Hong Kong Aircraft Engineering Company Limited Environmental Report 2004 Issued September 2005

HONG KONG AIRCRAFT ENGINEERING COMPANY LIMITED

ENVIRONMENTAL REPORT 2004

ISSUED SEPTEMBER 2005

Contents

Business Overview 1

Mission Statement 2

Progress of Environmental Management Programmes in 2004 3

Key Environmental Impacts and Improvement Measures 6

I Air Pollution Control 6

II Wastewater Treatment and Water Conservation 9

III Waste Management, Reduction and Recovery 10

IV Noise Control 13

V Energy Conservation and Resource Efficiency 14

Awards Received in Recognition of Environmental Work 17

Continual Improvement in Environmental Performance 19

APPENDIX I - HAECO Environmental Data Summary 20 II - Abbreviation 24

Matthew Tang Environmental Protection & Industrial Safety Manager Email: matthewt@haeco.com

Kenneth Cheung Environment, Health & Safety Officer Email: [email protected]

Hong Kong Aircraft Engineering Company Limited 80 South Perimeter Road, Hong Kong International Airport Lantau, Hong Kong

Business Overview

This report covers the Hong Kong Aircraft Engineering Company Ltd.’s (HAECO) operations in Hong Kong. It does not cover its subsidiary in Xiamen (TAECO) or its associate and jointly controlled companies. HAECO is a member of the Swire Group with Cathay Pacific Airways as one of its major shareholders. It was established in 1950, and is the only full-service maintenance provider at the Hong Kong International Airport. It offers comprehensive line and heavy maintenance packages, including extensive aircraft component overhaul support and Aircraft-on-the-Ground/aircraft recovery service.

It has approximately 3,600 employees in Hong Kong, with around 3,200 staff working at the Chek Lap Kok facility, and the remaining 400 staff at its Tseung Kwan O (TKO) centre.

Its three major operating divisions are:

4 Base Maintenance Division, located in the CLK Aircraft Maintenance Area

4 Line Maintenance Division (including Ramp Services), located at the Passenger Terminal Building

4 Component and Avionics Overhaul Division, located in Tseung Kwan O

Additionally, HAECO has a number of supporting departments to facilitate its smooth operation. Its Environmental Protection and Industrial Safety Department (EP&IS) – an independent group directly supervised by the Director of Finance – proactively promotes a safe-working culture and awareness of environmental issues at all levels across the Company.

Mission Statement

HAECO aims to minimise any adverse impacts on the environment of its operations. Environmental considerations are incorporated in HAECO’s Mission Statement.

Progress of Environmental Management Programmes in 2004

HAECO regularly monitors the environmental impact of its activities, it also encourages staff to report any environmental problems to its EP&IS Department.

In the beginning of each year, new environmental improvement programmes are devised, targets are set to continuously improve HAECO’s environmental performance.

The progress of 2004 Environmental Programmes is summarized as follows:

Objectives Targets Progress Energy Conservation To use electricity Implement energy Set an annual energy efficienty conservation conservation plan and programme to allocate budget on its achieve 5% energy implementation. 2.1% of reduction. electricity and 3.3% of energy cost is saved.

To optimize town gas Use energy efficient Purchased replacement consumption in steam cabinets to high efficiency town-gas canteen save town gas steam cabinets and consumption by Chinese steamers that 5%. save $20,000 and 8.2% of town gas annually.

Water Conservation To prevent water Promote water Installed several wastage conservation to automatic faucets inside optimize water staff toilets and promote consumption. water conservation via training and posters.

Objectives Targets Progress Commercial and Industrial Waste Reduction To reduce waste Recover as many Well controlled the waste produced from our recyclable waste generation rate with only daily operation products as 2% slight increase in possible. Avoid waste generation while waste generation business growth and reduce waste (measure as direct disposal weight by manhours) was 6%. 5% annually.

Chemical Waste Reduction To reduce aircraft Study the possibility Recovered 100% aircraft fuel disposal quantity of recycling aircraft fuel and sent to licenced fuel to low-grade chemical waste collector diesel fuel. for recycling process. Reduce disposal quantity of aircraft fuel by 10%-15%.

