ESG Report

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

GOVERNANCE AND REPORTING

Governance Structure

The Board believes that an effective Environmental, Social and Governance ("ESG") strategy is one that should be aligned with and incorporated into the Group's long-term business strategy. Therefore, the Board retains primary oversight for sustainability strategy, risk control and reporting framework at the full board level. The Board has overall responsibility for the Group's ESG strategy, controls and reporting.

For better embedding ESG factors into the overall business strategy, governance and internal controls, the Group has integrated important ESG risks into the Group's existing risk management and internal control systems. The management is responsible for designing and maintaining an appropriate and effective risk management (including ESG risks) and internal control systems of the Group. The Chief Executive Officer ("CEO"), representing the management, is responsible for providing annual confirmation to the Board of the effectiveness of these systems. For details, please refer to the section "Risk management, internal control and internal audit" of the Corporate Governance Report.

In addition, the Board and the management monitor and review the ESG goals and targets, as well as the risk levels o1 various issues by making reference to the Risk Key Performance Indicator (°Risk KPI") report which summarises the Group's major risks identified by the management and is submitted to the Board and Audit Committee twice a year. The Risk KPI report provides a comprehensive profile of the major risks (including the ESG risks) for the Board and management to monitor changes in the levels of risk exposure and contribute to the early warning signs that enable the Group to report risks, prevent crises and mitigate them in time.

Reporting Standard, Principles and Boundary

The Group presents this ESG Report for the year ended 31 March 2025 ("Report") in accordance with Appendix C2

- Environmental, Social and Governance Reporting Guide ("ESG Reporting Guide'§ of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") (the °Listing Rules"). This Report covers the Group's principal business of provision of franchised PLB and residents' bus transportation services in Hong Kong. There are no significant changes in the reporting scope of this Report compared with that of last year.

During the preparation of this Report, the management carried out internal assessment on the materiality and relevance of the ESG issues on the Group's business. To better understand the views and expectation of the Group's stakeholders, the Group also identified its key stakeholders according to the impact the Group's business had on them, as well as the influence they had on the Group's business and they were engaged on an ongoing basic to provide their comprehensive assessments, through face-to-face interviews and responding to questionnaires, on the materiality and relevance of the general disclosures and Risk KPls of various ESG issues in respect of the Group's franchised PLB and residents' bus transportation services in Hong Kong. The key stakeholders participated in the external assessment included but not limited to passengers, employees, shareholders, suppliers, contractors and local community organisations.

As a result of the internal and external assessments, this Report summarises the Group's key ESG performance in the following four areas that have significant impact and contributions to the sustainability of the principal business:

i) Environmental protection; ii) Operating practices; iii) Employment practices and iv) Serving the community. The Group will regularly seek for stakeholders' participation in the materiality and relevance assessment of the ESG aspects in the future.

Unless otherwise stated, the methods and KPIs used in this ESG report are consistent with those disclosed last year.

The Group is dedicated to protecting the environment and promoting sustainable development for the betterment of our next generation.

Roadside vehicle emission is one of the major sources of air pollution in Hong Kong. As a road transport operator, the Group is aware of the impact of its operations to the air quality, the environment and the public. Apart from monitoring its direct and indirect impact on the environment, the Group also strictly complies with the environmental protection policy of the Government. Below are the Group's approaches to minimise the impact of its operations to the environment:

14 AMS Public Transport Holdings Limited

Air and greenhouse gas ("GHG") emissions

• Fuel is the major natural source that the daily operations of the Group heavily relied on. The Group pro-actively seeks ways to minimise the use of fuel and hence the greenhouse gas emission. For the quality of the fuel consumed, the Group relies on fuel filling stations in Hong Kong to supply diesel and LPG to the fleet. The diesel available in the fuel-filling stations is Euro V diesel. LPG is a clean fuel in terms of lesser emissions of greenhouse gas (i.e. carbon dioxides) and air pollutants, namely respirable suspended particulates (RSP), sulphur dioxide (SOA and nitrogen oxides (NOx}. In order to try its best endeavor to improve the roadside air quality of the city, the Group keeps monitoring the average fleet age annually. As at 31 March 2025, the Group's fleet was made up of 304 LPG minibuses (2024: 311) and 50

  diesel minibuses (2024: 43), representing around 85.9% and 14.1% of the fleet respectively. The increase in the number of diesel minibuses as the supply of brand-new LPG PLBs are no longer available in the market, leaving diesel minibuses as the only replacement option. While the management remains open to adopting electric minibuses, the current models available do not meet the Group's operational needs, and charging infrastructure remains a significant challenge.

