Tysan Holdings LimitedHKEX: 687

2024 Environmental, Social and Governance Report

· Issued by Tysan Holdings Limited

TYSAN HOLDINGS LIMITED

泰 昇 集 團 控 股 有 限 公 司

(Incorporated in Bermuda with limited liability) (Stock Code : 687)

Environmental, Social

and Governance Report

2024

Tysan Holdings Limited

Environmental, Social and Governance (ESG) Report

Table of Contents

Pages

1.

Company Profile

2

2.

About this Report

2

2.1. Reporting Standard, Period and Scope

2

2.2. Access and Response to this Report

3

3.

Board's Statement

3

4.

Ongoing Communication with Stakeholders

4

5.

Supporting the United Nations Sustainable Development Goals

6

6.

Sustainability in Operations

10

6.1.

Responsible Sourcing

11

6.2.

Energy Efficiency

11

6.3.

Water Conservation

16

6.4.

Waste Management

17

6.5. Mitigation of Environmental Impacts

19

6.6. Implementing Good Environmental Mitigation Measures at

21

Construction Sites

6.7. Climate Change and Climate-related Disclosures

22

7.

Value Creation for People

27

7.1. Developing a Workplace Safety Culture

28

7.2. Recruiting and Retaining Talents

29

7.3. Adhering to Business Ethics

31

7.4. Building a Harmonious Workplace

32

8.

Striving for Operational Excellence

33

8.1.

Quality Assurance

34

8.2.

Sustainable Site Management

34

8.3.

Innovative Technology

37

8.4.

Complaint Handling Mechanism

38

9.

Caring for Community

39

10.

Way Forward

39

11.

ESG Content Index

40

Environmental, Social and Governance (ESG) Report 2024

1

Tysan Holdings Limited

Environmental, Social and Governance (ESG) Report

1. Company Profile

Tysan Holdings Limited (the "Company", together with its subsidiaries the "Group") has been listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") since 1991 (Stock Code: 687). The principal businesses of the Group include foundation piling and site investigation, property development and investment, and investment businesses. The Group believes that sustainable development is the foundation to high- quality property development and foundation works.

2. About this Report

2.1. Reporting Standard, Period and Scope

This report was prepared in accordance with the Environmental, Social and Governance ("ESG") Reporting Code set out in Appendix C2 of the Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules"). Information regarding corporate governance is included in the section of the corporate governance report in the annual report of the Company prepared according to Appendix C1 of the Listing Rules.

This report covers the Group's ESG-related from 1 January 2024 to 31 December 2024 (the "Reporting Period"). The Group strictly adheres to the principles of materiality, quantitative, balance and consistency to report on the relevant measures and performances during the Reporting Period.

REPORTING PRINCIPLES

Materiality

Quantitative

Balance

Consistency

APPLICATION

To identify the material ESG-related issues related to the Group, we conducted stakeholder engagement surveys to collect opinions from management, general staff and stakeholders like suppliers. We incorporated the material ESG issues into the Group's core business strategy.

The Group discloses its ESG performances in a quantitative manner to allow assessment and comparison of performance over time. Definition and calculation formulae are clearly explained for better understanding by the stakeholders.

The Group prepares this report based on balanced and fair information and discloses the achievements and challenges of the ESG performance in a transparent manner.

This report is prepared in accordance with the Appendix C2 Environmental, Social and Governance Reporting Code issued by the Stock Exchange to provide consistent and comparable disclosures.

The reporting boundary and scope of this report covers the Group's operations involving foundation piling in Hong Kong only, including the head office and 22 construction sites.

The Group has appointed Allied Sustainability and Environmental Consultants Group Limited (Stock Code: 8320) as an independent consultant (the "Consultant") to provide ESG consultancy and reporting services.

2 Environmental, Social and Governance (ESG) Report 2024

Tysan Holdings Limited

Environmental, Social and Governance (ESG) Report

2.2. Access and Response to this Report

The electronic versions of this report (in both English and Chinese versions) are available on the websites of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the Company (www.tysan.com), under the section "Investor Relations". If there is any conflict or inconsistency, the English version shall prevail.

