ALL IN ALL CARE

ESG REPORT 2019/2020 CONTENTS

02 MESSAGE FROM MANAGEMENT 03 ABOUT THE REPORT 04 ABOUT HKRI 04 OUR SUSTAINABILITY APPROACH 10 MEMBERSHIPS AND AWARDS 12 CHERISHING OUR ENVIRONMENT 26 VALUING OUR PEOPLE 36 CARING FOR OUR COMMUNITY 44 OPERATING RESPONSIBLY 52 PERFORMANCE DATA SUMMARY 61 HKEX ESG REPORTING GUIDE CONTENT INDEX MESSAGE FROM MANAGEMENT ABOUT THE REPORT

Reporting Scope and Standard

Together we can overcome every This ESG Report (“Report”) is produced HKRI holds diversified business interests businesses, joint ventures and subsidiaries by HKRI to communicate the Group’s across , mainland China and operated by HKRI in Hong Kong, mainland challenge, becoming stronger and wiser (“HKRI and its subsidiaries”) sustainability Asia. As an ongoing effort to enhance our China and Thailand as reported in last year. management approach and performance transparency and reflect our geographic We decided to emphasise on our core to do the right thing. in four key areas: environment, human footprint, this year we increased the operations which have significant capital, community and value chain. The disclosures to include quantitative contribution to the Group in terms of Report covers the period from 1 April information of HKRI Taikoo Hui's asset size, profitability and staff strength. 2019 to 31 March 2020 (the “year”). operations in in addition to the Reporting scope is listed in the chart below:

This Report discloses the Group’s ESG performance, while details of our corporate governance and financial performance can be found in our Annual Report 2019/2020. To aid readers in navigating the Report content, a Content Index is available for reference on pages 61 to 62.

2019/2020 was a bittersweet year that we can support through our social In early 2020, the outbreak of COVID-19 The Report has been prepared in accordance with the Property Property Investment and a a for us. While celebrating the Group’s and environmental initiatives. Keeping sadly posed significant threats to ESG Reporting Guide (“ESG Guide”), Appendix 27 Development Management 30th listing anniversary on The Stock up with the latest market trends and mankind. Putting the health and safety of the Rules Governing the Listing of Securities on Exchange of Hong Kong Limited standards in relation to sustainability of our employees, customers and every The Stock Exchange of Hong Kong Limited issued (the “Stock Exchange”) with all our governance, we established the ESG community member as top priority, we by Hong Kong Exchanges and Clearing Limited stakeholders, we were adversely Committee on top of the existing immediately took all possible measures. (“HKEx”). In response to the latest revisions Operations affected by the social event and the CSR task force, to further increase Other than performing intensified cleaning effective for financial year commencing on or of the Group economic downturn followed by the the involvement of the Board and and disinfection works and keeping after 1 July 2020, we have further enhanced our spread of COVID-19 pandemic in the senior management. Through the ESG our customers updated on the latest reporting framework to address most of the newly second half of the year. These issues Committee, the relevant risks and situation, we also took extra measures introduced reporting requirements and disclosed d Healthcare City Management & together posed challenges not only opportunities are thoroughly evaluated to help those who were subject to home our full process in ESG governance and materiality Transportationb on our operations, but also on our and integrated into our overall strategy quarantine and offered rental concession assessment. Environmental, Social and Governance in order to work towards a better to help the tenants in need to overcome (“ESG”) performance. common future. Supplementary policies difficulties. To keep our employees safe, Your feedback is valuable to our continuous improvement. are put in place to guide sustainable proper protective gears were provided Please email your queries, comments or suggestions to In 2019, HKR International Limited development across our diverse business and special work arrangements including [email protected]. Hospitality c (“we”, “HKRI” or the “Company”) portfolio. work from home and utilisation of online continued to strive for perfection and video conferencing tools have been create a harmonious and rewarding We are pleased to see the remarkable adopted since February 2020. We believe Reporting Principles lifestyle in the communities we built. progress we have made in building that together we can overcome every Decades of commitment and excellence, comfortable accommodation, vibrant challenge, becoming stronger and wiser The following principles have been adopted in the preparation of this Report: together with the long-standing workplace and supportive communities. to do the right thing. support from our stakeholders, helped With the advancement of green Materiality: information deemed ESG important is Quantitative: quantitative information is provided with us succeed as a leading multinational technology, we keep tabs on the Looking forward, I would like to covered in this Report. A materiality assessment exercise narrative and comparative figures where possible. The relevant corporation to embrace sustainable concept of sustainable community, thank all of our stakeholders who was conducted for determination of material ESG issues standards, methodologies as well as assumptions used to prepare growth, which in return, has become leveraging green construction have stayed with and supported HKRI with results approved by the ESG Committee. the quantitative information are disclosed as appropriate. a key motivation for us to make techniques and designs to combat tremendously throughout the years. We continuous contributions back to the climate change, as well as mitigating hope the impacts we have made will Consistency: ESG data are prepared and presented using Balance: information is presented without selections, omissions community. our environmental impact. The continuously influence society positively consistent methodologies, unless otherwise specified, to or other forms of manipulation that may potentially affect the harmonious balance between nature and maintain over time. Joining hands allow for meaningful comparison. objectiveness of the Report. As the pioneer in Asia in bringing and built infrastructure as presented with our valuable stakeholders, we are innovative and distinctive living concept in our property development projects committed to growing our business and

for our customers to a new level, further enhances the quality of living. devoting ourselves for another 30 years a The Report covers the Group’s property development and investment projects in Hong Kong, mainland China and Thailand, including the newly added quantitative we have responded to the global Practised on a daily basis, our eco- and more. information of HKRI Taikoo Hui in Shanghai. call for sustainable development and friendly initiatives in city management b Discovery Bay is based in Hong Kong. c The reporting scope covers operations based in Hong Kong, mainland China and Thailand. identified six areas in the United Nations and hospitality operations are effective CHA Mou Zing Victor d The reporting scope is confined to operations based in Hong Kong. Sustainable Development Goals (SDGs) in driving positive changes. Deputy Chairman & Managing Director

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ABOUT HKRI ABOUT HKRI

P Pioneer In 1977, the family of Dr CHA Chi-ming, - Break new grounds the late founder and chairman of a group of companies whose holding Vision Mission Values R Respect entity later became known as HKRI, - Value the individual and cherish our environment acquired the equity interest of Hong I Innovation Kong Resort Company Limited, the Contributed - Think outside the box owner and developer of Discovery Bay 1,546 hours and on Lantau Island. Formed in 1989, HKRI I Integrity about To be the pioneer of We strive to create a healthy, 2 became the holding company of the HK$ 4,340,000 to innovative living space stylish and distinctive living PRI DE - Uphold high ethical standards Group listed on the Stock Exchange. the communities for experience through D Devotion charitable purpose teamwork and passionate Living up to the vision and aspirations of to our business that benefits our - Be committed and passionate pursuit of innovation the late Dr CHA, the Group has seized stakeholders and supports sustainable and excellence E Excellence Obtained opportunities to diversify its business development in places where we - Consistency in the pursuit 6 interests in real estate development and operate. Guided by the Group’s vision, of our quality standards green building investment, property management, mission and values, we extend our certification luxury hotels and serviced apartments, mission of creating a healthy, stylish and recognitions healthcare services and other investments distinctive lifestyle to other parts of the in Hong Kong, mainland China and region and expand our positive influence Earned a turnover of across Asia. Throughout the years, we to the wider community and beyond. The Board HK$ 4,696.5 million have incorporated a holistic approach Maintains oversight in 2019/2020 of ESG issues, reviews A professional ESG risks, reviews and team of approves strategic direction 2,410 recommended by Geographic employees ESG Committee and endorses 5 presence across as at 31 March 2020 ESG Reports HKRI major business Asia Pacific including Handbook and Code of Conduct. segments namely Hong Kong, Shanghai, Vigorous monitoring and control at-a-glance Jiaxing, , Founded in A publicly listed property development company in Bangkok, and mechanisms are in place to detect and 1977 and investment, Hong Kong with hospitality, healthcare Hokkaido prevent bribery, fraud, or other forms of by Dr CHA Chi-ming risk management steering group in stock code and services malpractice. Our annual risk assessments identifying, assessing and prioritising risks, ESG Committee 00480 provided covering all business units enable us to as well as establishing risk mitigation identify and mitigate potential risk of Develops ESG policies and plans and assigning risk owners to closely initiatives for business corruption. The Group has developed monitor identified risks and implement operations, evaluates ESG risks, a standard whistleblowing procedure develops and recommends OUR SUSTAINABILITY APPROACH mitigation plans. Independent review on for our employees to report suspected strategic direction for these systems is performed regularly by misconduct to our internal audit the Board’s approval, Sustainability Governance the Internal Audit Department. On this supervisor. All cases are treated in strict proposes improvement basis, we work to strategically address and recommendations, reports confidence to protect the whistleblower. Building on the solid foundations of to bring new perspectives and lift line with the ESG risks and opportunities minimise the ESG risks in our operations progress to the Board and reviews ESG Reports corporate governance structure and organisation performance. We have identified during the year. It also provides and supply chains. Further information can To refresh employees’ anti-corruption practices, the Group has established four Executive Directors, and seven Non- guidance to the CSR task force for the be found in the Corporate Governance e knowledge, we have invited the a formal ESG Committee this year to executive Directors of whom four are execution of ESG related matters. Report on pages 64 to 85 of the Group’s Independent Commission Against facilitate ESG management in building Independent Non-executive Directors, Annual Report 2019/2020. a sustainable and resilient business. constituting more than one-third of the Furthermore, under the established Corruption (“ICAC”) to deliver training course to employees, including CSR Task Force The chart on the next page shows our Board. The Board receives reports from risk management framework and Anti-corruption sustainability governance framework. the ESG Committee on progress made governmental structure, which consists management, annually and circulated Executes ESG strategies against relevant strategies and goals, of the Board, the Audit Committee, the relevant materials to board members. and policies, monitors ESG We uphold the highest ethical standard performance and impacts The Board assumes the overall as well as appropriate improvement risk management steering group and and strictly adhere to all anti-corruption of ESG issues to business responsibilities to ensure HKRI creates recommendations to further enhance the business lines, the ESG risks are also During the year, there were no cases of related laws and regulations throughout operations, reports long-term value to our stakeholders Group’s sustainability performance. incorporated into the Group’s enterprise non-compliance with relevant laws and our operation and value chain. All progress to the ESG and maintains high standard of risk management structure to ensure the regulations relating to bribery, extortion, Committee and prepares employees must strictly observe all corporate governance at all levels. The The ESG Committee comprises Group maintains a sound and robust risk fraud and money laundering in our ESG Reports regulations related to conflict of interests f Board comprises 11 Directors with a department heads of different functions management and internal control system. operations . as stipulated in the Group’s Employee diverse mix of genders, professional and is responsible for determining the Our Risk Management Policy guides the experiences, skills and knowledge Group’s ESG objectives and priorities in f The laws and regulations that are most relevant to the Group include, but not limited to, the Prevention of Bribery Ordinance (Cap.201), the Law of the People’s e The Terms of Reference to the ESG Committee can be found on our website (https://www.hkri.com/en/CSR/ESG-Committee). Republic of China for Countering Unfair Competition, the Law of the People’s Republic of China for Anti-Monopoly, and the Act Supplementing the Constitution Relating to the Prevention and Suppression of Corruption in Thailand.