• The GHG emissions intensiy from direct sources this year was slightly higher by 1.0% compared to last year. This increase was mainly due to the increased use of 19-seat Euro VI diesel minibuses, which comply with the latest EU emission standards, as replacements following the discontinuation of the production of LPG PLBs. The Group remains committed to its goal of maintaining or reducing GHG emissions intensity in the coming year. To further improve roadside air quality and align with the Government's environmental protection policies, management will continue exploring eco-friendly minibus options that meet the most stringent exhaust emission standards, minimising environmental impact.

  Use of resources

• The major resources used by the PLB operation of the Group are fuel and electricity. Fuel is the source of energy used by the fleet. Electricity is mainly used in the administrative office, R&M centers and depots.

  Annual Report 2024/25

  
  
  

• The energy consumption intensity of the Group for the year was higher than that of last year by 1.1%. The Group remains committed to its target of maintaining (or lowering) the energy consumption intensity next year by continuously adopting the following measures of reducing use of energy:

• Regular maintenance: The comprehensive maintenance programs of the Group keeps the engines at good condition which would maintain the effectiveness o1 the emissions systems of the minibuses. Also, the repairing technicians and frontline operational staff always stay alert to the emissions of the minibuses and send the minibuses to R&M centers for checking and repairing whenever suspected sub-standard of emissions is notecl.

  The Group enhances its operational efficiency by periodically reviewing and revising its routes and services to minimise fuel consumption. Additionally, the Group has implemented a mileage-based oil change program to reduce fuel usage. To improve air quality, our captains are required to strictly adhere to the legal requirements of the idling engine ban.

  Apart from the above operational practices, the Group also promotes a "Green" concept in the administrative office. Staff members are encouraged to minimise paper, water and electricity consumption, reuse and recycle used papers and change to paperless work practice where possible. Green plants are also grown in different corners of the office to offer greenery environment to the staff.

• Starting from financial year 2018/19, the Group offers the arrangement of election of language and means of receipts of corporate communications to its shareholders for the sake of environmental protection. Shareholders may elect to receive the corporate communication documents from the Group in electronic copies. With effect from January 2025, the Group follows the paperless listing regime of the Stock Exchange that only notification letters of publication of the corporate communications will be sent to Shareholders by email or by post (only if the Company does not possess a functional email address of a shareholder) on the date the corporate communications are published on the websites unless a shareholder requesting printed copies in writing. This arrangement will further reduce the usage of papers.

• Hazardous waste: The hazardous waste arising from the R&M centers are waste batteries, spent oil filters and waste lubricant. The R&M centers have registered as chemical waste producers in accordance with the relevant statutory requirements in Hong Kong. The wastes are packaged, labelled and stored properly before disposal. They are collected by the licensed collectors and sent to the licensed chemical waste disposal site for disposal.

• Non-hazardous waste: Tyres are the major non-hazardous waste disposed by the Group. The scrapped tyres of the Group were collected by the agents for recycling into various products. The waste water produced in the R&M centers is filtered in the sand traps before being discharged into the public drainage system. Waste metals are produced during the R&M process and when the aged vehicles are scrapped. The waste metals are collected by the waste collectors for recycling. The amount of waste metal for the year reduced significantly compared with last year because no old vehicle was scrapped during the year. The Group scrapped eight old vehicles during last year as a result of its vehicle replacement plan.

• By implementing comprehensive vehicle R&M program and engaging licensed chemical waste disposal agents,

  Climate change

  Climate change affects all regions around the world. In some regions, extreme weather events and rainfall are becoming more common while others are experiencing more extreme heat waves and droughts. In Hong Kong, the climate change impacts to the Group's PLB and residents' bus operations are mainly typhoon, heavy rainstorms and flooding. The Group's operations may temporarily be interrupted by the extreme weather events but usually will resume to normal within a few days. The climate-related physical risk to the Group is not significant but the management would close monitor the weather and flooding condition whenever extreme weather events occur so as to minimise harm or loss may cause to the employees, passengers and properties of the Group.

  To cope with the impact of climate change, the Hong Kong Government has set targets for achieving carbon neutrality in and before 2050. As a franchised PLB passenger service operator in Hong Kong, the Group would closely follow the policy set by the Government to achieve the carbon neutrality target.