To reduce waste Study the possibility Evaluated drum washing drum disposal into of washing and process and concluded it landfill reusing drums as is not cost effective. containers. Reused and compacted Compact drums to drums to reduce 49.4% reduce disposal of the disposal volume. volume by 80%.

Objectives Targets Progress To extend the useful Research the Conducted feasibility test life of vehicle possibility of by the research batteries extending the company but the result is useful life of vehicle not satisfactory in terms batteries by of cost benefit. 20-30%.

Resources Conservation To better control the Conduct a Allocated financial quantity of chemicals feasibility study on budget to the plant consumed in the modification of modification and the wastewater wastewater consultant’s study. treatment plant to treatment plant to Achieved 70% reduction prevent wastage optimise the of chemicals for phenol application of removal process as chemicals to treat HAECO switched to use wastewater. non-phenolic paint stripper agent.

To increase the Increase the Increased paper and waste recycling recovery rate of cardboard recovery rate quantity in order to recyclable waste by over 20% and initiate minimize waste more than 20%. recycling activity of spent disposal lube oil for ramp equipment in August 2004.

Indoor Air Quality (IAQ) Improvement To monitor IAQ in Perform IAQ IAQ certification with offices and achieve measurement for excellent class for the good class level 80% of HAECO’s administration building set in Environmental offices. was acquired in Protection September 2005. Department’s guidelines

Key Environmental Impacts and Improvement Measures

I Air Pollution Control

Good air quality is important to our health. Therefore, we have introduced a number of facilities to improve the air quality around our CLK premises, including the office building, workshops, hangar, company clinic and canteen.

Air quality control in offices

Our central air-conditioning system is water-cooled type. The water drawn from the cooling tower is sterilized by UV treatment before discharge to the condenser of the chillers in order to UV sterilization system for keep our air supply free of airborne water cooling tower bacteria. Carpet cleaning Each department follows an air-duct cleaning schedule to make sure that Our monthly office-carpet cleaning office air supply stays clean and fresh. programme aims to make sure that the environment stays clean and tidy, and Air quality control in clinic that the growth of micro-organisms is prevented. An UV photo-oxidation air purifier is installed in the company clinic’s air duct No smoking policy to prevent the growth of airborne bacteria, mold and other To keep our working environment clean micro-organisms. and safe, HAECO has implemented no smoking policy in line with the Swire Group’s No Smoking Policy. The Policy, stipulated in the Company’s Administration Manual, only allows smoking in the designated areas during designated periods. Outside the

UV photo-oxidation air purifier designated areas and times, smoking is prohibited.

Air quality control in smoking areas Local ventilation inside various workshops To cater for those staff who do smoke, we have dedicated smoking areas in In workshops where we do component the CLK staff canteen and ramp cleaning, painting, electroplating, heat tea-house. Despite the provision of and corrosion treatment, these areas, staff are only permitted to metal-to-metal bonding and sheet smoke during meal times (i.e. the metalwork, local extraction systems are breakfast, tea, lunch and dinner installed to remove air pollutants periods). To remove the smoke caused by these activities. All particles and clean the air in these exhaust air, before its release to the areas, electrostatic precipitators are atmosphere, passes through and is installed in these smoking areas. treated by the eight air scrubbers installed on the roof. Aircraft spray paint venting in hangar Air scrubbers

Since some paint-spraying and stripping procedures produce paint fumes and airborne paint particles, a dedicated extraction and ventilation system is used in the hangar paint bay to remove the particles and keep the air in the working environment Indoor Air Quality Monitoring contaminant-free. To maintain the indoor air clean and fresh, we measure the concentration level of carbon dioxide, respirable suspended particles, radon, and total volatile organic compounds in work shops and investigate the indoor air problem upon request. In 2005, we

Local exhaust hood in electroplating workshop will extend our scope of indoor air quality measurement to cover office areas. We have awarded with excellent class indoor air quality certification for our administration building.