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Sustainability Policy Supporting the United Nations Sustainable Development Goals

Sustainable development is fundamental The approaches and principles stipulated and monitor our performance to building The SDGs launched by the United Nations in 2015 is an action plan for the planet and people to thrive by 2030. It provides a to HKRI’s vision, mission and core values. in the Sustainability Policy, relating to sustainable, liveable and socially framework for the users to track their progress towards the sustainable goals. As a corporate citizen, we are determined to The Sustainability Policy g has been environment protection, workplace, responsible communities that people support this initiative and set agenda to shift to a more sustainable path. We have identified six SDGs that are most relevant to established to formalise our longstanding value chain and community investment, are proud to be an integral part of. our business and we are committed to achieving them in the future: sustainability practices, ensuring that the lay the foundation for achieving our management of related issues is carried sustainability aspirations. We will out consistently within the Group. continue to develop different measures

Sustainability Strategies

Reducing Environmental Impact Building a Sustainable and Caring Providing Quality and Reliable Good Health Affordable Decent Work Sustainable Responsible Climate • To mitigate our impact on the Community Services and Products and and and Cities and Consumption Action environment by reducing our emissions • To build sustainable communities by • To deliver responsible and quality Well-being Clean Energy Economic Communities and and consumptions, streamlining waste offering care and support to the local services and products; Growth Production management and maximising the use communities we operate; • To respect and uphold data privacy of environmentally friendly materials; • To participate in volunteering and of all stakeholders Looking ahead, we will establish targets on different ESG aspects to accelerate our sustainable development. • To raise stakeholders’ environmental community activities; awareness • To support artistic and cultural development

Maintaining a People-first Workplace Creating a Responsible Value Chain • To attract and retain the best talents; • To uphold high ethical standards; • To provide an equal, safe and healthy • To engage with and drive suppliers, workplace with adequate development customers and tenants in achieving opportunities; sustainability visions Customers • To promote open communication with Employees (including residents, tenants, various transparent channels Management Team • i-Pri2de staff newsletters passengers, customers of healthcare services, hotel guests • i-Pri2de staff newsletters • Websites and social media and club members) Investors • Websites and social media • Intranet • Customer satisfaction surveys • Press releases • Intranet • Annual / interim reports • Customer service hotlines, emails • Investor Relations page • Annual / interim reports • ESG reports and mobile phone applications Stakeholder Engagement Business Partners on website • ESG reports • Press releases • Websites and social media • Annual / interim reports • Press releases • Interviews Methods : • Websites and social media • Annual / interim reports • ESG reports • Interviews • Annual dinners • Annual / interim reports • Newsletters • Annual general meetings • Annual dinners • Meetings • ESG reports • ESG reports Government and • Investor meetings and • Meetings • CSR activities • Meetings • Recreation clubs Industry Associations conference calls • CSR activities • Employee engagement activities • Industry forums • CSR activities • Websites Suppliers • Annual / interim reports • ESG reports • Websites • Public consultations • Annual / interim reports • Industry forums • ESG reports • Audit and assessment Media • Meetings Stakeholder Engagement • Press releases • Websites and social media We respect and value our stakeholders’ their expectations with regard to the To supplement these communication • Press conferences views, with the belief that they are economic, environmental and social channels, we collected feedback • Annual / interim reports • ESG reports valuable pieces of information that matters related to our operations. from some external and internal cannot be neglected for the Group's The stakeholder engagement process stakeholders through an online survey Non-governmental Organisations continued success. The ESG Committee allows us to make informed decisions during the year. These stakeholders • Websites and social media has identified nine core internal and and enhance our operational as well as included ESG Committee, directors • Corporate social responsibility external stakeholder groups that have sustainability performance. The above and senior management, employees, (“CSR”) activities considerable dependency and influence provides an outline of our stakeholder contractors, tenants, non-governmental • Annual / interim reports • ESG reports on us. We constantly engage with engagement methods. organisations (“NGO”) and members of these stakeholders to understand Discovery Bay community.

g More information on the Sustainability Policy can be found on our website (https://www.hkri.com/en/csr/sustainability-policy).

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OUR SUSTAINABILITY APPROACH OUR SUSTAINABILITY APPROACH

Materiality Assessment The results of materiality assessment conducted during the year are mapped into the materiality matrix below:

The opinions and feedbacks collected from the stakeholder engagement exercise aforesaid were incorporated into a structured materiality Materiality Matrix assessment to identify a list of key material ESG issues to be included in the Report. The Moderately Important Important Highly Important materiality assessment process is outlined below:

1 Identification

Stage Peer benchmarking: HKRI’s disclosures are 2 benchmarked against the disclosures of suitable peer 9 1 10 3 companies from the property development, investment 13 5 and management, as well as hospitality, healthcare and 23 15 12 4 14 18 service provider industries to pinpoint material 24 22 19 21 29 ESG issues. 30 25 20 11 17 6 8 Stakeholder engagement: internal and external 16 26 stakeholders are invited to rank the importance of 31 each ESG issue and provide feedback regarding their Importance to External Stakeholders 7 27 key concerns on the Group’s ESG issues during our stakeholder engagement exercise. 28

Stage Prioritisation Importance to Internal Stakeholders 2 The results of the peer benchmarking exercise and our stakeholder engagement exercise are consolidated. A list of potential material ESG issues Operate Value Our Cherish Our Care for the were brought forward for discussion in Stage 3: Validation. Responsibly People Environment Community 1 Anti-corruption and 9 Occupational health and 18 Use of energy 29 Responsible money laundering safety 19 Use of water investment 2 Personal data and 10 Equal opportunity and 20 Air emission 30 Charity event and privacy anti-discrimination donation 21 Greenhouse gas 3 Intellectual property 11 Training and development (“GHG”) emission 31 Volunteering and rights social participation 12 Promotion and 22 Sewage 4 Product quality and safety compensation 23 Hazardous waste 5 Customer satisfaction 13 Employee benefits and welfare 24 Non-hazardous 6 Green and ethical waste Validation procurement 14 Recruitment and dismissal Stage 25 Climate resilience 7 Advertising and 15 Anti-child and forced 3 Findings from the first two stages are presented to the ESG Committee, who labelling labour 26 Food waste subsequently confirms a list of key material ESG issues, and the respective aspects 8 Supply chain 16 Working hours and holiday 27 Packaging materials and KPIs stipulated in the ESG Guide for disclosure. sustainability 17 Diversity 28 Biodiversity

A total of 31 ESG issues were identified through the materiality assessment. Seven issues are classified as highly important, 21 issues are classified as important, and the remaining three issues are classified as moderately important.

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HKRI Auberge Discovery Bay The Sukhothai Shanghai MICHELIN Guide Shanghai 2020 - The Sukhothai Shanghai and Taikoo Hui Hong Kong Business Traveller China Awards 2019 La Scala The Must-go Shopping Mall Say Yes to Breastfeeding 2020/2021 - Best Design Hotel in China Organiser 2019 - Gold Label of Breastfeeding Friendly Organiser Michelin Organiser Premises Business Traveller dianping.com - Breastmilk Storage Service Label Time Out Hospitality Awards The Best BANG Awards 2019 HKR International Limited Organiser - Boutique Hotel of the Year Grade Evaluation For China UNICEF Hong Kong - Best Guest Experience Hotel - Hotel Brunch of the Year “15 Years Plus Caring Company” Logo Shopping Center - La Scala Asia Property Awards Organiser Organiser - Best Developer (Hong Kong) - Five Star Shopping Center Traveller Review Awards Shanghai BANG Organiser The Hong Kong Council of Social Service TimeOut Shanghai magazine Organiser Organiser Organiser PropertyGuru Commercial Cultural Tourism Booking.com The Best Business Hotel Award 2019 The 10th Hong Kong Outstanding Corporate Committee of China Real Estate 2019 TOP 50 Hotels in China Organiser Citizenship Awards Association 2019 China Real Estate Fashion Awards Ctrip Awards 2019 City Traveler - 1 Diamond - Corporate Citizenship Logo - Enterprise - Influential Leader of the Year - Mr Victor - Best Resort Hotel Organiser 2019 Lifestyle Awards Voyage magazine Category Cha Organiser The Gold List 2019 - Shopping Destination of Ctrip.com Organiser Organiser - China Top 10 Hotels The Hong Kong Productivity Council Boao Real Estate Forum 2019 The Year The 10 Best New Hotels in the World Organiser Organiser Loved by Guests Award Winner 2019 Organiser Condé Nast Traveler China magazine Hong Kong Green Awards 2019 Beijing Evening News Industrial Economy that’s magazine Organiser Make It Better Media Group - Corporate Green Governance Award - Annual Report Hotels.com Stakeholder Engagement - Contribution Figure of the Year Top 30 Hotels for Honeymoon Organiser - Mr Victor Cha Top 5 4-Star Hotels The Sukhothai Bangkok Best of Bangkok Award Green Council Organiser Top 5 Hotels with Infinity Pool Organiser Beijing Evening News Star Award Winners Organiser TripExpert Eco-brand Awards 2019 - 4 Star Rated Hotels th Travelmyth Organiser The 9 China Charity Festival - 4 Star Rated Spas - Spa Botanica East Week magazine Guest Review Award 2019 - 2019 Social Responsibility Business 2019 Partner Employer Award Organiser Leader of the Year - Mr Victor Cha - Outstanding Corporate Forbes Travel Guide Organiser Silver Award for Volunteer Service - 2019 Public Welfare Communication of Discovery Booking.com the Year Organiser Organiser The Hong Kong General Chamber of Small Top Italian Restaurants Special Bay Services Readers’ Choice Awards 2019 Social Welfare Department Organiser and Medium Business Awards 2020 China Charity Festival Committee Management Limited - Three Forks Awards - La Scala - Top 10 Hotels in Bangkok Green Office and Eco-Healthy Awards 2018 Hong Kong Awards for Organiser Organiser Good MPF Employer 2018-19 Labelling Scheme Environmental Excellence Gambero Rosso Condé Nast Traveler magazine - Good MPF Employer 5 Years - Green Office and Eco-Healthy Workplace - Bronze Award - Property - E-Contribution Award Labels Management (Residential) - MPF Support Award Organiser Organiser Discovery Bay Organiser World Green Organisation Environmental Campaign Corporate Member Mandatory Provident Fund Schemes Authority Recreation Club Committee Name of Organisation Type of Membership China Finance Summit 2019 “5 Years Plus Caring Company” Logo Employer of Choice Award 2019 The Real Estate Developers Association of Hong Kong Corporate Member - Business Leader in New Era - Mr Victor Cha CLP Smart Energy Award 2019 Organiser - Next Generation Development Award The Hong Kong General Chamber of Commerce Corporate Member - CSR Model - Joint Energy Saving Award The Hong Kong Council of Social Service Organiser Employers’ Federation of Hong Kong Corporate Member Organiser Organiser JobMarket Hong Kong Institute of Human Resource Management Corporate Member Organising Committee of China Finance CLP Power Summit The Chartered Institute of Logistics and Transportation in Hong Kong Organisation Member Mental Health Workplace Charter th 7 Best Property Safety The Hong Kong Association of Property Management Companies Member Hong Kong Business Management - Mental Health Friendly Organisation Management Award Excellence Awards 2019 Hong Kong Hotels Association Member Organiser China Residential Projects - Merit The Federation of Hong Kong Hotel Owners Member - Executive of the Year Award for Department of Health and Advisory Committee Organiser Real Estate - Mr Victor Cha on Mental Health The Thai Hotel Association Member Occupational Safety & Health Sohu Focus (Jiaxing) Organiser American Chamber of Commerce (Thailand) Member Council - Habitat of Honour of the Year Hong Kong Business 2019/20 Mercury Excellence Awards - Creekside One Thailand Incentive and Convention Association Member - Websites/ Mobile Media: Redesign/ - The Most Valuable Project of the Year Association of Thai Travel Agents Member Relaunch - Silver Award - Mansion One Organiser Organiser Charter MerComm, Inc. Sohu Focus Name of Organisation Type of Charter HKSAR Environment Bureau Energy Saving Charter Food Grace Food Saving Pledge

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Quick Answers to Your Concerns

Q How does HKRI approach Green Building? A HKRI has adopted green building design and nurtured green community for years. Discovery Bay Plaza Extension compliance with BEAM Plus, a series Our commitments are well of green measures with respect to demonstrated in Discovery Bay. Discovery Bay was our first property waste management, pollution control, HKRI works to obtain more development project in Hong Kong. GHG emissions, energy use, water green building certifications With more than two-thirds of its areas and indoor air quality have been including Leadership in Energy being landscaped as green zones, the put in place during construction and HKRI fully acknowledges the importance of and Environmental Design (LEED) massing, height profile, building and operation. Examples of the green protecting and conserving the environment. As and Chinese Green Building street orientation of the unique “Eco- measures include: a pioneer in the industry, we strive to be a role Label, with a strategic focus on friendly Town” have been carefully model and create healthy, stylish and sustainable technological innovation. We designed to promote sustainable living Achieve more than 30% living experiences in a responsible manner. We closely will continue to be the pioneer and weave nature into the community. recycling rate with on-site monitor the potential adverse environmental in green building design to Discovery Bay has won the “Urban wastes sorting and recycling; impacts that may arise from operations; and facilitate industry advancement Design & Master Planning Award” continuously develop innovative solutions, and generate sustainable values to and the “Green Development Award” Save up to 20% of water such as designing green buildings, to customers, visitors, tenants and the at the “CAPITAL The Outstanding annually by using devices with minimise those impacts. Through promoting environment. Developer Awards” organised by of grade 1 water efficiency green workplace and endorsing green CAPITAL Magazine and CAPITAL label; production processes, we aspire to build a WEEKLY for six consecutive years since more sustainable future for our employees, 2012, recognising the community’s Use of non-chlorofluorocarbon Q What does Climate customers and the wider community. After exceptional planning and sustainability (“non-CFC”) refrigerants; years of dedication, satisfactory results and excellence. Change mean to HKRI? remarkable improvement in our sustainability Carry out laboratory analysis It is a global issue that affects performance have been seen. A Ever since we started developing and inspections to ensure good every corner and everyone in the Discovery Bay, we have been water and air quality. world. In September 2019, the Sustainable Building committed to making Discovery United Nations called the Climate Bay a better place to live. The new Besides, the new plaza extension features Action Summit and urged for Sophisticated and prudent planning is the core of Discover Bay Plaza extension, equipped various green building design elements, concrete and realistic plans toward our business development. We understand that good design is with more leisure and shopping such as a vertical green wall, glass façade the goal of net zero emission by necessary for the success of a property development project, both financially choices, and added greeneries to the and an over-15,000-square-feet roof 2050. As a responsible corporate, and environmentally. Our internal Project Management Guideline encourages community, is scheduled to complete garden. Landscaped area is also increased HKRI shares the responsibilities to the incorporation of green building design features in every stage of property in 2020. Alleviation of environmental to more than 40,000 square feet. These reduce emissions and relieve the development and pursuance of the Hong Kong Building Environmental Assessment impact was carefully considered elements will provide better leisure space impact from climate change. At Method (“BEAM”) Plus certification, as well as meeting LEED standard for our during the planning stage, and, in for residents and at the same time help the same time, HKRI recognises properties. Green technologies and materials such as diatomite are widely adopted create a greener environment. and is prepared to mitigate the to make buildings more resource-efficient. risks presented by climate change in natural and human system. In addition, we also closely monitor the level of dust, fumes, odour, waste, noise, vibration, lighting, emissions and other sources of pollution generated from construction, operation and maintenance of our buildings. Environmental assessments, record tracking and independent audits are regularly performed to ensure our green building principles are thoroughly applied to create a safe, healthy and eco-friendly living environment.

