Sustainability Report 2019 Holdings Limited Transport International Holdings Limited 038 2019 Annual Report

Sustainability Report

With over 13,000 employees, KMB and LWB are major employers in , providing attractive staff benefits; two generations of a family work together for the Company

About the Report companies represent the significant on the scope and boundary of this business operations of TIH. This Report in respect of KMB and LWB’s Reporting Focus Report covers the reporting period operations. from 1 January to 31 December This is the Sustainability Report 2019. Reporting Principles 2019 (“this Report”) of Transport The TIH Sustainability Report 2019 International Holdings Limited During the reporting period, the was prepared in accordance with the (“TIH”). The report highlights the Group had no leased facilities and no Core Option of the Global Reporting major environmental and corporate outsourced operation of significant Initiative Sustainability Reporting social responsibility performance and importance that requires disclosure. Standards (“GRI Standards”) and the sustainability achievements of the Data and statistics in this Report are Environmental, Social and Governance Hong Kong franchised public bus presented as absolute figures and are Reporting Guide (“ESG Guide”) operations provided by two of TIH’s normalised into comparable terms issued by the Hong Kong Exchanges wholly-owned subsidiaries, namely as far as possible. Unless otherwise and Clearing Limited (“HKEX”). In The Motor Bus Company stated, data and statistics in this addition, we have taken into account (1933) Limited (“KMB”) and Long Report cover the performance of KMB the concerns of stakeholders as Win Bus Company Limited (“LWB”). and LWB during the entire reporting identified through engagement Operating in Hong Kong, these two period. There is no specific limitation Transport International Holdings Limited 2019 Annual Report 039

Sustainability Report

exercises such as the annual If you have any comments on this passenger liaison group meetings Report, please send an email to and interviews with representatives [email protected]. of different groups. The latest Annual Report of TIH contains more information about the Group including corporate governance and the financial performance of KMB and LWB.

Sustainability Highlights 40.9 23,000 Average training 75% voluntary hours hour per employee 14 of bus fleet at Euro weeks of V standard or above maternity leave Transport International Holdings Limited 040 2019 Annual Report

Sustainability Report

Major Recognition and 15 Years Plus Caring Company Merit in the Highest Service Hour Awards Logo from The Hong Kong Council Award (Private Organisations – of Social Service Best Staff Participation) from the We aim to deliver excellent public Award of 10,000 Hours for Social Welfare Department transport services in a sustainable Volunteer Service from the Social manner and are pleased to receive Welfare Department Brand a number of prestigious awards in Award of Distinction from The 2019. Community Chest of Hong Kong Manpower Developer from the Gold Star Award in the 2018-2019 Employees Retraining Board Corporate Social Responsibility Age-friendly Appreciation Scheme HKQAA 30th Anniversary from The Hong Kong Council of Precognition Programme For Gold Award in the Transport Social Service Outstanding Organisations from and Logistics category of the Social Capital Builder Logo Award the Hong Kong Quality Assurance 2018 Hong Kong Awards from the Labour and Welfare Agency for Environmental Excellence Bureau and Community Investment Hong Kong Best Awards 2019 (“HKAEE”) from the Environmental and Inclusion Fund from CMO Asia Campaign Committee Sport-Friendly Action Decal from Top Service Awards 2019 for Silver Award in the Enterprise the Chinese YMCA of Hong Kong Public Transportation from Next category of The 10th Hong Kong Corporate Partnership Award from Magazine Outstanding Corporate Citizenship the Christian Family Service Centre Gold in the Public Transport Programme from the Committee Jockey Club Age-friendly City category of the 2019 Reader’s on the Promotion of Civic Partner 2019 from The Hong Kong Digest Trusted Brands Awards Education Jockey Club Charities Trust Bronze Award for Financial Data Hong Kong Green Organisation Second Runner-up in the Highest for the TIH 2018 Annual Report Certificate from the Environmental Service Hour Award (Private in the Transportation and Leasing Campaign Committee Organisations – Best Customers category of the International ARC Outstanding HKAEE Promotional Participation) from the Social Awards Partner Award from the Welfare Department Environmental Campaign Committee Transport International Holdings Limited 2019 Annual Report 041

Sustainability Report

Stakeholder stakeholders is established through including passengers, employees, Engagement and various channels, including the FRIENDS OF KMB, suppliers, Materiality Assessment LiveChat enquiry channel on the KMB non-governmental organisations (e.g. and LWB websites and App1933, social organisation and green group) the KMB Facebook page, the KMB to participate in three stakeholder Stakeholder engagement exercises Instagram account, the KMB YouTube engagement activities involving and materiality assessments provide channel and corporate publications surveys, focus group meetings and a sound basis for us to develop our such as KMB Today, as well as face-to-face interviews. sustainability reports, as they help face-to-face meetings and media identify the sustainability topics networking. Based on the survey results and the that are most relevant to both our materiality assessment conducted operations and the shared interests of In 2019, we once again engaged annually over the past few years, our stakeholders. an external consultant to carry out the Group further reviewed and a series of stakeholder engagement validated the material topics to Our stakeholders include passengers, activities to define the scope of this ensure a consistent and balanced employees, suppliers, contractors, Report and to identify the material representation of the Group’s Legislative Councillors, District economic, environmental and social significant sustainability performance Councillors, transport advisory bodies, topics to be reported, with reference and impacts. As a result, the following interest groups and the government. to the principles and requirements of material topics have been prioritised We have established several of the GRI Standards and the HKEX ESG for disclosure in the TIH Sustainability engagement programmes to gauge Guide. We invited representatives Report 2019 with the corresponding their views on our operations from various stakeholder groups, boundaries specified: and services. Our dialogue with

Reporting Boundaries

Material Topics KMB & LWB’s Operations KMB & LWB’s Suppliers

Environment

Energy and Efficiency Measures ✓ Emissions ✓ ✓ Effluents and Waste ✓ Green Procurement ✓ ✓

Employees

Employment ✓ ✓ Training and Education ✓ Staff Communication ✓ Occupational Health and Safety ✓ ✓

Community

Customer Health and Safety ✓ Community Engagement ✓ Transport International Holdings Limited 042 2019 Annual Report

Sustainability Report

The engagement activities provided us with the constructive comments and suggestions of our stakeholders. We appreciate their valuable feedback and will strive to address their expectations through continuous improvements.

Our Responses and Relevant Key Area of Interest Stakeholders’ Comments Disclosures in this Report Safety More promotional activities would be Safety is our utmost priority, and we make helpful to enhance public awareness of great efforts to implement safety measures on-bus safety. and promote safety awareness. (See details in Safety First) Passengers The super-low floor buses make boarding Bus facilities and compartment designs much easier for wheelchair users. have been upgraded to provide better accessibility and comfort for passengers. (See details in Care for Customers) Environment The new bus fleet has lower air KMB continues to work with suppliers to emissions, while new technologies, such employ the latest technologies in new bus as electric vehicles, present technical models. challenges for daily application. (See details in Care for the Environment) Employees It is suggested to further promote We have set up a new department, Staff awareness of a healthy lifestyle and Relations & Welfare Services, to promote work-life balance among staff. a healthy lifestyle among Group members. (See details in Care for Employees) Community TIH could increase communications to We play an active role in a range of inform stakeholders about its community community activities and take various contributions. opportunities to communicate with the public. (See details in Engaging Stakeholders)

Corporate Governance and for growing shareholder value. corporate executives are responsible The Board currently comprises nine for optimising environmental With a commitment to conducting non-executive directors and five performance, increasing staff our businesses in line with the best independent non-executive directors. awareness on corporate social corporate governance practices, we The biographies of our current responsibilities, and sharing aim to achieve sustainable business directors can be found on pages 116 knowledge and best practice with the development by considering the to 122 of our Annual Report 2019. industry. interests of our stakeholders, while ensuring compliance with legal The overall strategic planning and The Group’s Enterprise Risk and regulatory requirements. The accountability for the Group’s Management System uses consistent Group has adopted an integrated sustainable development rest with risk assessment criteria to provide a management approach to guide our Board-level Committees, which systematic approach to the timely the sustainable development of the determine the sustainability strategy identification and management Group based on the principles of and oversees its progress across of risks. Accurate and concise risk integrity, equity and transparency. the Group. Under the oversight information is made available to This integrated management of the Committees, the senior assist management in decision- approach is strengthened by on-going management team acts as the making and risk control by adopting staff training and communication bridge between the Group and each risk treatments of cost-effectiveness with all stakeholders. The board subsidiary in driving sustainable and efficiency. Meanwhile, with of directors of TIH (the “Board”) initiatives throughout our operations, the Enterprise Risk Management as the highest governance body, including safety, environmental System, the management monitor is responsible for promoting the protection, staff welfare, community and review risk levels, including long-term development of the Group engagement and volunteering. Key Transport International Holdings Limited 2019 Annual Report 043

