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50 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020 PROTECTING THE ENVIRONMENT 51

Monitoring and Reporting Management In mainland China, we visit the project sites of our
JVs to understand their regional climate-related risks.
Approach We also work closely with our JVs to prepare them
The Environmental, Social and Governance (ESG) Committee coordinates and steers our environmental initiatives
as well as monitors our environmental performance, with the support of the Environmental Working Committee and for adverse weather events by advising them on the
Corporate Sustainability Department. In addition, we have 12 Environmental Sub-committees and green ambassadors As mentioned in our HSE Policy, we are committed to mitigation and resilience measures they can adopt and
from different functional departments. They support our mobilisation of resources and implementation of environmental managing and minimising our climate change impact by providing training on climate change awareness.
projects and convey environmental messages to our stakeholders. Details of our ESG Committee and HSE and reducing air pollution.
management structure are available under the Managing ESG at Towngas section and our corporate website. Carbon Management
Our air emissions primarily result from the combustion
We conduct regular audits and inspections of our facilities to confirm compliance with all relevant environmental of fuels used to generate energy. These emissions, We are committed to continuously monitoring and
standards and identify areas for improvement. In mainland China, we have been performing annual environmental which include carbon dioxide (CO2), nitrogen oxide reducing our direct and indirect GHG emissions.
audits of our gas projects since 2011. The audits cover areas such as energy conservation, waste and (NOx), sulphur oxide (SOx) and respirable suspended Therefore, we have established Carbon Inventory
wastewater management practices, as well as noise control measures. particulates (RSP), are controlled and monitored to Accounting Procedures based on international
ensure our plants comply with local regulations. standards such as the GHG Protocol and local
Engaging Stakeholders guidelines. In Hong Kong, GHG verifications aligned

We mitigate the impact of climate change by reducing with ISO 14064-1 are regularly conducted, which allow
To raise awareness and build capacity, we organise training sessions, seminars, site visits and a range of other activities or avoiding greenhouse gas (GHG) emissions us to identify areas for continual improvement.
with our stakeholders, including employees, contractors and customers. We also set aside funds dedicated to our and adapt by upgrading our infrastructure and
environmental protection initiatives and have set up a Green Creativity Fund to encourage innovative environmental strengthening crisis management. Through these To reduce emissions from our operations, we use low-
initiatives put forward by our employees. measures, we believe we can become more resilient carbon, renewable energy sources such as natural
against the impact of climate change. gas and landfill gas, employ energy-efficient equipment
We also share knowledge, exchange ideas and seek partnerships with government authorities, industry practitioners, and improve our production processes. We also take
green groups and others so that we can remain up-to-date on issues of environmental concern and drive improvement. Climate Risks and Opportunities the responsibility of reducing GHG emissions on the
customer side.
Climate Change Physical risks, such as rising temperatures and sea
and Air Quality levels, drought and extreme weather events, could Progress
have a negative effect on our operations. What’s more, Areas
transition risks, including policy changes, reputational
2020 Performance Highlights Future Actions and Targets
impact and shifts in market preferences, could also
have a significant impact on our businesses. These We acknowledge the urgency of addressing climate
Hong Kong gas production carbon Establish medium- to long-term risks, however, also come with opportunities arising change and are taking every possible step to manage
intensity was carbon reduction targets from the development of new technologies, products and reduce our climate risks while also identifying
0.592 kg CO2e/unit of and services associated with climate change. related business opportunities. Furthermore, we
town gas,↓23% as closely monitor regional and international efforts
compared with 2005 Increase biogas usage towards decarbonisation. These include Hong Kong
In 2015, we commissioned a comprehensive climate
risk assessment for our Hong Kong operations to and mainland China’s goals of carbon neutrality,
th
First public utility in Hong Kong Supply waste heat from increase our resilience under extreme weather events. as well as the outcome of the 26 United Nations
Tai Po Gas Production Plant to a
to be verified its carbon inventory neighbouring food factory It involved conducting corporate emergency table- Climate Change Conference of the Parties (COP26) in
against ISO14064-1:2018 (Hong top exercises and establishing an adverse weather November 2021 to guide our low-carbon roadmap.
Kong gas production) Advance our climate change preparedness plan, which is reviewed regularly. We
risk assessment covering also review and update our climate-related risks on

Conducted a scenario long-term risks and opportunities at least an annual basis to ensure we are sufficiently
analysis on climate-related Keep abreast of the latest resilient against this emerging risk.
transition risks and opportunities carbon reduction policies
in Hong Kong and mainland China