To continue to improve the Group's sustainability strategies, we welcome any feedback and suggestions from our stakeholders. If you have any comments or enquiries, please contact the Group at:

Tysan Holdings Limited

20/F, One Island South

2 Heung Yip Road, Wong Chuk Hang

Hong Kong

Tel: (852) 2882 3632

E-mail: info@tysan.com

3. Board's Statement

The board of directors of the Company (the "Board") is fully responsible for the oversight and decision-making of the Group's ESG governance and is committed to integrating ESG considerations into the business operations and improving sustainability performance through resource optimisation.

To address ESG issues, the Group takes a top-down management approach. The Board is responsible for developing strategic plans and action plans for ESG issues, as well as reviewing and discussing target-setting, performance, ESG-related risks and opportunities. Through an internal Integrated Management System ("IMS"), the Group has established several environmental and social policies that integrate sustainability principles into its daily operations. These policies and IMS aim to protect the environment, promote the well-being of the staff and the community, manage risks in relation to quality, environmental, occupational health and safety, and energy aspects. To ensure that appropriate and effective policies and measures are in place, the management, under the leadership of the Board, is responsible for reviewing the Group's ESG practices, coordinating with different departments to implement the ESG approaches, policies and action plans of the Group, and making recommendations to the Board for decision-making. The audit committee of the Board (the "Audit Committee") reviews the risk exposure of the Group, including ESG risks, assesses the corresponding risk response and mitigation strategies, and reports its recommendations to the Board. The Company has also invited the management, general staff and stakeholders like suppliers to take part in an annual stakeholder survey, which aims to gather their perspectives on various ESG topics. With their valuable insights, the Company is better positioned to make informed decisions on allocating resources on major material ESG matters and ensure that appropriate and effective policies and measures are in place. In addition, to enhance operational efficiency and minimise environmental impacts, the performance and progress against relevant targets are regularly reviewed by the Board and disclosed in the ESG report annually.

As a foundation contractor, the Group recognises that its operations can have inevitable impacts on the environment. However, the Group is dedicated to protecting the environment and contributing to the society. The Hong Kong Council of Social Service has honoured the Group with the renowned "10 Years+ Caring Company" award, recognizing the Group's continuous efforts in creating a positive impact on the society and environment. Besides, as a demonstration of the Group's ongoing dedication to promoting long-term sustainability and its proactive efforts in addressing global environmental and social issues, the Group has mapped relevant United Nations Sustainable Development Goals ("SDGs") to its business strategy and operation during the Reporting Period.

With the support and trust of the stakeholders, including customers, suppliers, employees, shareholders, investors, business partners and the local community, the Group will continue to make progress in achieving ESG-related targets and creating sustainable value for its stakeholders.

Environmental, Social and Governance (ESG) Report 2024

3

Tysan Holdings Limited

Environmental, Social and Governance (ESG) Report

4. Ongoing Communication with Stakeholders

The Group recognises the importance of stakeholders' participation for the continuous improvement of its sustainability performance. To understand the opinion of its stakeholders on its operations and ESG-related issues, the Group maintains close communication with different stakeholders which benefits the Group's business development by addressing and prioritising the issues that stakeholders are more concerned about. By incorporating stakeholders' perspectives, the Group has optimized its resource allocation, enabling it to effectively tackle the identified critical issues.

The Group appointed the Consultant to identify and review various ESG issues and the following major issues were identified:

Construction waste

management

Construction material

Wastewatermanagement and

managementselection

Quality assurance

SOCIAL ASPECT

Community

Labour standard

involvement

Water consumption

Construction

Occupational

Diversity and equal

Development

and conservation

noise

health and

opportunity

and training

safety

Compliance with

Responding to

relevant socioeconomic

Employment

Supply chain

climate change

laws and regulations

management

ENVIRONMENTAL

ASPECT

Air quality

Energy usage and

Anti-corruption

Protecting intellectual

Protecting customer

property rights

privacy

control

conservation

Compliance with

On-going

Hazardous waste

relevant environmental

General waste recycling

communication

Sustainable development

management

laws and regulations

and management

channels with the

stakeholders

framework

Greenhouse gas

Disclosure on

stakeholders' opinions

("GHG")

and the Group's

emission

responses

SUSTAINABILITY

GOVERNANCE

Setting up a

Sustainability

Committee

Sustainability

targets

4 Environmental, Social and Governance (ESG) Report 2024

Tysan Holdings Limited

Environmental, Social and Governance (ESG) Report

The Group consolidated views on the importance of ESG-related topics to the Group's business operations through an online stakeholder survey in the Reporting Period. A comprehensive internal ranking of the ESG-related topics resulting from the surveys was identified as follows:

