Annual Report 2024

China Merchants China Direct Investments Limited Annual Report 2024 87 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED) ENVIRONMENTAL PROTECTION (CONTINUED) Green Office and Operation (continued) Energy Consumption (continued) With the target set previously, the Board and the ESG Taskforce have worked collaboratively to update the procurement policy of office equipment by reviewing energy efficiency options whilst promoting an energy saving culture within the offices. We consider that we have achieved energy efficiency target set previously (i.e. to incorporate energy efficiency as one of the criteria for the procurement of office equipment by 2022) and continued to attain it during the Reporting Period by incorporating energy efficiency into the procurement policy and procedures. Further, a number 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 ‧ installation of occupancy/motion sensor to automatically switch on and off the air conditioning in those areas infrequently used. During the Reporting period, we continue to consider the electricity conservation policy in place for selection of new rental offices to attain Target 3. Greenhouse gas emissions Due to the fact that the majority of business activities of the Company and the Investment Manager are performed in an office environment, there is no generation of scope 1 direct greenhouse gas emissions (GHG). 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. Despite the above mentioned, the Company and the Investment Manager have set the following target: Target 4 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: ‧ incorporating ESG performance as one of the key performance indicators (KPIs) when making any investment decisions; and ‧ requiring the investment team to consider whether there are significant non-compliance ESG issues happened with the proposed investment projects and to report such issues in the investment proposals. During the Reporting Period, all the new investment proposals indicated that no significant non-compliances ESG issues have been identified. Therefore, we consider that we have achieved Target 4 during the Reporting Period.