NWS HOLDINGS LIMITED

(incorporated in Bermuda with limited liability)

STOCK CODE: 659

SUSTAINABILIT Y REPORT

2019

C O N N E C T I N G L I V E S • B U I L D I N G F U T U R E S

C O N T E N T S

2

CEO

Message

Where the English and the Chinese conflict, the English text prevails.

4

5

About this

Our

Report

Business

6

7

11

Performance

Corporate

Our Approach to

Highlights

Governance

Sustainability

15 19

Stakeholder Human

Engagement and Capital

Materiality

26

34

43

Value

Environmental

Community

Chain

Performance

47

50

Awards

Environmental

and

Performance Data

Memberships

Summary

52

54

Social Data

SEHK ESG

Summary

Reporting Guide

Content Index

55

59

GRI Standards

Assurance

Content

Statement

Index

C E O M E S S A G E

The fiscal year 2019 (FY2019) is significant for NWS Holdings Limited (NWS Holdings). We regrouped our business division into Core Business and Strategic Portfolio to concentrate on the competitive edge, with a sharper focus on the need for agility and adaptability in facing market challenges and achieving sustainable growth of our business. We have equipped ourselves to better encounter emerging sustainability trends and changing market demands, including those resulting from climate change. We are poised to seize future growth opportunities and deliver long-term value for our stakeholders.

PREPAREDNESS TO EMERGING RISKS OF CLIMATE CHANGE

Sustainability has become an increasingly important issue in business. We have continued to develop our infrastructure and capacity to meet emerging risks. Our board-level Sustainability Committee was revamped in FY2019; we now have defined terms of reference and, for the first time, we have officially integrated Environmental, Social and Governance (ESG) considerations into our enterprise risk assessment. We have also redefined the remit of our Sustainability Department, with an emphasis on driving Group-wide initiatives across our businesses and functions. Our annual Group-wide Sustainability Seminar was held for the seventh year which involved over 230 staff members across all of our business units, and included the Board of Directors and senior management.

As a clear commitment to sustainability, we announced our FY2030 environmental targets for reducing greenhouse gas emissions, resource consumption and waste. These contribute to New World Sustainability Vision 2030 (SV2030) targets of our parent company, New World Development Company Limited (NWD). In addition, we have better aligned our sustainable development goals with the SV2030 pillars: Green, Wellness, Caring and Smart. We operate in a range of industry sectors, and have been carefully identifying the ways that each of our businesses can best contribute to specific sustainable development goals.

2

NWS Holdings Limited Sustainability Report 2019 | CEO Message

Our daily operations already incorporate many aspects of best practice regarding the environment, and we constantly seek new technologies and innovative solutions to further mitigate our environmental impact. To improve air quality, we have introduced new low-emission Euro 6 buses; now, over 95% of our bus fleet is Euro 5 or above. On our ferries, we have installed more environmentally-friendly engines to reduce soot emissions.

Hip Hing Group continues to deliver world-class, green and technically challenging projects. These include the newly opened Xiqu Centre, a building designed and constructed to meet BEAM Plus Gold standards and the environmentally-innovative InnoCell, which is one of the first to adopt modular integrated construction method in Hong Kong. The business is also identifying and developing innovative site-management systems that can reduce our impact on the environment and improve site safety.

FY2019 saw the beginning of large-scale renovation on the Hong Kong Convention and Exhibition Centre (HKCEC) facilities and infrastructure. The Five-Year Advancement Project not only modernises this landmark Hong Kong building, but also incorporates new measures to improve staff and visitor comfort and save energy. Our new sustainability initiative, "Think Before Plastic", prompted the removal of single-use plastic cutlery and straws at all HKCEC restaurants and concession stands. I am delighted that our sustainability initiative was recognised with The 2019 UFI Sustainable Development Award by the Global Association of the Exhibition Industry.

LOOKING AHEAD

This is a time of intense pressure on business. We face challenges from global issues of climate change and pollution together with increasingly stricter requirements by regulators and investors, the need for effective management of environmental, social and corporate governance has never been clearer. We strive to continually build our resilience in facing these challenges. In close cooperation with our parent company and our business units, we are working seamlessly for the benefit of all our stakeholders. We are confident that our operations and our work with the community will deliver sustainable business growth in the long term.

MA Siu Cheung

Chief Executive Officer and Chairman of Sustainability Committee

3

NWS Holdings Limited Sustainability Report 2019 | CEO Message

A B O U T T H I S R E P O R T

REPORTING STANDARDS

This report is prepared in accordance with the ESG Reporting Guide set out in Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (SEHK), and with reference to the Core option of the Global Reporting Initiative (GRI) Standards.