Water curtain in the paint booth inside paint shop 7

Air-conditioning Systems and Fire are legally approved to recycle Halon Fighting Systems 1301 inside our premises and import the recycled Halon from overseas to To reduce damage to the ozone layer replenish the deficient amount. Halon of the atmosphere, non-ozone 1211 fire extinguishers will be returned depleting substances, e.g. HFC-134a to the customers for disposition if found refrigerants are used in both of our damaged or failed the weight check. Chek Lap Kok premises and our vehicle air-conditioning systems. It is required that fire extinguishing Additionally, environmentally-friendly cylinders have to be periodically FM200 fire extinguishing agent is used inspected and hydrostatically tested, in our fire fighting system. Halon inside the cylinders has to be released first. We have recovery and recycling machine for Halon 1301 and

have obtained the right to recycle Halon under the Ozone Layer Protection Ordinance.

The following graph shows the HFC-134a non-ozone depleting recovery weight of Halon 1301 by our

refrigerants used in our ramp recycling machine for the last 3 years. equipment The quantity of Halon 1301 to be recycled reduced in 2004, as the

hydrostatic tests have been extended. Use and Emission of Ozone Depleting Substances Recycle of Halon 1301 Halon 1211 and Halon 1301 are used Kg 3,500 as the fire extinguishing agents in the 3,000

Aircraft Fire Extinguishers. Halon 2,500

1211 used in the cabin and toilet are 2,000 hand held type fire extinguishers; 1,500

Halon 1301 is used on Engines, APU 1,000 and Cargo Compartments. To sustain 500 the consumption amount of Halon as 0 2002 2003 2004 aircraft fire extinguishing agents, we

II Wastewater Treatment and Water Conservation

In our aircraft maintenance activities, wastewater is generated from various processes, such as wastewater from aircraft and vehicle servicing and maintenance procedures; rinse water from paint stripping processes inside the hangar; used solutions from the Corrosion Treatment and Electroplating Workshops; floor washing and spillage clean-up from the Hangar, Backshops Building and Auxiliary Buildings.

We have a specially-designed effluent, we have applied for reduction Wastewater Treatment Plant for a in the trade effluent surcharge in two central collection and treatment of consecutive years. In 2004, we wastewater to meet statutory achieved a 73% reduction in our trade requirement before discharge out of effluent surcharge from the Drainage our premises. Service Department.

Reducing Water Consumption

The unique nature of aircraft

maintenance entails the consumption

of large quantities of water. However,

we always actively look for ways, to

keep our water use and wastage to a

minimum.

Wastewater treatment plant We promoted water conservation in

2004 and successfully cut down water We also have a small-scale wastewater consumption by 15% compared to treatment station to treat wastewater 2003. from ramp equipment cleaning

'000 cubic Annual Potable water consumption procedures. meters

160 140 In addition, we have an underground oil 120 and grease tank to separate oil and 100 grease from the kitchen wastewater 80 60 before discharge to the foul sewer. In 40 view of our continuous effort to control 20

0 chemical oxygen demand in canteen 2002 2003 2004

III Waste Management, Reduction and Recovery

As part of our waste management policy, we are, in close collaboration with our waste management contractors, always looking for ways to increase the utilisation of reusable and recyclable materials. We handle and dispose of unreusable/non-recyclable waste in strict compliance with our own waste management policy, statutory requirements and related environmental standards.

