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Driving Sustainable Growth Sustainability Report 2011 CONTENTS Driving Sustainable Growth Sustainability Report 2011 CONTENTS About this Report 01 Message from the Group Managing Director 02 Highlights 2011 04 Stakeholder Engagement 08 Power Assets in Brief 12 Managing our Environmental Impact 18 Ensuring Health & Safety in our Operations 30 Working with our Partners and the Community 34 In Pursuit of Excellence 48 Verification Statement 56 The landscape scene on the cover highlights a vision of a sustainable future, with the prosperity and harmony that we are striving to bring to all. The growing tree, from a small seedling to a healthy standing figure shows our growing commitment to improving the environment and the lives of people in the community we serve. With our determination to excel in all the services we provide, our pursuit of sustainable development in all our operations and our passion for engaging our stakeholders along the way, we shall achieve our goals. We publish annual sustainability reports as evidence of our commitment to ensuring high levels of communication with our stakeholders and to conducting our business in a transparent and ethical way. About this Report Headquartered in Hong Kong, Power Assets Holdings In preparing the report, we have followed the Limited (Power Assets), the holding company of The internationally recognised Global Reporting Initiative’s Hongkong Electric Company, Limited (HK Electric), is a (GRI) latest version 3.1 (G3.1) Guidelines and global investor in power and utility-related businesses its Electric Utility Sector Supplement at the “A+” with investments in electricity generation, transmission Application Level. Please refer to our online and distribution, renewable energy and gas distribution. GRI Content Index. Most of the report content has been selected based on GRI’s principles and guidance. This is the second Power Assets Sustainability Report, We have also formalised and conducted a systematic where we: stakeholder engagement exercise to identify significant issues that are relevant to their concerns. Materiality, • Set out our approach, commitments and strategy based on applicability, degree of impact and risk, as to Sustainability, including Corporate Social well as stakeholder interest, has been considered for Responsibility (CSR) each of the GRI reporting elements. The Third-party • Highlight our key achievements in the calendar Independent Verification and GRI Application Level year of 2011 with regard to our environmental, Check of the report assure its credibility, and also our social, safety and economic performance (including commitment to being transparent about sustainability information relating to early 2012) impacts and our willingness to manage them responsibly. Please refer to the Verification Statement at • Set out our plans and targets for the future with the end of the report. regard to our shareholders, customers, employees, business partners and community, and the We feature five main chapters: Stakeholder environment Engagement, Power Assets in Brief, Managing our Our report covers the sustainability performance of Environmental Impact, Ensuring Health & Safety Power Assets and its subsidiaries with operational in our Operations, and Working with our Partners control. The sustainability performance data on assets and the Community. Each chapter describes specific operated by companies in which Power Assets does goals and the actions we have taken to achieve them. not have a controlling equity interest are not included. We further review our past performance and state how Employees of contractors and subcontractors for we see our future In Pursuit of Excellence. For ease of whom Power Assets has no direct responsibility are not reading, we have produced a summary version of our included as part of the Power Assets workforce. We report, which is available on our website. have presented all numerical data as absolute figures We welcome comments on this report as well as and all financial data are in Hong Kong Dollars, unless on the sustainability performance of Power Assets. otherwise noted. Data collection and analysis are Please feel free to complete our online feedback form. conducted based on relevant guidelines or standards, The Summary Report, the online feedback form and such as ISO 14064 for greenhouse gas emissions. additional information, including financial data and the Company’s Annual Report can be found on our corporate website www.powerassets.com. 1 Message from the Group Managing Director Sustainability continues to be our quest as the in the region and the only Hong Kong company to Company moves forward in providing for Hong Kong’s qualify for the highest performance band “A”. We are current and future electricity needs. I am proud to say proud of this achievement and we intend to seek ways that we have become bigger and better in 2011 by to build on this success in the fight against climate growing our