ENVIRONMENTAL

Compliance with relevant

Air quality control

Construction noise

environmental laws and

regulations

SOCIAL

Occupational health

Anti-corruption

Protecting customer privacy

and safety

SUSTAINABILITY

GOVERNANCE

Responding to climate change

Sustainability targets

Sustainable

development

framework

The Group has incorporated these ESG-related issues and the internal ranking of the ESG-related topics into its core business strategy, as well as addressing them in this report. To strive for improvements in sustainable development, the Group will maintain continuous engagement and communication with its stakeholders.

Environmental, Social and Governance (ESG) Report 2024

5

Tysan Holdings Limited

Environmental, Social and Governance (ESG) Report

5. Supporting the United Nations Sustainable Development Goals

During the Reporting Period, the Group aligned its sustainability efforts with the SDGs and reinforced its commitment to sustainable practices, contributing to global sustainability targets.

By integrating SDGs into its business, the Group aims to drive positive change and reduce negative impacts by promoting health and well-being in the workplace, increasing the use of renewable energy, upholding labour rights and equal opportunities, fostering innovation, maximising material efficiency and combating climate change.

The Group has mapped and identified 10 SDGs and 12 related targets that are most relevant to its business nature and impact areas. The following table summarises these identified targets, objectives, practices and actions of the Group:

Mapped SDGs

Targets of the SDGs

The Group's

The Group's

Objectives

Practices and Actions

Goal 3: Good

3.8: Achieve universal

Provide employees

In the case of any work-related

Health and

health coverage,

access to effective

accidents causing injuries to employees,

Well-being

including financial

and high-quality

the Group arranges timely private

risk protection, access

medical care,

medical care (when appropriate) and

to quality essential

including all relevant

covers all relevant medical expenses

health-care services to

medical expenses (if

under the Group's rehabilitation

employees.

applicable).

scheme to assist recovery. The medical

care includes X-ray service, MRI

examination and physiotherapy.

3.9: Reduce the

Reduce and properly

To mitigate the risk of illnesses caused

number of deaths and

handle emissions

by air pollutants, the Group has taken

illnesses caused by

to mitigate adverse

measures to install sensors to monitor

hazardous chemicals

impacts on human

air quality at all construction sites.

and air, water and

health and the

Additionally, chemical waste has also

soil pollution and

environment.

properly collected and stored to prevent

contamination.

any contamination or environmental

pollution caused by leakage. During the

Reporting Period, no deaths or illnesses

attributed to environmental pollution

were reported.

6 Environmental, Social and Governance (ESG) Report 2024

Tysan Holdings Limited

Environmental, Social and Governance (ESG) Report

Mapped SDGs

Targets of the SDGs

The Group's

The Group's

Objectives

Practices and Actions

Goal 6: Clean

6.4: Increase water-

Increase water-use

To increase water-use efficiency, the

Water and

use efficiency and

efficiency by reducing

Group has embedded ISO 14001:2015

Sanitation

ensure sustainable

unnecessary water

Environmental Management Systems

withdrawals and

consumption.

into its IMS framework to reduce water

supply of freshwater to

consumption. For instance, the Group

address water scarcity

has installed on-site water storage tanks

and substantially

equipped with water meters to regularly

reduce the number of

monitor water withdrawal. The Group

people suffering from

also conducts regular toolbox talks

water scarcity.

and training programmes for frontline

workers to raise their awareness of

water conservation.

Goal 7: Affordable

7.2: Increase

and Clean Energy

substantially the share

of renewable energy in

the energy mix.

Increase the utilisation of renewable energy to reduce dependence on fossil fuels.

The Group is committed to exploring clean energy sources. During the Reporting Period, the Group installed solar panels at 9 site offices to power the lighting systems by solar energy.