REPORTING PERIOD

Covering 1 July 2018 to 30 June 2019 (FY2019), this report provides an overview of NWS Holdings' sustainability performance. Both qualitative information and quantitative data have been included to demonstrate our commitment to sustainability and our performance.

REPORTING SCOPE

While ESG considerations are taken into account throughout the businesses and investments of NWS Holdings and its subsidiaries, collectively "the Group", our Sustainability Report features the performance of entities and business units in which the Group holds a controlling interest.

Unless otherwise stated, the Sustainability Report comprises performance information for the Corporate Office of NWS Holdings and our business units in four key business segments: Roads, Construction, Facilities Management and Transport represented by the business units listed below:

Business Segment

Business Units

Roads

Hangzhou Guoyi Expressway and Bridge Management Co., Ltd for Hangzhou

Ring Road (Hangzhou Guoyi)

Construction

Hip Hing Construction Group (Hip Hing)

Facilities Management

Hong Kong Convention and Exhibition Centre (Management) Limited (HML)

Free Duty

Transport

New World First Bus Services Limited (NWFB) and Citybus Limited (Citybus)

New World First Ferry Services Limited (NWFF)

Others

Corporate Office of NWS Holdings

Note: New World Construction Company Limited has been a wholly owned subsidiary of NWD since 21 August 2018, and is therefore excluded from the scope of the Group's sustainability reporting in FY2019.

ASSURANCE AND VERIFICATION

This report has been independently verified to assure the fulfilment of the reporting standards listed above. The independent assurance statement can be found in the Assurance Statement section of this report.

CONTACT

We appreciate your feedback and suggestions. If you have any comments, please contact us at sustainability@nws.com.hk.

4

NWS Holdings Limited Sustainability Report 2019 | About this Report

O U R B U S I N E S S

NWS Holdings (Hong Kong stock code: 659), headquartered and listed in Hong Kong, invests and operates a wide range of businesses predominantly in Hong Kong and across Greater China. Our core businesses include the development of and/or investment in operation of roads, commercial aircraft leasing and construction, while we also manage a strategic portfolio spanning sectors from environment, logistics and facilities management to transport.

As the diversified industries flagship of NWD (Hong Kong stock code: 17), NWS Holdings seeks to foster long- term and sustainable growth that benefits our employees, investors and other stakeholders. For further details on entities included in our consolidated financial statements and our financial performance in FY2019, please refer to the Project Key Facts and Figures section and the Reports and Financial Statements section of our Annual Report 2019.

REPORTING SCOPE AND INDUSTRY COVERED

Construction

Hip Hing - A leading construction company in Hong Kong, Hip Hing provides professional design, procurement, engineering and construction services to a wide range of public, commercial and private projects.

Vibro - Vibro (H.K.) Limited, a member of Hip Hing, is principally engaged in the design and construction of foundations and civil engineering works, as well as site investigation in the public and private sectors.

For additional achievement and activities, please visit Hip Hing Voice.

Transport

NWFB and Citybus - With a combined fleet of more than 1,600 buses, these two companies operate more than 200 routes in Hong Kong, serving more than one million passengers a day.

Please visit NWFB and Citybus' website for the latest Fuller Disclosures.

NWFF - Operating five main routes between Hong Kong's inner harbour and the outlying islands, NWFF carries more than 36,000 passengers daily on its 17 owned and three chartered vessels.

For additional news of NWFF, please visit the quarterly newsletter.

Facilities Management

HML - The HKCEC is managed by our wholly-owned subsidiary, HML. With 91,500 square metres of gross rentable space, HKCEC is an award-winning venue for international exhibitions and conventions. HKCEC has firmly established itself as an iconic landmark and has repeatedly won awards for being the best convention and exhibition centre in Asia over many years.

For additional information, please refer to 2018-2019Activities & Achievements - Transformation.

Free Duty - Free Duty retails duty free tobacco, liquor, perfume, cosmetics, packaged food and general merchandise at Hong Kong's cross-border transport terminals, Hong Kong International Airport and Hong Kong-Zhuhai-Macao Bridge (Hong Kong Port).

Roads1

Hangzhou Guoyi - Mainly responsible for the management of Hangzhou Ring Road, a round-the-city- highway in Zhejiang Province of Mainland China. Our 103km expressway has two to three-lane carriageways with an average daily traffic flow passing through our toll stations of over 88,000 vehicles. There are altogether eight functional departments including two service areas, 14 toll stations, a tunnel and a rescue team under our management.

