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18 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020 OUR ESG APPROACH 19

Managing ESG at Towngas Stakeholder Engagement

Towngas has established an ESG Committee that is responsible for overseeing the Company’s ESG strategies, policies We engage in ongoing dialogues with stakeholders in order to understand their expectations of Towngas with
and practices. Headed by the Managing Director of the Company, Mr Alfred Chan Wing-kin, this Committee comprises regard to our sustainability performance. From what we learned in these discussions, we are able to formulate
eight Executive Committee members and two members of senior management. The Chairman, who is appointed by an ESG strategy that answers their concerns, reduces our risks and aligns with their values.
the Towngas Board of Directors, reports ESG matters to the Board.
Stakeholder Engagement Approach
Together, the ten members represent different areas of our business, including operations, finance, human resources,
engineering, commercial, health, safety and the environment, and community engagement. The Committee is thus able Our key stakeholders comprise both internal and external stakeholders who are significantly affected by our
to facilitate the decision-making of the Board and contribute to the sustainable growth of the Company. operations, or are expected to be affected by our business, as summarised in the graphic below.

The ESG Committee is responsible for identifying and reviewing ESG issues, risks and opportunities; tracking Regular Engagement Channels
ESG performance and recommending strategies to improve it; reviewing and evaluating the annual ESG
Report and recommending its endorsement by the Board/Executive Committee; and providing updates to the
Board/Executive Committee on the latest relevant ESG matters. • Employee surveys and meetings • Publications
• Feedback channels (e.g. suggestion (e.g. newsletters and leaflets)
boxes, Talk to MD) • Company websites, social media
In 2020, the ESG Committee met on two separate occasions. • Internal publications (e.g. bulletins, platforms and the Towngas App
newsletters) • Regular maintenance visits, safety
Members of the ESG Committee
• Intranet inspections and safety talks
Employees
Mr Alfred Chan Wing-kin (Chairman) Mr Daniel Fung Man-kit* • Ambassador programmes/activities Customers • Customer Focus Team
Managing Director Head of Strategy & Innovation and Commercial – Hong Kong Utilities • Social media platforms (e.g. Yammer • Surveys and focus groups
Mr Peter Wong Wai-yee Mr Martin Kee Wai-ngai* in Hong Kong, WeChat and Weibo in • Customer Service Hotline
Deputy Managing Director Executive Vice President, Hong Kong and China Gas Investment Limited mainland China) • Customer centres
Mr John Ho Hon-ming and Hua Yan Water
Executive Director, Chief Financial Officer and Company Secretary Mr Isaac Yeung Chung-kwan
Mr Philip Siu Kam-shing Head of Corporate Affairs
Chief Operating Officer – New Energy Business Mr Victor Kwong Chiu-ling • Seminars and workshops • District Council Focus Team
Mr Simon Ngo Siu-hing General Manager – Corporate Sustainability • Supplier assessment system • Community programmes
Head of Engineering – Hong Kong Utilities (e.g. factory audits) • Working Committees
Local
Miss Fan Kit-yee • Management meetings and supplier Communities • Towngas Volunteer Service Team
Contractors
Head of Corporate Human Resources * New members (effective 1 July 2020) and Suppliers conferences
• Site/factory visits
Key ESG Topics Discussed by the ESG Committee • Green partnerships and community
programmes
The Committee was briefed on the new requirements of the Hong Kong Stock Exchange’s • Annual General Meeting • Meetings
ESG updated ESG Reporting Guide and discussed the approach that should be taken to meet the • Annual and interim reports NGOs • Questionnaires
Reporting new requirements. The Chairman of the Committee reviewed the 2020 materiality assessment • Analyst and investor briefings for
and acknowledged the changes in material issues from the 2019 materiality matrix. interim and annual results

• Company website (especially • Working groups and committees
The Committee discussed the increasing interest in ESG issues among stakeholders and our the “Investor Relations” Section’s • Seminars, visits and workshops
ESG approach for enhancing Towngas’ ESG performance. Related preparation work, including the Announcements and Circulars
Enhancement Professional
Bodies
establishment of targets under the ESG framework, is continuing. and other correspondences) and and Regulators
publications
The Committee was briefed on the ongoing work to align with the recommendations of the Investors • Non-deal roadshows
Climate TCFD. The Committee acknowledged the key transition risks and opportunities, as well as the • Investment conferences
Risks and resilience of Towngas’ assets and operations under different scenarios. For more details on the • Investor meetings and telephone
Opportunities
study, please refer to the Climate Transition Risks and Resilience section. conferences
• Meetings and regular communications
The Committee reviewed and supported the community initiatives undertaken by Towngas in with credit rating agencies (S&P and
Community 2020, in particular initiatives related to COVID-19. For more details on our community initiatives Moody’s)
investment
during the year, please refer to the Community section. • Site visits