Sustainability Report

climate change related-risks, to The Group has a whistleblowing services, as well as high-quality end ensure that risk exposure remains policy to encourage employees and products in which our customers within an acceptable level. A Risk related third parties who deal with the can be confident. In 2019, KMB and Key Performance Indicator Report Group to raise concerns in confidence LWB worked with 384 local and (“Risk KPI Report”) summarising the about misconduct, malpractice, 46 non-local suppliers, of which 44 Group’s major risks as identified bribery, money laundering, any forms suppliers are newly added. by management, are submitted to of forced, coerced or bonded labour the Audit and Risk Management and irregularities in any matters To ensure compliance by suppliers Committee every six months. related to the Group. Employees with our social and environmental The Risk KPI Report provides a and/or related third parties may requirements, we require them to comprehensive profile of the major make a report to the Company declare their compliance with our risks and the mechanism established Secretary or the Chairman of the guidelines upon supplier registration: by management for monitoring these Board’s Audit & Risk Management risks. Committee. Appropriate follow- Environmental care; up action, including disciplinary Health and Safety; For details of our corporate action, will be taken by the Group in The prohibition of forced and child governance, please refer to pages 094 respect of substantiated and partially labour; and to 111 of our Annual Report 2019. substantiated cases. In the event of Anti-corruption. an employee committing any offence Legal and Regulatory of corruption under the Prevention of Procurement and Tendering Compliance Bribery Ordinance (Chapter 201, Laws Procedures of Hong Kong), we would make a The Group is committed to conduct report to the Hong Kong Independent The criteria for the procurement and its business activities in a proper and Commission Against Corruption. We tendering of services or goods are lawful manner in compliance with have not committed any offence of based on price, quality, requirement the laws of the HKSAR. All Directors corruption under this Ordinance. and other relevant factors. Our and staff of the Group are subject We also invited the Hong Kong procurement and tendering measures to a written Code of Conduct, Independent Commission Against have been established according to available on the staff website, Corruption to provide training to the following principles: that provides guidance on matters directors and employees to enhance relating to personal conduct, relations their awareness of anti-corruption. Impartial selection of capable and with suppliers and contractors, During the reporting year, we had responsible suppliers; responsibilities to shareholders and zero concluded legal cases regarding Fair competition; community, relations with customers, corruption cases. Selection of appropriate contract and employment practices, as well as types according to requirement; procedures for monitoring compliance Working with Suppliers Compliance with laws, relevant and means of enforcement. The Code regulations and contractual of Conduct promotes ethical values We believe in upstream integrated obligations; and in business activities which Directors supply chain management with an Adoption of an effective and employees are required to adhere emphasis on quality and logistics monitoring system, management to when discharging their delegated control. We work closely with our controls and practices: duties. The Code of Conduct is business partners to develop new • to prevent bribery, fraud or reviewed and updated periodically buses and services that are adapted other malpractices; and to reflect the latest regulatory to the local climatic and operational • to ensure declaration of changes. Our Group also reviews its environment while taking a high conflicts of interests by staff employment practices on a regular level of energy efficiency and the involved in the selection. basis, including strictly following the latest emission standards into Employment Ordinance of Hong Kong consideration. We encourage fair and to prohibit hiring of child labour and open competition with the aim of any form of forced labour practices. developing long-term relationships We do not use forced labour in any with suppliers based on mutual form of child labour (persons below trust. Our supply chain activities are the local minimum age or below the guided by policies and procedures age of 16). that are geared to ensuring the ethical procurement of supplies and Transport International Holdings Limited 044 2019 Annual Report

Sustainability Report Safety First

Safety First

Safety is our number one priority and we continue to invest heavily in improving the safety of our bus operations. Transport International Holdings Limited 2019 Annual Report 045

Sustainability Report Safety First

Safety Policy are held to discuss safety issues at to scheduled departures during the the corporate level. Meetings of peak hours of 7:00 a.m. to 9:00 a.m. The KMB and LWB Safety Policy Departmental Safety Committees, across the bus network. In 2019, KMB is predicated on a commitment Maintenance Safety Committees and LWB attained an operational made by all employees to provide and Operations Safety Committees capability of 96.67% and 100.61% a safe and healthy environment for are held at the local level to discuss respectively. everyone who may be affected by safety issues relating to departments our work activities. It is our objective and sections. Departmental Safety The Number and the to minimise the risk of injury and ill Committees may vary the frequency Percentage of Staff and health. of their meetings in accordance with Workers Covered by Our the scale of their local safety risks. Occupational Health and Safety Safety is an absolute pre-requisite Management System (OHSMS) in everything we do and is an Safety Management (as at 31 December 2019) integral part of our business strategy. 15,000 537 537 477 Employees at all levels are required KMB adopts ISO45001:2018 (100%) (100%) (88.8%) 11,250 to comply with all legal requirements Occupational Health and Safety 7,500 and other requirements applicable Management System to promote 13,457 13,457 12,685 (100%) (100%) (94.3%) to our work activities. We consult further improvement of safety 3,750 our employees by engaging them in performance in all aspects of our 0 Covered Covered by Covered by our safety management system. We business, including bus maintenance by OHSMS OHSMS OHSMS and design upgrades. and has been and has been shall continue to maintain our safety internally audited or certified risks at as low a level as reasonably audited by an external party practicable and strive for continual The key benchmarks of our Number of Employees improvement in safety performance. operational performance are Number of Workers mechanical reliability and operational Safety Committees capability. Mechanical reliability refers Operational Excellence to the average number of kilometres Safety Committees are responsible a bus operates before it experiences KMB and LWB are ISO9001 certified for ensuring that information about one mechanical breakdown on for their Quality Management Occupational Safety and Health the road with passengers on Systems. Both companies have been risks, trends and policies are properly board. In 2019, the mechanical accredited with the latest version of communicated up and down the reliability of KMB’s bus fleet was ISO9001, reflecting our commitment chain of command. Meetings of 74,278km:1, while LWB’s bus fleet to achieving up-to-date operational the Working Committee for Safety was 80,068km:1. Operational and service standards. capability refers to the ratio of actual

KMB and LWB offer professional operations and maintenance training to provide safe and quality bus services; we also boost public awareness of safety matters by education and promotion in schools and the community at large Transport International Holdings Limited 046 2019 Annual Report

Sustainability Report Safety First

Risk Assessment the in-house safety rules and the best incorporated on buses to improve practices of the industry. We adopted safety and record operational data. Risk assessments are critically the Plan-Do-Check-Act cycle to ensure All KMB and LWB buses undergo an conducted by managerial staff continual improvement. ISO-certified maintenance regime, together with the relevant workers comprising daily and monthly before the commencement of work. Bus Safety Facilities and servicing, a semi-annual minor dock Both the working environment and Maintenance and an annual road-worthiness staff working behaviour are checked inspection, as well as random checks during safety inspections and safety A number of technological devices, from the Transport Department of the audits to ensure compliance with not including speed limiting devices and HKSAR Government. just the legal requirements but also the telematics system, have been

Latest Bus Safety Measures Seat belts

Drowsiness Monitoring System

Advanced Driver Assistance System

Electronic Stability Programme Transport International Holdings Limited 2019 Annual Report 047

Sustainability Report Safety First

Drowsiness Monitoring cornering or operating on slippery Parking Sensor System (“DMS”) road surfaces. To safeguard road safety, all new Euro VI buses will be KMB and LWB have been installing The DMS is installed on around one- equipped with the ESP. The first batch parking sensors for trial. The system third of LWB buses to monitor the of these buses was deployed in 2019. will alert the driver if the bus is status of bus captains when they are nearing obstacles when reversing. In driving. This device, which is mounted Speed Limiting Retarder addition to the camera system, bus on the dashboard, uses image- captains can monitor the real-time processing technology and advanced In addition to the current speed situation through the screen in the facial recognition to detect the level limitation technology installed on the driving cab. of alertness of a driver. Early audio fleet, which limits the fuel supply to and vibratory warnings are activated the engine when the speed limit is Surveillance Cameras and when “fatigue” or “microsleep” is reached, the Speed Limiting Retarder Data Protection detected. automatically activates the brakes or retarder to prevent speeding when Surveillance cameras, including Advanced Driver Assistance travelling downhill. The retarder, with forward-looking cameras, to monitor System (“ADAS”) which a hydraulic brake built into the road and saloon condition, have gearbox, is installed on all new buses been standard features on all new The ADAS is installed on all LWB introduced after August 2019. buses since 2015. At the end of buses to monitor the road condition 2019, surveillance cameras were in front of a moving bus. The Geo-fencing and Driver installed on 4,069 KMB buses and device is installed on the lower Feedback Device 279 LWB buses. The cameras protect saloon windscreen and uses image- the interests of bus captains in the processing technology to detect the With Global Positioning System event of police investigations or legal presence of different objects on the (GPS) technology and the road speed proceedings. road and the corresponding distance. restriction database provided by the Early audio and vibratory warnings are Government, Geo-fencing and the Attaching great importance to activated when “unsafe” conditions Driver Feedback Device can identify personal data protection, the Group are detected. the speed limit of each road section. has established working instruction When a bus runs on a road at a speed guidelines to prevent inappropriate Safety Belts exceeding the speed limit of the road, disclosure of personal data. Stickers an alarm will sound and a warning are posted on all buses equipped KMB and LWB have requested bus light will be turned on to alert the bus with a CCTV system to inform bus manufacturers to install 3-point safety captain to reduce the speed. passengers and bus captains of their belts on all seats as a standard feature presence and purpose. Recordings for new buses ordered after March Smart Indicator System, from CCTV cameras will be accessed 2018. Currently, close to 400 new ”Give Way to Bus” by authorised persons only for the buses are fully equipped with seat purposes of security and incident belts on both decks. As for buses that KMB and LWB have introduced the investigation. The recorded data is are currently in service and running Smart Indicator System on 1,478 controlled by management and will on long-haul or expressway routes, buses. When the bus captain turns only be accessed, copied or viewed 3-point safety belts will be installed on an indicator, the LED route display following management approval on all upper-deck seats in phases. at the rear of the bus will display in accordance with the governing the message “Give Way to Bus” to procedures. Electronic Stability remind drivers to be courteous. Programme (“ESP”)

