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
Carbon-neutral transformation
Aspects/ Targets 2022 Performance Action
carbon reduction goal — reach carbon neutrality by 2060
9.13 tonnes / HK$ million1, a decrease of 51% compared to 2018
Establish a Low Carbon Strategy Committee in 2022
Support customers in reducing their carbon footprint
Choose pilot projects and include low-carbon audits in the environmental review process
Implement carbon assessments during the construction phase of pilot projects
Publish a climate strategic development blueprint that aligns with the Paris Agreement, and adjust products and services in response to climate change
Conduct external carbon verifications
Collaborate with suppliers and other business partners to promote low-carbon construction
Provide low-carbon training for employees
carbon reduction goal — reduce carbon intensity by 25% in 2025 compared to 2018 (carbon emissions/turnover)
Provide low-carbon training to all employees every year 98% of business-related employees received low-carbon training, an increase of 8% compared to 2021.
Provide low-carbon training for new hires 89% of business-related new employees received low-carbon training, an increase of 7% compared to 2021.
Hong Kong’s adoption rate of low-carbon and environmentally friendly generators — to reach 100% by 2026 >60%

1 Verified by the British Standards Institution (BSI).

Green construction
Aspects/ Targets 2022 Performance Action
Formulate a group-wide water resources management policy by 2022 Policy has been formulated
Reduce diesel fuel use at construction sites
The project should be powered by power companies as early as possible
Increase recycling and improve on-site practices
Reduce and recycle construction site waste, especially materials from civil engineering activities, and reuse excavated materials for backfilling or environmental restoration of the site
Further promote the use of solar photovoltaic panels
Hazardous Waste Reduction Intensity (the number of production/turnover) 0.001 metric tons/HK$ million, a decrease of 99% compared to 2021
Increase non-hazardous waste recycling 2.54%
Reduce landfill or incineration waste intensity (production/ turnover) 6.45 metric tons/HK$ million
Reduce water consumption intensity (water consumption/ turnover) 79.2 cubic meters /HK$ million, a decrease of 17% compared to 2021
Reduced energy intensity (energy consumption/turnover) 5.44 MWh//HK$ million, a decrease of 53% compared to 2021

Building a sustainable supply chain
Supply chain management
Aspects/ Targets 2022 Performance Action
In 2022, establish a group-level “Sustainable Procurement Guidelines” Completed policy development
Establish group-level policies and measures for protecting forests
Set targets for reducing material loss during manufacturing and distribution
Through incentive mechanisms, encourage suppliers and contractors to meet the Group’s safety and environmental protection requirements and continuously improve their social responsibility performance
Support the “Registered Specialist Trade Contractor System” of the Hong Kong Construction Industry Council and give priority to hiring registered contractors
Link the supply chain with the United Nations Sustainability Goals (SDGs)
Provide sustainable supply chain training for relevant employees
Provide sustainable supply chain training for suppliers and contractors
In 2023, develop a “Sustainability Initiative” applicable to the Group’s suppliers and subcontractors Work in progress
Each business division holds two relevant employee training sessions every year Each business division holds two employee training sessions
Each business division holds one supplier and subcontractor training/seminar every year to convey the group’s sustainability requirements Conducted one training session for the top 100 suppliers in the Group in terms of purchasing volume

Sustainable materials
Aspects/ Targets 2022 Performance Action
By 2025, 100% of the wood purchased by CSHK will be FSC/ PEFC certified 99.9%2
Establish a database of low carbon materials and products to facilitate related procurement by 2022
Establish a green and low-carbon material procurement platform Set up Sunrise Green Technology Limited to purchase green low carbon materials and equipment for the Group

2 The data has been verified by the British Standards Institute (BSI).

Nurturing and supporting talent
Talent acquisition and retention
Aspects/ Targets 2022 Performance Action
Percentage of personal performance review for monthly paid employees 100% by 2022 95%, up 4% from 2021
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 Haizhizi and Sea’s Recruits programs at the group level, and the programs of business divisions
Conduct an anonymous employee satisfaction survey
Employee turnover rate below 25% by 2025 23%, up 3% from 2021

Staff training
Aspects/ Targets 2022 Performance Action
Training percentage of monthly paid employees 95% by 2022, 100% by 2025 95%, 2022 target reached
Provide a variety of training for staff and help them acquire future-oriented skills
Enhance training related to sustainability
Average training hours of monthly paid employees 15hours by 2025 21. 2hours, a 8% increase from 2021

Occupational safety
Aspects/ Targets 2022 Performance Action
Occupational injury rate below 6.0 per 1,000 persons by 2025 4.03
Establish a mechanism for subcontractor workers to report safety hazard
Annual safety and health training covers 100% of employees by 2025 95%

3 The data includes the Group's employees and outsourcers, etc., and has been verified by the British Standards Institution (BSI).

Serving the community
Community investment
Aspects/ Targets 2022 Performance Action
Community projects organised/co-organised/participated — at least 80 projects per year by 2025 165 projects
Link community investment policies to United Nations Sustainability Goals (SDGs)
If there are communities around the project, project personnel should be responsible for community communication to understand the needs of the local community.
Employee volunteer hours — increase by 15% in 2025 compared to 2020 16,931hours, 37% more than in 2021
Employee volunteer attendance — increase by 15% in 2025 compared to 2020 3,690 attendances, 14% decrease from 2021
Community investment amount — increase by 15%4 in 2025 compared to 2020 HKD 415,8005, 3% more than that in 2021

4 Converting volunteer hours to money, the 2020 standard has been re-estimated as follows: Volunteer hours in 2020 are worth approximately HKD 2,875, and the community investment amount reported in 2020 is approximately HKD 1,157, for a total of approximately HKD 4,032.

5 Including about HK$2,570,000 equivalent salary of volunteer hours.

Employment opportunities for disadvantaged groups and young people
Aspects/ Targets 2022 Performance Action
Number/amount of apprenticeship — 30 places per year for young apprentices with lowincome background from 2022 onwards 19 apprentices were subsidized6
Provide generous learning subsidies to encourage students from low-income backgrounds.

6 The Group was allocated 19 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
Aspects/ Targets 2022 Performance Action
R&D investment—2.5% of annual turnover by 2025 Continue to invest in science and technology
Utilise R&D funding from external sources to develop innovative technologies
Develop new products and services in collaboration with academic institutions
Invest in and support start-ups strategically
Use BIM widely in new contracts
Utilize technologies such as MiC, BIM, and DfMA to reduce on-site construction time, resulting in safer and more efficient projects
Increasingly use and integrate various technologies, such as AI, IoT, big data, VR, and AR
Number of research and application projects of innovative technologies — 20 projects per year from 2022 onwards Focus on the research and development of innovative technologies, and apply at least 21 advanced technologies and engineering methods to projects by 2022.
Increase the number of patents, engineering methods, and papers year by year, while maintaining the development of scientific and technological innovation. Obtain 19 national and provincial engineering methods and 165 patents by 2022. Also, publish a total of 67 independent or joint research papers in influential academic journals.
100% of technology-related employees trained with innovative concepts or tools by 2025 97% technology related staff received training.