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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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