Sustainability Report 2024/25 Sustainability in Action
Social Impacts: People
Social Impacts: Clients and Suppliers
Social Impacts: Community
CEO Message
Approach to Sustainability
Responsible Governance
Environmental Stewardship
Appendices
About This Report
About Kum Shing
Contents
CEO Message
CEO Message
2
Social Impacts: People
33 34 40 43
Welcome to Kum Shing’s 2024/25 Sustainability Report.
We have strengthened our sustainability governance structures, including the Sustainability Committee and five dedicated Working Groups, bringing together leaders and members from across our organisation to embed sustainable practices into our operations. Our longevity and sustained growth are intrinsically linked to the strong, collaborative relationships we build with our stakeholders, including employees, clients, partners and the community. I extend my heartfelt gratitude to all who have contributed to our achievements this year. Your dedication, expertise and shared commitment continue to drive Kum Shing forward.
Talent Acquisition and Management
The world is evolving rapidly. Dynamics such as decarbonisation imperatives, supply chain volatility, technological advancement and digital transformation are fundamentally reshaping markets and operating environments. As our clients face increasingly complex challenges, we position ourselves as a trusted partner, continuously evolving our capabilities to deliver the solutions they need. Innovation is a central driver of value creation. By driving innovation and harnessing technology, we enhance efficiency for ourselves and our clients. I'm proud that we rank 9th among 130 companies in the Corporate Innovation Index 2024, an initiative funded by the HKSAR Innovation and Technology Commission and developed by the Asia- Pacific Institute of Business of the Chinese University of Hong Kong. We are also honoured to have received five awards at the triennial Construction Industry Council Outstanding Contractor Award, including the "Outstanding Contractor Award"—recognition of our high standards in corporate innovation, professionalism, revitalisation, safety culture, and environmental, social and corporate governance. The urgency of climate action has never been clearer. We are already experiencing the impacts of climate change, such as extreme weather, rising sea levels, floods and tropical cyclones, which are projected to become more severe and widespread. Building a sustainable future presents both challenges and opportunities. It requires substantial investment to reinvent every industry and accelerate the transition to a carbon neutral, net-zero economy. As an energy infrastructure specialist in Hong Kong, we recognise our crucial role in driving this transition. Our sustainability strategic plan guides our people and business towards fulfilling our commitments, including operating more efficiently and generating fewer emissions.
Talent Development
About This Report
3 3 4
Occupational Health and Safety
Reporting Frameworks and Principles
Reporting Boundary
Social Impacts: Clients and Suppliers
53 54 56
Quality Management
About Kum Shing
5 6 6 7
Supply Chain Management
Who We Are How We Act What We Do
Social Impacts: Community
57 57
Community Investment Management Community Investment Highlights
58 Project Community Impact Management 60
Yet, we remain mindful that our journey is ongoing. As we transition to carbon neutrality and net zero while adapting
Approach to Sustainability Sustainability Governance Sustainability Strategy Stakeholder Engagement
9
10 12 18 19 21 22 27 29 30 30 32
to evolving market dynamics, we will uphold our spirit of excellence, embrace innovation and sustainability, and learn from experience.
Environmental Stewardship Environmental Management
61 62 63 65
Materiality Assessment
Climate Change
Decarbonisation, Resource Efficiency
Responsible Governance Corporate Governance
and Circularity
Rex Wong JP CEO
Risk Management
Appendices
69 69 80
Business Ethics and Integrity
Legal Compliance
Appendix A: Key Statistics Appendix B: Memberships and Major Awards Appendix C: Content Indices
Information Security and Privacy Innovation and Professionalism
82
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Social Impacts: People
Social Impacts: Clients and Suppliers
Social Impacts: Community
About This Report
CEO Message
Approach to Sustainability
Responsible Governance
Environmental Stewardship
Appendices
About Kum Shing
About This Report IN THIS SECTION
Reporting Frameworks and Principles Reporting Boundary
Kum Shing Group Limited (“Kum Shing” or “the Group”) publishes annual Sustainability Report (the “Report”) that discloses our approach to sustainability, including strategies, initiatives and performances. The Report is available on Kum Shing Corporate Website. The Board of Directors (the “Board”) has reviewed and approved this Report. We welcome and value your feedback as we work to enhance our sustainability initiatives, performances and reporting. Please share your comments with us at info@kumshing.com.hk.
Reporting Frameworks and Principles
Reporting Boundary
Sustainability Reporting
We will continue to align our disclosures with internationally recognised guidelines and frameworks, including the International Sustainability Standards Board (ISSB)'s International Financial Reporting Standards (IFRS) S1 General Requirements for Disclosure of Sustainability- related Financial Information and IFRS S2 Climate-related Disclosures.