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Rainwater

Concave-down Permeable IL PICCO Roof green spaces roads Greenland

In line with our Sustainability Policy, IL PICCO, the latest residential project in Discovery Bay, has incorporated a range of eco-friendly designs. For instance, double glazed windows with better heat insulation are used to reduce the need for air conditioning and subsequent electricity consumption. Benefits of Using Thermally-broken Glass façade is adopted to maximise daylight ultilisation. Aluminium Window Flow controllers with grade 1 water efficiency label are installed on water faucets for water conservation. In addition, cut and fill excavation method has been used throughout the construction to preserve appearance and biodiversity on land surface while the excavation soil is reused for constructing roads and parks. Trees along the pavement and green roof on the plant room also bring additional Pipes and wells environmental benefits. Greater heat Replenishment retention Recycled Irrigation (In winter) River Washing Greater heat gain reduction (In summer) In view of the increasing risks of severe flooding resulted from climate change, the “Sponge City” concept was deployed in Riviera One to integrate flood control into overall planning. Over 60% of the underlying surfaces are made Greater water with water-permeable materials to prevent surface runoff and soak rainwater RIVIERA ONE penetration for various uses. This approach reduces flooding and allows evaporation for resistance temperature moderation. The design of “Sponge City” has been adopted in Incorporating a range of green elements, including LED other upcoming residential projects at Jiaxing city. lighting, thermally-broken aluminium window with low-emissivity and insulating glass, and air-to-water heat pump system, Riviera One in Jiaxing city has attained 2 Star rating in the Chinese Green Building Label. Reducing noise transmission

Anti-frost and anti-fog

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Conserving Our Resources

Energy Saving and Emission Reduction

As an ongoing effort to relieve global During the year, HKRI Taikoo Hui warming and fulfil the responsibility of a implemented cloud-based smart energy good corporate citizen, HKRI is committed management platform to track and to reducing GHG emissions throughout its optimise energy consumption, as well operations. We are particularly concerned as improving the operation of cooling with the impacts resulted from energy and heating systems, lighting and consumption at our investment properties other electronic appliances, resulting in and hotels, and fuel consumption by our approximately 250,000 m3 reduction in transport operations, while also being the use of natural gas and 4,300,000 kWh alert of our other business operations drop in electricity consumption. that generate GHG emissions. We take a Energy-efficient appliances holistic approach to energy conservation such as those specified by labels under and emission reduction. A diverse range of the Mandatory Energy Efficiency Labelling measures are adopted in our operations, with achievement of considerable results. Scheme of the Electrical and Mechanical Meanwhile, we closely monitor monthly Services Department to replace obsolete and energy consumption data to identify low energy performance appliances; replacing potential improvement areas. As a result, existing tubes with LED lighting system. compared to 2018/2019, this year we have reduced our electricity consumption in Hong Kong by around 9.6%. Renewable energy Eye-catching such as solar energy to power electrical reminders and appliances including fans at bus stops, Electricity Consumption notices lighting and hot water systems, sensor lights in Hong Kong along walking paths and insect control to remind staff and customers of systems at Discovery Bay; high-speed their environmental responsibility. elevators powered by renewable energy at HKRI Taikoo Hui. ’000 kWh -20.5% electricity usage in Hong Kong comparing to 2015/2016 32,000

29,500 -4.5% -2.8% ENERGY SAVING 27,000 -5.3% Policies Smart systems and devices to switch off idle electrical appliances and INITIATIVES with computing capabilities, motion sensors set air-conditioning temperature within 24,500 -9.6% and automation technologies to optimise the range from 24 to 26 degree Celsius; energy efficiency of lighting, heating, suspend usage of lifts after midnight; IN 2019/2020 ventilation and air-conditioning and to suit 22,000 and perform regular cleaning and seasonal changes; wall insulation was also maintenance of fan coils, compressors, deployed to reduce heat loss. chillers and condenser tubes.

2015/2016 2016/2017 2017/2018 2018/2019 2019/2020

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Apart from energy saving, we are proactive in minimising air emissions. We adopt different emission reduction initiatives in our operations, especially our transportation services, and monitor the emission data regularly to further explore ways for reducing air emissions and improving air quality. All of our goods vehicles at Discovery Bay are using Euro V diesel, and we are on track to replace ageing buses with new models that align with the Euro VI standard. Meanwhile, we also use marine light diesel with a sulphur content less than 0.05% for all ferries to further reduce emissions.

Additional Emissions Reduction Initiatives

Moving ahead, we plan to reinforce our commitment to reducing emissions in the coming years. To achieve this, we shall utilise more green technologies and improve current process to make them more emission friendly. We will continue to uncover ways and innovative green measures to make our operation more sustainable. Property Development and Investment Corporate Office • Adopt automated parking system in some of our commercial properties • Install various energy-saving devices such as to reduce car emissions from driving automatic switch-off timers and motion sensors around to find parking lot • Adopt open-office design to facilitate air ventilation • Develop eco-friendly buildings to • Set out green office guidelines regarding the use increase energy and resource efficiency of paper, energy and water, as well as handling of • Uphold green construction principles waste to reduce, reuse and recycle used Transportation • Encourage employees to utilise video conference materials and utilities whenever • Replace aging auxiliary engines in vessels systems and online applications to reduce travelling possible and feasible • Upgrade air conditioning systems of • Advocate use of public transport for commuting ferries and use environment-friendly purpose refrigerants • Lower water resistance of ferries by applying “antifouling system” bottom paint to reduce fuel consumption • Limit the “stand-by” time of buses Hospitality by turning on bus engines only three • Reuse collected steam from laundry and hot water generator in minutes before departure boiler to reduce consumption of electricity and liquefied petroleum • Continue with trial runs of electric bus gas (“LPG”) • Replace refrigerants with non-CFC type in Thailand operation • Use diesel exhaust fluid and emission friendly fuels, such as Euro V diesel, to reduce emissions • Switch off idle decorative, promotional, or advertisement lighting at certain time

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Water

In view of the scarcity of fresh water worldwide, we have strengthened our efforts in preserving water resources Food waste is another major focus Climate Resilience and increasing water usage efficiency. In Discovery Bay, we reduce the use of municipal water through of our waste management. As the sourcing water from our own reservoir for flushing and irrigation; meanwhile, a water leakage detection Group’s most significant source of Designing for Climate Resilience system and five additional water leakage monitoring devices are in place to track water flow and food waste, our hospitality operation minimise water wastage. Our new projects in Discovery Bay have adopted devices with grade 1 has taken various actions in this Climate change is becoming one water efficiency label to reduce up to 20% of water consumption. regard. Besides recycling food of the greatest issues confronting waste, we apply close monitoring humanity today. Understanding Extra attention was given to our hospitality operation, as it accounts for the majority of and tight controls over the use our corporate role in addressing the Group’s water consumption. On top of making use of the reservoir water, hospitality of raw ingredients to minimise climate change threats, we operation in Discovery Bay has adopted additional initiatives. For instance, Discovery possible wastage due to adopted a proactive and forward- Bay Golf Club stores rainwater at golf course ponds for irrigation and has installed improper handling, while portion thinking approach to assess our a smart irrigation system to determine the optimal irrigation frequency and sizes are carefully managed to vulnerability to climate risks and water usage based on soil type, grass type, and weather information such as avoid food spoilage. On the other integrate such considerations into our humidity, temperature and rainfall collected from an on-site weather station. hand, we foster food waste recycling mid- to long-term strategic planning. Our hospitality operation in Thailand and property projects in mainland China through the Environmental Protection Different business units have set up their and Thailand make effort in recycling water and reuse it for gardening. Department’s “Waste Cooking Oils” own policies and procedures to better Office towers of HKRI Taikoo Hui have grey water recycling system Recycling Administrative Registration prepare for operating under extreme in place to optimise water use. Other water conservation Scheme to convert waste cooking weather, such as typhoon and rainstorm. measures adopted in our managed properties include the oil into biodiesel. During the year, Our green approaches The idea of climate resilience is use of dual-flush systems, automatic faucets as well as hospitality operation had recycled in hospitality operation: embedded in our property development flow restrictors. In future, we will upgrade our bus about 260,000 kg of food waste projects to mitigate physical risks washing machines with water recycling function to 25.6% and about 15,000 kg of cooking oil, • Deploy biodegradable posed by extreme weather situations. further enhance water usage efficiency. drop of water accounting for 98% of total food materials for packaging of The “Sponge City” design concept consumption waste of the operation. hotel room amenities adopted in our projects in Jiaxing city intensity compared demonstrates their resilience to heavy to last year Waste Other initiatives such as responsible • Replace plastic cutleries with precipitation and flooding issues. procurement, reducing excessive wooden utensils, and plastic Besides, the building standards in our Our Sustainability Strategy and internal policies purchase, recycling of different bottled water with water Thailand project exceed minimum provide guidelines on waste management. We strive materials are also adopted as stations or glass bottles requirements to combat natural hazards. to reduce waste generation at the source, especially appropriate across our operations Our infrastructures show high resistance non-hazardous waste, which accounts for a majority of our to reduce other types of waste. City to heat stress, excessive rainfall and total waste production and encourage reuse and recycling. We are management operation at Discovery • Use recyclable takeaway earthquake. The ground floor and determined to reduce our impacts to the environment through adopting Bay has particularly installed a wood boxes, drinking straws, soup basement levels are raised above the this holistic approach in waste management. chipper to facilitate wood recycling or cups, shopping bags, coffee highest flood level to ensure better upcycling. and tea cups protection against flooding. Paper is a major source of our non-hazardous waste. As such, we have adopted various measures to reduce the paper usage. At our offices, we Despite that hazardous waste only Promoting Environmental encourage the use of double-sided printing, paperless communication such as accounts for a relatively small portion Awareness email and e-approval system, as well as soft copies whenever possible. Electronic of our total waste production, we health record has been implemented at our healthcare operation to reduce use of handle such waste seriously and apply During the year, there were no Along the process to build climate paper. To facilitate recycling of paper as well as other administrative wastes including all necessary precautions in compliance non-compliance cases with relevant laws resilience, we are keen to minimise plastic, ink and toner cartridges, we place collection boxes at different locations. with laws and regulations. Clinical and regulations relating to air and GHG our carbon footprint and reduce waste Furthermore, recognising that a large amount of paper may be used during the design and wastes produced by our healthcare emissions, discharges into water and production across our value chains. We tendering process of property development projects, we have established the policy of issuing operation are segregated from land, and generation of hazardous and also strive to inspire our employees, soft copies of tender drawings and other documentation. Option is provided to shareholders to other wastes, labelled and packaged non-hazardous waste h. customers, partners and residents to receive electronic financial reports and other communication materials to reduce paper consumption. properly. For transportation operation, embrace a sense of environmental the used engine oil is collected and responsibility through various events and processed by qualified external facilities. collectors while wastewater is properly channelled to a treatment plant before discharge.

h The laws and regulations that are most relevant to the Group include, but not limited to, the Water Pollution Control Ordinance (Cap.358), The Environmental Impact Assessment Law of the People’s Republic of China, and the Enhancement and Conservation of National Environmental Quality Act in Thailand.

