Annual Report 2023

Six Environmental Targets for Key Performance Indicators from FY 2021-2023 (Baseline: FY 2019) Reporting Principles Application Materiality To identify the material ESG-related issues, a stakeholder engagement exercise was conducted to collect opinions and feedback from stakeholders. The material ESG issues are incorporated into the Group’s core business strategy. For details, please refer to the section “Stakeholder Engagement and Materiality Assessment”. Quantitative The Group discloses its ESG performances in a quantitative manner. Data and statistics are presented as absolute figures and are normalised into comparable terms as far as possible. For details, please refer to the section “Performance Statistics”. Balance The Group prepares this report and discloses its ESG performance and achievements in a transparent, unbiased and fair manner. Consistency The Report has been prepared in accordance with the latest Global Reporting Initiative (“GRI”) Standards 2021 and the Appendix C2: Environmental, Social and Governance Reporting Guide (the “ESG Reporting Guide”) issued by the Hong Kong Exchanges and Clearing Limited (“HKEX”). To align our strategies with international sustainability principles, the Report also makes reference to the United Nations Sustainable Development Goals (“UNSDGs”) and the recommendations on the Task Force on Climate-related Financial Disclosures (“TCFD”) established by the Financial Stability Board (“FSB”). In addition, through engagement exercises such as annual passenger liaison group meetings and interviews with representatives of different interest groups, we have identified stakeholder concerns and incorporated them into our sustainability strategies. The latest Annual Report of TIH contains more information about the Group, including corporate governance and the financial performance of KMB and LWB. If you have any comments on the Report, please contact us via ccd@kmb.hk . * In 2022, given the local impact of the COVID-19 epidemic since 2020, we adjusted our investments in environmental initiatives for electricity and water reduction, rescheduled the deployment of electric buses, and revised our electricity and water consumption targets accordingly. In 2023, KMB and LWB introduced a series of initiatives to reduce electricity consumption, including the forming of “Green and Clean Teams” among staff members to ensure the adoption of best practices for electricity saving. While society has returned to normalcy, KMB and LWB continued to enhance the cleansing and hygiene standards of their bus fleets in 2023, resulting in an increase in water consumption. Also, the reduction of solid chemical waste was beyond expectation mainly based on the successful measures by using a new tyre model which has extended its lifecycle and implementing the advanced engine oil replacement cycle. Electricity (kWh per m 2 ) FY 2023 target: -20% Result by FY 2023: -43.06%* (Beyond Target) Water (m 3 per bus) FY 2023 target: -25% Result by FY 2023: -22.54%* (Near Attainment of Target) Solid Chemical Waste (kg per million km) FY 2023 target: -8% Result by FY 2023: -16.75%* (Beyond Target) Metal (kg per million km) FY 2023 target: -4% Result by FY 2023: -4.51% (Target Met) 45 2023 Annual Report Transport International Holdings Limited