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22          ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020                                                                                                                                OUR ESG APPROACH         23









            The table below prioritises the top 23 material issues for Towngas to address and report on in 2020 and their          Stakeholder Engagement Results and Our Response
            corresponding boundaries, where the impacts occur and Towngas’ involvement in them.
                                                                                                                                   In line with our annual arrangement, in 2020 we organised focus group sessions, telephone interviews and an
                                                                      Boundaries                                                   online survey with our internal and external stakeholders. Through this exercise, we came to understand the
                                                                                                                                   key issues that are important to our stakeholders, such as exploring new business opportunities and further
                           Material Issues                         Contractors                   Impacts                           strengthening our health and safety measures during the pandemic. Recognising the importance of these issues
                                                          Employees   and    Customers Community                                   to stakeholders allows us to focus on improving our performance.
                                                                    Suppliers

              7.   A safe and healthy work environment                                                                             The table below indicates the key issues and stakeholder feedback from the engagement process and our
                                                                                                                                   corresponding responses:
              8.   Asset integrity and process safety
                                                                                                 Ensuring
              9.   Customer health and safety                                                   Health and
                                                                                                  Safety
              10.  Project/engineering quality assurance                                                                           New Business                                                                        Our Response
                                                                                                                                   Opportunities
              11.  Emergency preparedness
                                                                                                                                      Explore different renewable    We understand that we are heading towards a decarbonised world.
              12.  Greenhouse gases and other air emissions                                                                           energy development or          Towngas has considered its business model and explored opportunities
                                                                                                 Protecting                           environmental protection       that may arise from this transition. As gas continues to play an important
              13.  Water and effluents                                                              the                               business options in the market.
                                                                                               Environment                                                           role as a lower-emissions fossil fuel for the transition, we are diversifying our
              15. Energy                                                                                                                                             portfolio to pursue a low-carbon and circular economy. Please refer to the
                                                                                                                                                                     Transitioning to a Low-carbon Future section for more details.
              19.  Employment management system                                                                                     Stakeholders’ Feedback

              20.  Employer-employee relations

              21.  Training and development                                                                                                                                                                           Our Response
                                                                                                                                   Innovation
              22.  Diversity, equal opportunity and non-discrimination
                                                                                                                                     Adopt further innovations to    Building a culture of innovation is important to our business development
              24.  Responsible marketing communications                                        Contributing                          create business opportunities.  and for addressing sustainability challenges. We have established various
                                                                                                    to                                                               platforms and initiatives to encourage creativity among our employees,
              25.  Quality management and after-sales service                                  Stakeholders                                                          instil an innovative mindset and promote the growth of our business. We
                                                                                                                                                                     will further expand our communication channels to share our innovation
              26.  Customer privacy and cybersecurity                                                                               Stakeholders’ Feedback           experiences across the value chain and spread related knowledge.

              27.  Supplier environmental and social assessment                                                                                                      Please refer to the Innovation in Action section for more details.

              32.  Future-proof workforce*

              33.  Supply security and reliability*                                                                                Pandemic                                                                           Our Response
                                                                                                                                   Response
              36. Anti-corruption                                                                                                                                   A dedicated taskforce, led by our top management, has been established to
                                                                                                                                     Ensure a safe and healthy
              37.  Prevention of anti-competitive practices                                                                          environment for our stakeholders   provide comprehensive measures to protect our employees, contractors and
                                                                                                                                                                    customers. Please refer to the Safety during the COVID-19 pandemic
                                                                                               Strengthening                         and support our community.
              38.  Prevention of child labour or forced labour                                   Corporate                                                          section for more details.
                                                                                                Governance
              39.  Respect for human rights                                                                                                                         Various programmes were also launched to address the needs of the
                                                                                                                                    Stakeholders’ Feedback          community; more details are available at the Supporting people during
              40.  Protection of intellectual property rights                                                                                                       COVID-19 section.



            * Emerging issues
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