Environmental, Social and Governance (ESG) Report 2024

7

Tysan Holdings Limited

Environmental, Social and Governance (ESG) Report

Mapped SDGs

Targets of the SDGs

The Group's

The Group's

Objectives

Practices and Actions

Goal 8: Decent

8.5: Achieve full

Ensure all employees

The Group has strictly complied with

Work and

and productive

receive fair

the Minimum Wage Ordinance,

Economic Growth

employment and

remuneration, safe

Employees' Compensation Ordinance,

decent work for all

working environment

Mandatory Provident Fund Schemes

women and men,

and opportunities for

Ordinance, anti-discrimination

including for young

development based

ordinances and other relevant

people, and equal

on their qualification,

regulations protecting employees in

pay for work of equal

experiences and

terms of remuneration, compensation

value.

capability, avoiding

and social security. The Group has

any discrimination

ensured that all employees receive fair

related to factors such

remuneration.

as race, gender, age

and religion.

8.8: Protect labour

Pursue zero

The Group considers work safety as

rights and promote

fatality and work-

its first priority and has obtained ISO

safe and secure

related injury while

45001:2018 Occupational Health

working environments

eliminating all forms

and Safety Management Systems

for all workers.

of forced and child

certification to ensure safe working

labour.

environments. Upholding the principle

of safeguarding labour rights, no

instances of illegal labour practices were

identified during the Reporting Period.

The Group takes all necessary measures

to prevent the use of forced labour and

child labour. The Human Resources

and Administration Department (the

"HR Department") is responsible for

verifying candidates' identification

documents prior to official employment

to comply with the applicable rules

and regulations, and to prevent the

engagement of child and forced

labour. With regard to any illegal

labour practices, the HR Department

shall terminate the employment and

take appropriate follow-up actions

immediately.

Ensuring a safe and healthy working

environment is a top priority for the

Group. The Group achieves this by

enforcing stringent safety protocols

and providing appropriate personal

protective equipment to workers

when appropriate. Safety officers are

appointed to monitor the safety issues

of the construction sites and ensure

preventive measures in the safety plan

are well implemented. Regular safety

activities including site safety meetings,

safety inspections and safety trainings

also help employees understand the

importance of workplace safety and

their roles in upholding it.

8 Environmental, Social and Governance (ESG) Report 2024

Tysan Holdings Limited

Environmental, Social and Governance (ESG) Report

Mapped SDGs

Targets of the SDGs

The Group's

The Group's

Objectives

Practices and Actions

Goal 9: Industry,

9.5: Enhance scientific

Enhance efficiency in

Innovative strategy is a key part of the

Innovation and

research, upgrade

project management

Group's daily operations. During the

Infrastructure

the technological

and delivery by

Reporting Period, the Group integrated

capabilities.

implementing

various innovative technologies, such

innovation and

as Building Information Modelling

technology.

(BIM) (in over approximately 45% of

its projects), 360 Camera and Alerting

System on Mobile Plant.

Goal 10: Reduce

10.3: Ensure equal

Enforce equal

The Group prioritises fairness in

Inequalities

opportunity and

opportunities for

the workplace and strives to provide

reduce inequalities

employees and foster

equal opportunities while preventing

of outcome,

anti-discrimination

discrimination by adhering to relevant

including eliminating

culture in the

rules and regulations. During the

discriminatory laws,

workplace.

recruitment process, the Group

policies and practices

assesses the potential candidates by

and promoting

their qualification, experiences and

appropriate legislation,

capability, regardless of their race,

policies and action in

gender, age, religion or any other

this regard.

irrelevant factors to the job positions.

The Group firmly upholds a zero-

tolerance policy towards any form of

discrimination within the workplace.

Goal 11:

11.6: By 2030, reduce

Reduce waste

The Group is committed to promoting

Sustainable Cities

the adverse per capita

generation through

resource utilisation and reducing

and Communities

environmental impact

waste management

waste generation through sound waste

of cities, including

strategies.

management practices.

by paying special

attention to air

quality and municipal

and other waste

management.

Goal 12:

12.5: Reduce waste

Divert waste away

The Group's waste management

Responsible

generation through

from landfill to

approach is based on the 4R principles:

Consumption and

prevention, reduction,

minimise the wastage

reduce, reuse, recycle and replace.

Production

recycling and reuse.

of resources.

During the Reporting Period, the

Group disclosed the quantities of

recycled paper, plastic, and metals

separately to enhance the efficiency of

the waste stream monitoring.

Environmental, Social and Governance (ESG) Report 2024

9

Earlier from Tysan

All Tysan news releases