Our commercial and industrial waste Waste Recycling includes general refuse from aircraft servicing and cleaning, and from the We are committed to easing the daily operations of hangar, workshops, ever-mounting pressure on the limited stores, canteen, clinics and offices. landfill areas by upholding the principle of The 4 Rs – Reuse, Recycle, Reduce In 2003, our waste generation dropped and Replace. by 27% due to our action to achieve waste reduction targets through We continued our waste reduction participation in the Wastewi$e Scheme measures in 2004: organized by Environmental Protection Department. 4 Increased use of double-sided photocopying and printing. In 2004, we had a 6% increase in 4 Increased reuse of envelopes for business volume (measured as direct internal correspondence. manhours) but with the continuation 4 Increased use internal electronic of the Wastewi$e Scheme kept the communication (email) and growth in waste generated to 2% electronic filing to reduce paper consumption. '000 kg Commercial & Industrial Waste Disposal Quantity 4 Use recycled printer cartridges 1,800 and recycled type paper. 1,600 4 Recovery of spent vehicle lube oil, 1,400 metal scraps (e.g. aluminium 1,200 1,000 sheets, copper and steel turnings), 800 and office wastes (e.g. paper, 600 toner and inkjet cartridges, 400 200 cardboards and plastic) by 0 licensed recycling companies. 2002 2003 2004

Annual Weight of Recyclable waste Collected Kg by BM & CAO 50,000

40,000

30,000

20,000

10,000

0 Collection point of aluminium scrap 2002 2003 2004

Metal Turning Paper Aluminium Sheet Cardboard

The quantity of paper recycled has Annual volume of spent lube oil recycled drastically increased in 2004. This Litre 80,000

was partly a one-time effect of 70,000 disposing of substantial technical 60,000 50,000 records. 40,000 30,000 HAECO also performs repair and 20,000 10,000 maintenance on our vehicles and ramp 0 2002 2003 2004 equipment. It reduces tire consumption by making extensive use of tire retreading. Tires which are too damaged for retreading are sent to The substantial increase in recovery registered tyre recycler for recycling amount of lube oils in 2004 is due to rather than dumping to landfill. the additional amount of lube oils Aircraft tyres are returned to our airline recovered from aircrafts. In the past customers. two years, we recovered lube oil from our ramp equipment only; however, in 2004 we explored the possibility to recover more lube oils which include those are spent for aircrafts, and initiated this waste recovery in August.

Collection point of scrapped vehicle tyres for recycling

Chemical Waste Management

Our major solid chemical wastes include spent rags, spent chemical cans, and spent empty chemical drums. Major liquid chemical wastes include aircraft fuel (kerosene), spent lube oil Chemical waste segregation inside the hangar for aircraft and ramp equipment, hydraulic oil, waste paint and thinners, used battery acids, (200-L), and spent non-halogen organic solvents.. Compacted engine oil cans

Our action meant that our business growth in 2004 did not generate more amounts of chemical wastes.

Compacted Annual weight of liquid chemical waste disposal '000 Litre chemical drums

300

250 Liquid chemical waste composition in 2004 200 Others, 10%

150

100

0 2002 2003 2004 Lube oil, 33% Aircraft fuel, 57%

Annual weight of solid chemical waste disposal '000 kg

250 Solid chemical waste composition in 2004 200

150

100 Spent rags, 41%

Chemical drums, 0 bottles & cans, 2002 2003 2004 59%

IV Noise Control

Our remote location at Chek Lap Kok means noise from our work has little or no effect on neighbours. The noise we make inside our premises is therefore our main noise control issue.

At our CLK premises, noise is generated mainly from two different sources: external noise from aircraft Auxiliary Power Unit (APU) and engine ground running, and noise from repair processes inside our workshops and hangar.

To keep noise levels to the minimum, all engine and APU ground run tests are conducted in the Airport’s Engine Run-up facility which is a barrier to reduce noise impact. Engine Run-up facility as noise barrier Low-noise-controlled ramp equipment, for engine running test e.g. Ground Power Unit and Air-conditioning Unit (with the noise level being kept below 90 dB(A)) are used.

Noise protection equipment (e.g. ear muffs and ear plugs) is provided to staff to protect their hearing. Specified Ground Power Unit equipped with hearing-protection warning signs are noise control device displayed in all these areas and on the equipment to remind staff of wearing the necessary hearing protection devices.

Staff wear ear plugs during noisy work within ear protection zone

V Energy Conservation and Resource Efficiency

Energy conservation not only benefits the environment but also helps the Company reduce unnecessary expenditure. Our Energy Conservation Programme 2004, sought to keep our energy consumption to a minimum.

