Far East Consortium International Ltd

The ESG Steering Committee comprises the senior executives from Property Development, Hotel as well as finance executives working at the headquarters. This broad-based involvement ensures that the wider interests of the Company in the development of ESG strategies are adequately represented. The ESG Steering Committee reports to the Board, who is ultimately responsible for the oversight of the Group's ESG policies, initiatives and performance. [...] The Sub-Committees will also identify potential material environmental and social risks associated with the Eligible Projects. If there is a risk identified, it will be reviewed and escalated on an ad-hoc basis to the ESG Steering Committee. The Sub-Committees will assess the materiality of the risk and propose the way-forward to the ESG Steering Committee for final evaluation and decision making. The ESG Steering Committee, working with recommendations of the Subcommittees, may decide to remediate a certain risk or abandon the project if the risk is judged as too high.

##### 3.2 SUSTAINABILITY GOVERNANCE

A comprehensive and effective governance structure is crucial for the successful execution of our sustainability strategy. We have adopted a top-down governance structure to manage ESG issues and performance. The Board of Directors is responsible for leading the evaluation and approval of sustainable development strategies, target setting and ESG reporting.

The ESG Steering Committee, acting as a facilitator of ESG initiatives execution, is responsible for implementing ESG policies, evaluating and disclosing ESG performance and stakeholder engagement. The Committee is chaired by Ms. Winnie CHIU, Executive Director at Far East Consortium, Executive Director and President at Dorsett Hospitality International ("Dorsett Group"). The ESG Steering Committee meets twice a year and participates in the annual board meeting to report on sustainability-related matters. As part of the process, the ESG team of Dorsett Group has received a yearly budget to activate sustainability initiatives for the year.

Sub-committees of senior executives from property development and hotel divisions and finance executives at our headquarters are established as an expansion upon the reporting lines. Representatives from multiple divisions ensure the Company's wider interests are adequately represented when developing ESG strategies.

In the previous year, we have prepared for future ESG assurance on our sustainability report by appointing an independent sustainability consultant to conduct a pre-readiness check on our ESG reporting processes and internal controls of significant environmental indicators. And this year, we have commissioned an independent net-zero consultant to calculate the total GHG emissions of the Group. Through this exercise, we will be able to devise our future action plan to decarbonise our operations as a first step to becoming a net zero business.

###### 3.2 SUSTAINABILITY GOVERNANCE

A comprehensive and effective governance structure is crucial for the successful execution of our sustainability strategy. To this end, we have adopted a top-down governance structure to manage our ESG issues and performance: our Board of Directors is responsible for leading the evaluation and approval of the Group's sustainable development strategies, target setting, and ESG reporting.

Our ESG Steering Committee is responsible for implementing FEC's ESG policies and evaluating and disclosing our ESG performance and stakeholder engagement. The Committee is chaired by Ms. Winnie Chiu, Joint Managing Director and Executive Director of Far East Consortium and Chairperson and Executive Director of Dorsett Hospitality International ("Dorsett Group"). The ESG Steering Committee meets twice a year and participates in the annual board meeting to report on sustainability-related matters. As part of this process, the ESG team of Dorsett Group receives an annual budget to fund sustainability initiatives for the year. [...] This financial year, we also formed three new operational Taskforces which deploy our directives and provide operational knowledge under the direction of our ESG sub-committees. These Taskforces comprise of representatives from our global Hotel, Project, and Car Park operational teams, meeting twice a year to drive and review discussions, risks, and opportunities for our sustainability programme. These forums enable global knowledge sharing and provide localised accountability, helping to educate and train our employees to help them proactively make more sustainable choices for our communities and the environment.