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16 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020 OUR ESG APPROACH 17

Supporting the Sustainable Development Goals
Make cities and human settlements inclusive, safe,
resilient and sustainable
As a responsible energy supplier, we support the United Nations Sustainable Development Goals (SDGs) so that
we can help to overcome the global challenges we all face and achieve a better and more sustainable future. Potential Impacts Actions Taken/Achievement
Provide a safe and reliable • Town gas supply reliability: 99.99%

Among these SDGs, we selected four that are most relevant to our operations and value chain and could supply of energy • 84% reduction of serious gas-related accidents (mainland
make the greatest positive contribution. We also took into consideration any potential negative impacts on our Promote recycle and reuse China) in last five years
within our company’s
operations, including our risks to people and the environment, and decided which of our products, services or businesses and for • In the process of developing 2 pilot projects in Hebei province to
investments would contribute most to the SDGs. In addition, we reviewed the impacts and contributions of all customers convert agricultural waste into products such as furfural, paper pulp
SDGs for our company at each stage of our value chain. Produce both hazardous and cellulosic ethanol
and non-hazardous waste • Expanded hydro-treated vegetable oil (HVO) plant in Zhangjiagang
To help our staff understand Towngas’ commitment to the four SDGs, we organised seminars on each SDG during business operations city to convert inedible bio-grease feedstock into an advanced
biofuel, bringing annual production capacity to 250,000
during the year. and along the value chain tonnes
• >1,600 tonnes of metal recovered through Used Gas
How we are contributing to SDGs Appliance Recycling Programme

Ensure availability and sustainable management of
water and sanitation for all Take urgent action to combat climate change and
its impacts
Potential Impacts Actions Taken/Achievement Potential Impacts Actions Taken/Achievement
Deliver a safe and reliable • 2.53 million customer accounts with drinking water up to Promote a low-carbon • Identified climate-related transition risks and
supply of drinking water to national standard lifestyle along our value chain opportunities under various scenarios, and assessed
our customers • 3 reverse osmosis system to be installed at Tai Po Gas Physical and transition risks Towngas’ climate resilience to align with Task Force on Climate-
rd
Production processes Production Plant that affect our operations and related Financial Disclosures (TCFD) recommendations
consume/generate businesses • Climate Change Risk Assessment extended from Hong Kong to
significant amount of water/ Generate greenhouse gas mainland China
wastewater emissions that accelerate • 23% reduction of carbon intensity in Hong Kong compared
climate change
with the 2005 baseline
• Partnership with green groups to promote environmental protection
and sustainable development
Ensure access to affordable, reliable, sustainable and
modern energy for all

Potential Impacts Actions Taken/Achievement 3
Expedite our coverage of • 1.94 million town gas customer accounts in Hong Kong 5 4 2 1
gas supply and promote 6 17
fuel conversion to gas • 31.81 million city-gas customer accounts in mainland China 16
7
Develop a clean energy • Increased resources for town gas production – Landfill gas 8 15
business accounts for approximately 1% of our fuel mix 9 14
Fossil fuels as the major • Continued to develop distributed energy systems 10 12 11 13
raw materials of town gas and smart energy businesses
production
• 2 research facilities in Shanghai city and Suzhou city, with ongoing
research for launch of biomass utilisation and sustainable aviation
fuel in 2021