The ESP is an important safety feature, which reduces the risk of buses skidding or overturning when Transport International Holdings Limited 048 2019 Annual Report

Sustainability Report Safety First

To promote driving and road safety, KMB and LWB conducted events for staff and the public

Bus Captain Safety Practical defensive driving training System” helps our bus captains Training and target-based remedial training, maintain high standards in terms of including prevention of speeding driving safety, driving manner and and awareness of passing through quality customer service. Through The Bus Captain Training School bus washing machines, have been coaching and guidance, we strive provides comprehensive basic introduced to address areas identified for continuous improvement in bus training to all new bus captains, for improvement. A skills revision captains’ performance to exceed the including a safe driving mind-set, training course has been developed expectations of the general public. bus manoeuvring skills and bus route to help new bus captains with less knowledge. The school also offers than six months’ service further For the Group’s business growth and a series of training courses for in- enhance their driving skills and safety rising training needs, the number of service bus captains. These include awareness. Driving Instructors has been increased route training, remedial training to enhance the service quality of our and bus type training as well as In order to meet customers’ bus captains. refresher training. Bus captains needs and expectations, the “Bus may upgrade their driving skills and Captain Performance Management enhance their safety awareness.

The Bus Captain Training School offers professional training for all new and in-service bus captains Transport International Holdings Limited 2019 Annual Report 049

Sustainability Report Safety First

Benchmark Our Performance

Take an Extra Step Improve Public Safety Awareness

KMB and LWB attach great importance to enhancing bus safety performance and make use of different channels to boost public awareness of safety issues. A series of safety messages, broadcast on the Bus Stop Announcement System in , English and Putonghua, reminds passengers to hold the handrail at all times. This message is also periodically conveyed via App1933 and on KMB’s Facebook page. KMB has also cooperated with the Hong Kong Police Force to promote road safety in some primary school zones as well as the community at large. During the reporting period, we Having been a bus captain for more than seven years, conducted 17 safety talks for 1,590 students and 480 elderly I always remind myself to drive safely, stay alert to the people. In line with its mission of always putting safety first, “ road conditions, and exercise tolerance and patience. KMB held a Road Safety Carnival to promote road safety to To transport passengers to their destinations safely is the general public. the most important thing for me. I attended a safety forum, which helped me deepen my understanding of defensive driving. I can see that the Company continues

to enhance the public’s awareness of road safety and

improve bus safety, with safety messages broadcast on the Bus Stop“ Announcement System to remind passengers to hold the handrails during their bus journey.

Mr Sung Wun Hei Bus Captain

As a KMB customer from an early age, KMB “ accompanied me on numerous occasions and I naturally have a special feeling for the Company. KMB provides steady and comfortable journeys. I notice that bus captains’ service has greatly improved in terms of politeness and concern for customers’ needs. KMB has put more effort and resources into promoting road safety in recent years. I’m impressed with the safety

messages broadcast and “Warm Notice” stickers inside

the bus compartment that inspire me to pay special attention to safety on board. I“ attended the Road Safety Carnival, where the booth games deepened my awareness of road safety.

Mr Tsoi Kcon Wah Customer Transport International Holdings Limited 050 2019 Annual Report

Sustainability Report Care for Customers

Care for Customers

Safety, efficiency, value-for-money and comfort underpin our customer service philosophy. Transport International Holdings Limited 2019 Annual Report 051

Sustainability Report Care for Customers

New Bus Fleet and provide a more comfortable bus Upgraded Facilities journey. As of the end of 2019, 3,073 Compartments buses at Euro V standard or above were licensed in the KMB fleet, while Following the introduction of The air quality in bus compartments 229 buses at Euro V standard or KMB’s new red bus fleet in 2017, benefits from electrostatic air filters above were licensed in the LWB fleet. KMB introduced the double-decker installed on all KMB and LWB buses, The majority of these buses have been featuring a glass window that shows which are able to remove up to 80% deployed on routes passing through the staircase leading to the upper of fine particles. As at the end of low-emission zones to help improve deck. Sunlight is directed onto the 2019, electrostatic air filters were the air quality in busy districts. staircase, thus enhancing safety and installed on 3,885 KMB buses and passengers’ experience. 272 LWB buses. In addition, all KMB The entire KMB and LWB fleets and LWB buses ordered after 2008 deploy super-low floor buses for KMB and LWB’s latest double-deck are equipped with power-saving easy boarding and alighting, as well buses are equipped with upgraded variable capacity air-conditioning as wide entrance and exit doors passenger facilities, including a free compressors, which provide more for better passenger access, which Wi-Fi service and a number of USB adaptive and refined thermal control means that all KMB and LWB buses charging points on both upper and in the most fuel-efficient manner in are accessible to the elderly and lower decks, a straight staircase all weather conditions. wheelchair users. In addition, KMB for easy access to the upper deck, has retrofitted around 200 buses additional space for 2+2 seating, KMB refurbishes buses with a to accommodate two wheelchair priority seats for passengers in need, new look to enhance passengers’ passengers, to run mainly on routes a designated area for wheelchair travelling experience. Mid-life buses travelling to hospitals. users near the entrance/exit, colour with around eight years’ service contrasted handrails and easy-reach benefit from the “Refurbished Bus KMB and LWB have installed the Bus bell-pushes. In addition, the provision Scheme”, which focuses on improving Information Panel System on 3,323 of continuous railing and hand poles passenger comfort and safety on buses. Together with the Bus Stop on the lower deck ensures a smooth board. The scheme will also aid the Announcement System, passengers passenger flow in the space between maintenance and repair of buses in can obtain bus stop information the entrance and exit doors. All seats the long term. The refurbishment easily and clearly through the display on the upper deck of LWB’s Airbuses includes reupholstery of the seats and screens on the upper and lower are equipped with an armrest to the installation of a light-coloured decks.

To offer passengers, especially young people, a caring bus service experience, buses have upgraded passenger facilities including USB charging ports Transport International Holdings Limited 052 2019 Annual Report

Sustainability Report Care for Customers

LWB

ICBC/KMB UnionPay Dual Currency Card holders can enjoy a maximum 20% bus fare rebate whenever they pay for KMB and LWB rides; and A fare rebate scheme with Citibank earning cardholders a year-round 15% bus fare rebate.

Octopus Bus-Bus KMB works with different banks to launch bus fare rebate schemes providing passengers with cost effective services Interchange (“BBI”) Schemes compartment floor to make the A fare rebate scheme with Citibank KMB and LWB’s Octopus BBI Schemes bus look bright and comfortable. In earning cardholders a year-round offer fare discounts to passengers addition, the interior of the buses has 15% bus fare rebate; on the second leg of journeys and been resprayed for a clean and fresh Partnership with Hong Kong broaden the network coverage. The look, bringing comfort levels to the Tramways Limited providing schemes contribute to a greener same standard as the new generation inter-modal interchange fare environment by improving bus use of the “Red Bus”. The stair nosing concessions; and reducing congestion on busy and hand-holds are also replaced in A KMB-AMS interchange roads. As of the end of 2019, KMB the revamped compartments. discount when interchanging operated a total of 157 Octopus BBI from designated cross-harbour Schemes covering all KMB operated routes solely operated by KMB to Fare Concession routes, while LWB operated 27 designated Green Schemes Octopus BBI Schemes covering Minibus routes operated by AMS 27 routes. The KMB and LWB Public Transport Holdings Limited, KMB and LWB are committed to websites provide more detailed and and vice versa; and providing efficient bus services for the comprehensive route-to-route BBI Four new Bus-Bus Interchange public. A number of fare concession information for passengers. schemes were introduced in 2019, concessions covering more than 90 including: routes.

KMB

ICBC/KMB UnionPay Dual Currency Card holders can enjoy a maximum 20% bus fare rebate whenever they pay for KMB and LWB rides; KMB Fare Saver Scheme was extended to ten tertiary institutions, offering a HK$2.0 rebate on each ride;

To promote the use of public transport, KMB Fare Saver kiosks are set up on the campuses of tertiary education institutions; teachers and students can enjoy a HK$2.0 fare rebate Transport International Holdings Limited 2019 Annual Report 053

Sustainability Report Care for Customers

Special Service Arrangements

KMB and LWB provide special bus services during festive periods, such as Lunar New Year, Christmas, New Year and Ching Ming, and for people participating in mega- events, including the Hong Kong Marathon, concerts at the Hong Kong Coliseum, and concerts at Hong Kong Disneyland. In 2019, KMB and LWB introduced 66 and 12 special bus routes respectively.