22 HKR International Limited ESG Report 2019/2020 ESG Report 2019/2020 HKR International Limited 23 CHERISHING OUR ENVIRONMENT CHERISHING OUR ENVIRONMENT

We provide convenience to encourage Pledge and donated about 150 pieces of respectively. Residents and passengers can Hike Around Discovery Bay low-carbon lifestyle. For example, recycle mooncakes to the needy since 2018. We also choose to support the glass recycling bins are provided in public areas of our also encouraged colleagues to send festive campaign co-organised by city management Boasting a number of scenic trails and beaches, properties. Facilities for charging electric wishes using e-cards to promote food and transportation operations, and our Discovery Bay is one of the best hiking spots in vehicles are also installed to promote the saving. cleaning contractor Baguio Cleaning Services Hong Kong. Starting from Discovery Bay, there use of green transportation.Within our Company Limited. Idle toys, used bicycles are hiking trails to Mui Wo, Lo Fu Tau, Finger offices across the Group, we regularly We also use our best endeavour to raise and books are collected in Discovery Bay Hill and Peng Chau. We have thus published put up posters and notices which serve environmental awareness amongst to help underprivileged groups. Different the Discovery Bay Hiking Guide and uploaded as mini-tools of education to promote residents in Discovery Bay and tenants in environmental awareness building activities the routes on visitdiscoverybay.com to illustrate sustainable practices. Memos are also our managed properties. In Discovery Bay, are also being regularly organised, such as these four popular trails. Last year, an online circulated to remind employees of green food waste composters and a glass grinding DIY glass bottle lamp workshop, family farm, hiking challenge was launched to promote behaviours. To supplement these unilateral machine have been installed to encourage flea market, plant market and recycling day. our natural resources and enhance public communications, we often organise tenants and residents to recycle food waste We also arrange visits to the DB Nursery and awareness for the conservation of biodiversity different activities and campaigns, so as and glasses. A total of 23,600 kg of food Green.Icon@DB, our eco exhibition centre in Hong Kong. to deepen knowledge and nurture their waste and 106,500 kg of bottles were that showcases up-to-date information on Declutter awareness on environmental protection. recycled during the year. The compost green initiatives. We believe these activities With Love We have signed the Food Grace’s and glass sand generated were used for can successfully deliver the message of Recycling Green Mid-Autumn Festival Food Saving gardening purpose and repair works environmental conservation and sustainable Month development. Adidas Run For the Ocean i 10 times Six-month Sesame total amount of Eat Pilot non-hazardous wastes recycled Programme compared to 2018/2019 Drop-off stations were Love.Together@DB Discovery Bay Family Farm set up at HKRI Taikoo Hui to invite tenants Since 2014, Discovery Bay Family Farm has been providing valuable opportunity to donate their old for residents to cultivate crop and practise green living. The 1 x 3 metre plots Sea you clothes and electronic are allocated to families for planting their own organic vegetables. Individuals Tomorrow appliances to NGOs without planting experience would learn to prepare the soil and control the use for the underprivileged. Around 100 HKRI Taikoo of fertiliser. It is a fun, fulfilling and rewarding process to promote a balanced Hui colleagues and family diet and environmental sustainability. Sesame Eat is a sustainable members joined the Run packaging programme For the Ocean fundraising The initiative has been well received by residents and that advocates reusable running day to support competitions are organised every year to encourage packaging. The Parley Oceans School photo sharing and attract more participants. programme was launched programme in solving in HKRI Centres 1 & 2 marine plastic pollution. Our other for tenants to order food delivery services via GREEN WeChat application. The PROGRAMMES meals came in reusable food containers which outside of were collected, washed A team formed by and returned to restaurants Hong Kong colleagues of The for reuse. Sukhothai Residences joined this mini marathon to raise fund for a sea turtle hospital.

i The increase was contributed by the growth of recycling amount and 24 the inclusion of HKRI Taikoo Hui. ESG Report 2019/2020 HKR International Limited 25 VALUING OUR PEOPLE Total Training Hours +49% Compared to 2018/2019 VALUING OUR PEOPLE

For transportation operation, the safety We maintain the same attitudes in the and health of our bus drivers and ferry provision of safe and healthy office O crew members are especially important space. Periodic inspections are performed case of to the Group and the passengers. to ensure our office equipment meets OSH messages are delivered to staff in the latest health and safety standards. In We value our employees and fully recognise their contribution to the continued work-related regular assembly. In addition, the OSH our mainland China office, in addition to Quick Answers success of HKRI. We are committed to creating a dynamic, cohesive and open fatality Committee performs yearly review of the using MERV 13 filters in air-conditioning working environment where staff members are able to realise their potentials and safety performance of our ferry and bus system, qualified specialists are engaged to Your Concerns develop innovative solutions to improve our business processes. With the PRI2DE operations to identify improvement areas to monitor indoor air quality and plants values deeply integrated into our daily operations, our staff are empowered and on training, emergency preparedness and are placed to further purify the air. motivated to deliver quality services in a professional and responsible manner. The safety-first culture also prevails in response, vehicle and vessel maintenance At The Sukhothai Bangkok, on top of Q How does HKRI respond our Discovery Bay operations, where checks and inspection. Above all, the conducting regular inspections at certain Employee Health and Safety to the growing demand a cross-departmental OSH Committee work schedules of our bus drivers and areas including laundry and kitchen, the offers guidance and advice on mitigation crew members are carefully planned to Safety Committee reviews staff accidents We are dedicated to providing a safe working environment. of work-life balance, of safety risks. Refresher meetings and avoid performance being affected by during monthly meetings to identify To strengthen employees’ awareness of occupational safety specific safety trainings are organised fatigue. We also make sure that all traffic potential drawbacks and address them especially from the and health (“OSH”), we have formulated a group-level on a regular basis. Together with signs, road markings and navigation accordingly. OSH Policy. Our business units have maintained their own other audits, drills and safety-related facilities are functioning properly such younger generations? OSH management committees that are responsible for materials, we cultivate an environment that clear traffic directions are provided During the year, there were no cases addressing specific OSH concerns for respective operations A HKRI advocates work-life balance. for nurturing and reinforcing safety at all times. of non-compliance relating to the and tailoring training courses. We provide necessary In pursuit of sustainable business awareness. City management operation provision of a safe working environment safety equipment and protective gears, such as safety growth, continuous contribution goes further to review and investigate For healthcare operation, extra and the protection of employees from helmets, belts, gloves, goggles and safety shoes. from employees is crucial. This the root causes of safety-related attention is paid towards employees occupational hazards. Besides, we also arrange medical insurance and could not be achieved if employees incidents, and share findings and offer who are exposing to higher safety physical check-ups for our employees. lack physical and mental strength, suggestions to employees as an effort risk. For instance, every employee who and this is where work-life balance to avoid recurrence. In addition, a safety comes into contact with radiation, is Although majority of construction site plays an important role. As such, management system in accordance required to comply with the Radiation workers are not our employees, we equally we constantly organise various with the ISO 45001 has been set up for Ordinance (Cap. 303) and to wear a take care of their health conditions as recreational activities to relieve their ten business units in Discovery Bay to radiation dosimeter at all times and a responsible corporate citizen. We work pressure. facilitate safety management work. City undertake annual medical examinations Safety Trainings Held require all contractors of our property management operation’s remarkable in Occupational Health Clinics. Monthly in the Year development projects to follow safety performance had won recognition check of the radiation doses of each a set of OSH requirements that in the 7th Best Safety Management concerned employee is also conducted • Health and safety briefings How does a desirable are in compliance with relevant to new hires Property Award. through the monitoring services provided Q regulations. Meanwhile, a workplace look like to by the Radiation Health Division of the designated safety inspection • Emergency response team Department of Health. HKRI? officer is appointed to submit bi- training weekly safety reports and we Open and connected. Workplace • First Aid, CPR & AED conduct regular site check to is more than a place where certificate courses A ensure proper implementation individuals work, it is a platform of all safety precautions. • Safety drill exercises where a group of people sharing For all of our property the same values strive towards • Health and safety related talks development projects, the a common goal. A desirable Group provides Contractors workplace should facilitate All Risks Insurance and Third open discussion and promote Party Liabilities Insurance collaboration and connection and incorporate safety- among employees. Towards this related contractual terms end, our renovated offices in Hong to ensure business partners Kong and Shanghai have adopted have taken reasonable the “open-office” design. and practicable steps to guarantee workplace safety.

Safety talk event held in The Sukhothai Bangkok

28 HKR International Limited ESG Report 2019/2020 ESG Report 2019/2020 HKR International Limited 29 Together We Fight Against COVID-19

A new coronavirus disease, named COVID-19, has spread quickly since January 2020 and caused numerous deaths around the world. The outbreak triggered a serious global public health emergency and posed significant threats to our business operations. As a caring employer who Talent Attraction and always puts our staff's health as a top priority, HKRI has adopted different Retention control measures and flexible work arrangements to ensure employees' health is safeguarded. As at 31 March 2020, our professional workforce in Hong Kong, mainland China Our measures to combat COVID-19 include: and Thailand comprised 2,410 employees. Understanding the Group’s long-term • Implementing a four-level response system which provides clear guidelines on the actions to take under different scenarios success depends on our talent pool, we strive to attract talented individuals who • Providing protective and disinfection products such as face masks, share our corporate values and passion alcohol-based hand sanitisers, bleach, cleansers and gloves in our for building a quality and stylish living workplaces space, while retaining talents within our • Arranging employees to work from home by rotation to limit crowd Group in order to maintain and grow our gathering; clear record is retained by Human Resources to track the human resources. work locations of staff • Allowing flexible working hours for employees who report for duty in Upholding the belief that no individual the office to avoid travelling during peak hours should be treated less favourably as a result of their gender, race, age, religion, • Requiring employees to check body temperature before and after We continue to offer competitive A Compassionate pregnancy, disability, family status or reporting for duty and wear a mask in the office remuneration packages and Workplace sexual orientation, we make every effort comprehensive fringe benefits, which • Stepping up cleansing and disinfection measures in all our workplaces to provide equal opportunities in both include medical insurance, discretionary We strive to promote a compassionate • Deploying patrol and cleaning robots at some managed properties to recruitment and promotion processes. bonus and a range of leave entitlements working environment where employees reduce staff’s risk We assess candidates and employees such as marriage leave, maternity maintain harmonious work relationships. objectively on their experience and and paternity leave, and sporting • Monitoring employees' health status and their travelling plans to We value staff engagement and capabilities while respecting individual competition leave. Such staff benefits enable timely response actions regularly communicate with our Celebrations for differences. We have in place well and policies are regularly reviewed to • Embracing communications technologies and the existing video employees through meetings, internal 30th Listing Anniversary designed policies on non-discrimination, ensure they are on par with industry conferencing system to facilitate seamless communication between newsletters and performance reviews. anti-harassment and racial equality to practice. In collaboration with different team members, and to minimise face-to-face meetings and local travel The feedback and suggestions received To mark the Group’s 30th listing safeguard the interest of every employee. business partners and subsidiaries, we through these channels enable us to anniversary on the Stock Exchange, • Setting up internal emergency hotlines for different business units constantly improve our employees’ improve our workplace policies over we launched a series of activities in As a responsible employer, we strictly remuneration packages. This year, time. Recognising the importance of June 2019. This included a lucky draw prohibit the use of child and forced we upgraded the medical insurance work-life balance for our employees, we of 480 prizes and the distribution of labour within the Group’s operations coverage for all employees. Employees constantly initiate different recreational healthy snacks. A congratulatory video and supply chain in accordance with can also enjoy special discounts on a activities including outings, interest was commissioned, featuring messages relevant regulations. Background check range of products and services offered classes, team building workshops and from local and overseas colleagues and and verifications are performed to by the Group, such as flu vaccination festive gifting. Furthermore, we have celebrating the Group’s milestones and prohibit employment of child labour. and Chinese medical services as well as set up breastfeeding facilities in successes. We adopt a zero tolerance policy on room booking in the Group’s hotels. The our offices to provide a private and forced labour. A grievance mechanism PRI2DE Outstanding Employees Awards comfortable area for employees in has been established to serve as a is organised annually to recognise need of such provisions. An exercise secure channel for employees to report employees who best demonstrate our corner with fitness equipment has concerns to senior management. core values, and motivate employees to also been set up in The continue their good performance. Sukhothai Shanghai for staff to release work During the year, there were no cases of stress and achieve non-compliance with relevant laws and healthy lifestyle. regulations relating to compensation and dismissal, recruitment and promotion, child and forced labour, working hours, rest periods, equal opportunity, diversity, anti- discrimination and other benefits and welfare j.

j The laws and regulations that are the most relevant to the Group include, but not limited to, the Employment Ordinance (Cap. 57), the Labour Law of the People’s Republic of China, the Labour Contract Law of the People’s Republic of China and the Labour Protection Act in Thailand.

30 ESG Report 2019/2020 HKR International Limited 31 59% 7% Male Part-time Total Total Workforce Workforce by by Gender Employment At HKRI Taikoo Hui, a four-day “Staff 41% Type 93% Welling Week” programme was Female Full-time launched in collaboration with tenants in June 2019. Fun leisure activities under five distinct themes, including “Coffee Culture and Latte Art”, “Tea 6% Ceremony”, “DIY Lunch Box”, “Shoulder 22% Healthcare Physiotherapy” and “Charity Run”, were Below 30 20% DB City Management 40% provided to staff during the campaign. & Transportation Total Hospitality Total Workforce Workforce by Business by Age Segments Staff Wellness 20% 14% 27% 51% Property Investment Property Over 50 30-50 and Management Development To facilitate team building and support tasting skills workshops, mini night lamp the physical and mental well-being workshops and Bowling Fun Day. Besides, of employees, our Hong Kong office employees are offered discount on joining continued to offer employees the well- the Discovery Bay Recreation Club‘s received “PRI2DE Wellness” programme. personal fitness training programme. Various recreational activities were organised, including yoga classes, wine STAFF ACTIVITIES

Annual Dinner of Movie and Lunch Hong Kong Office Combo@HK’s Annual Outing

Cowboy Staff Party at Staff Parties at The Sukhothai Bangkok The Sukhothai Residences

Annual Celebration at Staff Parties at The Sukhothai Shanghai The Sukhothai Residences

32 HKR International Limited ESG Report 2019/2020 ESG Report 2019/2020 HKR International Limited 33 VALUING OUR PEOPLE

Training and Development

Training and development are being treated as high priority in HKRI. We have invested heavily in this regard and offer a wide range of tailored programmes covering topics such as leadership skills, customer service, media training, anti-corruption as well as occupational safety and health, to meet the needs of different operations of the Group. To supplement these internal trainings, we encourage our full-time employees to attend external courses to further develop relevant job skills and knowledge, and support them with education allowances and tuition reimbursement. We encourage staff to discuss their personal goals with supervisors and jointly design a career development plan. Special programmes are also provided for staff to acquire new skills according to individual aspiration. Our learning and development programmes are regularly reviewed by the HKRI Employees Learning & Development Faculty, to ensure they remain up-to-date and effective in achieving the learning goals set by the Group.