This Report covers the material issues identified for Kum Shing’s key business segments from 1 April 2024 to 31 March 2025 (“Year” or “2024/25”). It includes eight subsidiaries in Hong Kong under four business segments that contributed to the majority of the Group’s total revenue for the Year. The Property Development segment in Chinese Mainland is excluded. Qualitative disclosures and quantitative social key performance indicators (“KPIs”) encompass all operations, including office, depot and project operations. Quantitative environmental KPIs focus on headquarters’ office and depot operations, with selected KPIs for project operations also disclosed. We review our business operations and development, making adjustments to the reporting boundary as appropriate to ensure our material impacts are covered.
Business Segments Subsidiaries of the Group
Engineering, Procurement & Construction
Kum Shing (K.F.) Construction Company Limited (“KFC”) Kum Shing Engineering Company Limited (“KSE”) Kum Shing E & M Limited (“KEM”) Kum Shing Civil Engineering Limited (“KCE”) * W. Hing Construction Company Limited (“WHC”) *
This Report has been prepared with reference to the Global Reporting Initiative (GRI) Universal Standards 2021 (“GRI Standards”) and the Hong Kong Exchanges and Clearing Limited (HKEX)’s Appendix C2 Environmental, Social and Governance Reporting Guide (the “ESG Reporting Guide”) of the Listing Rules. Our major clients who abide by HKEX’s listing rules follow this ESG Reporting Guide.
Greenhouse Gas (“GHG”) Emissions Data
Our GHG emissions are reported with reference to the GHG Protocol published by World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), the International Standard for GHG Emissions ISO 14064-1:2018, and the relevant local guidelines where applicable.
See Appendix C: Content Indices for details
Logistics
Pro Logistics Limited (“PLL”)
In preparing this Report, we have applied the reporting principles recommended by GRI Standards and HKEX ESG Reporting Guide to define relevant content and provide valuable information to our stakeholders, including materiality, quantitative, balance and consistency.
Talent Supply
EnGenius Personnel Consultancy Limited ("ENG") Hong Kong Energy Infrastructure Limited (“HEI”)
Consulting & Technology
*Added to the reporting boundary for 2024/25
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Social Impacts: People
Social Impacts: Clients and Suppliers
Social Impacts: Community
About Kum Shing
CEO Message
Approach to Sustainability
Responsible Governance
Environmental Stewardship
Appendices
About This Report
About Kum Shing IN THIS SECTION
Who We Are
Kum Shing has been playing a leading role in the development, operation and maintenance of Hong Kong’s energy infrastructure for over six decades. As a trusted industry partner, we deliver multidisciplinary construction and engineering solutions across civil, building, electrical and mechanical engineering.
areas, meeting the evolving needs of modern urban environments. Our footprint spans all districts in Hong Kong, as well as Guangdong, Macau, and Bangkok.
Who We Are How We Act What We Do
We are deeply committed to improving the quality of urban living in a smart, sustainable city.
Our client base spans across public and private sectors, including power utilities, transportation operators, infrastructure developers and government departments. We build strong, enduring relationships and develop a deep understanding of our clients' objectives, working closely with them to support their needs.
Hong Kong Energy Infrastructure Specialist
Founded in 1963, Kum Shing has become Hong Kong's only private enterprise capable of providing comprehensive energy solutions encompassing power generation, transmission, distribution and utilisation throughout the city. This unique business proposition has established Kum Shing as an "Energy Infrastructure Specialist". Our strong foundations in energy infrastructure have enabled us to develop and accumulate capabilities across diverse engineering disciplines and business
Watch Our
Corporate Video
How We Act
Vision
Mission
To enhance urban living in a smart and sustainable city through the development, operation and maintenance of power, transportation and environmental assets in the Greater Bay Area.
We provide leading safety, high reliability and value-for- money solutions to build enduring trust with our clients, colleagues and other stakeholders.
Core Values
Integrity Be professional and authentic
Sincerity Focus on people and shared success
Commitment Create value through continuous improvement
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Social Impacts: People
Social Impacts: Clients and Suppliers
Social Impacts: Community
About Kum Shing
CEO Message
Approach to Sustainability
Responsible Governance
Environmental Stewardship
Appendices
About This Report
What We Do
Our Activities
Our works encompass projects at city, community and building levels, above and below ground, contributing positively to deliver quality and reliable infrastructure for society.
With our integrated, multidisciplinary expertise, we offer specialised and tailored services throughout the project lifecycle, from development, engineering, procurement, construction, operation, to maintenance.
• Power Generation
• Public Lighting
• Road
City
• P ower Transmission & Distribution
• Railway
• Waste Management
• Airport
• Water Treatment
Our Capabilities and Solutions
• Commercial Property
Community
• P ark & Campus
• Residential Estate
Building
• Industrial Facility
Engineering, Procurement & Construction
Operation & Maintenance
Development
Logistic
Talent Supply
Learn more about our business portfolio and projects in Kum Shing
Corporate Brochure and on our
Corporate Website
• Investment & Financing • Urban Planning & Design • Sales & Marketing
• Project Management • Civil & Building • Electrical & Mechanical • Decommissioning & Demolition
• Control System • Preventive Maintenance • Emergency Response • System Upgrade
• Supply Chain Management • Heavy Lifting & Transport • Fleet Management
• Recruitment • Job Matching • Training
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Social Impacts: People
Social Impacts: Clients and Suppliers
Social Impacts: Community
Approach to Sustainability
CEO Message
Responsible Governance
Environmental Stewardship
Appendices
About This Report
About Kum Shing
Approach to Sustainability IN THIS SECTION
Sustainability Governance
Governance Structure
This governance structure ensures that diverse perspectives are considered, and our sustainability initiatives are inclusive and comprehensive. This approach is crucial in driving our sustainability agenda forward and achieving our sustainability goals.