For latest news of Hangzhou Guoyi, please scan QR code to add WeChat connection.

1The Group is the operator and involves no design or construction of the roads.

5

NWS Holdings Limited Sustainability Report 2019 | Our Business

P E R F O R M A N C E H I G H L I G H T S

Approximately

10,798

17,000

Awarded as

one of the

volunteer hours were

BEST

employee

contributed by our

COMPANIES

corporate volunteers

to work for in Asia 2019 -

Hong Kong Chapter

ZERO reported

ZERO fatality at

incident of

construction site

corruption case

Less than

over 95% of our

Biodiesel contributed to

370,000

entire bus fleet meets

over 80%

tonnes CO2e of

Euro 5 emission

of total diesel use at

greenhouse gas

standards or above

construction sites

emissions

8th

CONSECUTIVE

Over

5.7million

YEAR

HK$

as a constituent stock of

contributed to charitable

the Hang Seng Corporate

causes through the

Sustainability Benchmark

NWS Holdings

Index

Charities Foundation

6

NWS Holdings Limited Sustainability Report 2019 | Performance Highlights

CORPORATE

GOVERNANCE

C O R P O R AT E G O V E R N A N C E

The Company has been committed to maintaining a high standard of corporate governance and we are devoted to improving our practices in light of regulatory requirements and the expectations of the investors. The Company has complied with all applicable code provisions in the Corporate Governance Code (the CG Code) contained in Appendix 14 of the Hong Kong Listing Rules throughout FY2019.

GOVERNANCE FRAMEWORK

The Board of Directors (the Board) is to protect and enhance long-term shareholder value, overseeing the long- term success of the Group. It sets the overall strategy, supervises executive management and ensures good corporate governance policies and practices are implemented within the Group, upholding the highest standards of integrity and ethics.

NWS Holdings Governance Framework

Shareholders

and other

stakeholders

Company

Board

Secretary

Executive

Nomination

Remuneration

Sustainability

Audit

Corporate

Governance

Committee

Committee

Committee

Committee

Committee

Committee

External

Internal Audit

Management

Subcommittees

& Risk

Auditor

Management

Functions

NWS Volunteer

NWS Holdings

Environmental

Sports and

Charities

Management

Recreation

Alliance

Foundation

Committee

Committee

8

NWS Holdings Limited Sustainability Report 2019 | Corporate Governance

In support of the Group's governance framework, comprehensive guidelines, policies and procedures have been formulated by the Board and are reviewed regularly by the Board and the relevant board committees. These guidelines and policies are updated in line with the latest amendments made to applicable legislations and rules, as well as with current market practices. Such guidelines and policies include:

  • Directors' Manual
  • Guidelines on Risk Management & Internal Control Systems
  • Whistleblowing Policy
  • Board Diversity Policy
  • Shareholders' Communication Policy
  • Corporate Governance Manual
  • Corporate Policy on Staff Responsibility
  • Disclosure Policy for Inside Information
  • Dividend Policy
  • Terms of referencefor various board committees

The Board meets at quarterly intervals and holds additional meetings as the Board considers it appropriate. Five board meetings were held during FY2019. Ongoing training and seminars are provided to the Board to keep them abreast of the latest and emergent sustainability issues.

In FY2019, the Board members participated in the annual sustainability seminar, where they were updated on ESG topics such as the Recommendations of the Task Force on Climate-related Financial Disclosure (TCFD), and shared news of the latest green initiatives among our business units.

Annual Sustainability Seminar

The Group's annual sustainability seminar was held in June 2019 for senior management and staff, with over 230 attendees.

Themed "Pledge for a Sustainable Future", the seminar aimed to raise awareness among colleagues on the risks and challenges linked to climate change. A range of business units also shared their latest sustainability initiatives.

RISK MANAGEMENT

The Enterprise Risk Management (ERM) Steering Group has been formed, composed of key managers and representatives from the Group's business units, and relevant department heads, to lead risk management initiatives. Our risk management and internal control systems have been designed referencing the "Internal Control - Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the "Internal Control and Risk Management - A Basic Framework" issued by the Hong Kong Institute of Certified Public Accountants.

9

NWS Holdings Limited Sustainability Report 2019 | Corporate Governance

In addition to typical business risks, we consider ESG issues and their potential impact on our business. This is the first time we have examined enterprise risks in association with ESG, looking primarily at potential changes in government policy and major crises.

As we refine our business strategy and operations, we will be mindful of the potential impact of ESG and climate change. We refer to the building blocks of the recommendations of TCFD, governance, strategy, risk management and metrics and targets of environmental and climate-related matters, in preparing our sustainability disclosure. For instance, as a subsidiary of NWD, we have already begun reviewing the potential physical risks to our assets as a result of climate change.