Upgrade of Depots, Termini and Bus Stops App1933 continues to upgrade its functions to keep passengers up-to-date with important bus information The four major KMB depots at , , and Tuen Alcohol-based hand-rub dispensers Smartphone App Mun, as well as the LWB depot at Siu have been installed at the airport, Ho Wan, provide the KMB and LWB the Hong Kong Port of the Hong The KMB and LWB mobile app, fleets with maintenance and repair Kong-Zhuhai-Macao Bridge, Lok App1933, has one million daily active services. The KMB Overhaul Centre Ma Chau Station Bus Terminus, users making around five million in provides major overhaul interchanges and other bus termini downloads allowing passengers to services, while ten smaller depots for passengers and frontline staff check information on bus routes and offer parking and minor maintenance members; the estimated time of bus arrivals. services. Bus stop railings with cement App1933 received a number of bases are being phased out to upgrades during the year. Passengers KMB and LWB’s commitment to enable easier access for wheelchair can purchase the KMB Monthly upgrading the facilities at their termini passengers; Pass with App1933. The app also and bus stops is reflected in the 756 KMB and LWB bus termini and offers the LiveChat function so that following measures: bus shelters are equipped with the passengers can directly communicate Integrated Bus Service Information with customer service representatives. A solar bus pole featuring solar- Display System; To provide a more convenient powered bulbs with an auto-sensor KMB has installed LED kerb lights, service for passengers planning has been installed so passengers flashing lights and buzzers at their journeys, Bluetooth positioning may obtain bus route information Mei Foo Bus Terminus to remind technology is being adopted at 1,500 day and night; pedestrians to be aware of road bus stops, providing nearby route Seats for the elderly, disabled and conditions; information, important notifications people with young children are 10,000 with the new layout of bus and Bus Terminus Map Notification. being introduced at bus shelters, route information sheets at the bus termini and interchanges. At bus poles have been enhanced. the end of 2019, 984 seats had Passengers can scan a two- been installed; dimensional QR code for further The Solar-powered Bus Shelter bus route information, including Campaign promotes green energy bus frequencies; and by installing solar panels to power In 2019, 25 new bus shelters were up lighting, mosquito repelling constructed, bringing the total to devices and ventilation fans. 117 2,597. bus stops have been equipped with solar power equipment; Transport International Holdings Limited 054 2019 Annual Report

Sustainability Report Care for the Environment

Care for the Environment

Our environment-friendly bus fleets are driving us into a new era. Transport International Holdings Limited 2019 Annual Report 055

Sustainability Report Care for the Environment

Environmental Policy Responding to environmental Environmental Bus Fleet enquiries from stakeholders KMB and LWB recognise the potential promptly and ensuring effective We are committed to creating a environmental impacts of bus services communication on environmental better environment and minimising and are committed to mitigating issues internally; and the impact of climate-related issues and minimising these impacts in the Ensuring compliance with all by investing in environmental-friendly following ways: applicable local environmental buses that meet the strict exhaust legislation and other relevant emission standards of the European Preventing pollution and requirements. Council of Environmental Ministers. continually improving our At the end of 2019, there were 221 environmental performance Environmental Euro VI buses (including three Euro by establishing and achieving Management VI diesel-electric hybrid buses), 2,830 objectives and targets; Euro V buses, ten battery-electric Conserving resources by reducing KMB has been ISO14001 certified buses and eight supercapacitor buses waste at source, and recycling and for its Environmental Management in the KMB fleet, and 225 Euro V reusing resources; Systems for the two largest buses and four battery-electric buses Minimising and controlling depots. KMB’s four major depots in the LWB fleet. In collaboration emissions from buses by adopting and LWB’s depot are subject to with our suppliers, we have been control measures and providing quarterly surveillance audits to replacing older bus models with the professional bus repair and ensure compliance with a set of latest, more energy-efficient bus maintenance services; stringent environmental management models to enhance the environmental Enhancing staff environmental standards. Environmental working performance of our bus fleets. The awareness by providing training in groups have been set up to handle average age of the KMB bus fleet has line with our environmental policy environmental issues and ensure the become 7.2 years, while that of LWB and environmental objectives and implementation of the ISO systems. has become 5.5 years. targets, as well as in relation to the Under the guidance of Senior potential environmental impacts Management, the Engineering team arising from our operations; is introducing new and innovative Communicating our environmental technologies applicable to both bus policy and environmental fleets and bus operations. requirements to our suppliers, and making the policy available to the public;

KMB and LWB spare no effort in introducing the latest technologies into their bus fleets to minimise the environmental impacts Transport International Holdings Limited 056 2019 Annual Report

Sustainability Report Care for the Environment

KMB and LWB continue to explore the possibilities of renewable energy and zero-emission bus technologies

Exploring Renewable Energy battery power pack capable of Greenhouse Gas and Zero-emission Bus delivering 200km of zero-emission Emissions Technologies bus transport; and KMB has introduced the “gBus”, KMB and LWB seek to minimise their the supercapacitor-powered KMB and LWB strive to improve greenhouse gas emissions through 12-metre air-conditioned single- environmental performance the judicious application of the latest deck bus. The gBus is characterised by exploring various kinds of technologies and relevant measures. renewable energy and zero-emission by long working hours and technologies, which shows KMB and frequent start-stop duty cycles, as the supercapacitor can be Total Tonnage of LWB’s determination to introduce Greenhouse Gas Emissions green public . recharged more quickly and undertake many more charging/ discharging cycles. The gBus can The total direct greenhouse gas KMB introduced the first in-house emissions (Scope I) and indirect developed solar power system be powered up by an overhead greenhouse gas emissions (Scope II)1 installed on a double-decker in pantograph or a plug-type of KMB and LWB are around 574,800 2017. The system reduces the air charging port in the depot. and 17,260 tonnes of CO2 equivalent temperature in the compartment respectively. The total carbon intensity by around 8-10˚C compared to a Checks on CO2 is 135.8 tonnes CO2 equivalent per bus without such a system. With Concentration bus. an efficiency upgrade in 2018, Each year, 80 KMB buses and 15 the cooling time improved by Emissions Reduction 50%, saving up to 3% in terms of LWB buses from passenger-intensive fuel consumption. The first batch bus routes are selected for a data- KMB and LWB adopt the latest logger measurement of indoor CO2 of buses with a solar panel was technologies to reduce roadside concentration. Our buses generally deployed in October 2019; emissions and maintain good air KMB and LWB are exploring the demonstrate compliance with the quality in bus compartments. We use use of an electric bus (“eBus”) with requirement. Near Zero Sulphur Diesel, renew the a 324 KWh Lithium Iron Phosphate bus fleet with the latest low-emission models and upgrade older buses by retrofitting exhaust treatment devices,

1 The emission factors of greenhouse gas emissions due to electricity consumption are obtained from the sustainability reports of CLP Power: 0.51 kg CO2-e/kWh. Transport International Holdings Limited 2019 Annual Report 057

Sustainability Report Care for the Environment

including Diesel Oxidation Catalysts, Consumption and The mileage-based oil change Diesel Particulate Filters, and Selective Waste scheme brings about a Catalytic Reduction units to meet the 40% reduction in engine oil high standards of exhaust emissions consumption and waste oil. KMB and LWB take all practicable laid down by the European Council of measures to reduce the consumption Environmental Ministers. of precious resources and streamline Electricity Consumption waste disposal procedures. We aim In 2019, KMB and LWB emitted to handle and dispose of all materials KMB and LWB consumed around around 134 tonnes of particulate in compliance with present laws 121,700 GJ (33,820,000 kWh) of matter (PM), 1,862 tonnes of nitrogen and regulations and in a responsible electricity in 2019, an increase of oxides (NOx) and 3.15 tonnes of manner without creating risks to 2.5% compared to 2018. The energy sulphur oxides (SOx)2. human health or the environment. intensity, by electricity in total, for the reporting year was 0.044 Energy Consumption GJ per square feet (12.2 kWh per square feet). The number of bus PM stops increased by 0.09% compared KMB and LWB consumed around to 2018 causing the increase 8,285,000 gigajoules (GJ) of diesel 134 of electricity consumption. We oil in the reporting period, including tonnes continued to explore environment- the bus fleets and vehicles other than friendly initiatives and invested in buses. To reduce fuel consumption, the latest technologies to minimise a number of measures have been NOx energy use and reduce greenhouse adopted on the KMB and LWB bus gas emissions. Over 100 flood lights fleets and across its operations: 1,862 were changed to LED flood lights at the rooftop of KMB’s four main tonnes The aircraft-style “Posilock” fuel depots and LWB’s Siu Ho Wan Depot. filling system is used to refuel After the implementation of these buses; saving measures, the use of energy- Ambient sensors are installed SOx saving LED flood lights helped the on air-conditioned buses to save depots reduce its total electricity energy by reducing unnecessary consumption by around 10%. In 3.15 cooling; tonnes addition, we have changed 22 chiller The use of synthetic gearbox oil fan coil units to VRF air-conditioning extends the oil drain interval from units at Sha Tin Depot. These The latest batch of KMB and LWB 30,000 to 150,000 km, reducing installations bring a reduction of buses have been retrofitted with a waste oil by 80%; and electricity consumption in that depot Selective Catalytic Reduction device, by around 30%. which can reduce the emission of nitrogen oxides, as the ammonia formed from the urea solution converts nitrogen oxides into nitrogen gas and water vapour.