People Management Self-learning GROW@HKRI Programmes We advocate self-learning. The “60 The summer internship programme Regarding talent cultivation, the Group Seconds Self-Learning” programme was named GROW@HKRI was rolled out in 74% has launched People Management launched in April 2019 to share online 2019. 20 undergraduates joined the Programmes for all supervisors in Hong learning platforms, books, websites and programme and gained valuable work Full-time Kong during the year. The first year of video clips, allowing employees to learn exposure and learnt about the operations employee trained the programme was tailored for the without boundaries. One of our major of HKRI through this ten-week on-the- senior management team, providing sources is TED Talk which provides short job training programme. This year, CSR them with a series of training to further video clips about inspirational thoughts activities and year-round CSR event enhance their people management, and various topics, including personal planning project were specially arranged 24 leadership, coaching and presentation development, business insight and for the interns to raise their awareness of skills. The programmes aim to help our global issues, in over 100 languages. We social responsibilities. Average training employees to better review, monitor and hope our employees can discover more 40,556 improve management skills for personal interesting topics around them and be hours per trained development and career enhancement, motivated to pursue self-improvement. Total employee bringing our staff and HKRI to a higher training hours level.

34 HKR International Limited ESG Report 2019/2020 35 CARING FOR OUR COMMUNITY About HK$4,340,000 In-kind Sponsorships & Donations “All-In” CARING FOR OUR COMMUNITY “All-in”, our new CSR theme, reflects our longstanding approach and attitudes in community investment, not holding back from giving the most and the best we have to society. The CSR activities organised during the year had embraced the “All-In” theme in two ways:

Quick Answers • All-inclusive: welcoming everyone to participate. to Your Concerns Regardless of gender, age and physical fitness, all can join and unite as one.

• All-in-one: serving multiple objectives in every Q What are the values of activity. For instance, promoting environmental traditional culture in awareness, and helping underprivileged children through the same event. this modern world? A Traditional culture is the root of our communities. It shapes who we are as distinct from other members of the world. HKRI and other external parties, to serve the “All-In” Traditional Red Bean “All-In” School Mural strives to preserve and pass needy through our corporate volunteer Pudding and Chinese Fever-vine Painting Day on these invaluable intangible 1,546 team, HKRI Care & Share, and other Cha Kwo Workshop assets to the next generations, k volunteer teams formed by different Sharing the same vision of building a such that community members volunteer hours business units. Co-operating with The Boys’ and better place, HKRI Care & Share joined are connected amid this fast- Girls’ Clubs Association of Hong hands with Habitat for Humanity Hong changing environment. th To celebrate the 30 listing anniversary Kong (“BGCA”) and Eldage, a Kong to organise a mural painting day at on the Stock Exchange, a new theme traditional Chinese snack workshop for the Tsuen Wan Trade Association Primary Q “All-In” was adopted this year by HKRI underprivileged children was held at Life School in October 2019. Led by the Care & Share for its year-round CSR Education Farm in Yuen Long in May Group’s Executive Director Mr Jackie Tang What does investment Dedicated to building an inclusive campaign. The objectives were to aid 2019. Participants learnt to make red and the Head of Group Finance Ms Lynda society where every member can share in youth development a broader spectrum of people in need, bean pudding and Cha Kwo, and their Ngan, more than 30 volunteers leveraged the benefits of social and economic strengthen environmental awareness and history and behind-the-scene stories. The our decades of home-building experience mean to HKRI? development, we are passionate preserve local cultural heritage. During volunteers and more than 20 children to complete a painting of more than 460 A about reaching out to serve the Investment in youth the year, our volunteers and their families together enjoyed the outing. At the square feet with the students. Themed needy, especially the elderlies and about development is critical to in Hong Kong, mainland China and end of the day, alongside with their DIY “Eco Living” and featuring various underprivileged families. By supporting sustainable development of Thailand have supported nearly 30 NGOs, snacks, the children also brought home environmental protection and green the work of NGOs through volunteering, the community. Young people participated in around 50 community gifts from HKRI Care & Share, stationery energy initiatives, the painting as well as k will constitute the majority of donations and provision of in-kind 50 events and contributed a total of 1,546 packs, that could support their studies. the whole event succeeded in promoting sponsorships, we hope to bring our care future workforce, and will have community service hours. Recognising the invaluable environmental awareness among students and love to the community. Besides, we significant impacts on society. work of our volunteers, we organised and inspiring them to live a greener life. Nurturing their creativity make investments into arts development activities the CaRe Award to honour the Group’s and equipping them with and youth cultivation to promote outstanding volunteers. Scan or click QR code to review event highlight knowledge and skills enable a creativity and innovation. As an ongoing better living environment for effort, we encourage our employees, our future generations. residents and tenants to join the alliance to actively participate in community activities and contribute to society.

In recognition of our years of Serving the Needy commitment, the Group was awarded the “15 Years Plus Caring Company” We actively advocate volunteerism and logo by the Hong Kong Council of engage our staff and customers to work Social Service, and the “Silver Award closely with NGOs, including Outlying for Volunteer Service” by Volunteer Islands Women’s Association, Gift of Movement under Social Welfare Happiness Foundation (“GoHF”), Department in Hong Kong. Tung Wah Group of Hospitals (“TWGHs”),

k A number of volunteer activities have been cancelled or postponed due to the outbreak of COVID-19.

38 HKR International Limited ESG Report 2019/2020 39 CARING FOR OUR COMMUNITY

Supporting Arts To prepare the younger generations for Building a Loveable We have also widened the scope of Development and Talent the future workplace and to manifest Community our community activities to embrace their innate strength, we arranged the concept of giving back to society. secondary school student visits and To preserve the six endangered We are enthusiastic in supporting arts As a prominent property developer which organised summer internship programme. communities in Thailand, The Sukhothai development and nurturing young is experienced and renowned for building Bangkok continued to co-organise talents, with the belief that they are high quality projects, we feel compelled Recognising Talented Young Bangkok Uncovered Plus+ with Bangkok the sources of creativity and innovation to use our capabilities and resources Metropolitan Administration – Tourism driving the future development. We have Designers to contribute to community harmony Division in December 2019 after been sponsoring the Hong Kong Arts and cohesion, so as to create a better receiving tremendous support and Festival for 12 consecutive yearsl, inviting In mainland China, a clock tower living space. Over the years, we have overwhelming responses in the past two overseas artists to perform in Hong design workshop cum competition developed the Love.Together@DB as a years. This meaningful fundraising event Kong for promoting cultural exchange. was organised in collaboration with platform for caring and volunteering for “All-In” Elderly Sports Day HKRI • Design with Love and the first public-private partnership We also sponsored an outdoor fun East China Normal University. Students the Discovery Bay community. We are - To Be Continued Mainland School Improvement for developing sustainable travel activities family activity named FLOW, which was were given a chance to design an iconic committed to organising and supporting in the city aims to improve the livelihood presented by The Absolutely Fabulous clock tower for HKRI Taikoo Hui, our a diverse range of community events An “All-in” sports event with the elderly We devote equal attention to of these endangered communities. Theatre Connection (“AFTEC”) at Sha flagship project in Shanghai, under the and programmes every year with this scheduled in February 2020 had been community development in mainland Compared to last year, the event scale Lo Wan in Northwest Lantau Island in mentorship of renowned Italian architect platform, including Mother’s and rescheduled due to the outbreak of China. Riding on the 30th listing has expanded with Baan Nok Kamin November 2019 to support local arts Italo Rota. Numerous impressive design Father’s day carnivals, family farm and COVID-19. The event was supported by anniversary, a new CSR programme, Foundation and GoHF joining in. and tradition. FLOW featured visual art works were received and 12 outstanding handcraft workshops, a cappella singing the TWGHs, one of the largest charitable “HKRI • Design with Love”, was installations of inspiring themes and pieces were shortlisted for exhibition at classes, Cantonese Opera Training organisations in Hong Kong, to promote launched in cooperation with the performing arts with music creation and HKRI Taikoo Hui in September 2019. Programme, storytelling and photo the elderlies’ physical health and enhance China Social Welfare Foundation to interactive performance. The event was a success, attracting competitions. To take care of the well- their self-worthiness and satisfaction in improve the learning environment for thousands of visitors to the 16-day being of the elderly in the community, life. Two warmup matches had already underprivileged students. The Shanghai Within our operations at Discovery exhibition and over 9,600 online votes to we have designed a number of activities been organised with selected elderlies in Jinding School, a state-run school Bay, we have arranged artwork display recognise the innovation and potential of suitable for this segment, including Ping November 2019 and January 2020 which for children of migrant workers, was areas for the community and organised these talented young architects. Pong tournament, drama performance, were well-received by all participants. selected as the first school to receive different activities including photo anniversary ceremony and eco-tours. The “All-In” theme and activities will our support on improvement works. competitions, singing classes and Furthermore, we sponsor different continue in the coming year to further Cantonese Opera Training Programme charity and community events organised spread the joy to the public with our After five months of renovation, the for residents; all of which aim to foster in Discovery Bay, including the annual concerted efforts. external wall and other infrastructural local arts development. Dragon Boat Races and The Big Picnic facilities in the school have been event. successfully upgraded with minimal disruption to its normal operation. l The 48th Hong Kong Arts Festival was Over 40 staff from our Shanghai unfortunately cancelled due to the outbreak of office volunteered a day to assist the COVID-19. refurbishment. The team helped to create a healthier school environment and improve learning and teaching experience for both teachers and students.

Scan or click to see more of this project

40 41 COMMUNITY EVENT HIGHLIGHTS

Youth Education

Behind-the-scenes Tours in DB Work Experience Activity Children Cooking Party Library of Love

Harmonious Community Family Empowerment

Love is All Around DB DB Heart Family Storytelling Family Handcraft Workshop Mother's Day Carnival Smoke-free in Father’s Day Competition

Healthy Lifestyle

Ping Pong Tournament for Elderly Group Discovery Bay Dragon Boat Races 2019 Discovery Bay Table Tennis Tournament 2019 Eco-tour Discovery Bay Basketball Tournament Free Fruit Giveaway Celebration for the Community Health Cup 2019 5th Anniversary of Senior Citizen Working Group

Serving the Needy

GROW@HKRI CSR Event Blood Donation Floating Candles for Charity The Magic Box Dress Causal Day

Art Support

A Cappella Singing Class FLOW Colourful New Year Drawing DB Cultural Art Carnival Sing for Love@DB 2019 Competition Cantonese Opera Annual Performance

42 HKR International Limited ESG Report 2019/2020 ESG Report 2019/2020 HKR International Limited 43 OPERATING RESPONSIBLY

Respondents were Satisfied with 90% City Management Service OPERATING RESPONSIBLY

Quick Answers to Your Concerns Operating a diversified business, we must ensure the delivery of consistent Personal Data (Privacy) Ordinance standard anti-virus software is installed of copyright works. In addition, only and quality products and services to our customers. As such, we have (Cap. 486). All personal information in our computer and confidential licensed computer softwares can be used established internal policies and mechanisms to guide the management of must be collected for the stated purposes information is encrypted in transmission within the Group. Actions will be taken Q What does customer our value chain. We constantly review our value chain practices to improve only with the consent of customers. to protect against cyber security threats. immediately if there are cases of scam, their efficiency and effectiveness, and ensure that they strictly comply with Meanwhile, regular reviews of authorised In addition, we are aware of potential misuse of information, or infringement engagement mean to legal requirements. With this approach, we are able to keep up with our users are performed and users are security issues over sensitive paper and of articles or materials relating to the customers’ evolving needs in a responsible manner while generating required to acknowledge our privacy electronic documents. Paper containing Group. Besides, we require third party to HKRI? positive values to the environment and the wider community. policy by logging in our network. confidential information is shredded sign non-disclosure agreement regarding A Our primary goal is to provide prior to disposal. Other unnecessary materials provided for marketing plans, quality products and services, Upholding Business Ethics Data security is crucial to the Group records must be deleted entirely from the campaigns and press releases to protect thus understanding the and we have strong and reliable data computer and portable drives. our material proprietary information customers is necessary to Data Privacy leakage prevention controls in place to before its publication. best satisfy their needs. We safeguard information from potential Intellectual Property Rights maintain convenient channels We take responsibility in protecting personal information unauthorised access and disclosure. During the year, there were no cases for customers to share their of our customers that we acquired for the purpose Data has to be stored in central locations The Group respects and recognises the of non-compliance with relevant laws opinions, both complaints and of business operations. Guided by our Personal with restricted access and password importance of protecting intellectual and regulations relating to privacy and suggestions are equally valued Data Protection Policy, we consistently apply data protection. Disclosure to any third party property rights. Employees are required intellectual property right protection in m by us. protection measures on accessing, storing and is strictly limited. User verification is to obtain appropriate licence from the our operations . processing customer personal data and other executed when using mobile devices and copyright owner and comply strictly with confidential information to comply with the laptops to log in to our systems. Besides, the terms of licence when making copies Q Green procurement may cost extra money and time, is it undesirable for HKRI’s business development? A Certainly not. Although green products may be more expensive, HKRI believes they generate higher values to customers and the environment. As a socially responsible corporation, green procurement is also in line with expectations of our customers and the community.

m The laws and regulations that are most relevant to the Group include, but not limited to, the Personal Data (Privacy) Ordinance (Cap.486), the Patents Ordinance (Cap.514), the Criminal Law of the People’s Republic of China, and the Patent Act in Thailand.

