Digital Domain Holdings LimitedHKEX: 547

2024 Environmental, social and governance report

· Issued by Digital Domain Holdings Limited

(Incorporated in Bermuda with limited liability) (Stock Code : 547)

ENVIRONMENTAL, SOCIAL AND

OVERNANCE REPORT 2024



  1. ABOUT THE REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

    1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

    2. Scope and Reporting Boundary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

    3. Reporting Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

    4. Reporting Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

    5. Reporting Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

    6. Data Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

    7. Report Availability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

    8. Contact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

  2. ESG POLICY, STRATEGY AND MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

    1. Our ESG Board Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

    2. Our Approach to ESG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

    3. ESG Governance Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

    4. Stakeholders Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

    5. Materiality Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

    6. Our Performance Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

  3. PROTECTING THE ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

    1. Sustainable Production and Operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

    2. Climate Change Response Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

    3. Measuring and Managing Our Climate Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

    4. Corporate Environmental Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

    5. Reducing Our Operational Emission Footprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

    6. Exhaust Gas and GHG Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

    7. Waste Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

    8. Use of Resources 20

  4. PEOPLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

    1. A Culture of Diversity, Equity and Inclusion (DEI) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

    2. Employee Wellness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

    3. Occupational Health and Safety 22

    4. Our Workforce 22

    5. Talent Development 26

    6. Labour Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

  5. OPERATING RESPONSIBLY 28

    1. Encouraging Innovation 28

    2. Supply Chain Management 28

    3. Product Responsibility 29

    4. Privacy Protection 30

    5. Anti-Corruption 30

    6. Whistle-Blowing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

    7. Protection of Intellectual Property Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

    8. Compliance and Client Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

  6. CONTRIBUTING TO OUR COMMUNITY 32

    1. Social Support 32

    2. Community Services 32

  7. HKEX ESG GUIDE CONTENT INDEX 34

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DIGITAL DOMAIN HOLDINGS LIMITED

  1. INTRODUCTION

    Digital Domain Holdings Limited (the "Company") and its subsidiaries (together, the "Group" or "we") are pleased to present our Environmental, Social and Governance ("ESG") Report ("ESG Report" or "Report") on an annual basis regarding the same period covered in its annual reports. This ESG Report is prepared for the year ended

    31 December 2024 ("Reporting Period"). The ESG Report provides an overview on the Group's sustainability performance and demonstrates its commitment to sustainable development to stakeholders.

  2. SCOPE AND REPORTING BOUNDARY

    The scope of the ESG Report covers the environmental and social performances of the Group's principal business which includes the services of visual effects production, post-production, and virtual humans across different geographic locations such as Hong Kong, the Mainland China, Canada, United States and India.

    While we seek to establish a consistent boundary for reporting ESG aspects across the Group's structure, the reporting boundary of the ESG Report is hence established based on the criteria that all operations and entities reported are substantially owned by the Group and are under our management. As a result, we do not report entities which are outside of the Group's structure, where we do not own the assets and do not directly engage or employ the workforce, and where we do not operate the asset under a contractual obligation.

    Part of the content may look back upon the performance of the Group in past years with a view to presenting the report in a more informative and comparable manner. The reporting boundary includes the operation entities in the regions mentioned above. The Group will continue to assess the major ESG aspects of different businesses and extend the scope of disclosure when and where applicable.

  3. REPORTING GUIDELINES

    To comply with the requirements set forth in the Appendix C2 Environmental, Social and Governance Reporting Guide ("ESG Reporting Guide") to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("HKEX" and "Listing Rules", respectively), the Group is in compliance with the mandatory disclosure requirements and "comply or explain" provisions set out in the ESG Reporting Guide. In addition, we also made reference to key reporting frameworks such as the Sustainability Accounting Standards Board (SASB) and publications made by global ESG ratings agencies such as Sustainalytics, Morgan Stanley Capital International (MSCI) and Institutional Shareholder Services (ISS) during the reporting process to ensure our actions aligned with accepted standards.

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    DIGITAL DOMAIN HOLDINGS LIMITED

  4. REPORTING PRINCIPLES

    The reporting principles of this ESG Report are governed by "materiality", "quantitative", "balance", "consistency" and "completeness".

    Reporting Principles

    Definition

    The Group's Response

    Materiality

    The threshold at which ESG issues

    Through continuous engagement with

    determined by the board are sufficiently

    stakeholders and materiality assessment,

    important to investors and other

    the Group focuses on the disclosure of

    stakeholders that they should be

    ESG issues that are crucial to investors

    reported.

    and other stakeholders.

    Quantitative

    Key performance indicators (hereinafter

    The Group discloses quantitative

    referred to as "KPIs") in respect of

    information in the Report whenever

    historical data need to be measurable.

    possible and provides textual

    The issuer should set targets to reduce

    explanations to allow stakeholders to

    a particular impact. In this way the

    clearly understand the ESG performance

    effectiveness of ESG policies and

    of the Group.

    management systems can be evaluated

    and validated. Quantitative information

    should be accompanied by a narrative,

    explaining its purpose, impacts,

    and giving comparative data where

    appropriate.

    Balance

    The ESG report should provide an

    The Group fully discloses its ESG

    unbiased picture of the issuer's

    performance and avoids expressions that

    performance. The report should avoid

    may inappropriately influence decisions

    selections, omissions, or presentation

    or judgment made by reader.

    formats that may inappropriately

    influence a decision or judgment by the

    report reader.

    Consistency

    The issuer should use consistent

    The Group ensures that the reporting

    methodologies to allow for meaningful

    scope and methodologies are largely

    comparisons of ESG data over time.

    consistent every year to ensure

    reasonable comparison and analysis.

    Completeness

    The ESG report should cover substantive

    The ESG Report covers all material

    issues and their boundaries that are

    areas whenever possible with targeted

    adequate to reflect material economic,

    responses made to relevant issues.

    environmental and social impacts and

    enable stakeholders to assess the

    performance of the reporting boundaries

    during the Reporting Period.

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    DIGITAL DOMAIN HOLDINGS LIMITED

  5. REPORTING FRAMEWORK

    With reference to the ESG Reporting Guide and the Group's business operation, the presentation of our ESG Report divides the relevant aspects and KPI, which are considered to be relevant and material to the Group, into four subject areas: Protecting the Environment, People, Operating Responsibly and Contributing to Our Community.

    A complete index in compliance with the ESG Reporting Guide is also available at the end of this Report for reference. Except for provisions that the Group considers are inapplicable to its operations, for which explanations have been given on the rightmost column in the said index, this Report is compliant with all the "comply or explain" provisions set out in the ESG Reporting Guide.

  6. DATA COLLECTION

    Data in this Report are extracted from the Group's internal management system and statistics, and part of the data collected in previous years. Unless otherwise stated, Hong Kong dollars (HKD) is used in this report as its functional currency.

  7. REPORT AVAILABILITY

    This Report is accessible in electronic version from the Company's website at https://www.digitaldomain.com or the website of HKEX at https://www.hkexnews.hk.

  8. CONTACT

We welcome all sorts of comments and suggestions from our stakeholders with respect to this ESG Report or our sustainability performance. Comments or views can be sent to ir@ddhl.com.

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DIGITAL DOMAIN HOLDINGS LIMITED

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