To incorporate sustainable practices within Kum Shing, the advancement of sustainability needs to be a shared responsibility across our organisation. Representatives from various business departments or functions at different levels participate in our sustainability governance structures. The roles and responsibilities at each level are clearly defined, with the executive level bearing overall responsibility.
Sustainability Governance Sustainability Strategy Stakeholder Engagement Materiality Assessment
Kum Shing’s commitment to sustainability is steadfast and forms a fundamental aspect of its corporate value. Our approach to sustainability involves taking decisive, well-planned steps, and working closely with our stakeholders towards our sustainability goals.
Board of Directors
Group Executive Management Committee
Sustainability Committee
Sustainability Working Groups
Governance • Corporate Governance • Business Ethics and integrity • Information Security
Environment & Climate • Environmental Management
People • Labour Management • Talent Development • Occupational Health and Safety
• Climate Change • Decarbonisation
Clients & Suppliers
Community
• Quality Management • Client Engagement • Supply Chain Management
• Community Investment and Engagement
The Board
The Group Executive Management Committee (the “GEMC”)
The Board, being the highest governance body of Kum Shing, has the overall responsibility for sustainability- and climate-related matters and ensures such are incorporated into the Group’s governance, strategy, decision-making, risk management and reporting. The Board consists of Executive Directors and Non-executive Directors.
Appointed by the Group’s Chief Executive Office (“CEO”), the GEMC members are senior management team executives and advisors who ensure effective management and delivery of the Group’s sustainability goals and strategies.
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Social Impacts: People
Social Impacts: Clients and Suppliers
Social Impacts: Community
Approach to Sustainability
CEO Message
Responsible Governance
Environmental Stewardship
Appendices
About This Report
About Kum Shing
Sustainability Strategy
Sustainability Policies
The Sustainability Committee
The Board-appointed Sustainability Committee oversees the management of the Group’s sustainability- and climate-related matters, and advises the Board and the GEMC on these matters. Comprising C-Suite Officers, Executive Directors and leaders of Sustainability Working Groups, it meets at least annually with responsibilities to: Develop and refine sustainability- and climate-related strategies, goals, policies and practices, and make recommendations to the GEMC; Identify and review the sustainability- and climate- related issues, risks and opportunities for GEMC’s oversight; Monitor and evaluate sustainability- and climate-related performances, and recommend improvement strategies; Review, evaluate and approve stakeholder engagement, materiality assessment and Sustainability Report; and Provide updates to the GEMC on sustainability- and climate-related matters.
Kum Shing's governance framework integrates our mission, values and sustainability commitments into daily operations. This ensures compliance with all relevant laws and regulations, and ethical business practices, while providing structure for consistent decision-making and sustainability efforts. Our policies, procedures and guidelines reinforce these principles, fostering a culture of responsibility and accountability throughout the organisation. These Group policies apply to Kum Shing and its operating subsidiaries, maintaining consistent standards across our operations. We regularly review and communicate these policies to employees, who must annually declare their understanding and commitment. We also encourage joint venture (“JV”) entities and business partners, including subcontractors, and suppliers of goods and services, to align with the policies principles, promoting shared dedication to responsible business practices.
Sustainability Strategic Plan
to our stakeholders. Prioritising these areas guides our sustainability efforts and provides a framework for continuous improvements in sustainability management.
Our sustainability approach is built on three strategic pillars, which are the foundation of our corporate responsibility: Responsible Governance, Social Impacts, and Environmental Stewardship. They convey our dedication to ethical management, people, society, and the environment
Responsible Governance
• Progressing in sound corporate governance and sustainability governance • Strengthening compliance and risk management • Driving digital transformation and innovation
Social Impacts
• Strengthening workplace health and safety and building a diverse, skilled and engaged workforce • Strengthening quality management and customer satisfaction • Contribute to quality, reliable, sustainable and resilient infrastructure through our projects, to support societal development • Supporting the community where we operate
Group Policies
The Sustainability Working Groups
Anti-fraud Policy
Climate Change Policy
Five specialised working groups have been formed within the Sustainability Committee to address different sustainability aspects. Comprising representatives from Business Support Functions, Business Line Departments and Business Development Units, these members utilise their professional expertise, industry knowledge and operational understanding to develop practical and effective sustainability initiatives. Their responsibilities include: Develop and implement sustainability management strategies, action plans and performance targets; Share best practices on sustainability management and reporting; Review and recommend improvements to existing policies and practices; and
Environmental Stewardship
Code of Conduct
• Reducing environmental impacts where we operate • Fighting climate change and improving resilience and adaptive capacity
Community Investment Policy
Environmental Policy
Human Resources Policy
We embrace the international initiative for sustainable development, the United Nations Sustainable Development Goals (“SDGs”) as part of the United Nations 2030 Agenda. This initiative aims to provide a shared blueprint for peace and prosperity for people and the planet. Out of 17 SDGs, we consider 10 to be relevant to our businesses and strategies, where we can make an impact. Our sustainability approach also aligns with these SDGs and is structured around specific goals contribute to them.
