Annual Report 2023

15 2023 Annual Report Transport International Holdings Limited Environmental Performance Achievements Drive Sustainable Development While propelling business development, companies must also be accountable to society, employees, and shareholders. An enterprise can ensure its sustainable development only by implementing good governance practices. TIH was commended in the Best Corporate Governance Awards organised by the Hong Kong Institute of Certified Public Accountants, an industry recognition for the Group’s governance policies characterised by transparency, accountability, and a people- oriented approach. To further promote the sustainable development of both the Group and Hong Kong, we established an Environmental, Social, and Governance (“ESG”) Task Force some years ago and set a three-year environmental target for key performance indicators, which include reducing our bus carbon footprint, fuel consumption, electricity usage, and water consumption. All related indicators were achieved positive results in 2023, demonstrating the Group’s commitment to promoting sustainable development and the effectiveness of the corresponding strategies. After conducting in-depth research and analyses, and considering market data, the Group has set six five-year environmental performance targets for the financial years from 2024 to 2028. The Board of Directors is committed to their responsibility to sustainability. It has mandated each department to strictly adhere to sustainable development strategies and measures, and focus on advancing and implementing carbon neutrality policies. The Group is actively pursuing additional opportunities for green financing. Among them, LWB signed the first three- year sustainability development performance-linked loan facility totalling HK$200 million with the Bank of China (Hong Kong) in 2023. According to the agreement, LWB is laying down a number of key environmental performance targets for sustainable development around ESG-related areas, which include reducing the greenhouse gas emissions of buses, and increasing green procurement and average training hours for employees. Electric Bus Advancements Enable Zero Emission Achievements To align with the carbon neutrality policies of both the National and Hong Kong SAR Governments, KMB has taken the lead in introducing 82 electric buses, including electric double- deckers that have been progressively put into service since July last year, accelerating the journey towards zero emission. Currently, KMB has expanded its electric bus operations to nearly 40 routes across Hong Kong. The operation of these electric buses has been smooth and well received by various sectors of society. The electric bus fleet has travelled over 2.2 million kilometers, which is equivalent to reducing 3,000 tonnes of carbon emissions. The deployment of electric buses has provided a strong impetus for zero emissions in Hong Kong, making significant contributions to improving roadside air quality.