46 47 OPERATING RESPONSIBLY Customer Care Amid for public areas in residential properties carried in air. Meanwhile, we have also COVID-19 Outbreak and on buses and ferries. Touchless enforced stronger control at lift usage, control panel was installed at inclined limiting occupancy to six people per lifts and photocatalytic long-acting lift; food locker service has also been We have immediately made every effort as consultants on-site. Prompt corrections annual quantitative customer research is disinfectant spray was deployed at all provided to facilitate food delivery and Quality Assurance and and taken appropriate measures to are carried out on any defects and cases arranged to better understand customer of our managed plazas and on buses pick up, further reducing human contact. Customer Satisfaction protect the health of our customers and discovered. needs and to evaluate quality of service. and ferries to prevent spread of viruses. In staff amid the outbreak of COVID-19. While confirmed cases of infection were co-operation with 50 tenants, a caring Customer satisfaction is one of our most For instance, to maintain a hygienic When flats are put on sale, we devote To improve our city management unfortunately found in Discovery Bay, our station was set up at the mall to give important objectives. Taking into account environment in our investment properties additional attention and multiple reviews operation in the long-run, we take operations in Discovery Bay immediately away food and gifts to pay tribute to our customer’s views and expectations, where traffic is relatively high, we have on the marketing and advertising resident feedback seriously and make took stringent hygiene measures and the frontline workers, who stay at work benchmarking industry best practices, increased the cleaning frequency of materials to ensure information accuracy every effort to address them. Various swiftly updated the City Owners’ amid the outbreak of COVID-19, such referencing relevant regulations and public areas within those properties and in compliance with the laws and communication channels have been set Committee. Assistance were provided to as delivery men, courier workers and voluntary codes, and drawing upon to once an hour and used diluted regulations. We are determined to up for residents to voice their opinions, residents subjected to home quarantine. cleaners. Understood that it has been our experience and expertise, we have bleach solution for better disinfection. communicate clearly and fairly the such as our business centre and local All of our efforts had gained owners’and a difficult time for tenants, our leasing developed a robust quality assurance At Discovery Bay, we have suspended attributes of our products and services management offices, 24-hour customer residents’ high appreciation. team offered rental concession to process to ensure the production and public events and activities and closed in order to protect the interest of service hotline, suggestion boxes and tenants in need to weather this tough delivery of quality services. all children playgrounds and recreation customers. Buyers of brand new flats are biennial customer survey. A centralised Special arrangements were also made for period. CDW Building in Hong Kong has clubs in an effort to minimise crowd provided with a defect liability period and electronic system is in place to record show flat visits by restricting the number obtained Hygiene Measures for CoV- As a renowned property developer, we gathering. Stringent cleaning and a dedicated team will help coordinate and track the status of enquiries of visitors, offering masks and hand Prevention Certification issued by Hong take pride in the properties we built disinfection measures are also in place and ensure smooth handover. raised by residents, enabling timely sanitisers, and performing temperature Kong Quality Assurance Agency to and endeavour to maintain the highest resolution and follow-up. To supplement screening. At HKRI Taikoo Hui, we recognise our efforts. We will continue level of quality. In the tendering process, Customers feedback are valuable to these communication channels, we have deployed the photocatalystic- to closely monitor the situation and we set out clear technical specifications us and each of our businesses has hold regular meetings with owners’ sterilised fresh air system to enhance air timely update our tenants, customers to regulate our development projects, developed multiple means to understand organisations and representatives quality and lower the chance of virus and other related stakeholders on our ensuring our stringent expectations on our customers. For investment properties, including the City Owners Committee transmission through respiratory droplets latest policies to counter COVID-19. quality and safety are met. During the our leasing teams will keep close and Village Owners Committees of construction phase, we closely monitor contact and hold regular meeting with individual villages to understand their the materials used and the workmanship tenants to collect their feedbacks. An concerns and needs. Our transportation by deploying our staff, architects as well

operation gathers passenger feedback provide reliable, effective and efficient further ensure customers‘ opinions are through different channels including transportation for our residents. heard and their needs are addressed, the quarterly Passenger Liaison Group To further optimise our service and we have taken additional steps. For meetings. Suggestions and comments performance, the bus terminus has been instance, at The Sukhothai Bangkok, received are reviewed by relevant upgraded to have higher capacity and we operate a 24-hour customer service operational units to further optimise our more crossing facilities. hotline so that guests are able to seek services. We are pleased to announce assistance at any time; and we also that 90% of responded owners were With the aim of providing top-notch conduct guest satisfaction surveys to satisfied with our city management customer experience in our hospitality identify improvement areas. The mobile operation in the biennial customer operation, the Customer Service application, Line@, provides an extra survey while our buses and ferries ran on Taskforce Committee works diligently to channel for residents at The Sukhothai schedule for over 90% of service days explore opinions in this regard. We carry Residences to share their thoughts with during the year. Transportation service out questionnaires and courtesy calls to us. During the year, around 90% of interruptions were mainly due to factors seek customers’ feedback. Upon receipt responded hotel guests were satisfied beyond our control, such as adverse of complaints, investigations will be with our services. weather conditions, traffic incidents initiated by operational units and formal and road works. We will continue to replies will be provided to the guests. To

ESG Report 2019/2020 HKR International Limited 49 OPERATING RESPONSIBLY OPERATING RESPONSIBLY

At our healthcare operation, we Furthermore, all food deliveries from A Responsible Supply Chain The Sukhothai Bangkok assesses invest in the new vehicles with greater Through these endeavours, the encourage patients to complete suppliers are carefully inspected and suppliers' effort in different dimensions energy efficiency and lower emissions principle of prioritising the use of a feedback card to evaluate our those of unsatisfactory quality would With the aim to improving the covering safety and product quality, and all of our new buses ordered from responsible suppliers and encouraging performance against patients‘ needs. be returned immediately. Accepted sustainability performance of our human rights and labour, environment, 2019 onwards should at least meet the them to adopt sustainable practices An official customer complaint handling deliveries are properly labelled and production processes, we care about compliance, disclosure, risk management, Euro VI standard. To further advocate is upheld throughout our operations. procedure was also established to stored. A “first-in, first-out” policy is our suppliers’ social and environmental responsible material procurement, social our sustainability vision to our supply We hope to contribute to society ensure complaints are handled in a adopted to facilitate the systematic flow contributions in addition to their business contribution and development. Our chain, we are reviewing the current and the environment jointly with our consistent and effective manner. Our of our food and beverage inventory, competency. Several steps have been hospitality operation also cooperates procurement policy and have developed business partners, and continue being a dental operation has been certified the keeping our ingredients fresh and safe taken to build a more responsible with suppliers to maximise the use of a new set of Supplier Code of Conduct, responsible corporate citizen together. ISO 9001:2015 Quality Management for consumption. supply chain. For instance, sustainability durable and recyclable cutleries and stipulating our expectation on suppliers Systems accreditation to assure our performance is incorporated as an utensils and adopt paperless operation. in terms of business dealings, labour service quality. Extra attention is paid on Supply Chain Management assessment criterion when we select Environmental and responsible and human rights, and environmental medicine as they have direct impact on suppliers, providing incentives for procurement policies are also applied performance. It is expected to be rolled customers’ health. The performance of our suppliers has them to continuously improve their in our transportation operation. We out in the next year. a direct impact on our product and performance and screening out those During the year, there were no cases of service quality, which constitutes a great with unsatisfactory sustainability non-compliance with relevant laws and part of customer satisfaction. We are performance. Meanwhile, our internal regulations relating to health and safety, prudent in the supplier selection process guidelines also require the use of reliable advertising and labelling matters relating and only those that meet the necessary green and non-hazardous products to products and services provided and competence and experience, with proven whenever possible. For instance, while n methods of redress . track records of delivering quality products procuring office supply, the major waste Suppliers and services would be engaged. Our source of the Group, we give preference Quality Catering Service Tender and Procurement Policies provide to procure FSC or PEFC certified paper. breakdown detailed guidelines on quotation request Local sourcing is encouraged to reduce Mainland China We are committed to delivering best- and vendor selection, to aid procuring the carbon footprint in transportation. by regions quality food to our customers, while entities in obtaining goods and services 49.5% ensuring compliance with legal at the best value for money through Thailand requirements in terms of food quality open, fair, competitive and transparent and safety. To minimise risk of potential procedures. During contract period, food hazard incidents such as food we regularly monitor and evaluate the 37.5% poisoning and alleged foodborne illness. performance of suppliers to ensure they The Sukhothai Shanghai cooperates are performing the contractual duties Hong Kong with Pony, a specialist in food safety and properly. Contractors and suppliers products testing, to examine the food are also obligated to follow our anti- 10.2% quality and the equipment used by the corruption regulations. For details, please hotel restaurants. We also undertake refer to the ”Anti-corruption” section. regular inhouse food tests such as Japan ß-agonists residue testing for raw meat, pesticide residue testing for vegetables 2.8% and ATP testing for utensils. The results are recorded and discussed among management for further improvement.

n The laws and regulations that are most relevant to the Group include, but not limited to, the Sales of Goods Ordinance (Cap.26), the Consumer Goods Safety Ordinance (Cap. 456), and the Consumer Protection Act of Thailand.

50 HKR International Limited ESG Report 2019/2020 ESG Report 2019/2020 HKR International Limited 51 PERFORMANCE DATA SUMMARY

Reporting Year 2019/2020 A 2018/2019 Property Discovery Bay City Property Investment & Management & KPI Unit Development B ManagementC Hospitality D Healthcare E Transportation F Total Unit G Total Environmental Air EmissionsH NOx I Tonnes 0.01 0.00 1.33 - 301.86 303.20 Tonnes 300.69J (restated) SOx K Tonnes 0.00 0.00 0.00 - 18.08 18.08 Tonnes 17.96 J (restated) PM L Tonnes 0.00 0.00 0.11 - 4.69 4.80 Tonnes 4.8 J (restated) Greenhouse Gas (GHG) Emissions M

Direct emissions (Scope 1) CO2e tonnes 46.03 1,165.48 3,277.50 - 25,426.27 29,915.28 CO2e tonnes 29,220.26

Direct emissions (Scope 1) CO2e tonnes / 0.0000 0.0006 0.0058 - 0.1111 0.0048 CO2e tonnes / 0.0081 intensity Segment revenue Group revenue HK$ ‘000 HK$ ‘000

N Indirect emissions (Scope 2) CO2e tonnes 793.39 21,065.82 14,026.55 284.07 1,236.86 37,406.69 CO2e tonnes 23,552.29

Indirect emissions (Scope 2) CO2e tonnes / 0.0002 0.0100 0.0248 0.0019 0.0054 0.0060 CO2e tonnes / 0.0065 intensity Segment revenue Group revenue HK$ ‘000 HK$ ‘000

Other indirect emissions (Scope 3) CO2e tonnes 47.88 8.42 75.90 0.92 - 133.12 CO2e tonnes 106.00

Other indirect emissions (Scope 3) CO2e tonnes / 0.0000 0.0000 0.0001 0.0000 - 0.0000 CO2e tonnes / 0.0000 intensity Segment revenue Group revenue HK$ ‘000 HK$ ‘000

Total emissions CO2e tonnes 887.30 22,239.73 17,379.95 284.99 26,663.13 67,455.10 CO2e tonnes 52,878.55

