Annual Report 2021

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED) China Merchants China Direct Investments Limited Annual Report 2021 75 ENVIRONMENTAL PROTECTION (CONTINUED) Energy Consumption (continued) As the electricity usage is included in the building management fee and hence no relevant consumption data could be disclosed during the Reporting Period. As stated in our environmental policy, we believe there is a role for us to play in protecting the environment. The Company and the Investment Manager have set the following targets: Target 3 To incorporate energy efficiency as one of the criteria for the procurement of office equipment (e.g. Grade 1 energy label) by 2022. Target 4 To consider the electricity conservation policy and measures adopted by the buildings as one of the selection criteria for new rental offices by 2021. With the target set, the Board and the ESG Taskforce work together to update the procurement policy of office equipment 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. During the Reporting period, we have been taking the steps above to achieve Target 3 and Target 4. The rental agreement has been renewed in 2021 with considerations that the existing landlord has electricity conservation policy in place. 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.