safety Inspections
All gas appliances
tested in an
accredited laboratory

PROTECTING THE ENVIRONMENT

Responding to Climate Change

Managing Risk

Legal risks
Market risks
Operational risks

Creating Opportunities

Natural gas as the low carbon alternative
From diesel and coal to clean gas
Clean vehicular fuel supply
New energy and unconventional energy

Mitigation - to reduce or prevent emissions of GHG

Adpatation - to upgrade our infrastructure and strengthen our crisis management to become more resilient against the impact of climate change

Group GHG emissions were 1,262,000 tCO₂e

In 2018, our avoided carbon emissions from our landfill gas utilisation projects were more than our carbon emissions form our gas supply related operations in Hong Kong

CO₂ Emissions Per Unit of Town Gas in Hong Kong

Our Target

PROTECTING THE ENVIRONMENT

Managing Our Resources

Fuel Mix for Town Gas Production

1% Landﬁll Gas
61% Natural Gas
38% Naphtha

Air pollutants and GHG emissions

Energy Saving

Gas production plants
Naphtha saved
298,935 GJ
Town gas saved
27,015 GJ

Water Saving

Reverse osmosis system: conserve water
112,121m³
Zero Liquid Discharge system
at the hydrotreated vegetable oil production facility

Waste Management

‘5R’ Principle:
Replace, Reduce, Reuse, Recover and Replace
Municipal Solid Waste
In-house Green Event Practical Guide
Construction Waste
Trenchless technology
Chemical Waste
Recycled used lead acid batteries

CREATING VALUE FOR THE SOCIETY

Creating an Inclusive and Engaging Workplace

2,418Hong Kong

Number
of employees
Gender Distribution

49,478outside
Hong Kong

Male
79%
Female
21%

Male
67%
Female
33%

CREATING VALUE FOR THE SOCIETY

Succession Planning Along our Supply Chain

Attracting and Retaining Staff

Employed 45 graduate trainees and apprentices in Hong Kong

Training and Development

Average training hours (Hong Kong):

Male Male31.2

Female Female20.2

Launched
the 1st Professional Diploma programme in Gas Engineering with the Vocational Training Council

Total training hours (Hong Kong): 82,996

Technology for an Ageing Workforce

Robotics devices to lower reliance on manual labour

Mobility application to carry out services systematically

CREATING VALUE FOR THE SOCIETY

Delivering Value to Customers

Data Privacy Standing Committee

Well-established guidelines and procedures

Protecting Customer Data Privacy

Cyber Security

Isolate sensitive information from the internet
Third party consultant to monitor cyber incidents around the clock

Training sessions and seminars on personal data protection, ethical hacking and security awareness

Serving Our Customers

5,912 customer
compliments in Hong Kong
Courteous and friendly attitude 8.88/10
Service quality efficiency 8.92/10

New Technology

Introduced new
technology for enhanced
customer service and
convenience

Virtual
assistant
Faster
Payment
System
Augmented reality (AR) application for cooking appliances
Smart
metering

CREATING VALUE FOR THE SOCIETY

Contributing to the Community

Donated
HK$ 4.8 million
for community activities

Volunteer service hours:
Hong Kong: 91,628

Mainland utility
business: 238,000

The
Environment
Youth
Development
Community Health
& Wellness

Green Flames VR Games Design Competition with 83 entries

Planted over 100,000 saplings in mainland China
Donated materials worth
over RMB3.5 million
at nearly 40 schools via
the Gentle Breeze Movement
Support Pilot Scheme on Corporate Summer Internship on the Mainland and Overseas and offered 17 internship opportunities
Over 45,000 households from Towngas Concession Schemes benefited from concessions totalling HK$25.7 million

Towngas Chef Anchor Volunteer Team serving elderly people with Mild Cognitive Impairment