As part of our commitment to conserving the environment, KMB and LWB are investing in upgrading the environmental performance of not only the bus fleets, but also the patrol cars. KMB and LWB have introduced 20 electric patrol cars for back-up support and have set up electricity-recharging facilities at the main depots. KMB and LWB have installed electric patrol car recharging facilities in their main depots

2 The emission factors were taken from “Appendix 2: Reporting Guidance on Environmental KPIs” published by the Hong Kong Stock Exchange. Transport International Holdings Limited 058 2019 Annual Report

Sustainability Report Care for the Environment

Water Consumption and Waste Generation Total Water Consumption of Waste Water Treatment KMB & LWB KMB and LWB are committed to

m3 KMB and LWB are committed as good waste management through 400,000 responsible corporate citizens to responsible storage and disposal of 352,000 322,000 292,000 reducing water consumption and waste, recycling and reusing resources 300,000 properly treating effluents before whenever feasible. Significant types 200,000 discharge. KMB and LWB consumed of waste generated in our operations 100,000 around 291,600 cubic metres in are reported as follows: 0 the reporting period, with the 2017 2018 2019 average water consumption per bus Tyres being 0.18 cubic metres per day. Our depots are equipped with 11 In 2019, 32,300 used KMB and LWB Total Diesel Oil Consumption automatic waste water treatment tyres (equivalent to a saving of 1,938 of KMB & LWB systems handling 548 cubic metres tonnes of solid waste disposal at

GJ/bus/day per day. Two water recycling systems landfills) were retreaded by KMB’s 8.00 were upgraded in two KMB depots. appointed contractors.

5.56 The water used for bus washing 6.00 5.26 5.21 was collected and recycled, bring a 4.00 Fluorescent Tubes reduction in total water consumption 2.00 at depots of around 10%. In 2019, KMB and LWB sent a total of 0 2017 2018 2019 around 3,600 used fluorescent tubes to the Government’s Chemical Waste Treatment Centre for recycling.

Oil and Chemicals

In 2019, around 27,280 litres of solid chemical waste were treated and stored according to type in designated areas at bus depots before being disposed of by a registered chemical waste collector at the Government’s Chemical Waste Treatment Centre. Around 102,000 litres of waste oil were recycled or disposed of in accordance with the statutory standards.

Around 118,000 kilograms of waste lead-acid batteries were disposed of by a licensed contractor in compliance with Environmental Protection Department (“EPD”) instructions, including some which were exported to overseas facilities approved by the EPD under the Basel Convention. The new generation environment-friendly air-conditioning system is equipped with electronic air filters that help improve in-vehicle air quality Transport International Holdings Limited 2019 Annual Report 059

Sustainability Report Care for the Environment

With their environmental-friendly design, the automatic waste water treatment systems properly treat effluents, while the fuel filling system prevents spillage

Metals newly renovated office spaces, on the ceilings of depots and in the common In 2019, KMB and LWB sent a total areas of our headquarters building, of around 707 tonnes of metal to including the main lobby, to reduce recycling companies. electricity consumption and the demand for air-conditioning. Green Measures in the Office In 2019, KMB and LWB implemented a default setting on all computers The Green Office concept drives both to revert to a screensaver after a the design and the renovation of designated period of time. This our premises. The air-conditioning measure serves as a good practice to thermostats are set to 25.5°C to raise the awareness of staff to the conserve energy and protect air need to save electricity and conserve quality in line with the Government’s the environment. Action Blue Sky Campaign. Lower- energy LED lighting is used in all Transport International Holdings Limited 060 2019 Annual Report

Sustainability Report Care for Employees

Care for Employees

Our employees are our greatest asset and we cherish them accordingly. Transport International Holdings Limited 2019 Annual Report 061

Sustainability Report Care for Employees

Human Resources Policy the Prevention of Bribery Ordinance, Enhancing the promotion path by KMB and LWB remind staff members adding a position of senior bus We take care of our employees by that they should not make use of terminus supervisor; maintaining a safe, respectful and their position to solicit or receive any Enhancing the overnight allowance harmonious work environment. We advantage from the public. of monthly-paid Operations staff; adopt a set of comprehensive human and resources policies promoting gender From time to time, we remind our Enhancing the salary scale of equality, offering protection against employees to comply with the Human monthly-paid Maintenance staff. sexual harassment, preventing bribery, Resources Policies. In addition, and protecting personal privacy. These we have a complete complaints We extend our care for employees and other policies are published on handling mechanism in place. In case to their families. We provide a the staff website. We observe Hong we receive complaints, we would scholarship programme for the Kong’s labour and anti-discrimination thoroughly investigate all complaints children of staff with satisfactory laws and ensure that all our suppliers on breach of the above policies and academic performance to support respect labour rights with regard to take appropriate action. Depending their tertiary education. At 31 employment and respect employees’ on the degree of seriousness of the December 2019, 259 children of rights to join trade unions. complaint, an ad hoc committee KMB and LWB staff members had may be set up to investigate the received scholarships. We brought As an equal opportunity employer, complaint. Serious disciplinary action, festive joy to our staff at traditional we are committed to ensuring that including summary dismissal, will be festivals. At Lunar New Year, we no job applicant or employee is instigated for any violation. distributed Chinese New Year gifts discriminated against on the grounds to our staff, while at Dragon Boat of race, sex, marital status, family Staff Benefits Festival and Mid-Autumn Festival, status, pregnancy or disability. In we distributed rice dumplings and collecting personal data from job To help attract and retain talented mooncakes respectively. In addition applicants and existing staff members, staff, competitive benefit packages to festive gatherings at Lunar New we comply with the requirements of are offered, including annual leave, Year, 18 spring gatherings were held the Personal Data (Privacy) Ordinance, medical benefits, hospitalisation for all KMB and LWB staff in February respecting the privacy of personal insurance, accident insurance and free 2019, the first time all staff have data while taking all reasonable steps bus travel for staff and dependents. In been catered for in this way. Senior to ensure that the personal data of the reporting period, KMB and LWB corporate executives and managerial job applicants and staff members strengthened the benefit package of staff joined the gatherings and shared are securely held and used only for full-time employees by: the festive joy with around 7,000 the purposes stated in our personal staff and retirees. data collection statement. As public Increasing the entitlement of bodies included in the Schedule of Inspector to 12 days of double overtime pay every year;

KMB and LWB aim to be an employer of choice by establishing a supportive and respectful working environment Transport International Holdings Limited 062 2019 Annual Report

Sustainability Report Care for Employees

In line with KMB and LWB’s commitment to upgrading the working environment for staff, Club 1933, the Company’s first leisure area, was opened at Kowloon Bay Depot

Staff Communication arrangements online, as well as using meetings of the Working Committee an e-learning training platform. The for Safety, a series of safety control To strengthen bilateral bi-monthly corporate magazine, KMB measures is being introduced. To communications and staff welfare, a Today, provides another means of further raise the safety awareness of new department was established to keeping employees up to date on our frontline staff, 22 Safety Forums enhance staff relations and welfare KMB and LWB news and industry and 17 Safety Talks were conducted services. Five KMB and one LWB developments. in 2019 at different bus termini, at Joint Consultative Committees, which Driving Instructors discussed which comprise management and Senior Management accidents and incidents with bus staff representatives representing Visits captains and shared suggestions on around 90% of KMB and LWB’s safety measures with frontline staff, total workforce, hold meetings Members of KMB and LWB senior as well as focusing on a particular monthly and bi-monthly respectively. management visited bus termini, topic. The meetings are to review issues depots and offices during the year. including safety, operations, work These visits provided an excellent KMB and LWB have organised fire environment and staff welfare. At the opportunity for staff to share their warden training sessions to promote meetings, employee representatives views about operational matters fire safety, updating knowledge generally account for 90% of and workplace-related issues with of fire extinguisher and hose reel attendees to ensure that the views of members of the management team. use, enhancing understanding of staff are comprehensively relayed. the role and responsibilities of fire Occupational Safety wardens and familiarising them with emergency preparedness within Staff members are kept informed and Health through the staff website of useful depots. information, including KMB and KMB and LWB staff members are LWB announcements, safe driving In October 2019, KMB and LWB encouraged to suggest improvement tips, snapshots of KMB and LWB launched a series of health-related measures to enhance health and activities and notices of forthcoming activities, including a health talk, safety conditions. After reviewing events. Staff can check duty roster body check session, Chinese medical staff suggestions at the regular information and make annual leave consultation, stretching exercise Transport International Holdings Limited 2019 Annual Report 063

Sustainability Report Care for Employees

class and a weight loss campaign, to We regularly organise customised for youngsters who are interested in promote a healthy lifestyle. training and learning activities for all bus maintenance. The total number levels of staff to keep them abreast of of graduates since the school was Improved Working the latest industry trends, knowledge established stands at 2,473. At the Environment and work skills. For instance, we end of 2019, 115 apprentices were arranged training courses that enrolled in the School’s programme. KMB and LWB have continued to focused on emotion management and The quality of our apprentice training renovate and upgrade the working inspirational empathy communication was once again recognised in 2019 environment for staff, especially skills. Some training courses were when a KMB apprentice was awarded frontline staff, providing improved held for accident investigators to the Outstanding Contestant in the ’ places to rest before working. The enhance their knowledge of the Vocational Training Council s Best leisure area, Club1933, was first causes of traffic accidents, as well as Apprentice in the Automobile Trade furnished and opened at KMB’s relevant regulations and laws. Competition. The apprentice was Kowloon Bay Depot, where a pool invited to visit a motor plant in table, an air hockey table and table Technical and Germany. Another apprentice was football are provided for staff. KMB Apprentice Training recognised for Excellent Performance has also retrofitted a retired bus in the Outstanding Apprentice/Trainee with facilities such as chairs, TVs, The Technical Training School has of the Year Competition organised by refrigerators and microwave ovens as been responsible for training our bus the Vocational Training Council. a rest station for staff. maintenance staff in the latest bus technologies since 1973. In 2019, A new two-year technical trainee Skills Development and 126 in-house training sessions were programme was launched to strengthen our professional team and Training run for 798 skilled workers, while 13 training sessions were organised in nurture young people who aspire to a career in bus maintenance. Trainees Our diversified learning channels collaboration with our manufacturers who complete the programme will provide self-learning opportunities, for 143 engineers, supervisors and receive a Completion Certificate from including internal classroom training foremen. bus manufacturers. and e-learning programmes. Job rotation and secondment To ensure a continuous stream opportunities are also available so of skilled workers to provide that our employees may broaden maintenance for the KMB and LWB their understanding of the industry. bus fleets, the school runs a four-year apprenticeship training programme