We will continue to review our sustainability strategy to ensure it aligns with our business objectives and stakeholders’ concerns. We are working on action plan and targets for improvements, in line with the strategic pillars and relevant SDGs.
Human Rights Policy
Information Security Policy
Occupational Health and Safety Policy
Quality Policy
Sustainability Policy
Sustainable Purchasing Policy
Collect sustainability data for disclosure.
Vendor Code of Conduct
Whistleblowing Policy
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Social Impacts: People
Social Impacts: Clients and Suppliers
Social Impacts: Community
Approach to Sustainability
CEO Message
Responsible Governance
Environmental Stewardship
Appendices
About This Report
About Kum Shing
Responsible Governance
Environmental Stewardship Commitments • Reducing environmental impacts where we operate • Fighting climate change and improving resilience and adaptive capacity Supporting SDGs • Take actions to combat climate change and enhance resilience and adaptive capacity • Promote sustainable development and sustainable lifestyles
Key Actions • Conduct GHG assessment according to international standards • Develop and implement decarbonisation strategies in support of our decarbonisation goal • Prepare for the assessment of climate risks and opportunities • Promote sustainability and sustainable lifestyles among employees and subcontractors through various communications • Contribute to decarbonisation and green energy transition through our projects
Commitments • Progressing in sound corporate governance and sustainability governance • Strengthening compliance and risk management • Driving digital transformation and innovation Supporting SDGs • Uphold and strengthen corporate governance • Support the upgrade of technological capabilities and innovation among the industry
Key Actions • Integrate sustainability considerations into decision-making processes and business practices • Incorporate sustainability and climate-related risks into enterprise risk management framework • Strengthen business ethics and integrity management and training • Promote innovation and invest in advanced technologies • Support and engage in industry exchange initiatives, embracing industry trends and contributing to industry transition
Relevant Chapters/ Sections in this Report Risk Management; Business Ethics and Integrity; Legal Compliance; Information Security and Privacy; Innovation and Professionalism
Relevant Chapters/ Sections in this Report Environmental Management; Climate Change; Decarbonisation, Resource Efficiency and Circularity
Social Impacts
Commitments • Strengthening workplace health and safety and building a diverse, skilled and engaged workforce • Strengthening quality management and customer satisfaction • Contribute to quality, reliable, sustainable and resilient infrastructure through our projects, to support societal development • Supporting the community where we operate Supporting SDGs • Provide technical and vocational skills development for youth and adults, and support youth education • Attract and retain women among our industry, and promote women’s participation and equal opportunities • Promote employment in the industry and ethical working environments • Ensure safe, healthy working environments and promote employee well-being • Contribute to reliable and modern energy services, and promote renewable energy adoption and energy efficiency improvements through our projects • Contribute to safe, accessible and sustainable transport systems and waste management facilities through our projects
Key Actions People • Implement safety assurance programme and safety competency training, and invest in safety innovation technologies • Ensure safety training accessibility through delivery in various languages • Promote employee wellness through sports and wellness activities • Explore and promote inclusive hiring practices, and uphold labour rights • Provide quality technical and vocational training schemes and programmes that build workforce and industry capabilities • Encourage more women into the industry workforce, and promote gender diversity and women empowerment • Provide internship and graduate opportunities • Provide manpower resources and workforce solutions, focusing on specialised talents of all levels of engineering and management Clients and Suppliers • Maintain robust quality management to deliver reliable services • Integrate advanced technologies and innovative initiatives into projects and operations • Enhance supply chain management practices Community • Contribute to societal development through infrastructure projects • Identify focus areas of contribution and support the community through donations and sponsorships, charity work and volunteer services
Supporting SDGs • Collaborate with our stakeholders along value chain to support SDGs
Key Actions • Support and engage in industry sustainability initiatives and contribute to green transition of industry • Enhance sustainability awareness among employees and subcontractors through various communications • Foster partnerships with key stakeholders
Relevant Chapters/ Sections in this Report Sustainability Engagement; Occupational Health and Safety
Relevant Chapters/ Sections in this Report Talent Acquisition and Management; Talent Development; Occupational Health and Safety; Quality Management; Supply Chain Management; Community
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Social Impacts: People
Social Impacts: Clients and Suppliers
Social Impacts: Community
Approach to Sustainability
CEO Message
Responsible Governance
Environmental Stewardship
Appendices
About This Report
About Kum Shing
Key Projects Contributing to Sustainability and SDGs
Sludge Treatment Incinerators
Solar Photovoltaic (PV) System
Kum Shing upholds sustainability principles and SDGs in our activities, integrating them into our business and solutions. We are committed to making contributions through our projects. Examples include:
City | Waste Management T·PARK is Hong Kong’s first self-sustained sludge
Community | Park and Campus Kum Shing undertook the
design, building and installation of a large-scale solar PV system on the rooftops of six buildings at Hong Kong Baptist University. The project used high-efficiency monocrystalline PV modules, which significantly increase energy output compared to traditional modules.
treatment facility, reflecting the city’s vision to embrace “waste-to-energy” and transforming attitudes towards resources recovery and recycling. As the main contractor, Kum Shing installed two sludge incinerators and over 20km of interconnecting piping within T·PARK, and supported testing and commissioning work.