  2025 2024

  
  
  Emissions

  the Group was generally in compliance with Road Traffc (Construction and Maintenance of Vehicles) Regulations, Motor Vehicle Idling (Fixed Penalty) Ordinance, Waste Disposal Ordinance, Air Pollution Control Ordinance and A!r Pollution Control (Air Pollutant Emission) (Controlled

  Vehicles) Regulation of Hong Kong in relation to air

  Nitrogen Oxides (NOT' tonnes

  Sulphur Oxides (SOg2 tonnes Particulate Matter (PM)' tonnes

  GHG Emissions (CO equivalent)

  27.73 29.08

  0.02 0.02

  0.82 0.63

  emission and disposal of hazardous waste during the year.

• The hazardous intensity for the year was around 2.2% higher than last year. Meanwhile, the non-hazardous intensity for the year slightly decreased by 1.6% compared with last year. The Group remains its targets of maintaining (or lowering) the hazardous and non-hazardous intensity next year by improving the R&M program and providing training to captain

  Scope I: Direct sources

  
  
  

  tCOe IQ 20,580

  Eeet intensity Scope II: Indirect	tCQe/ million km	609	603
  SOUI'COS
  Electrics	ICO e	204	176
  Electricity intensity	tCQe/	5.9	5.2
  	million km

  and technician as so to enhance their knowledge in mechanical maintenance.

  ' The emission factors above are based on "The Hong Kong Environmental Protection Department's EMFAC-HK Vehicle Emission Calculation model".

  * The GHG emission factors were obtained from the °Appendix 2: Reporting Guidance on Environmental KPIs" published by the Stock Exchange.

  The emission factors of GHG emissions due to electricity consumption were obtained from CLP ESG Databook 2024 of CLP Power Hong Kong and the latest sustainability report of HK Electric Investments Limited.

  
  
  

  16 AMS Public Transport Holdings Limited

  consumption

  MWh

  88,286 85,518

  OPERATING PRACTICES

  Year ended 31 March

  ENVIRONMENTAL

  Safety awareness

  ' INDICATORS		2025	2024
  Use of Resources Diesel	MWh	13,714	12,780
  LPG	MWh	74,1N	72,420
  Electricity	MWh	392	318
  Totd energy

  Safety of the passengers and employees is the primary concern of the Group. As a responsible public transport service provider, the management believes that safety is the cornerstone to business success. The Group is committed to providing safe, comfortable and reliable journeys to our passengers and protecting the captains and other staff members from occupational hazards. The safety of its operations is enhanced by ways of continuous training and education, regular checks and comprehensive R&M programmes. These programmes were designed to

  Energy consumption MWh/ intensity^ million km

  Lube oil	kg		31,440
  Waste battery	kg	8,395	8,078
  Oil filter	kg	1,765	1,731
  Totd	kg	43,052	41,249
  Hazardous waste	kg/million	1,236	1,209
  intensity'	km

  Major hazardous waste

  waste
  Tyre	kg	57,734	68,671
  Waste meta	¿g	18,265	6,962
  Tota!	kg	75,599	75,633
  Non-hazardous waste	kg/million	2,181	2,217
  intensity'	km

  Major non-hazardous

  Notes:

  2,504 2,506

  minimise the occurrence of accidents as we are committed to maintaining a low accident rate.

  Below are the Group's approaches to improve the safety performance of all aspects of our business:

  • The Group organised trainings on road safety throughout the year, some were conducted by the Hong Kong Police Force (Traffic), which helped to raise safety and risk awareness and improve work practices of our staff. Additional comprehensive trainings were further provided to the Mainland Chinese captains for them to adapt to local trafic regulations and practices as soon as possible;

    
    
    

  • To enforce safety guidelines and cultivate a professio

    nal and responsible driving attitude among captains, the Group has adopted stringent Code of Conduct and captains' guidelines, conducted spot checks and arranged inspection personnel disguised as passengers to make timely reports for any misbehaviour of the captains;
    
    

    In view of the business nature of the Group, total amount of packaging material used for finished products are not presented because it is irrelevant;

    There is no issue in sourcing water that is fit for the purpose during the daily operations of the Group;

    ^ The amount of energy consumption intensity is calculated by dividing the total amount of energy consumption by the total distance traveled by the franchised PLB and residents' bus operation (in million km) for the year; and

    Annual Report 2024/25

    17

    
    
    

    ' The amount of hazardous and non-hazardous waste intensity calculated by dividing the total amount of hazardous and non-hazardous waste by the total distance traveled by the franchised PLB and residents' bus operation (in million km) for the year respectively.