Annual Electricity Consumption In 2004, we achieved 2.1% and 8.2% '000 KWh saving of electricity and town gas 27,500 27,000

respectively. The effectiveness of this 26,500 Energy Conservation Programme is 26,000 proven by our regular check on our 25,500 25,000

electricity and town gas consumption in 24,500 monthly energy bills showing the 24,000 23,500 continuous decline in energy 2002 2003 2004 consumption in 2004. Electricity consumption distribution at 3 sites in 2004 Line Having clearly identified the areas for Maintenance, 25% further improvement, we proactively introduced and implemented a number of measures to control energy use. Component & Avionics The following graphs show the Overhaul, 7% on-going progress in this area., Base Maintenance, 68% Annual Town Gas Consumption '000 MJ 8,200 Town gas distribution at 3 sites in 2004 8,000 7,800 Component & 7,600 Avionics Overhaul 28% 7,400 7,200 7,000 6,800 6,600 2002 2003 2004

Base Maintenance 72%

NB: There is no town gas consumption in our Line Maintenance division.

2003-2004 Energy Conservation provide natural lighting for the Programme hangar. 4 Reduced and rearranged hangar Energy saving in lighting corridor lighting to enhance energy efficiency. 4 Replaced 1,620 conventional fluorescent lighting ballasts with electronic ones under CLP Power Energy Efficient Lighting Rebate Programme, resulting in a saving of Solar-cell about $174,000 per year. lighting for a guard house 4 Installed solar-cell panel in a remote guard house. 4 Removed unnecessary fluorescent lamps to improve energy utilization in corridors and stairs. 4 Installed 183 motion sensors in store areas that save 20-hour electricity consumption daily in stores and save $97,000 energy running cost.

4 Used flood-light power Motion sensor in a economizers for the hangar’s high storeroom Flood-light power bay lights, which saves 10% energy economizer power. 4 Installed 110 ultra high efficiency LED “EXIT” lights. 4 Installed 20 separate switches for

individual mobile flood light on LED “Exit” sign hangar floor. 4 Retrofitted 600 pieces of T5 luminaries for line maintenance terminal stores, workshops and stairs that save $560,000 per year.

4 Installed 69 photo sensors in open Photo sensor installed staircases and windowed areas. in open staircase 4 Installed translucent panels in hangar doors and side-walls to

Energy saving in air-conditioning energy saving and $140,000 energy cost saving per year. 4 Used heat recovery run-around coil 4 Used new, high-efficient, town-gas for the air-conditioning system of steam cabinets and Chinese the category 5 dangerous goods steamers to save about $20,000 store. 65% cooling energy of the per year. exhaust cooled air can be recovered as cooling capacity.

4 Installed an inverter with CO2 feed-back controls for the Primary Air Units and Fresh Air Fans at Line Maintenance Technical 2 building and Line Maintenance pantry areas Town gas steam cabinets in order to avoid over-demand for cooling load of fresh air in-take. Energy management Energy saving in building service and kitchen equipment 4 Formulated an energy policy to make clear the Company’s 4 Installed an inverter control on air commitment to energy extraction fans of painting booths in conservation. the Paint Shop. 4 Placed stickers and reminders in 4 Set up individual environmental prominent areas to enhance staff’s dust extraction booth for sand awareness of energy conservation. blasting area in Bay 1 of the hangar 4 Suspended operation of some instead of using the large extraction passenger lifts during non-office system from hangar. This design hours and at weekends to improve avoids the energy waste caused by energy utilization. using an over-sized extraction 4 Encouraged staff to switch off system lighting and air conditioners in 4 Used high efficiency electric rooms after use, and in workshops cookers to achieve a target of 57% during lunch and tea breaks.

