Annual Report 2024

47 2024 Annual Report Transport International Holdings Limited TIH’s employment practices are also reviewed on a regular basis. We strictly adhere to the Employment Ordinance of Hong Kong and prohibit the hiring of child labour (defined as a person below the local minimum age for employment or under the age of 15) and any form of forced labour. The Group has a whistleblowing policy that encourages employees and related third parties to raise concerns in confidence about misconduct, malpractice, bribery, money laundering, any forms of forced, coerced or bonded labour, and irregularities in any matters related to the Group. Employees and/or related third parties may make a report to the Company Secretary or the Chairman of the Board’s Audit and Risk Management Committee. The Group will take appropriate follow-up actions, including disciplinary measures, in respect of substantiated and partially substantiated cases. In the event of an employee committing any offence of corruption under the Prevention of Bribery Ordinance (Chapter 201, Laws of Hong Kong), the Group will report the matter to the Independent Commission Against Corruption (“ICAC”). There were zero concluded legal cases regarding corruption during the reporting year. Furthermore, we invite the ICAC to provide training to the Board and employees bi-annually to enhance their awareness of anti-corruption and integrity management. Our Vision and Strategy To ensure our business remains resilient to climate change, we assess its potential impact on different business units and develop plans to mitigate and adapt accordingly. When refining our business strategy, the Group recognises that sustainable development is crucial for long-term success. The Group has identified physical risks, such as more frequent extreme weather events, and transition risks, including regulatory changes and shifts in customer demand, which may affect our 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 emissions reduction target of the Hong Kong SAR Government, the Group has determined a clear roadmap for upgrading its whole fleet with new energy buses. In addition, we have set six environmental targets for key performance indicators over a three-year period, starting in the financial year (“FY”) 2023. Using FY2019 as the baseline, we plan to reduce both carbon and energy intensity, including the carbon footprints of buses, as well as oil, electricity and water consumption. We are pleased to announce that both KMB and LWB have reached positive results in all six environmental targets by 2023. The Board has already established new environmental targets for the period from FY2024 to FY2028. We have maintained consistency in our targets by using FY2019 as the baseline year once again. Additionally, we have expanded the scope cover our key business segments including Hong Kong Franchised Public Bus Operations, Hong Kong Non-franchised Transport Operations, and Property Holdings and Development. Six revised environmental targets have been introduced to specifically address diesel consumption (Scope 1), electricity consumption (related to property/real estate operations only) (Scope 2), GHG emissions (Scopes 1 & 2), water consumption, solid chemical waste (hazardous), and metal waste (non-hazardous). More details are provided on pages 60 to 65. Risk Management We have incorporated climate-related risks into the Group’s Enterprise Risk Management System, utilising a systematic approach and consistent risk assessment criteria to identify and manage risks. Accurate risk information is provided to 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 Management, is submitted to the Audit and Risk Management Committee three times a year. The KRI Report provides a comprehensive overview of major risks and outlines the established mechanisms for monitoring them. For further details on our corporate governance, please refer to pages 128 to 151 of our 2024 Annual Report. Stakeholder Engagement and Materiality Assessment Stakeholder engagement exercises and materiality assessments provide a solid basis for developing our sustainability report. These exercises help identify sustainability topics that are most relevant to both our operations and stakeholders. Our stakeholders include passengers, employees, suppliers, contractors, legislative councillors, district councillors, transport advisory bodies, interest groups and the government. We have established several engagement programmes to gauge their views on our operations and services. Dialogues with stakeholders are conducted through various channels, including the chatbot platform on the KMB and LWB websites and App1933, KMB’s social media channels, corporate publications such as KMB Today , as well as face-to-face meetings and media networking. Through engagement exercises, such as annual passenger liaison group meetings and interviews with representatives from various 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 details on corporate governance and financial performance. If you have any comments regarding the Report, please contact us at ccd@kmb.hk.