KMB and LWB care for the health and career development of employees, attracting talents with a multi-pronged approach Transport International Holdings Limited 064 2019 Annual Report

Sustainability Report Care for Employees

KMB and LWB care for the needs of employees, their families and retirees to increase their sense of belonging

Psychological Support Recognition for Service 121 employees received the 30- Excellence year award with a plaque and a pin, KMB and LWB have engaged the 182 employees received the 20-year award with a plaque and a pin, and Christian Family Service Centre to In 2019, 254 Star Bus Captains were 244 employees with 10 years’ service provide a counselling hotline service recognised for their outstanding received a certificate of appreciation. to staff members including bus performance in safe driving and captains who need assistance. In customer care. To recognise the 2019, the hotline service extended its loyal service of our staff, the Annual service to 24 hours a day, 7 days a Award Presentation Ceremony was week, and broadened its coverage to held. 70 KMB and LWB staff received include family members. the 35-year award and a gold medal, Transport International Holdings Limited 2019 Annual Report 065

Sustainability Report Care for Employees

Sports and Leisure encourage employees to take part in Mid-Autumn Festival, attended by Activities periodic training, matches with other around 1,500 retirees. To maintain companies and recreational activities close contacts, we arranged to benefit from healthy work-life afternoon tea sessions on a monthly To promote work-life balance, balance. basis. To share the festive joy with KMB and LWB staff members are retirees, we distributed red packets, encouraged to participate in sports Chinese sausages, rice dumplings, and leisure activities as well as TIH Retiree Association and mooncakes during the traditional undertake voluntary work. As at festivals. We have also enhanced the the end of 2019, nine interest clubs The TIH Retiree Association was communication channel with retirees were available, focusing on singing, formed so that close contacts could by setting up a KMB retiree website photography, basketball, table tennis, be maintained with retired colleagues to share activity information and badminton, soccer, running, chess through various activities, such as photos. and dragon boat racing. The interest picnics and gatherings. In 2019, the clubs arranged different activities Association held four gatherings to or competitions. Interest Clubs celebrate the Chinese New Year and

Board members attended the Annual Awards Presentation Ceremony to recognise the loyal service and outstanding performance of staff

To enhance morale, KMB and LWB distributed festive gifts and drinks to staff Transport International Holdings Limited 066 2019 Annual Report

Sustainability Report Care for Employees

Workforce By Gender By Age Group (as at 31 December 2019) 1,177 3,017

12,280 6,386

4,054

KMB and LWB Female Below 40 Years Old Total Workforce: Male 40-50 Years Old Over 50 Years Old 13,457

By Employment Category By Employment Contract by By Employment Contract by

24 Gender 766 Region 13,457 277 127 1,050

13,156 11,514

Senior Level Full Time Female Full Time in Hong Kong Middle Level Full Time Male Full Time in Other Region: N.A. Entry Level Non Full Time Female Non Full Time in Hong Kong: N.A. Non Full Time Male Non Full Time in Other Region: N.A.

Training Statistics By Gender By Employment Category No. of Staff Trained No. of Staff Trained (as at 31 December 2019) 24 (100%) 1,177 (100%) 277 (100%)

12,280 13,156 (100%) (100%)

Female Senior Level KMB and LWB Male Middle Level Total Training Hours: Entry Level

550,970 hrs By Gender By Employment Category Training Hours Training Hours 21,471 58 1,821

Average Average 2.4 18.2 6.6 529,499 549,091 43.1 41.7

Female Senior Level Male Middle Level Entry Level Transport International Holdings Limited 2019 Annual Report 067

Sustainability Report Care for Employees

Nurturing Talent

Attracting Talent with a Solid Career Path and Upgrading Facilities

The KMB Bus Captain Training School – the first of its kind in Hong Kong – is the largest bus captain training school in Hong Kong, providing comprehensive training to all new and in-service bus captains. To nurture more drivers in the industry, the Company renovated the Bus Captain Training School in Sha Tin Depot. The school provides a more comfortable learning environment for trainees and a pleasant working environment for trainers. The Company has always attached great importance to educational resources. Therefore, the school adopts updated bus models Having worked as a KMB bus captain with a zero-accident for training so that the trainees are able to obtain up-to-date “ record for 17 years, I was delighted to switch my career path experience and knowledge with the bus models. and take a promotion to become a bus captain trainer. I share my experience with new bus captains to help them After passing the written and oral test of the Transport improve their safety awareness. I derive satisfaction from Department and finishing an internal professional training seeing my trainees become qualified as bus captains and course and passing an internal assessment, the trainee start serving customers. The Company provides me with will qualify to drive for KMB or LWB. KMB offers a solid excellent career prospects and personal development career path for bus captains with experience and a good opportunities. Working as a bus captain is a stable career, performance record. They have the opportunity to be and I enjoy life as part of the KMB family and the friendship promoted as bus captain trainers who impart not only skills between colleagues. The Company cares about our families but also safety knowledge to later cohorts. and us, providing free-ride bus passes and distributing festive gifts. Over the years, the Company has “ improved our benefits, staff welfare and the working environment, including working hours and rest stations.

Mr Lam Hiu Cheung KMB Bus Captain Trainer

To nurture more professional and quality bus captains in the The KMB Bus Captain Training School provides comprehensive industry, KMB and LWB continue to enhance the learning facilities training to all new and in-service bus captains and environment of the Bus Captain Training School, while upgrading the training quality Transport International Holdings Limited 068 2019 Annual Report

Sustainability Report Engaging Stakeholders

Engaging Stakeholders

We are committed to supporting various initiatives to enhance the well-being of the community and engaging our stakeholders through effective communication channels. Transport International Holdings Limited 2019 Annual Report 069

Sustainability Report Engaging Stakeholders

Engaging the Public Between 14 and 16 June, KMB end of December. Likewise, the KMB organised a booth at the Hong Instagram account had reached more In 2019, a number of events were Kong Toy Festival and between than 200,000 netizens by the end of organised to interact with the public 17 and 23 July, KMB organised a 2019. we serve: booth at the Hong Kong Book Fair at the Hong Kong Convention and Firm in the belief that social media From 30 January to 5 February, Exhibition Centre in Wan Chai; and platforms constitute a major KMB operated six stalls at Lunar KMB and LWB held a total of 12 communication means between New Year Fairs in Victoria Park, Fa Passenger Liaison Group meetings the public and the Group, we will Hui Park, Morse Park, Sha Tin and at bus termini across their continue to make good use of ; operating areas to collect customer online communication platforms to From January to December, KMB views on a variety of issues, strengthen its ties with the public. ran pop-up stores at different including interchange schemes, shopping malls in Hong Kong, environment-friendly buses, The following activities were including Tuen Mun Chelsea passenger facilities and network organised via online social media Heights (January), Yuen Long connectivity. platforms: YOHO Mall (April), Tuen Mun V city (May), San Po Kong Mikiki Media and Online Throughout the year, KMB (June), Tai Kok Tsui Olympian City Communication Facebook has promoted (July-August), Yuen Long Plaza different events with images, GIFs and videos, especially safety (October), Tsuen Wan Citywalk In 2019, we invited the media to our (November) and Tseung Kwan events to strengthen communications promotions and recruitment; O East Point City (December). and made increasing use of social In February and April, KMB The stores allowed the public to media platforms such as Facebook Facebook page organised give-a- understand more about the KMB’s and Instagram to publicise KMB way events to KMB fans; services, showcasing bus models and LWB-related information. Our In March, KMB Facebook and providing various games and interaction with netizens included introduced the brand new Volvo activities related to bus services; a number of cross-media activities. B8TL bus model; and On 27 April, KMB organised a These activities proved popular, as the From June, KMB Facebook page “Road Safety Carnival” in Tsim Sha number of fans of our Facebook page was an effective channel for special Tsui to promote road safety to the grew from over 81,000 in January bus service announcements. exceeded to over 151,000 at the public;

KMB hosted pop-up stores at different sites to interact with the pubic Transport International Holdings Limited 070 2019 Annual Report

Sustainability Report Engaging Stakeholders

The Customer Service Centre at the Bus-Bus Interchange provides passengers waiting for buses with caring services

