Sustainability Report 2019 Transport International Holdings Limited Transport International Holdings Limited 038 2019 Annual Report Sustainability Report With over 13,000 employees, KMB and LWB are major employers in Hong Kong, 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 Kowloon 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