  • To check the validity of the captains' driving licences half-yearly. Also, the Group tries to make sure the captains are physically fit for driving by requesting all captains to return their health condition declarations annually. Also, captains with sick leave or traffic accidents records are scrutinised so that the front-line management personnel can pay special attention to the latest health condition of the relevant captains and make appropriate arrangements as early as possible under appropriate circumstances, so as to minimise the chance of occurrence of traffic accidents caused by captain health problems;

• To enhance operational safety, the operations team conducts regular independent inspections of vehicle components including tyre tread depth, seatbelt conditions, fire extinguishers, and speed control systems. These checks are performed by a dedicated team separate from the maintenance and operations staff to ensure impartial oversight. A specialised parking brake alert system designed for automatic transmission minibuses is currently being tested. This system actively reminds captains to engage the parking brake when the vehicle is stationary, addressing a critical safety consideration;

• Tips to passengers are posted at prominent locations inside the minibuses to remind the passengers of the safety on board;

• Implementing the plans for replacing aged minibuses would minimise the chance of mechanical breakdown; and

• The Group has implemented comprehensive maintenance programmes to ensure proper checks and maintenance of the vehicles. In order to ensure the quality and effectiveness of the repairing process, the Group has put great efforts into the computerisation of the repairing management system in recent years. The Group has been rewarded the ISO 9001 quality management system certification for its dedication to enhance its R&M centers since January 2011, mak!ng the Group the first franchised PLB operator in Hong Kong having such a prestigious accreditation. The R&M centers of the Group also have registered under the Voluntary Registration Scheme for Vehicle Mechanics launched by the Government, under which the participating vehicle maintenance workshops should pledge to operate at a quality level not lower than that specified in the Practice Guidelines for Vehicle Maintenance Workshops in terms of the technical, environmental, safety, staff training, service and documentation requirements.

18

AMS Public Transport Holdings Limited

Apart from enhancing the new captains' safety awareness by strengthening their orientation training, the management also sought to lower the accident rate by strengthening the R&M programmes. The average accident rate was 3.4 per million km for the year ended 31 March 2025 (2024: 3.4 per million km). The number of service related complaints received per million km for the year was 53.4 (2024: 40.0). When complaints are referred by the Transport Department, the operations team members would investigate the cases by checking the service logs, CCTVs (as the case maybe) or/and enquiring the employees being complained and other relevant personnel. All complaints would be responded in written form within one to two weeks.

During the year, the Group was strictly in compliance with the relevant rules of Road Trafñc Ordinance of Hong Kong in relation to safety equipment, registration, licensing, construction and maintenance of vehicles.

Supply chain management

The Group engages suppliers mainly for the leasing of PLBs and the procurement of fuel, vehicles parts and repairing services. The number of suppliers of the Group for the year ended 31 March 2025 was 83 (2024: 88). All suppliers engaged by the Group are located in Hong Kong.

The Group launched procurement guidelines in 2009 aiming to ensure that the products and services procured by the Group are carried out under the principle of fair competition and to improve the transparency and accountability of the Group's procurement process. Moreover, to ensure the service quality of the franchised PLBs operations, the Group selects only those suppliers with satisfactory record of products and service quality and on-time delivery. The suppliers are also asked to follow the Group's Code of Practice for Suppliers, which requires the suppliers to ensure that the relevant laws and regulations in environmental protection and safety in relation to the products and services provided are properly complied with. The staff members responsible for procurement may request the suppliers to provide licences or certificates to ensure the validity and legitimacy of the products and services.

In order to further improve the sustainable development in the supply chain of the Group, the Group has established a Code of Practice for Suppliers, with aims to elaborate and explain the Group's views and standards in the areas of ethics, human and labour rights, health and safety, environment protection and climate change action to the suppliers. Majority of the suppliers have been provided with the Code of Practice for Suppliers, as well as the Group's Code of Conduct and Whistle-blowing Policy. Throughout the procurement process, the responsible staff members follow the procurement guideline and monitor if the suppliers have any news or track records on supplying goods or service which may not be in compliance with any laws and regulations or not conform with the value and standards laid in the Code of Practice of Supplier and the Code of Conduct of the Group. The number of suppliers required to follow the Code of Practice for Suppliers of the Group for the year was 75 (2024: 82).