Hong Kong & China Gas Co Ltd

Towngas integrates Environmental, Social and Governance (ESG) considerations, including climate governance, into its daily operations. The Board of Directors holds overall responsibility for overseeing key ESG issues and manages them through the Board ESG Committee, which is specifically tasked with managing and ensuring effective oversight of ESG-related matters. The remuneration packages of the Managing Director and senior executives are linked to major ESG issues, including climate change response, to enhance ESG performance.

The Towngas Board of Directors (the Board), the highest governance body, has the overall responsibility of overseeing material ESG issues. The Board ESG Committee (newly established in 2023), is responsible for handling ESG-related matters. [...] The Board ESG Committee provides effective oversight of all ESG- and climate-related matters. This committee plays a crucial role in assisting the Board to oversee the management of ESG. [...] The variable compensation of the Managing Director and senior executives is linked to a broad range of financial returns (including return on assets, equity and capital) and ESG material issues, with 5% of the variable compensation linked to the achievement of ESG objectives, such as enhancement of ESG ratings, reduction of greenhouse gas (GHG) emissions, and achievement of health and safety performance targets. Compensation can either increase or decrease based on the effectiveness of achieving those objectives.

The Board ESG Committee provides effective oversight of all ESG- and climate-related matters. This committee plays a crucial role in assisting the Board to oversee the management of ESG. Furthermore, we have implemented comprehensive ESG- and climate-related strategic initiatives, which enable us to identify new opportunities while effectively mitigating relevant risks associated with ESG and climate change. By implementing these initiatives, we aim to gain a better understanding of and manage the risks posed by ESG- and climate-related factors. [...] The variable compensation of the Managing Director and senior executives is linked to a broad range of financial returns (including return on assets, equity and capital) and ESG material issues, with 5% of the variable compensation linked to the achievement of ESG objectives, such as enhancement of ESG ratings, reduction of greenhouse gas (GHG) emissions, and achievement of health and safety performance targets. Compensation can either increase or decrease based on the effectiveness of achieving those objectives.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]Towngas engages with a range of industry, professional bodies and public-policy think tanks to discuss major issues that especially in climate change and decarbonisation.