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84 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020 STRENGTHENING CORPORATE GOVERNANCE 85

of fraud, irregularity, misconduct or malpractice, with
Corporate Risk Ethical zero tolerance for any case of corruption or related
Governance Management Business malpractice.

Reporting and Monitoring
Management Management Management

Approach Approach Approach We have a Whistleblowing Policy that encourages
employees and stakeholders to raise concerns

At Towngas, the high standard of corporate We consider risk governance to be among our top At Towngas, we comply fully with all local laws and about any misconduct, malpractice or irregularity,
governance that we maintain helps to assure priorities at Towngas and have established a robust regulations in every jurisdiction where we operate. particularly in relation to violations of our Code of
shareholders that their rights and interests are system of risk management and internal control. Conduct or our business ethics and principles. It
well protected. For other stakeholders, including This contributes to our future success and helps Our reputation as a trusted service provider and provides a formal channel and guidance on reporting
customers, employees, suppliers and members of to increase our value to key stakeholders over the business partner depends on our staff operating possible improprieties. We also have a dedicated
the community, our adherence to good corporate long term. ethically and with integrity. The Code of Conduct panel for dealing with such cases, while staff
governance principles and practices is a clear of the Group provides guidelines on how to handle grievances are handled by the Corporate Human
demonstration of our commitment to fulfilling our Our risk management process covers all business issues related to equal opportunity, fair practice, Resources Department. A summary of reported
social responsibilities. units in the organisation and concerns all our freedom of association, whistleblowing, conflicts of whistleblowing cases is sent to the Board Audit and
people. As an ongoing process, risk management interest and corruption. All staff members are expected Risk Committee twice annually.
The Board of Directors of Towngas (the Board) is the has become an intrinsic aspect of our day-to- to adhere fully to the principles set out in the Code of
Group’s highest governing body. It is responsible for day operations and part of the culture at Towngas. Conduct and will be subject to disciplinary action if Training and Awareness
enforcing corporate governance and risk management The Board has the overall responsibility to oversee they contravene those principles. We also require our
through effective internal controls that enhance risk management and evaluate and determine the suppliers to maintain an equally high standard of ethics Training in anti-corruption and the Code of Conduct
transparency and accountability. nature and extent of the risks it is willing to take as stipulated in our CSR Code of Practice for is mandatory for all staff, and is included in our
in a manner consistent with its strategic business Suppliers. induction course when they first join the Company.
Progress drivers. To ensure proper risk reporting channels are All employees are required to confirm on an annual
basis that they have read and understood the Code
Areas in place, the Group Risk Management Committee Prevention of Bribery, Extortion, of Conduct, which includes our anti-bribery practices;
recommends the risks and corresponding controls Fraud and Money Laundering
to the Executive Risk Management Committee and directors also receive such relevant materials.
As at 31 December 2020, the Board comprised nine reports them to the Board for its endorsement.
members: three executive directors and six non- According to the Prevention of Bribery Ordinance, We promote the Code of Conduct, as well as our
executive directors, three of whom are independent. Progress Towngas is a public body. We therefore insist that Whistleblowing Policy, among our staff and refresh their
The Board is ultimately accountable for the Group’s Areas our staff and business partners adhere to both the understanding of its principles on a regular basis to
activities, strategies and financial performance. For letter and the spirit of the law during the course of ensure business practices remain compliant.
details about the Board, its composition, operation business. All our employees are strictly forbidden Prevention of
and committees, please refer to our corporate As part of our ongoing risk management efforts, from giving or accepting bribes and must never Anti-competitive Practices
website or our Annual Report 2020. the Board reviewed the effectiveness of our risk offer an advantage to, or ask for an advantage from,
management framework, as well as key risks customers, suppliers, contractors, regulators and
impacting our business and their corresponding legislators, authorities or other business partners. In our Code of Conduct, we set out our commitment
controls, during the bi-annual risk assessment. to comply with the laws and regulations pertaining to
For further information about risk management at The Code of Conduct and an Anti-fraud Policy anti-competitive practices, in line with the Company’s
Towngas, please refer to our Annual Report promote integrity as a core company value. Both help nine core values. The Code also provides guidance
2020. us to continuously enhance our anti-fraud controls for all staff on understanding the requirements and
and organisational behaviour to be consistent with importance of compliance, as well as the disciplinary
our ethical culture. Under the Code of Conduct and action and possible liabilities they will be subject to in
Anti-fraud Policy, we are committed to preventing, cases of non-compliance.
detecting and reporting any actual or suspected case