App1933 Customer Service Customer Service Centres Hotline To respond to the needs of our communities, we used App1933 to Our Customer Service Centres The KMB customer service hotline help find missing people, especially provide passengers with a one- (2745 4466) and LWB customer the elderly who may have dementia. stop service offering KMB and LWB service hotline (2261 2791) handled Some passengers were found after souvenirs, add-value about 1.59 million and 55,223 calls appeals on App1933. services and the provision of bus in 2019 respectively, an average of route information, while the Tai Lam 132,266 and 4,602 calls a month, Websites Interchange Customer Service Kiosk with a hotline operator service similarly provides a wide range of available daily from 7:00 a.m. to The KMB and LWB websites services. The kiosk provides cash 11:00 p.m. being complemented by a (www.kmb.hk and www.lwb.hk), withdrawal and free Wi-Fi services, as 24-hour hotline system. as corporate information portals, well as a range of convenience goods, provide corporate news, promotion providing a handy one-stop service. LiveChat for Enquiries information and a customer enquiry Tuen Mun Road Bus-Bus Interchange service. The websites also serve Customer Service Centre provides To provide more channels for our passengers by providing a an air-conditioned waiting area for passenger enquiries, KMB and LWB map-based point-to-point bus route passengers to enjoy a comfortable have set up a LiveChat channel search function with 360-degree environment. The customer service on their websites and App1933 to photo “Street View”, LiveChat and kiosk at Hong Kong International provide instant responses to customer “Octopus Refund Enquiry” functions. Airport’s Ground Transportation enquiries, offering a daily service from Centre provides a passenger enquiry 7:00 a.m. to 11:00 p.m. service and Airbus ticket sales. Transport International Holdings Limited 2019 Annual Report 071

Sustainability Report Engaging Stakeholders

Customer Feedback Membership of participate in the International Day Associations and of Disabled Persons event organised KMB and LWB place great emphasis Advocacy by The Hong Kong Council of Social on providing quality services to Service offering free rides on all its bus routes to people with disabilities customers and welcomes customers During the reporting period, we and one accompanying carer. KMB who wish to express views on our further strengthened the connection and LWB also supported the annual bus service. All customer feedback with stakeholders via participation in Senior Citizens Day, by offering is handled with due care. KMB and the following organisations: LWB treat substantive feedback as free rides to people aged 65 and over. To share festive joy with the a reference for continuous service Business Environment Council; elderly, we distributed red packets, improvement and future service Employers’ Federation of Hong Chinese sausages, rice dumplings, development. Kong; and mooncakes during the traditional Federation of Hong Kong festivals. Hosting Visits Industries; The Chartered Institute of Logistics We sponsor and participate in To increase our stakeholders’ and Transport in Hong Kong; and a variety of local community understanding of the daily operations The Hong Kong General Chamber programmes, including the Dress at our bus depots, we received of Commerce. Casual Day and the Corporate visitors from 44 organisations in the Challenge Half Marathon, both reporting period, including social Serving the Community organised by The Community Chest service organisations, , as well as taking part organisations, professional and We take steps to understand the in The Hong Kong Council of Social academic institutions and overseas needs of our community and Service Caring Company Patron’s delegations. Schools and non- actively support various initiatives Club. In 2019, KMB provided bus- government organisations in society. We leverage the Group’s body advertisements for 13 non- participated in the Summer Visit business strengths and resources governmental organisations (“NGOs”) Programme to visit KMB depots. We to optimise positive social impacts, on 15 buses. We took steps to utilise hosted 36 such delegations in 2019. mainly through engagement with our resources by supporting a charity elderly people and nurturing youth run held at KMB’s Tseung Kwan O development. Depot. Around 6,000 runners took part in the run and donated one To support the elderly and passengers million calories of food. in need, each year KMB and LWB

KMB and LWB care about the community, organising events for the elderly Transport International Holdings Limited 072 2019 Annual Report

Sustainability Report Engaging Stakeholders

The Donation of Used and Retired Bus Programme is well received by teachers and students

Donation of Used and TWGHs Ma Kam Chan Memorial 5,700 members, including passengers Retired Bus Programme Primary School and KMB and LWB staff and their Hong Kong And Macau Lutheran dependents. To nurture the next generation and Church Ming Tao Primary School During the reporting period, FRN show our support for sustainability Village Ho Tung School volunteers participated in regular and recycling, KMB launched the Caritas Ma On Shan Secondary home visits to elderly people who Donation of Used and Retired Bus School are suffering from depression. The Programme in 2016 to donate used Rhenish Church Grace School programme was organised by the and retired buses to schools and non- Yuen Long Public Middle School Suicide Prevention Service, with profit organisations. The buses can be Alumni Association Tang Ying Yip whom FRN has built up a partnership regenerated specifically to meet the Primary School since 2013. FRN also made care visits creative learning needs of the schools Chinese YMCA Primary School to paediatric patients of Prince of or non-profit organisations. By the TWGHs Leo Tung-hai Lee Primary Wales Hospital and partnered with end of 2019, 29 retired buses had School Hong Kong Central Library and Hapi been donated. The Yuen Yuen Institute MFBM Nei Ming Chan Lui Chung Tak Reading Club to arrange a reading tour on a KMB bus for 30 families. The list of beneficiary schools/non- Memorial College In recognition of our contributions profit organisations that received Kowloon Bay St. John The Baptist to the community, FRN received donated bus in 2019 is as follows: Catholic Primary School the Award of 10,000 Hours for Volunteer Service, Second Runner- Buddhist Wing Yan School FRIENDS OF KMB up in the Highest Service Hour Tai Po Old Market Public School Award (Private Organisations – Best (Plover Cove) KMB’s volunteer club FRIENDS Customers Participation) and Merit Cumberland Presbyterian Church OF KMB (“FRN”) has promoted in the Highest Service Hour Award Yao Dao Primary School environmental protection, civic (Private Organisations – Best Staff Tin Shui Wai Methodist College education and social service activities Participation) from the Social Welfare The H.K.C.W.C. Hioe Tjo Yoeng since it was formed in 1995. In the Department. Primary School reporting period, FRN comprised Transport International Holdings Limited 2019 Annual Report 073

Sustainability Report Engaging Stakeholders

Care for the Underprivileged Embracing Social Inclusion

Business-School Partnership Café1933 provides placements for students

Committed to corporate social responsibility and bringing about an inclusive working environment, KMB leverages its resources to help the community. To further its Business- School Partnership, Café1933, a staff coffee shop, has joined hands with Hong Chi Association (HCA) to offer food and beverage for patrons and retail placement for students KMB Café1933, a staff coffee shop, offers food and beverage from four HCA Special Schools to unleash their potential. for patrons and retail placement for students from four Hong Students prepare ingredients, make coffee and handle Chi Association Special Schools. orders and cash transactions under the guidance of their teachers, which improves their communication and work skills, and helps equip them to integrate into the community with an independent approach. In addition to helping those with disabilities and special educational needs, KMB also uses its resources to benefit the youth, including donating used buses under the Donation of Used and Retired Bus Programme.

Students prepare ingredients, make coffee and handle orders and cash transactions under the guidance of their teachers.

Our school wants to help students equip themselves to “ enter the job market after graduating. Thank KMB for providing a comfortable and authentic environment for their social inclusion training. Complementing the teacher- student interaction they receive at school, working at Café 1933 students allows them to engage with a range of customers, which boosts their confidence and motivation to get a job. KMB gives us the flexibility to run Café 1933 as a relatively simple operation, which reduces the

administrative workload of teachers and allows students to

enjoy the moment. I must give a special mention to KMB staff, who provide great support and encouragement“ for our students. We hope more companies will follow KMB by providing placements for students.

Mr Yuen Hok Sum Principal, Hong Chi Morninghope School, Tuen Mun Transport International Holdings Limited 074 2019 Annual Report

Sustainability Report Reporting Content Index Tables

Reporting Content Index Standards (“GRI”) Sustainability following content index table presents Tables Reporting Guidelines and the Environ- the associated disclosures either by mental, Social and Governance cross-referring relevant section(s) in TIH has developed this report in Reporting Guide (“ESG” Guide) this Report or by providing direct accordance with the Core Option issued by the Hong Kong Exchanges remarks. of the Global Reporting Initiative and Clearing Limited (“HKEX”). The

HKEX ESG Reporting Page(s) Guide ^: refer to (General TIH 2019 Disclosures GRI Reference/*Direct Answer/+ Annual and KPIs) Standard GRI Disclosure Reason for omission Report

GRI 101: Foundation 2016 GRI 102: General Disclosures 2016 Organisation Profile 102-1 Name of the organisation Group Profile 002-003^ 102-2 Activities, brands, products, and Group Profile 002-003^ services Business at a Glance 004-005^ Key Franchised Bus Network in Hong 006-007^ Kong 102-3 Location of headquarters Property Holdings and Development 036-037^ 102-4 Location of operations Business at a Glance 004-005^ 102-5 Ownership and legal form Business at a Glance 004-005^ 102-6 Markets served Business at a Glance 004-005^ 102-7 Scale of the organisation Business at a Glance 004-005^ Key Franchised Bus Network in Hong 006-007^ Kong Financial and Operational Highlights 008-009^ Care for Employees 060-067 B1.1 102-8 Information on employees and other Care for Employees 060-067 workers B5 General 102-9 Supply chain Working with Suppliers 043 Disclosure B5.1 102-10 Significant changes to the * There were no significant – organisation and its supply chain changes during the reporting period. 102-11 Precautionary Principle or approach Corporate Governance 042-043 Corporate Governance Report 094-111^ 102-12 External initiatives Group Profile 002-003^ Management Discussion and 018-019^ Analysis About the Report 038-040 Safety First 044-049 102-13 Membership of associations Engaging Stakeholders 071 Strategy 102-14 Statement from senior decision-maker Chairman’s Letter 012-015^ Managing Director’s Message 016-017^ 102-15 Key impacts, risks, and opportunities Chairman’s Letter 012-015^ Managing Director’s Message 016-017^ Transport International Holdings Limited 2019 Annual Report 075

Sustainability Report Reporting Content Index Tables

HKEX ESG Reporting Page(s) Guide ^: refer to (General TIH 2019 Disclosures GRI Reference/*Direct Answer/+ Annual and KPIs) Standard GRI Disclosure Reason for omission Report

