Annual Report 2022

Transport International Holdings Limited 2022 Annual Report 58 SUSTAINABILITY REPORT Adopting TCFD Reporting The Task Force on Climate-related Financial Disclosures (“TCFD”), developed by the Financial Stability Board, aims to define how reporting could take account of climate-related issues and offers recommendations on the type of information companies should disclose to better inform investors and others. TIH 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. TIH is committed to communicating our approach and strategies through the TCFD’s four thematic areas: governance, strategy, risk management, and metrics and targets. Governance The overall strategic planning and accountability for the Group’s sustainable development rests with TIH’s Board- level Committee, which determines the sustainability strategy and oversees its progress. The Board-level Committee, Audit and Risk Management Committee, is 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 ESG Task Force, under the oversight of the Committee, implements the Board’s ESG strategy and policies to drive sustainable initiatives throughout our operations, including safety, environmental protection, staff welfare, community engagement and volunteering. The ESG Task Force is also responsible for optimising environmental performance, raising staff awareness on corporate social responsibilities, sharing knowledge and industry best practices and working with the Enterprise Risk Management Task Force of the Company to assess new emerging ESG-related risks. Our Visions and Targets To align with the National 14 th Five-Year Plan and the emission reduction target of the Hong Kong SAR Government, the Group has outlined a vision of upgrading the whole fleet with new energy buses by 2040. 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 2040 vision. Risk Management We have integrated climate-related risks into the Group’s Enterprise Risk Management. The Group’s Enterprise Risk Management System adopts a systematic approach and uses a set of consistent risk assessment criteria to identify and manage risks. Accurate risk information is provided to the Management to assist them in decision-making and risk control without compromising cost-effectiveness and efficiency. A Key Risk Indicator Report (“KRI 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 KRI Report provides a comprehensive profile of the major risks and the mechanism established for monitoring these risks. KMB strives to explore renewable energy technologies and is determined to reduce emissions and save energy, so as to build a better environment