New Gas-fired Generation Units at Power Station City | Power Generation Kum Shing assisted in constructing new gas-
Railway Network Expansion
City | Railway Since 2023, Kum Shing has been involved in three key projects under the government’s “Railway Development Strategy 2014”: • Tuen Ma Line and Tuen Mun South Extension – alteration and addition works for Tuen Ma Line Protection near EAP25, additional stabling facilities for Tuen Ma Line at Pat Heung Depot, and power supply system and trackside auxiliaries for the Tuen Mun South Extension, Kwu Tung Station and Hung Shui Kiu Station • Tung Chung Line – power supply system for the tracks of Tung Chung Line, Airport Express, Disney Resort Line and Siu Ho Wan Depot for Lantau Extension Projects, and alteration and addition Works in Tung Chung Station for Tung Chung Line Protection Works • Northern Link - alteration and addition works at Kwu Tung for East Rail Line Protection Works
Electric Vehicle (EV) Charging Infrastructure
Combined Heat and Power Generation Unit for Sewage Treatment
fired units for the D1 and D2 Projects at Black Point Power Station. This involved installing plants and equipment, including gas turbine, generator, heat recovery steam generator (HRSG), steam turbine and other plant facilities, and electrical, control and instrumentation equipment.
Building | Residential Estate | Industry Facility Since 2014, Kum Shing
City | Water Treatment Kum Shing assisted the government in constructing a combined heat and power (CHP) generation unit for sewage treatment in Sha Tin. This included a desulfurisation system, biogas pre-treatment unit and other related facilities. The facility converts biogas from the sludge treatment process into electricity and heat, achieving waste- to-energy conversion. Our scope of work included process design and specifications, minor civil works, and electrical and mechanical installations. The project encompassed biogas treatment plant, CHP equipment, flue gas treatment, balance of plant and services, controls, electrical switchgear and grid connection.
has been installing public and fast EV charging facilities for the government, large corporations and housing estates, delivering more than 16,000 facilities. We are responsible for installing EV fast charging facilities and the associated operation and maintenance at Kowloon Tong (Suffolk Road) public transport interchange station to support electric public light buses. The project includes 2 sets of 300kW pantograph-type and 2 sets of 150kW plug-in fast chargers, integrated with a cloud-based management system. This initiative is driven by the HKSAR Environmental Protection Department's "Pilot Scheme for Electric Public Light Buses," which aims to replace diesel-fuelled public light buses with electric alternatives.
Re-provision of Open Cycle Gas Turbine Units at Power Station City | Power Generation Kum Shing is responsible for demolishing three
retired gas turbine units and constructing new open cycle gas turbines at Lamma Power Station. This includes demolition and installation of gas turbine, generator, HRSG, steam turbine and transformers.
Chemical Waste Treatment Centre
Sewage Treatment Works Expansion
Training Courses in Six Engineering Disciplines Talent Supply | Training EnGenius provides professional training
Public Lighting and Smart Lighting Management System City | Public Lighting Kum Shing has participated in the design,
City | Waste Management Since 2020, Kum Shing has been collaborating with
City | Water Treatment Kum Shing has established a JV with its
our JV partner under a design-build-operate contract for the government's Chemical Waste Treatment Centre in Tsing Yi. The project involves the replacement of an incineration line, clinical waste sterilisation system, pressurised gas cylinder treatment facility and various major equipment, to enhance the facility for future needs.
partner, assisting the government in expanding the sewage treatment plant in Sha Tau Kok to cope with the forecast increase in sewage flow in the Sha Tau Kok area. This involves the construction of a temporary sewage treatment plant in the area. It is a multidisciplinary project covering various disciplines including civil, structural, electrical and mechanical engineering, and a range of construction activities.
courses in six engineering disciplines under the “Technician Training Scheme” for the HKSAR Electrical and Mechanical Services Department: electrical, building services, electronics and IT, mechanical, air-conditioning and automobile. The scheme trains outstanding electrical and mechanical talent for society while passing on the spirit of craftsmanship.
management, operation, installation and maintenance of public lighting system on Hong Kong Island and islands, including the first large-scale smart lighting management system in Hong Kong. Each smart lamppost has a control node connected to the central management system, enabling asset management, 24/7 monitoring, remote control, customisable scheduling, data analysis, energy savings, fault tracking and preventive maintenance.