Total emissions CO2e tonnes / 0.0003 0.0105 0.0307 0.0019 0.1165 0.0107 CO2e tonnes / 0.0147 intensity Segment revenue Group revenue HK$ ‘000 HK$ ‘000 Energy Consumption Electricity ‘000 kwh 1,450.09 33,609.73 26,917.54 426.98 2,099.95 64,504.29N ‘000 kwh 35,209.08O Electricity intensity ‘000 kwh /Segment 0.0004 0.0159 0.0475 0.0028 0.0092 0.0103 ‘000 kwh / Group 0.0098 revenue HK$ ‘000 revenue HK$ ‘000

52 HKR International Limited ESG Report 2019/2020 PERFORMANCE DATA SUMMARY

Reporting Year 2019/2020 A 2018/2019 Property Discovery Bay City Property Investment & Management & KPI Unit Development B ManagementC Hospitality D Healthcare E Transportation F Total Unit G Total LPG ‘000 kwh - - 5,764.91P - - 5,764.91 ‘000 kwh 7,488.00Q (restated) LPG intensity ‘000 kwh / Segment - - 0.0102 - - 0.0009 ‘000 kwh / Group 0.0021Q revenue HK$ ‘000 revenue HK$ ‘000 (restated) Natural gas R ‘000 kwh - 5,694.40 5,320.00 - - 11,014.40 ‘000 kwh - Natural gas intensity ‘000 kwh / Segment - 0.0027 0.0094 - - 0.0018 ‘000 kwh / Group - revenue HK$ ‘000 revenue HK$ ‘000 Unleaded petrol ‘000 kwh 166.24 79.55 18.59 - 445.33 709.71 ‘000 kwh 459.56 Unleaded petrol intensity ‘000 kwh / Segment 0.0001 0.0000 0.0000 0.0019 0.0001 ‘000 kwh / Group 0.0001 revenue HK$ ‘000 revenue HK$ ‘000 Euro V diesel ‘000 kwh 43.44 - 56.74 - 18,065.48 18,165.66 ‘000 kwh 13,464.29 Euro V diesel intensity ‘000 kwh / Segment 0.0000 - 0.0001 - 0.0789 0.0029 ‘000 kwh / Group 0.0037 revenue HK$ ‘000 revenue HK$ ‘000 Marine light diesel ‘000 kwh - - - - 70,862.64 70,862.64 ‘000 kwh 68,152.27 Marine light diesel intensity ‘000 kwh / Segment - - - - 0.3096 0.0113 ‘000 kwh / Group 0.0189 revenue HK$ ‘000 revenue HK$ ‘000 Diesel ‘000 kwh - 11.34 1,247.61P - - 1,258.95 ‘000 kwh 5,822.98 Diesel intensity ‘000 kwh / Segment - 0.0000 0.0022 - - 0.0002 ‘000 kwh / Group 0.0016 revenue HK$ ‘000 revenue HK$ ‘000 Towngas ‘000 kwh ------‘000 kwh - (restated) Towngas intensity ‘000 kwh / Segment ------‘000 kwh / Group - revenue HK$ ‘000 revenue HK$ ‘000 (restated) Kerosene ‘000 kwh ------‘000 kwh 12.50 Kerosene intensity ‘000 kwh / Segment ------‘000 kwh / Group 0.0000 revenue HK$ ‘000 revenue HK$ ‘000 Charcoal ‘000 kwh - - 3.21P - - 3.21 ‘000 kwh 78.67 Charcoal intensity ‘000 kwh / Segment - - 0.0000 - - 0.0000 ‘000 kwh / Group 0.0000 revenue HK$ ‘000 revenue HK$ ‘000 Water Consumption Municipal water m3 1,525.53 333,424.14 345,291.00 1,460.60 15,540.00 697,241.27 m3 593,930.52 Municipal water intensity m3 / Segment 0.0005 0.1578 0.6093 0.0097 0.0679 0.1110 m3 / Group 0.1648 revenue HK$ ‘000 revenue HK$ ‘000

ESG Report 2019/2020 HKR International Limited 53 PERFORMANCE DATA SUMMARY

Reporting Year 2019/2020 A 2018/2019 Property Discovery Bay City Property Investment & Management & KPI Unit Development B ManagementC Hospitality D Healthcare E Transportation F Total Unit G Total Discovery Bay reservoir water m3 - - 52,452.00 S - 20,649.00 S 73,101.00 m3 - Discovery Bay reservoir m3 / Segment - - 0.0926 - 0.0902 0.0116 m3 / Group - water intensity revenue HK$ ‘000 revenue HK$ ‘000 Hazardous Wastes DisposedT Clinical waste kg - - - 406.10 - 406.10 kg 363 Clinical waste intensity kg / Segment - - - 0.0027 - 0.0001 kg / Group 0.0001 revenue HK$ ‘000 revenue HK$ ‘000 Used engine oil kg - 10.00 850.00 - 29,000.00 29,860.00 kg 13,440 Used engine oil intensity kg / Segment - 0.0000 0.0015 - 0.1267 0.0048 kg / Group 0.0037 revenue HK$ ‘000 revenue HK$ ‘000 Lube oil L - 10.00 12.48 - - 22.48 L 422 Lube oil intensity L / Segment revenue - 0.0000 0.0000 - - 0.0000 L / Group revenue 0.0001 HK$ ‘000 HK$ ‘000 Batteries kg 1.57 - 3,559.86 U - - 3,561.43 kg 5,935 Batteries intensity kg / Segment revenue 0.0000 - 0.0063 - - 0.0006 kg / Group revenue 0.0016 HK$ ‘000 HK$ ‘000 Fluorescent tubes kg - 7.00 65.80 - - 72.80 kg 842 Fluorescent tubes intensity kg / Segment revenue - 0.0000 0.0001 - - 0.0000 kg / Group revenue 0.0002 HK$ ‘000 HK$ ‘000 Wastes from electrical and kg - 374.70 0.40 853.00 - 1,228.10 kg 100 electronic equipment Wastes from electrical and kg / Segment revenue - 0.0002 0.0000 0.0056 - 0.0002 kg / Group revenue 0.0000 electronic equipment intensity HK$ ‘000 HK$ ‘000 Hazardous Wastes Recycled Used engine oil kg - - 222.00 - - 222.00 kg - Used engine oil intensity kg / Segment - - 0.0004 - - 0.0000 kg / Group revenue - revenue HK$ ‘000 HK$ ‘000 Lube oil L - 532.00 - - - 532.00 L - Lube oil intensity L / Segment revenue - 0.0003 - - - 0.0001 L / Group revenue - HK$ ‘000 HK$ ‘000 Batteries kg 0.47 79.00 - - - 79.47 kg - Batteries intensity kg / Segment 0.0000 0.0000 - - - 0.0000 kg / Group revenue - revenue HK$ ‘000 HK$ ‘000

54 HKR International Limited ESG Report 2019/2020 PERFORMANCE DATA SUMMARY

Reporting Year 2019/2020 A 2018/2019 Property Discovery Bay City Property Investment & Management & KPI Unit Development B ManagementC Hospitality D Healthcare E Transportation F Total Unit G Total Fluorescent tubes kg - 63.60 4.00 - 1,200.00 1,267.60 kg - Fluorescent tubes intensity kg / Segment - 0.0000 0.0000 - 0.0052 0.0002 kg / Group revenue - revenue HK$ ‘000 HK$ ‘000 Wastes from electrical and kg 1,520.00 112.00 - - 572.00 2,204.00 kg - electronic equipment Wastes from electrical and kg / Segment 0.0005 0.0001 - - 0.0025 0.0004 kg / Group revenue - electronic equipment intensity revenue HK$ ‘000 HK$ ‘000 Non-hazardous Wastes Disposed Paper V kg 16,452.58 13,468.16 104,443.83 1,627.50 1,428.20 137,420.26 kg - Paper intensity kg / Segment 0.0051 0.0064 0.1843 0.0108 0.0062 0.0219 kg / Group revenue - revenue HK$ ‘000 HK$ ‘000 Ink cartridges / Toners kg 2.75 4.80 - 6.70 - 14.25 kg - Ink cartridges / Toners intensity kg / Segment 0.0000 0.0000 - 0.0000 - 0.0000 kg / Group revenue - revenue HK$ ‘000 HK$ ‘000 Carton boxes kg 24.00 20.91 - - - 44.91 kg - Carton boxes intensity kg / Segment 0.0000 0.0000 - - - 0.0000 kg / Group revenue - revenue HK$ ‘000 HK$ ‘000 Plastic kg 19.26 556.07 - - - 575.33 kg - Plastic intensity kg / Segment 0.0000 0.0003 - - - 0.0001 kg / Group revenue - revenue HK$ ‘000 HK$ ‘000 Metal cans kg 1.35 39.55 600.00 - - 640.90 kg - Metal cans intensity kg / Segment 0.0000 0.0000 0.0011 - - 0.0001 kg / Group revenue - revenue HK$ ‘000 HK$ ‘000 Wood kg - 3,375.00 - - 396,900.00 400,275.00 kg - Wood Intensity kg / Segment - 0.0016 - - 1.7339 0.0637 kg / Group revenue - revenue HK$ ‘000 HK$ ‘000 Food waste kg - - 5,000.00 - - 5,000.00 kg 58,000 Food waste intensity kg / Segment - - 0.0088 - - 0.0008 kg / Group revenue 0.0161 revenue HK$ ‘000 HK$ ‘000 Glass bottles kg 6.00 3.28 4,500.00 - - 4,509.28 kg - Glass bottles intensity kg / Segment 0.0000 0.0000 0.0079 - - 0.0007 kg / Group revenue - revenue HK$ ‘000 HK$ ‘000

ESG Report 2019/2020 HKR International Limited 55 PERFORMANCE DATA SUMMARY

Reporting Year 2019/2020 A 2018/2019 Property Discovery Bay City Property Investment & Management & KPI Unit Development B ManagementC Hospitality D Healthcare E Transportation F Total Unit G Total General waste kg 31,049.85 2,675,279.50 462,225.00 - - 3,168,554.35 kg 584,108.4 General waste intensity kg / Segment 0.0096 1.2660 0.8156 - - 0.5043 kg / Group 0.1621 revenue HK$ ‘000 revenue HK$ ‘000 Woven bags kg 3.65 - - - - 3.65 kg - Woven bags intensity kg / Segment 0.0000 - - - - 0.0000 kg / Group - revenue HK$ ‘000 revenue HK$ ‘000 Non-hazardous Wastes Recycled Paper kg 6,439.03 188,342.90 106.00 - 118,994.70 313,882.63 kg 179,470 Paper intensity kg / Segment 0.0020 0.0891 0.0002 - 0.5199 0.0500 kg / Group 0.0498 revenue HK$ ‘000 revenue HK$ ‘000 Ink cartridges / Toners kg 131.04 5.52 170.00 - 9.00 315.56 kg - Ink cartridges / Toners intensity kg / Segment 0.0000 0.0000 0.0003 - 0.0000 0.0001 kg / Group - revenue HK$ ‘000 revenue HK$ ‘000 Carton boxes kg 46.00 14,027.60 20,502.43 - - 34,576.03 kg - Carton boxes intensity kg / Segment 0.0000 0.0066 0.0362 - - 0.0055 kg / Group - revenue HK$ ‘000 revenue HK$ ‘000 Plastic kg 89.06 12,610.60 36,118.83 - 16,444.70 65,263.19 kg 20,285.4 Plastic intensity kg / Segment 0.0000 0.0060 0.0637 - 0.0718 0.0104 kg / Group 0.0056 revenue HK$ ‘000 revenue HK$ ‘000 Metal cans kg 41.43 9,480.30 5,912.93 - 12,155.90 27,590.56 kg 15,502.5 Metal cans intensity kg / Revenue HK$ 0.0000 0.0045 0.0104 - 0.0531 0.0044 kg / Group 0.0043 ‘000 revenue HK$ ‘000 Cooking oil L - - 14,765.00 - - 14,765.00 L 4,721.6 Cooking oil intensity L / Segment revenue - - 0.0261 - - 0.0024 L / Group revenue 0.0013 HK$ ‘000 HK$ ‘000 Wood kg ------kg 50 Wood intensity kg / Segment ------kg / Group 0.0000 revenue HK$ ‘000 revenue HK$ ‘000 Food waste kg - 2,606,534.00 256,045.00 - 23,592.20W 2,886,171.20 kg 24,084 Food waste intensity kg / Segment - 1.2335 0.4518 - 0.1031 0.4594 kg / Group 0.0067 revenue HK$ ‘000 revenue HK$ ‘000 Glass bottles kg 16.40 16,387.25 23,712.93 - 106,634.30X 146,750.88 kg 98,834 Glass bottles intensity kg / Segment 0.0000 0.0078 0.0418 - 0.4659 0.0234 kg / Group 0.0274 revenue HK$ ‘000 revenue HK$ ‘000

56 HKR International Limited ESG Report 2019/2020 PERFORMANCE DATA SUMMARY

Reporting Year 2019/2020A 2018/2019 Property Discovery Bay City Property Investment & Management & KPI Unit DevelopmentB ManagementC HospitalityD HealthcareE TransportationF Total UnitG Total

