Sustainability Roadmap

The Group has continued to strengthen its commitment to sustainability in recent years. The Group established the sustainability vision, mission and focus areas and actively pursued a number of initiatives and projects. We have now developed and launched our Sustainability Roadmap, which includes specific targets and pragmatic actions. The Roadmap integrates the Group’s future efforts to further improve its performance, gain recognitions from various parties, and lead the industry and our partners to march towards a more sustainable future.

Five Focus Areas (Target & Action)

Building on the above vision and mission, we have set out a series of targets and actions in each of the five focus areas in which our future sustainability work is required.

Safeguarding the environment
Transition to carbon neutrality
Target 2021 Performance Action
Long-term carbon reduction target — carbon neutral by 2060  
Establish a Low Carbon Strategy Committee in 2022
Support clients to reduce their carbon footprint
Select pilot projects to include a low carbon section in the environmental vetting or review process
Select pilot projects to perform carbon assessment during the construction phase
Issue a climate strategy blueprint aligned with the Paris Agreement and adapt products and services to address climate change
Conduct external carbon verification
Collaborate with suppliers and other business partners to promote low carbon construction
Provide low carbon training to staff
Near-term carbon reduction target — reduce carbon intensity by 25% in 2025 compared to 2018 (carbon emissions/ turnover) 34%1 less than 2018
Provide low carbon training to all relevant staff annually; 90%
Provide low carbon training to all relevant new staff 82%
The utilisation of low carbon and environmentally friendly generators at construction sites in Hong Kong — 100% by 2026 50%

1 The Scope 1 and Scope 2 greenhouse gas intensity is 12.35 tCO2-e/ million HKD, as verified by the British Standards Institution (BSI). In recent years, the Group's use of building technologies, such as the modular integrated construction (MiC), has enabled us to increase our revenue while maintaining or even reducing our carbon emissions. In addition, the Group's subsidiary, Shenyang Huanggu Thermoelectricity Company Limited, has been gradually upgrading in recent years to improve the operational efficiency of its heat and power generation and to reduce its carbon cost in the national carbon trading market。

Green construction
Target 2021 Performance Action
Formulate a group-level water resources management policy by 2022 The Group’s sustainable development policy has been updated
Reduce diesel use on construction sites
Utilise electricity from power companies in projects as early as possible
Increase recycling, reuse and improve on-site practices
Reduce and recycle construction waste on site, especially in civil engineering works where excavated material can be recycled as backfill or used for environmental restoration of sites
Further promote the use of solar photovoltaic panels
Reduce the hazardous waste intensity (generation/turnover)
Increase the recycling rate of non-hazardous waste
Reduce the landfill and incineration waste intensity (disposal/turnover)
The Group is committed to enhancing waste reduction continuously. We will continue to monitor and record the amount of waste generated and treated according to waste type and treatment method and set specific waste reduction targets by 2025.
Hazardous waste: 0.22 tons/million HKD
Non-Hazardrous waste: 40.8 tons/million HKD
Reduce water consumption intensity (water consumption/turnover)
The Group is committed to enhancing water management and increasing efficiency and reuse rate continuously. We will continue to monitor and record water consumption by business segment and set specific targets related to water resources by 2025.
95.0 m³/million HKD
Reduce energy intensity (energy consumption/turnover)
The Group is committed to enhancing energy management and energy efficiency continuously. We will continue to monitor and record energy consumption by business segment and set specific energy-saving targets by 2025.
11.6 MWh/million HKD

Building a sustainable supply chain
Supply chain management
Target Action
Establish a group-level Sustainable Procurement Guideline by 2022
Establish material wastage rate targets for subcontractors
Establish a group-level policy for forest protection
Provide incentives for suppliers and subcontractors to meet the Group’s safety and environmental requirements in order to continuously improve their social responsibility performance
Support the Hong Kong Construction Industry Council’s “Registered Specialist Trade Contractors Scheme” and prefer engaging registered contractors (RSTCs)
Link the supply chain to UN Sustainable Development Goals (SDGs)
Provide sustainable supply chain training to relevant staff
Provide sustainable supply chain training to suppliers and sub-contractors
Develop a group-wide Sustainability Initiative for Suppliers and Subcontractors by 2023
Each business division organises 2 training sessions for relevant staff per year
Each business division organises an annual training or seminar for suppliers and subcontractors to communicate the Group’s sustainability requirements