Ethics and integrity B7 General 102-16 Values, principles, standards, and Group Profile 002-003^ Disclosure norms of behavior Legal and Regulatory Compliance 043 Working with Suppliers 043 Procurement and Tendering 043 Procedures Safety First 044-049 Care for Customers 050-053 Care for the Environment 054-059 Care for Employees 060-067 Corporate Governance Report 094-111^ B7.2 102-17 Mechanisms for advice and concerns Legal and Regulatory Compliance 043 about ethics Governance 102-18 Governance structure Corporate Governance 042-043 Safety First 044-049 Corporate Governance Report 094-111^ Stakeholder engagement 102-40 List of stakeholder groups Stakeholder Engagement and 041 Materiality Assessment 102-41 Collective bargaining agreements Care for Employees 060-067 102-42 Identifying and selecting stakeholders Stakeholder Engagement and 041 Materiality Assessment 102-43 Approach to stakeholder engagement Stakeholder Engagement and 041 Materiality Assessment Engaging Stakeholders 068-073 102-44 Key topics and concerns raised Stakeholder Engagement and 041 Materiality Assessment Report Profile 102-45 Entities included in the consolidated Financial and Operational Highlights 008-009^ financial statements Reporting Focus 038 102-46 Defining report content and topic Reporting Principles 038 boundaries Stakeholder Engagement and 041 Materiality Assessment 102-47 List of material topics Stakeholder Engagement and 041 Materiality Assessment 102-48 Restatements of information * There were no restatement of – information provided in the previous report. 102-49 Changes in reporting * There were no significant – changes in the report. 102-50 Reporting period Reporting Focus 038 102-51 Date of most recent report * April 2019 – Transport International Holdings Limited 076 2019 Annual Report

Sustainability Report Reporting Content Index Tables

HKEX ESG Reporting Page(s) Guide ^: refer to (General TIH 2019 Disclosures GRI Reference/*Direct Answer/+ Annual and KPIs) Standard GRI Disclosure Reason for omission Report

102-52 Reporting cycle * Annual – 102-53 Contact point for questions regarding Reporting Principles 038 the report 102-54 Claims of reporting in accordance Reporting Principles 038 with the GRI Standards 102-55 GRI content index Reporting Content Index Tables 074-079 102-56 External assurance * This report was not externally – assured. Material Topics GRI 205: Anti-corruption 2016 103-1 + Anti-corruption is not – 103-2 considered a material topic. 103-3 Management Approach B7 General 205-3 Confirmed incidents of corruption Legal and Regulatory Compliance 043 Disclosure, and actions taken B7.1 GRI 301: Materials 2016 103-1 + Materials is not considered a – 103-2 material topic. 103-3 Management Approach

A2.5 301-1 Materials used by weight or volume + Quantitative data of total – packaging materials are not available as they are not applicable to KMB & LWB’s business. GRI 302: Energy 2016 A2 General 103-1 Care for Customers 050-053 Disclosure, 103-2 Care for the Environment 054-059 A3 General 103-3 Disclosure Management Approach A3.1 A2.1 302-1 Energy consumption within the Care for the Environment 054-059 organisation A2.3 302-4 Reduction of energy consumption Care for Customers 050-053 Care for the Environment 054-059 A2.3 302-5 Reductions in energy requirements of Care for the Environment 054-059 products and services Transport International Holdings Limited 2019 Annual Report 077

Sustainability Report Reporting Content Index Tables

HKEX ESG Reporting Page(s) Guide ^: refer to (General TIH 2019 Disclosures GRI Reference/*Direct Answer/+ Annual and KPIs) Standard GRI Disclosure Reason for omission Report

GRI 303: Water and Effluents 2018 A2 General 103-1 Care for the Environment 054-059 Disclosure, 103-2 A3 General 103-3 Disclosure Management Approach A3.1 A2.4 303-1 Interactions with water as a shared * All water was sourced from – resource municipal water supplies. No major issue concerning sourcing water and water-related impacts has been encountered. 303-2 Management of water discharge- Care for the Environment 054-059 related impacts * We ensure water discharge to drainage systems and water bodies were in compliance with local government requirements. A2.2 303-5 Water consumption Care for the Environment 054-059 * No specific regions are water stressed in Hong Kong. GRI 305: Emissions 2016 A1 General 103-1 Care for the Environment 054-059 Disclosure, 103-2 A3 General 103-3 Disclosure Management Approach A3.1 A1.2 305-1 Direct (Scope 1) GHG emissions Care for the Environment 054-059 A1.2 305-2 Energy indirect (Scope 2) GHG Care for the Environment 054-059 emissions A1.2 305-4 GHG emissions intensity Care for the Environment 054-059 A1.5 305-5 Reduction of GHG emissions Care for the Environment 054-059

A1.1 305-7 Nitrogen oxides (NOX), sulfur oxides Care for the Environment 054-059 (SOX), and other significant air emissions GRI 306: Effluents and Waste 2016 A1 General 103-1 Care for the Environment 054-059 Disclosure, 103-2 A1.6, 103-3 A3 General Management Approach Disclosure A3.1 A1.3 306-2 Waste by type and disposal method Care for the Environment 054-059 A1.4 * Hazardous Waste: 1) Tyres 2) Fluorescent Tubes 3) Oil and Chemicals * Non-hazardous Waste: 4) Metals Transport International Holdings Limited 078 2019 Annual Report

Sustainability Report Reporting Content Index Tables

HKEX ESG Reporting Page(s) Guide ^: refer to (General TIH 2019 Disclosures GRI Reference/*Direct Answer/+ Annual and KPIs) Standard GRI Disclosure Reason for omission Report

GRI 307: Environmental Compliance 2016 A1 General 103-1 Working with Suppliers 043 Disclosure 103-2 Care for the Environment 054-059 103-3 Management Approach A1 General 307-1 Non-compliance with environmental * There was no non-compliance – Disclosure laws and regulations with local environmental laws and regulations in 2019. GRI 401: Employment 2016 B1 General 103-1 Legal and Regulatory Compliance 043 Disclosure, 103-2 Care for Employees 060-067 B1.1, 103-3 B4, General Management Approach Disclosure 401-2 Benefits provided to full-time Care for Employees 060-067 employees that are not provided to temporary or part-time employees GRI 403: Occupational Health and Safety 2018 B2 General 103-1 Safety First 044-049 Disclosure, 103-2 Care for Employees 060-067 B2.3 103-3 Management Approach B2.3 403-1 Occupational health and safety Safety First 044-049 management system 403-2 Hazard identification, risk assessment, Safety First 044-049 and incident investigation 403-3 Occupational health services Care for Employees 060-067 403-4 Worker participation, consultation, Safety First 044-049 and communication on occupational Care for Employees 060-067 health and safety 403-5 Worker training on occupational Safety First 044-049 health and safety Care for Employees 060-067 403-6 Promotion of worker health Care for Employees 060-067 403-7 Prevention and mitigation of Safety First 044-049 occupational health and safety impacts directly linked by business relationships 403-8 Workers covered by an occupational Safety First 044-049 health and safety management system Transport International Holdings Limited 2019 Annual Report 079

Sustainability Report Reporting Content Index Tables

HKEX ESG Reporting Page(s) Guide ^: refer to (General TIH 2019 Disclosures GRI Reference/*Direct Answer/+ Annual and KPIs) Standard GRI Disclosure Reason for omission Report

GRI 404: Training and Education 2016 B3 General 103-1 Safety First 044-049 Disclosure 103-2 Care for Employees 060-067 103-3 Management Approach B3.1 404-1 Average hours of training per year Care for Employees 060-067 B3.2 per employee GRI 408: Child Labour 2016 B4 General 103-1 Legal and Regulatory Compliance 043 Disclosure, 103-2 + Child and forced labour is not B4.1, 103-3 considered a material topic. B4.2 Management Approach 408-1 Operations and suppliers at – – significant risk for incidents of child labor GRI 413: Local Communities 2016 B8 General 103-1 Engaging Stakeholders 068-073 Disclosure 103-2 103-3 Management Approach B8.1 413-1 Operations with local community Engaging Stakeholders 068-073 B8.2 engagement, impact assessments, and development programs GRI 416: Customer Health and Safety 2016 B6 General 103-1 Operational Excellence 021 & 045 Disclosure, 103-2 B6.1, 103-3 Safety First 044-049 B6.3, Management Approach B6.4 Engaging Stakeholders 068-073 * Products sold or shipped and intellectual property rights are not material to KMB and LWB’s business nature. 416-1 Assessment of the health and safety Safety First 044-049 impacts of product and service Care for the Environment 054-059 categories GRI 418: Customer Privacy 2016 B6 General 103-1 Safety First 044-049 Disclosure, 103-2 + Customer Privacy is not B6.5 103-3 considered a material topic. Management Approach 418-1 Substantiated complaints concerning Safety First 044-049 breaches of customer privacy and Care for our employee 060-067 losses of customer data * There were no significant incidents of non-compliance concerning laws and regulations during the reporting period. Transport International Holdings Limited

15/F, 9 Po Lun Street, Lai Chi Kok, Kowloon, Hong Kong Telephone : (852) 2786 8888 Facsimile : (852) 2745 0300 www.tih.hk Stock Code: 62

Design and Production by: Toppan Merrill Limited Website: www.toppanmerrill.com