Social

Total Workforce

By gender

Male No. of people 156 300 542 24 396 1,418 No. of people 1,118

Female No. of people 186 171 430 124 81 992 No. of people 778

By age group

Under 30 No. of people 40 101 294 44 42 521 No. of people 395

30-50 No. of people 229 296 473 74 158 1,230 No. of people 926

Above 50 No. of people 73 74 205 30 277 659 No. of people 575

By employment type

Full-time No. of people 324 459 937 113 407 2,240 No. of people 1,732

Part-time No. of people 11 12 25 35 69 152 No. of people 164

Temporary No. of people 7 0 10 0 1 18 No. of people -

By geographical region

Hong Kong No. of people 241 106 416 148 477 1,388 No. of people 1,390

Mainland China No. of people 84 332 203 0 0 619 No. of people 77

Thailand No. of people 17 33 353 0 0 403 No. of people 429

Employee Turnover Rate

By gender

Male % 35.26 26.00 30.81 29.17 22.22 27.92 % 36

Female % 29.57 26.90 26.74 50.81 32.10 30.81 % 51

By age group

Under 30 % 130.00 42.57 40.82 70.45 88.10 54.32 % 72

30-50 % 21.40 25.34 26.43 33.78 30.38 26.24 % 38

Above 50 % 12.33 8.11 18.05 46.67 10.47 14.46 % 29

ESG Report 2019/2020 HKR International Limited 57 PERFORMANCE DATA SUMMARY

Reporting Year 2019/2020A 2018/2019 Property Discovery Bay City Property Investment & Management & KPI Unit DevelopmentB ManagementC HospitalityD HealthcareE TransportationF Total UnitG Total

By geographical region

Hong Kong % 39.42 33.02 35.58 47.95 23.90 33.33 % 24.17

Mainland China % 15.48 25.90 25.12 - - 24.23 % 14.29

Thailand % 11.76 9.09 23.51 - - 21.84 % 27.51

Health and Safety

Work-related fatalities No. of people 0 0 0 0 0 0 No. of people 0

Work-related fatalities rate % 0 0 0 0 0 0 % 0

Lost days due to work injury Days 4 283 912 0 590 1,789 Days 1,471.5

Development and Training

Employee trained by gender

Male % 71.03 93.94 78.16 28.57 44.14 71.55 % 80.54

Female % 74.86 95.06 84.58 14.13 94.59 78.31 % 82.71

Employee trained by employee category

General % 69.10 93.69 83.09 9.52 49.87 73.81 % 81.88

Middle managers % 76.03 100 71.52 37.93 96.55 75.53 % 77.81

Senior managers % 88.00 100 75.00 0 100 84.78 % 96.43

Employee trained by geographical region

Hong Kong % 73.99 73.40 62.95 16.81 53.32 58.30 % 78.84

Mainland China % 76.19 99.70 84.73 - - 91.60 % 33.77

Thailand % 47.06 100 98.85 - - 96.73 % 97.84

Average training hours of employee trained by gender

Male Hours 13.54 14.33 36.62 18.67 21.86 25.09 Hours 15.06

Female Hours 15.99 15.01 30.94 23.31 18.26 23.40 Hours 17.25

58 HKR International Limited ESG Report 2019/2020 PERFORMANCE DATA SUMMARY

Reporting Year 2019/2020A 2018/2019 Property Discovery Bay City Property Investment & Management & KPI Unit DevelopmentB ManagementC HospitalityD HealthcareE TransportationF Total UnitG Total

Average training hours of employee trained by employee category

General Hours 13.13 13.53 32.53 12.38 20.83 23.51 Hours 12.31

Middle managers Hours 18.18 23.93 43.30 28.73 20.36 29.55 Hours 27.33

Senior managers Hours 11.36 15.38 23.65 0 6.00 15.42 Hours 74.73

Average training hours of employee trained by geographical region

Hong Kong Hours 17.58 16.38 20.47 21.84 20.70 19.51 Hours 10.17

Mainland China Hours 8.81 14.76 13.67 - - 13.76 Hours 1.69

Thailand Hours 9.25 8.97 53.71 - - 48.95 Hours 35.67

Service-related Complaints Received

Service-related complaints received No. of complaint 12 159 880 2 310 1,363 No. of complaint 1,422Y (restated)

Total Suppliers

Hong Kong No. of supplier 235 No. of supplier -

Mainland China No. of supplier 1,137 No. of supplier -

Thailand No. of supplier 861 No. of supplier -

Japan No. of supplier 63 No. of supplier -

Total Products Sold or Shipped Subject to Recalls for Safety and Health Reasons

Recalled cases % 0% % -

Community investment

In-kind sponsorship and donations HK$ equivalent 4,339,060 Z HK$ equivalent 4,325,772

Total service hours Hours 1,546 Z Hours 2,074

ESG Report 2019/2020 HKR International Limited 59 PERFORMANCE DATA SUMMARY

A. The data reporting of HKRI Taikoo Hui and Discovery Bay is under operational control approach. B. The property development segment refers to our general offices and sales office of our property development projects in Hong Kong, mainland China and Thailand. C. The property investment and management segment refers to our managed properties in Hong Kong, mainland China and Thailand, which covers DB Plaza, DB North Plaza, CDW Building, West Gate Tower, Wellgan Villa, 2GETHER, Discovery Park, La Fontaine, Country Villa, The Sukhothai Residences in Bangkok, and this year’s newly added HKRI Taikoo Hui in Shanghai due to the expansion of data scope. D. The hospitality segment refers to our hotels and clubs operation in Hong Kong, mainland China and Thailand, which covers Auberge Discovery Bay Hong Kong, The Sukhothai Bangkok, and the recreation clubs, the golf club and the Lautau Yacht Club (formerly named Discovery Bay Marina Club) in Discovery Bay, as well as this year’s newly added The Sukhothai Shanghai in mainland China due to the expansion of data scope. E. The data is confined to healthcare segment in Hong Kong. F. The data refers to our city management and transportation services provided in Discovery Bay in Hong Kong. G. Starting from 2019/2020, we present our performance data by operation segment and adopt revenue as intensity unit. For meaningful comparison, the intensity in 2018/2019 was recalculated using revenue figures within last year’s ESG reporting. H. Data increase is due to the expansion of data disclosure and enhanced data accuracy. I. The NOx emissions are confined to the LPG use in the hospitality operation, the vessel emissions in Discovery Bay and the vehicular emissions across our operations. J. To provide accurate and reliable figures, the calculation methodology of NOx, SOx and PM emissions has been enhanced to follow the market standard. The air emissions in 2018/2019 were therefore recalculated to ensure a meaningful comparison over years. K. The SOx emissions are confined to the LPG use in the hospitality operation, the vessel emissions in Discovery Bay and the vehicular emissions across our operations. L. The PM emissions are confined to the vessel emissions in Discovery Bay as well as the vehicular emissions across our operations. M. Scope 1 emissions include combustion of LPG, natural gas, Euro V diesel, diesel, unleaded petrol, marine light diesel, charcoal, and fugitive emissions from refrigerant. Scope 2 emissions include indirect emissions from electricity. Scope 3 emissions include emissions from business air travel. N. Data increase is due to the opening of sales offices for residential projects, and the expansion of data scope to include The Sukhothai Shanghai in hospitality operation and HKRI Taikoo Hui and the newly acquired Wellgan Villa in property investment and management operation. O. We have further enhanced the definition of ESG data and improved the data collection capacity. As such, the electricity consumption from our Bangkok and Shanghai offices in 2018/2019 were recalculated to ensure a meaningful comparison over years. P. The hospitality operation reduced the use of LPG, diesel and charcoal due to reduced operation need. Q. Our operation in Discovery Bay reported use of LPG instead of Towngas. We therefore revised the amount of LPG and Towngas consumption in 2018/2019. R. This data is confined to our operations in mainland China. S. This data is confined to our operations in Discovery Bay. T. The data in 2018/2019 reported the total amount of disposed and recycled hazardous wastes. U. Since 2019, Auberge Discovery Bay Hong Kong had changed their regular battery replacement practice. Batteries will only be replaced when they were running out, which contributed to the significant drop in batteries waste. V. The amount of waste paper was estimated from paper procurement. W. This data is confined to Discovery Bay city management. The achievement of this recycling effort is contributed collectively by our tenants and residents. X. All of our operations, tenants and residents in Discovery Bay contributed to achieve this great amount of recycled glass bottles, saving earth resources. Y. We have further enhanced the definition of ESG data and improved the data collection capacity. As such, the total amount of complaint cases in 2018/2019 was recalculated to ensure a meaningful comparison over years. Z. We have postponed a number of volunteering activities while some sponsored events were cancelled or postponed in 2019/2020 due to the outbreak of COVID-19, resulting in reduced services hours as well as donations and sponsorships.

60 HKR International Limited ESG Report 2019/2020 HKEX ESG REPORTING GUIDE CONTENT INDEX HKEX ESG REPORTING GUIDE CONTENT INDEX

Aspect HKEx Description Page Number / Remarks Aspect HKEx Description Page Number / Remarks KPI KPI A. Environmental B. Social A1 A1 General Disclosure 12-25 B3 B3 General Disclosure 34-35 Emissions A1.1 The types of emissions and 52 Development and B3.1 The percentage of employees trained by gender 58 respective emissions data Training and employee category A1.2 Direct (scope 1) and indirect (scope 2) 52 B3.2 The average training hours completed per 58 greenhouse gas emissions and intensity employee by gender and employee category A1.3 Total hazardous waste produced and intensity 52-53 B4 B4 General Disclosure 30-31 Labour Standards A1.4 Total non-hazardous waste produced and intensity 53 B4.1 Description of measures to review employment 30-31 practices to avoid child and forced labour A1.5 Description of emissions target(s) set and steps taken We are in the process of to achieve them setting up environmental B4.2 Description of steps taken to eliminate such 30-31 targets. Full disclosure will be practices when discovered provided in the coming year. B5 B5 General Disclosure 50-51 A1.6 Description of how hazardous and non-hazardous We are in the process of Supply Chain B5.1 Number of suppliers by geographical region 59 Management wastes are handled, and a description of reduction setting up environmental B5.2 Description of practices relating to engaging 50-51 target(s) set and steps taken to achieve them targets. Full disclosure will be suppliers, number of suppliers where the practices provided in the coming year. are being implemented, how they are implemented A2 A2 General Disclosure 12-25 and monitored Use of Resources A2.1 Direct and / or indirect energy consumption by type in 52 B5.3 Description of practices used to identify 50-51 total and intensity environmental and social risks along the A2.2 Water consumption in total and intensity 52 supply chain, and how they are implemented and monitored A2.3 Description of energy use efficiency target(s) set and We are in the process of steps taken to achieve them setting up environmental B5.4 Description of practices used to promote 50-51 targets. Full disclosure will be environmentally preferable products and provided in the coming year. services when selecting suppliers, and how they are implemented and monitored A2.4 Description of whether there is any issue in sourcing We are in the process of water that is fit for purpose, water efficiency target(s) setting up environmental B6 B6 General Disclosure 44-51 set and steps taken to achieve them targets. Full disclosure will be Product Responsibility B6.1 Percentage of total products sold or shipped 59 provided in the coming year. subject to recalls for safety and health reasons A2.5 Total packaging material used for finished products and Due to the business operations B6.2 Number of products and service related complaints 48-50, 59 per unit produced of HKRI, this KPI is considered received and how they are dealt with not material. B6.3 Description of practices relating to observing and 47 A3 A3 General Disclosure 12-25 protecting intellectual property rights The Environment A3.1 Description of the significant impacts of activities on 12-25 B6.4 Description of quality assurance process and recall 48-50 and the environment and natural resources and the actions procedures Natural Resources taken to manage them B6.5 Description of consumer data protection and 46-47 A4 A4 General Disclosure 12-25 privacy policies, how they are implemented and Climate Change A4.1 Discription of the significant climate-related issues 23 monitored which have impact, and those which may impact, the B7 B7 General Disclosure 5 issuer, and the actions taken to manage them Anti-corruption B7.1 Number of concluded legal cases regarding 5 B. Social corrupt practices brought against the issuer or its B1 B1 General Disclosure 30-31 employees during the reporting period and the outcomes of the cases Employment B1.1 Total workforce by gender, employment type, 30-33, 57 age group and geographical region B7.2 Description of preventive measures and whistle- 5 blowing procedures, how they are implemented B1.2 Employee turnover rate by gender, age group and 57-58 and monitored geographical region B7.3 Description of the anti-corruption training provided 5 B2 B2 General Disclosure 28-29, 33 to directors and employees Health and Safety B2.1 Number and rate of work-related fatalities in the past We have 0 work-related B8 B8 General Disclosure 36-43 three years fatality over the past three Community B8.1 Focus areas of contribution 36-43 years. Investment B2.2 Lost days due to work injury 58 B8.2 Resources contributed to the focus area 36-43, 59 B2.3 Description of occupational health and safety measures 28-30 adopted, how they are implemented and monitored

61 HKR International Limited ESG Report 2019/2020 ESG Report 2019/2020 HKR International Limited 62 www.hkri.com 23/F, China Merchants Tower, Shun Tak Centre, 168 Connaught Road Central, Hong Kong