international portfolio and, at the same change. time, achieving our 15th consecutive year in maintaining our electricity supply reliability rating above 99.999% Meanwhile, as a responsible power supplier, we also in Hong Kong. In doing so, we have put in place continually look for methods to further reduce the targets and measures that benchmark with world- emissions from our LPS, and I am pleased to report class sustainability performances which have been full compliance with the emission caps set by the internationally acknowledged. The purpose of this Government during the year. report is to share with you our key achievements in 2011. As a corporate citizen, we take every opportunity to promote the message of sustainability through the In 2011, we changed our name to Power Assets work of the Corporate Social Responsibility (CSR) Holdings Limited. The intention of this important step Committee, which I personally chair. We align and share is to better reflect the nature of our business, which is our vision with our employees by hosting a series of now expanded into investment opportunities overseas talks promoting CSR. On public education, our Clean as well as our strong established domestic operations Energy Fund supports renewable energy initiatives in in Hong Kong. As many sustainability issues like climate primary, secondary and tertiary education institutions change are global and relevant to our business, we and special needs schools, and we have now extended must take note of what this means for us in Hong Kong coverage of the Fund to kindergartens. Our Smart and elsewhere, currently and in the future. Power Campaign, which provides tips on how to live a low carbon lifestyle, now includes a Low Carbon So how are we going to do this? Our low carbon application for free download to personal mobile roadmap is aligned with the Hong Kong Government’s devices. In 2011, we opened a new Smart Power goal of reducing the city’s carbon intensity by 50-60% Centre and a new Electric Domestic Kitchen Centre to by 2020 as compared to 2005. We will work to reduce promote the smart use of electricity and green cooking. the carbon intensity of electricity generation and have started work to increase the use of renewable energy, We firmly believe that clean transport is vital to namely solar and wind. Our plan to build an offshore reducing air pollution in Hong Kong and, to that end, wind farm near Lamma Island is underway with the we wholeheartedly endorse the use of electric vehicles erection of a wind monitoring station in 2011 and (EVs). We continued to build up our green operating commencement of wind monitoring in early 2012. We fleet during the year while also progressing to build also moved our plan to expand the solar power system three new EV Quick Charging Stations in public car at Lamma Power Station (LPS), Hong Kong’s largest so parks across Hong Kong Island in 2012. In addition to far, to 1MW. land transport, we support clean transport on the sea as we sponsored the installation of solar panels on 500 Our efforts to reduce carbon emissions have been local fishing vessels that can help save over 20 tonnes recognised in the 2011 Carbon Disclosure Project of CO2 emissions a year. (CDP) when we topped the list of 15 Hong Kong companies in terms of carbon reduction and public While we care for the community we serve, we also disclosure performance; in the CDP Asia ex-Japan strive to take good care of the health and well-being of Report 2011, Power Assets was named one of the two our employees, who devoted 4,912 hours of volunteer Carbon Performance Leaders out of 109 respondents service to the community last year. In addition to our 2 rigorous health and safety programmes, this year we In overall acknowledgement of our sustainability ran a series of employee wellness seminars covering performance in 2011, I am delighted to announce eight health topics. that we were given a higher sustainability rating (from “A” to “A+”) in a review of the companies listed in the Our CSR performance has been recognised with two Hang Seng Corporate Sustainability Index. This, we major awards received in 2011 – the Total Caring Award hope, demonstrates our unreserved commitment to by the Hong Kong Council of Social Service as well as sustainability and we encourage our business partners the Gold Prize in the Services Enterprise Category and to follow suit. the Bronze Prize for Outstanding Corporate Volunteer Team in the 2nd Hong Kong Outstanding Corporate While 2011 was a good year for us and for Hong Citizenship Award by the Hong Kong Productivity Kong, I foresee many economic and social challenges Council. lying ahead. Electricity is essential to Hong Kong’s businesses and citizens, and we must be mindful of the implications of providing this world-class service for Hong Kong. To enjoy sustainable growth, we must pay attention to how we can improve on our current operations without compromising resources in the future.
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