Annual Report 2021

56 Transport International Holdings Limited 2021 Annual Report SUSTAINABILITY REPORT Adopting TCFD reporting The Task Force on Climate-related Financial Disclosures (“TCFD”), established by the Financial Stability Board, was set up to define how reporting could take account of climate-related issues. We adopted the framework recommended by TCFD, discussing in detail the risks of climate change, the potential impact on our business, and the actions we are taking to cope with these risks. Governance TIH’s Board has overall accountability for managing all risks and opportunities, including climate change. The Board-level Committee, Audit and Risk Management Committee, was appointed to oversee strategic ESG-related issues related to TIH, including climate-related strategies, policies, actions and disclosures. It informs the Board of the strategic risks and opportunities presented by climate change, which forms part of the Board’s discussion of TIH’s short- to long-term plans. Our Visions and Targets To align with the National 14 th Five-Year Plan and the emission reduction target of the HKSAR Government, the Group has outlined a vision of upgrading the whole fleet with new energy buses by 2050. Hence, we have set short-term Environmental Targets for the financial year (“FY”) 2023. Using FY2019 as the baseline, we plan to reduce the carbon intensity and energy intensity, comprising carbon footprint of bus, oil consumption, electricity consumption and water consumption. Meanwhile, the Group is undergoing an in-depth ESG checking and planning to establish long-term targets to reach our 2050 vision. Risk Management We have integrated climate-related risks into the Group’s Enterprise Risk Management. A Risk Key Performance Indicator (“Risk KPI Report”), summarising the Group’s major risks as identified by the management, is submitted to the Audit and Risk Management Committee three times a year. The Risk KPI Report provides a comprehensive profile of the major risks and the mechanism established for monitoring these risks. Target by FY 2023 (Baseline: FY 2019) Carbon Footprint of Bus tCO 2 e per million km Progress by FY2021: -1.29% (On Track) Water m 3 per bus Progress by FY2021: -19.72%* (On Track) -10 % -5 % Diesel Oil GJ per million km Progress by FY2021: -1.42% (On Track) -10 % Electricity kWh per m 2 Progress by FY2021: -37.50%* (On Track) -10 % * The electricity and water consumption will be increased in the coming two years due to the implementation of anti-epidemic measures and reduction of using diesel oil buses. Our Environmental Targets