Annual Report 2023

63 2023 Annual Report Transport International Holdings Limited demands, which may affect operations to varying degrees. By identifying and effectively managing the financial risks and opportunities associated with climate change, the Group acknowledges the potential for growth that comes with transitioning towards a low-carbon economy. As such, to align with the National 14 th Five-Year Plan and the emission reduction target of the Hong Kong SAR Government, the Group has determined a clear roadmap on upgrading its whole fleet with new energy buses. In addition, we have set a 3-year six environmental targets for key performance indicators for the financial year (“FY”) 2023. Using FY 2019 as the baseline, we plan to reduce the carbon intensity and energy intensity, comprising carbon footprints of bus, oil consumption, electricity consumption and water consumption. We are pleased to announce that both KMB and LWB have reached positive results in six environmental targets by 2023, with more details disclosed from pages 44 to 45. Risk Management We have incorporated climate-related risks into the Group’s Enterprise Risk Management, utilising a systematic approach and 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 offers a comprehensive profile of the major risks and outlines the established mechanism for monitoring them. Our Environmental Targets In 2023, TIH appointed an external consultant to review the environmental performance of the Group. To move forward, the Board has already established new Environmental Targets for the period from FY 2024 to FY 2028. We have ensured consistency in our targets by once again using FY 2019 as the baseline year. Additionally, we have expanded the scope to include Hong Kong Franchised Public Bus Operations, Hong Kong Non-franchised Transport Operations and Property Holdings and Development, incorporating six modified environmental targets that specifically address Diesel Consumption (Scope 1), Electricity Consumption (Related to Property/ Real Estate Operations only) (Scope 2), GHG Emissions (Scope 1&2), Water Consumption, Solid Chemical Waste (Hazardous), and Metal Waste (Non-hazardous).