Annual Report 2022

2022 Annual Report Transport International Holdings Limited 15 When choosing electric buses, the Group makes careful consideration before coming to a decision. The batch of 16 single-deck electric buses currently deployed has been operating smoothly. The mature technology and application of the batteries and wide support from the general public have boosted the Group’s confidence in developing electric buses and establishing an indispensable role for these buses on Hong Kong’s path to carbon neutrality. The Group is pleased to announce the arrival of the first double-deck electric bus in Hong Kong. We expect that there will be over 50 electric double-deckers serving members of the public by the second half of 2023. To cater for the development of electric buses, charging facilities have been installed at four major bus depots, about a dozen satellite depots and some bus termini of KMB to meet the demand. KMB has also invested in resources to build two new electric bus depots in Tai Po and Tuen Mun to provide 850 charging and parking spaces, with completion expected in four to five years. Installation of Solar Devices to Achieve the Vision for Sustainable Development The Group deeply understands that a wider application of renewable energy helps speed up the pace to reduce carbon emissions. KMB is one of the enterprises in Hong Kong that owns the greatest number of solar panels, which are installed at bus depots and bus termini, and on bus stop shelters, poles and bus roofs. The number of solar panels installed at KMB facilities is expected to reach 30,000, generating 13.5 million kWh of green energy annually, equivalent to a year’s consumption of 4,100 three-member households in Hong Kong. In order to achieve carbon neutrality as early as possible, KMB took the lead in launching the “Decarbonisation Partnership Programme” by inviting the business sector to take action to show their support for protecting the environment. The Programme received an overwhelming response and attracted nearly 50 enterprises of different industries to join. The 89 solar buses sponsored by these enterprises can help reduce the carbon emissions by a total of 534 tonnes per year, which is equal to planting over 500 thousand trees. Mid- and Long-term Targets Laid Down to Achieve Sustainable Development The Group dedicates itself to promoting and incorporating the value of Environmental, Social and Governance (“ESG”) management into the daily operations of every department. It has appointed an ESG Task Force to audit and monitor its sustainable development performance and risks in climate, environment and social responsibility-related issues. The ESG Task Force also puts forward constructive opinions on ESG work, and implements various strategies and measures on sustainable development. The Group has set six key Environmental Performance Indicators for three years. All of them were in progress in the year of 2022 with remarkable results. It is believed the targets can be met by 2023. The Board of Directors is also formulating interim and long-term targets of the Group for 2030 and 2040 respectively, with a focus on promoting and implementing the policy of carbon neutrality, and fostering ESG management as a powerful driving force in the high-quality development of the Group. In 2022, KMB entered into five-year sustainability development performance-linked loan facilities totalling HK$1.6 billion with two banks. Through these green financing facilities, the Group can show its determination in promoting sustainable development. According to the agreement, KMB is laying down a number of key environmental performance targets for sustainable development around ESG-related areas, which include reducing greenhouse gas emissions of buses, and increasing green procurement and the average training hours for employees. EBuses: Road to Green Transport in the Future Cities around the world are developing clean energy transport. As the largest franchised bus operator in Hong Kong, the Group actively echoes the development and makes complementary efforts to tie in with the National 14 th Five-Year Plan and the policies of the Hong Kong SAR Government. We have drawn up a clear blueprint for development in emission reduction and energy conservation by fully upgrading our entire fleet to new energy buses by 2040 to achieve zero emissions.