Energy-saving dust extraction Energy-saving sticker booth as a reminder

Awards Received in Recognition of Environmental Work

Award Title 1 Champion Airport Environmental Best Practice Competition 2 Certificate of Merit 2004 Hong Kong Awards for Industry 3 Wastewi$e Logo Wastewi$e Scheme 4 Gold Wastewi$e Logo Wastewi$e Scheme

Airport Environmental Best Practice Competition 2003/2004

In early 2004, the Company awarded the championship in Airport Environmental Best Practice Competition 2003 – 2004 hosted by the Airport Authority of Hong Kong. This award recognizes the results of our work to optimize the use of resources and minimize our impact on the environment. Our achievement covers a wide spectrum of environmental protection issues including waste management, energy conservation, air quality control, noise control and green procurement.

2004 Hong Kong Awards for Industry: Environmental Performance

HAECO received Certificate of Merit in the category of environmental performance of the 2004 Hong Kong Awards for Industry in November. Our achievement in this event is attributable to our extensive use of environmentally-friendly equipment and products, effective implementation of environmental measures and the concerted efforts of our staff to put the green concepts into practice.

Wastewi$e Scheme logos

In the past we have achieved many waste reduction targets which include: 4 Successfully reduced the total quantity of commercial and industrial waste produced from our business operation by 27%. 4 Successfully recovered more than 80% of our used toner cartridges from disposal through the Used Toner Cartridge Collection Programme. 4 Purchase recycled laser toner cartridges amounting to more than 60% of total consumption. 4 Successfully saved 100% of our scrapped vehicle tyres for collection by the approved tyre recycling agency who recycles tyres to make rubber products. 4 Successfully saved 53% of used metal drums from disposal and reused them for containing liquid chemical wastes. 4 Successfully reduced the annual consumption of fluorescent tubes by 10%.

Gold Wastewi$e logo

certificate

To mark our success in achieving 5 waste reduction targets in the Wastewi$e Scheme organized by Environmental Protection Department, we were awarded the "Wastewi$e Logo" for 2003 to 2004.

We accumulated 9 waste reduction targets achievement in 2004. In recognition of this ongoing efforts, Environmental Protection Department has granted us another “Gold Wastewi$e Logo” in September 2004.

Wastewi$e logo certificate

Continual Improvement in Environmental Performance

Environmental Commitment in indoor air quality certification New Hangar Development Project 4 Reduce weight of waste We are currently building a second generated per unit of hangar at Chek Lap Kok. Our production by 5% planning for this hangar identifies all the significant environmental 4 Increase recovery rate of impacts and ensures compliance recyclable wastes by 5% with the local regulations and standards. 4 Formalize environmental policy compliance inspection system 2005 Environmental Management Programmes

For 2005 our focus on ongoing improvements on managing environmental issues includes:

4 Develop green procurement policy and guidelines for our suppliers

4 Review and update our waste management plan

4 Target a further 3% reduction in energy used per unit of output.

4 Conduct indoor air quality measurements in office areas and maintain the good class level of IAQ standards with reference to guidelines from Environmental Protection Department in order to acquire

APPENDIX I

HAECO Environmental Data Summary

Unit 2002 2003 2004 Business Volume Indicators BM manhours sold per year Hour 1,379,908 1,249,535 1,282,687 LM aircraft handled per year No. 72,861 66,483 81,481

Energy and Fuel Use Electricity consumed (Total) KWh 27,145,069 25,504,751 24,965,716 BM 19,261,53017,675,387 17,141,241 LM 1,615,0821,578,668 1,685,605 CAO 6,268,4576,250,696 6,138,870 Town gas consumed (Total) MJ 8,030,832 7,756,848 7,119,504 BM 6,221,6645,686,896 5,124,576 CAO 1,809,1682,069,952 1,994,928 Diesel consumed (Total) L 2,412,020 2,498,754 2,605,942 Industrial diesel consumed 2,338,786 2,417,329 2,520,153 Vehicle diesel consumed 73,234 81,425 85,789

Water Use Potable water consumed (Total) *(1) m3 109,741 142,005 122,823 BM *(1) 100,806 132,307 113,357 CAO 8,9359,698 9,466

Use of Chemicals Chemicals used for Aircraft Maintenance L 267,503 258,601 297,625 Chemicals used for other than Aircraft Maintenance L 1,834,4861,846,705 1,665,297