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Social Impacts: People
Social Impacts: Clients and Suppliers
Social Impacts: Community
Approach to Sustainability
CEO Message
Responsible Governance
Environmental Stewardship
Appendices
About This Report
About Kum Shing
Sustainability Engagement
To engage individual workers, particularly new ones, and build safety and sustainability awareness, we conduct regular site walks, training sessions, talks and seminars. We also host an annual Health, Safety, Environmental and Quality ("HSEQ") Convention, and offer HSE awards and incentive programmes.
Collaborating CIC-Zero Carbon Park to Revitalise Abandoned Pylons
Driving our sustainability agenda forward and achieving our sustainability goals requires a strong culture of sustainability. We believe in the power of collaboration and are committed to working with our employees, clients, business partners, suppliers and other stakeholders across the value chain. This collaborative spirit fosters awareness and responsibility, making our sustainability efforts more effective.
Eco Pylons
Electricity transmission has shifted to underground cables, gradually phasing out pylons in rural areas. Kum Shing advocated the Eco Pylon concept and partnered with CIC- Zero Carbon Park to revitalise abandoned pylons on Hong Kong Island, transforming them into Eco Pylons. This extends their life cycle and turns them into practical, sustainable installations while achieving preservation goals. The pylons now serve as educational resources promoting zero carbon concepts and provide resting areas for hikers and tourists
Industry Engagement
in the community. This project demonstrates how private enterprises and industry associations can work together to move towards a greener, more resilient and sustainable city.
We actively participate in industry associations and working groups, and collaborate with peers and industry bodies to advance sustainability across the construction and engineering sector. We support and participate in sustainability programmes and campaigns organised within the industry to promote its sustainable development.
Sustainability Training and Communications
Watch
Eco Pylon Video
We enhance employees’ awareness and understanding of sustainability issues by encouraging them to pursue training on sustainability topics and various engagement initiatives, such as newsletter and staff activities. The sustainability newsletters introduce basic sustainability knowledge and sustainable living concepts, including: UNSDGs
Stakeholder Engagement
expectations on our operations and development. This informs our business strategy, enabling us to create long- term value for our stakeholders.
We believe in open, transparent and timely communication with stakeholders throughout the value chain. This fosters trust and collaboration, aiding us in achieving operational excellence and sustainability. Regular engagement with our stakeholders helps us understand their views and
C limate change and impacts Climate-related disclosures O rganisational GHG accounting P roduct carbon footprint C arbon neutrality and net zero R esource use and circular economy Sustainable procurement
We consistently interact with our key stakeholders through a variety of channels:
Value Chain Stakeholder Group Engagement Channel
Mr Rex Wong, JP, our CEO and First Vice President of Hong Kong Construction Association (HKCA), shared insights on promoting sustainable development in Hong Kong Construction Industry and presented HKCA’s ESG Recognition Scheme as part of the initiative at the Construction Industry Council (CIC)’s Global Construction Sustainability Forum and Exhibition.
• Regular meetings and dialogues • Performance assessments • Site visits • Supplier day • Seminars (e.g., subcontractors’ annual HSEQ convention) • Talks and meetings • Corporate/employee activities and events • Performance appraisals • Employee surveys and discussions • Top management communication sessions • Client meetings and dialogues • Site visits • Surveys (e.g., customer satisfaction survey) • Volunteer services • Community programmes and activities • Corporate website
• Surveys (e.g., safety climate survey) • Targeted programmes and platforms (e.g. safety incentive and award programmes, online HSE platform and mobile app)
Suppliers Business Partners
Upstream
Client Engagement
We stay updated with client expectations and exchanging ideas through dialogues, meetings, site visits, audits, workshops and forums. We support clients' supply chain ESG initiatives, including supplier decarbonisation pledges, GHG reporting, and ESG audits. We integrate sustainability into projects to meet client expectations.
• Feedback channels • Training and seminars • Corporate intranet
Employees
• Corporate website • Corporate publications • Social media platforms (e.g., LinkedIn, YouTube, WeChat) • Corporate publications • Social media platforms (e.g., LinkedIn, YouTube, WeChat) • Internal publications (e.g., newsletters) • Social media platforms (e.g., LinkedIn, YouTube, WeChat)
Subcontractor Engagement
Clients
Our subcontractors are critical partners in achieving sustainability goals. We communicate our standards and expectations through regular meetings and site visits, performance evaluations and safety assurance programme. We also work together to develop new initiatives.
Downstream
Communities
Rex served as moderator for the forum session “Adopting Circular Economy Principles for the Resource-Intensive Construction Industry” at ReThinkHK 2024.
