Annual Report 2020

China Merchants China Direct Investments Limited Annual Report 2020 73 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED) ENVIRONMENTAL PROTECTION (CONTINUED) Energy Consumption (continued) With the target set, the Board and the ESG Taskforce work together to update the procurement policy of electronic devices by considering energy efficiency as well as promoting an energy saving culture. A series of considerations will be taken into account when selecting new rental offices; for example, if the landlord has been: ‧ replacing traditional lighting with energy saving LED lighting; and ‧ installing occupancy/motion sensor to automatically switch on and off the air conditioning in those areas infrequently used. Greenhouse Gas Emissions Since the majority of business activities of the Company and the Investment Manager are performed in an office environment, no direct scope 1 greenhouse gas emissions (GHG) are generated. For scope 2 indirect GHG emissions, they are attributed to electricity consumption of electrical appliances, lighting and air-conditioning. The scope 3 other indirect GHG emissions are mainly attributed to paper consumed. The Company and the Investment Manager consider the amount of these emissions are insignificant due to the business nature. The Company and the Investment Manager have set the following target: Target 5 To consider the ESG performance of potential investments during the investment evaluation process, as a regular practice. The Investment Manager is responsible for adopting the following measure to realise the goals: ‧ adding ESG performance as one of the key performance indicators (KPIs) when making any investment decisions. Environmental Impact Management The Company and the Investment Manager strive to minimise our impact on the environment and natural resources. An environmental management system is implemented with a set of “Green Office Guideline” included in our induction package to offer green office tips for employees and management to adopt. The ESG Taskforce is responsible for the promotion and maintenance of the Green Office Guideline. Due to the business nature of the Company and Investment Manager, it has not come to our attention that there is any significant impact from our business operation on the environment, natural resources and climate change. Nevertheless, the Company and the Investment Manager will try to minimise the impacts we have on the environment to a reasonable extent. For example, environmental friendliness is one of the criteria for our procurement decision.