Sustainable materials
Target 2021 Performance Action
All timber purchased by CSHK should be with FSC certification by 2025 99.8%2
Establish a database of low carbon materials and products to facilitate related procurement by 2022

2 Verified by the British Standards Institution (BSI).

Nurturing and supporting talent
Talent acquisition and retention
Target 2021 Performance Action
Percentage of personal performance review for monthly paid employees — 100% by 2022 91%
Establish a performance-based compensation system for monthly paid staff
Include learning and development plans in the performance review of senior and middle management
Improve internal job mobility
Expand recruitment programs, including the Sons of the Sea and Sea’s Recruits programs at the group level, and the programs of business divisions
Conduct an anonymous employee satisfaction survey
Performance-based compensation for monthly paid employees — 100% linked by 2022 91%
Employee turnover rate — below 25% by 2025 20%

Staff training
Target 2021 Performance Action
Training percentage of monthly paid employees — 95% by 2022; 100% by 2023 89%
Provide a variety of training for staff and help them acquire futureoriented skills
Enhance training related to sustainable development
Average training hours of monthly paid employees — 15 hours by 2025 19.6 hours

Occupational safety
Target 2021 Performance Action
Occupational injury rate — below 6.0 per 1,000 persons by 2025 3.333
Establish a mechanism for subcontractor workers to report safety hazards
Annual safety and health training covers 100% of employees by 2025 81%

3 Verified by the British Standards Institution (BSI). Figures include employees of the Group and workers such as contractors. In recent years, the Group has made significantly efforts to improve the safety of construction by adopting smart construction sites and Modular integrated Construction (MiC).

Serving the community
Community investment
Target 2021 Performance Action
Community projects organised/co-organised/participated — at least 80 projects per year by 2025 83 projects
Link community investment policy to the UN Sustainable Development Goals (SDGs)
Build long-term partnerships with more charities
Arrange project staff to communicate with and understand the needs of local communities in the vicinity of project sites
Employee volunteer hours — increase by 15% in 2025 compared to 2020 12,356 hours
Employee volunteer attendance — increase by 15% in 2025 compared to 2020 4,278 persons
Community investment amount — increase by 15% in 2025 compared to 2020
((Converting volunteer hours to money, the baseline for 2020 is recalculated as follows:
The equivalent salary of volunteer hours in 2020 is about HKD 2.875 million and the amount of community investment in 2020 is about HKD 1.157 million. The sum of both is about HKD 4.032 million.)
HKD 4.643 million

Employment opportunities for disadvantaged groups and young people
Target 2021 Performance Action
Number/amount of apprenticeship — 30 places per year for young apprentices with low-income background from 2022 onwards 27 apprentices were subsidized4
Provide study grants to encourage apprentices from low-income background

4 The Group was allocated 27 apprentices from the "Apprenticeship Training Scheme" of the Hong Kong Construction Industry Council. The Group is willing to sponsor more apprentices to join the construction industry.

Leading with innovation
Technological innovation
Target 2021 Performance Action
Technology investment — 2.5% of annual turnover by 2025 Systematic data to be released next year
Make good use of external R&D funds to drive innovative technology development
Collaborate with academic institutions to develop new products and services
Make strategic investment to support start-ups
Apply BIM broadly in new contracted projects
Adopt technologies such as MiC, BIM and DfMA to reduce on site manpower and increase work safety and efficiency
Use and integrate technologies such as AI, IoT and big data, VR and AR more widely
Number of research and application projects of innovative technologies — 20 projects per year from 2022 onwards 14 items
Collaborate with academic institutions to publish papers on innovative construction technologies — 10 papers per year from 2022 onwards 7 pieces
100% of technology-related employees trained with innovative concepts or tools by 2025 67%