Use of Other Materials Paper and paper products consumed kg 54,737 58,261 66,783 Plastics consumed *(2) kg 119,832 103,048 127,388 Metals consumed kg 3,258 2,331 2,382 Paints consumed for Aircraft Maintenance L 18,700 14,705 17,337 Aircraft tyres consumed *(3) kg 472,716 325,718 422,244 Vehicle tyres consumed *(4) kg 14,296 24,240 31,538

Unit 2002 2003 2004 Air Quality (estimated from total electricity and diesel fuel consumed) CO2 emissions kg 22,909,896 22,169,856 22,134,748

Compliance with Legal Requirements for Air Pollution Control Number of new warning letters received from relevant authorities No. 0 0 0 Number of new prosecution actions No. 0 0 0

Water Quality Process wastewater disposed of (Total) m3 97,264 129,769 109,350 BM 87,547122,260 102,428 CAO 6,7177,509 6,922

Compliance with Legal Requirements for Water Pollution Control Number of new warning letters received from relevant authorities No. 0 0 0 Number of new prosecution actions No. 0 0 0

Solid Waste Arisings Industrial & Commercial waste disposed of (Total) kg 1,582,250 1,147,860 1,170,820 BM 1,008,250727,860 806,820 CAO 574,000420,000 364,000 Food waste disposed of kg 317,400 316,050 318,450 Grease trap waste disposed of (Total) kg 279,000 266,950 266,500 BM 189,000175,000 169,000 CAO 90,00091,950 97,500

Unit 2002 2003 2004 Materials Recycling Paper recycled (Total) kg 8,808 11,381 39,701 BM *(5) 1,308 4,772 29,740 CAO 7,5006,609 9,961 Aluminium sheet recycled kg 6,135 6,135 10,225 Metal turning recycled kg 1,574 648 2,140 Cardboard recycled kg 29,514 19,692 24,080 Number of printing cartridges recycled (Total) No. 509 832 622 BM 410480 460 CAO 99352 162 Vehicle tyres recycled kg 0 18,530 25,175

Chemical Waste Arisings Solid chemical waste disposed of (incl. spent rags, empty chemical drums & cans) kg 198,820 130,190 129,185 Liquid chemical waste disposed of (incl. paint, lube oil, battery acid, etc.) L 104,880 89,880 61,240 Spent kerosene (aircraft fuel) disposed of L 108,400 168,600 81,000

Chemical Waste Recycling Spent lube oil recycled L 15,200 15,400 71,200 Spent kerosene (aircraft fuel) recycled L 0 0 36,800 Halon 1301 recycled kg 2,034 3,049 1,842

Compliance with Legal Requirements for Waste Disposal Number of new warning letters received from relevant authorities No. 0 0 0 Number of new prosecution actions No. 0 0 0

APPENDIX I (cont) Note on exceptional changes in environmental data:

*(1) Potable water consumed:

z More water consumed in BM in 2003 than in 2002 due to a new scrubber built for air treatment for the new paint booth in Hangar Bay 1.

z Less water consumed in BM in 2004 (water from workshop, cleansing work and canteen) as a result of water conservation done in 2004.

*(2) Plastic consumed: Increased quantity used in 2004 due to the business growth reflected by 32% increase in direct work hour in the composites and sheet metal shops.

*(3) Aircraft tyres consumed: SARS effect in 2003 bought ~30% reduction of aircraft tyre replacement and this resulted an increase in tyre consumption in 2004 as business resumed.

*(4) Consumption of vehicle tyres: Increases progressively among 3 years as frequency of vehicle maintenance has been increased. Number of miles run by vehicles increased as a result of business growth each year.

*(5) Paper recycled (BM): A substantial increase in recycled paper collected in 2004 is due to a large amount of old documents and records removed from Technical Publication Centre in Technical Services Department.

APPENDIX II

HAECO Abbreviations

BM Base Maintenance CAO Component Avionics Overhaul LM Line Maintenance