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Social Impacts: People
Social Impacts: Clients and Suppliers
Social Impacts: Community
Approach to Sustainability
CEO Message
Responsible Governance
Environmental Stewardship
Appendices
About This Report
About Kum Shing
Materiality Assessment
Materiality Matrix
Economy 1 D irect economic value 2 F inancial risks and opportunities due to climate change 3 Indirect economic impacts 4 E conomic impacts of procurement practices Environment 5 G reenhouse gases and other air emissions 6 W ater and effluents 7 Waste 8 Energy 9 Materials 10 Biodiversity 11 Climate change Society – Business Ethics 12 Anti-corruption 13 P revention of anti-competitive practices Society – Employees 14 Employment management system 15 Employer-employee relations 16 O ccupational health and safety 17 T raining and development 18 D iversity, equal opportunity and non-discrimination 19 R espect for the rights of association and collective bargaining
High
ensures we consider the material risks and opportunities ahead. To align our Sustainability Report with the latest global best practices, we will conduct a double materiality assessment that consider both financial materiality and impact materiality.
In FY2022/23, we conducted a materiality assessment, facilitated by a third-party to identify the most relevant sustainability issues for Kum Shing and to identify those that should take priority. This process refined our sustainability strategy, guided our daily practices, and
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Assessment Process
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Identify relevant sustainability issues We developed a list of 33 sustainability issues relevant to Kum Shing in the aspects of economy, environment and society, based on the GRI Standards and HKEX ESG Reporting Guide. 1 Assess and prioritise material issues We invited internal stakeholders to complete an online survey to gather their views on each issue. The importance of issues to stakeholders, and Kum Shing’s positive and negative impacts on the economy, environment and society, were evaluated. By assessing both perspectives, we determined the overall materiality level of each issue and developed a materiality matrix with a priortised list of sustainability issues. 2
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Monitored Issues
Moderate Issues
Material Issues
Low
Impact of Kum Shing on the economy, environment and society
High
24 Q uality management and after- sales service 25 Data privacy 26 P rotection of intellectual property rights Society – Suppliers 27 Supplier environmental assessment
28 S upplier social assessment 29 Sustainable procurement Society – Community 30 C ommunity impact assessment and management 31 Community investment 32 R espect for indigenous rights 33 P articipation in public policy
20 P revention of child labour or forced labour 21 R espect for human rights Society – Customers 22 P roduct and service health and safety 23 Responsible marketing communications
Validation and approval The Sustainability Committee reviewed and confirmed the results of the materiality assessment. 3
Material Issues and Impacts
We identified nine material issues through the materiality assessment and this Report covers all material issues as shown below:
Stakeholders Impacted
Impacts and Responses in the Relevant Chapters Social Impacts: People – Occupational Health and Safety; Talent Acquisition and Management; Talent Development Social Impacts: Client and Suppliers – Quality Management; Supply Chain Management Responsible Governance – Business Ethics and Integrity; Information Security and Privacy
Material Issues
Suppliers & Business Partners Employees Clients Community
16 Occupational health and safety 15 Employer-employee relations 14 Employment management system 17 Training and development 18 Diversity, equal opportunity and non- discrimination 22 Product and service health and safety
12 Anti-corruption
25 Data privacy 26 Protection of intellectual property rights
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Social Impacts: People
Social Impacts: Clients and Suppliers
Social Impacts: Community
Responsible Governance
CEO Message
Approach to Sustainability
Environmental Stewardship
Appendices
About This Report
About Kum Shing
Responsible Governance IN THIS SECTION
Corporate Governance
Governance Structure and Composition
The Board comprises six members, who together possess a range of expertise, competencies and experience, backgrounds, cultures and genders, ensuring the proper functioning of the Board. All Board members are required to annually declare their direct or indirect interests and those of their connected entities.
The Board is Kum Shing's highest governance body. Comprising Executive Directors and Non-executive Directors, the Board provides oversight and strategic direction to the Group for long-term value creation and sustainable business goals. The Board's leadership also steers the Group towards responsible operations and the highest standards of ethics and integrity.
Corporate Governance Risk Management Legal Compliance Business Ethics and Integrity Information Security and Privacy Innovation and Professionalism
We place great emphasis on good corporate governance, business ethics, transparency, accountability and integrity. Believing that these values are critical for long-term business success and building trust with stakeholders, we strive to uphold them in every aspect of our operations.
Executive Directors Mr WONG Siu Han Rex JP | Chairman CEO
BArch, BFA, MSc, EMBA, AdFHKIE, Reg. Architect (US), LEED AP, BEAM Pro
Titles and Qualifications A djunct Fellow of The Hong Kong Institution of Engineers R egistered Architect, US L EED AP, US Green Building Council B EAM Pro, Hong Kong Green Building Council Other Service Government Statutory Bodies Hong Kong Housing Authority (Member) Occupational Safety & Health Council (Member) Construction Industry Council (Member) The Council of City University of Hong Kong (Member) Government Advisory Bodies Building Contractors Committee (Member) Common Spatial Data Advisory Committee (Member) New Energy Transport Fund Steering Committee (Member) C ommittee on Self-Financing Post-secondary Education (Member) Industry, Professional & Trade Organisations Hong Kong Construction Association (First Vice-President) C ommittee on Construction Safety of Construction Industry Council (Chairman)
Past Experience Mr Rex Wong JP has over 20 years of experience in energy and environmental infrastructure development and corporate management. He joined Kum Shing as Project Manager in 2008. Since 2009, he has led business development in the Mainland, establishing real estate investment and property development practice focusing on urban renewal and adaptive reuse projects. Having implemented a total quality management system, he led the corporation to win the Hong Kong Management Association (HKMA) Quality Award. Promoted to Deputy CEO in 2015, Rex demonstrated competent leadership by securing key business and transformation opportunities before becoming CEO in 2019. He was appointed as Chairman in November 2024. Since 2011, Rex has served on various advisory and statutory bodies while actively contributing to industry development and various aspects of society. In 2020, he was appointed as a Justice of the Peace by the Hong Kong Government. In 2022, he received the Young Industrialist Award of Hong Kong from the Federation of Hong Kong Industries.
CIC-Zero Carbon Park (Board Member) Hong Kong Housing Society (Member)
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Social Impacts: People
Social Impacts: Clients and Suppliers
Social Impacts: Community
Responsible Governance
CEO Message
Approach to Sustainability
Environmental Stewardship
Appendices
About This Report
About Kum Shing
Executive Directors Ir KO Chi Wai Gary Deputy CEO
Non-executive Directors Mr WONG Siu Kei Ivan JP | Vice Chairman BA, BComm, MBA, FHKIoD, IMA
BSc (Hons), MA, MBA, CEng, R.P.E., FHKIE, FIET
Titles and Qualifications
Titles and Qualifications M aster of Business Administration (M.B.A.) B achelor of Arts (B.A.) in Economics
Community A dmissions, Budgets and Allocations Committee of The Community Chest (Vice Chairman) Past Experience Ir Gary Ko is a distinguished engineering professional with multi-jurisdictional credentials. He joined Kum Shing as a Contracts Manager in 1991 and was appointed as Executive Director and Chief Operating Officer in 2004. Prior to joining Kum Shing, he has worked for China Light & Power. In the industry, Gary has been both a Council Member and Chairman of five different Committees/Panel of The Hong Kong Institution of Engineers. He received The President’s Award in 2019. Beyond his professional and community roles, he has also served on various boards, panels and committees of the HKSAR Government, and was a Member of the Election Committee in 2011 and 2021.
Youth T he Hong Kong United Youth Association (President) T he Centum Charitas Foundation (Deputy President) Culture and Sport T he Hong Kong Repertory Theatre (Council Member) T he Hong Kong Football Association (Board Member) Past Experience Mr Ivan Wong JP is a seasoned consultant and advisor in the field of Governance, both private and public sector. He strives to advance the good code of governance over his 20 years of work experience, including but not limited to the field of HKSAR ASB, executive and non-executive corporate directorship, NGO, new media channel, thinktank, charitable foundation, art and sport, university and school's council and court, youth development, etc. Ivan currently serves as the Chairman of Hong Kong United Foundation. The Foundation focuses its efforts in developing China-based contents and channels, with the aim to storytell all global citizens, both nationally and internationally.
C hartered Electrical Engineer, UK R egistered Professional Engineer R egistered Electrical Worker (Grade H & C) F ellow of The Hong Kong Institution of Engineers F ellow of The Institution of Engineering and Technology P rofessor-level Senior Engineer, China Other Service Government The HKSAR Election Committee (Member) Industry T he Lift and Escalator Safety Advisory Committee (Chairman) T he Hong Kong Electrical & Mechanical Contractors’ Association (President) T he Hong Kong Federation of Electrical & Mechanical Contractors (Vice President) T he Hong Kong & Kowloon Electrical Engineering & Appliances Trade Workers Union (Honorary Advisor) S taff Resources Committee and Accreditation Board of The Hong Kong Institution of Engineers (Member)
B achelor of Commerce (B.Comm.) in Accounting F ellow of The Hong Kong Institute of Directors Other Service Government T he HKSAR Election Committee (Elected Member) T he Guangdong Provincial CPPCC (Committee Member) Industry and Commerce T he Chinese General Chamber of Commerce, Hong Kong (Standing Committee Member) T he Hong Kong Chinese Importers' & Exporters' Association (Standing Committee Member) Community T he Hong Kong United Foundation (Chairman) T he Lok Sin Tong Benevolent Society (Deputy Chairman) Education T he Hong Kong Baptist University Foundation (Board Member) T he Lingnan University (Council Member)
Executive Directors Ms WONG Pui Gee Ann Chief Financial Officer
BA (Hons), HKICPA, MHKIoD
Titles and Qualifications C ertified Public Accountant, The Hong Kong Institute of Certified Public Accountants M ember of The Hong Kong Institute of Directors Other Service T he Association of Hong Kong Professionals (Vice Chairman & Secretary)
Past Experience Ms Ann Wong joined Kum Shing as a Non-Executive Director in 2013 and became an Executive Director in 2015. Currently, she leads the Group's cash flow and financial control. Prior to joining Kum Shing, Ann held various roles, including managerial positions, at Ernst & Young and Cathay Pacific Airways. These experiences honed her skills in auditing and project management.
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