A detailed look at our risk management and internal control systems, and the enterprise risk assessment results is available in the Corporate Governance Report section and the Risk Management section of our Annual Report 2019.

ETHICAL BUSINESS PRACTICES AND ANTI-CORRUPTION POLICIES

We uphold the highest ethics and standards of corporate governance, both in our business operations and throughout the value chain. Longstanding policies demonstrate our expectations regarding the conduct of staff and suppliers in the following areas:

  • Prevention of bribery and discrimination
  • Human rights
  • Health and safety

The Corporate Policy on Staff Responsibility and our Code of Conduct set out the standards of behaviour we expect from employees, and we have set out clear limits on gifts related to festive occasions. We have also adopted the Supplier Code of Conduct developed by our parent company, NWD, which sets out our expectations of suppliers.

WHISTLEBLOWING

A Whistleblowing Policy enables staff to confidentially raise concerns about possible impropriety in any matter related to the Group, including misconduct, corruption or bribery. The Group Audit & Risk Assurance Department (GARA) investigates any reports in a confidential and timely manner. Any suspected fraud, malpractice or inappropriate behaviour can be reported directly to the Head of GARA, and a report on every investigation is submitted to the Executive Committee and the Audit Committee. Further details can be found in the Whistleblowing Policy, available in our website.

During the reporting year, there were no cases of non-compliance with the Prevention of Bribery Ordinance (Cap. 201) or the Competition Ordinance (Cap. 619).

Please refer to the Corporate Governance Report section of our Annual Report 2019 for further details on our efforts to maintain the highest standards of corporate transparency and reliability in our reported financials.

10

NWS Holdings Limited Sustainability Report 2019 | Corporate Governance

O U R A P P R O A C H T O S U S TA I N A B I L I T Y

GOVERNANCE AND MANAGEMENT

Sustainability Committee

Our Sustainability Committee (the Committee) is a board-level committee chaired by the Chief Executive Officer and consists of two Executive Directors, three Non-executive Directors, and two Independent Non-executive Directors. The Committee is responsible for the governance of the Group's sustainability. Its role is to make strategic decisions on sustainability management and oversee their implementation. The Committee is supported by four groups or sub-committees that help drive sustainability initiatives throughout our operations. And this year, the Committee was revamped with defined terms of reference.

Sustainability Governance Structure

SUSTAINABILITY COMMITTEE

NWS Volunteer

Alliance

Serves people in need with our staff's diverse skills

Membership opens to all staff and their families

NWS Holdings

Charities Foundation

Contributes to causes pertaining to youth empowerment, fostering volunteer culture and environmental protection

Supervised by the Sustainability Committee at the Board level

Environmental

Management Committee

Optimises the Group's overall environmental performance

Comprised of representatives from business units, sustainability and human resources departments at the Group level

Sports and

Recreation Committee

Promotes work-life balance and fosters a sense of belonging among staff of the Group

Comprised of human resources representatives at the Group and business units

The Committee meets at least once a year, and two meetings were held in FY2019. Details of the Committee's major responsibilities and performance in FY2019 can be found in the Corporate Governance Report section of the Annual Report 2019.

Sustainability Policy

The Group believes that business success depends on sustainable development and creating shared value with our stakeholders. We are keenly aware of the impact our operations can have on the environment and communities if not properly managed. We therefore strive to contribute to the sustainable development of our business and society, going above and beyond compliance with laws and regulations.

To oversee the Group's sustainable development, we have a well-established framework of policies, dedicated committees and management systems. Together, these ensure we uphold our values of integrity, equity and transparency. We conduct regular policy and process reviews, staff training and communications, to ensure our approach to sustainability is well communicated and implemented.

Our Sustainability Policy provides top-down direction covering every aspect of our businesses. It sets out our commitment in four core areas: Business Operations, Human Capital, Environmental Responsibility and Community Contribution.

The following sections are an overview of the Group's progress on key aspects of sustainability management in FY2019.

11

NWS Holdings Limited Sustainability Report 2019 | Our Approach to Sustainability

OUR GUIDING PRINCIPLES ON SUSTAINABILITY

New World Sustainability Vision 2030

New World Group believes that sustainability is a vital element of better living. As a New World Group member, we subscribe to the SV2030, which sets out a strategy under four pillars - Green, Wellness, Caring and Smart.

Green

Wellness

Caring

Smart

Moving us towards a greener future

We preserve the environment through the way we operate and by investing in green initiatives that will make our cities fit for the future.

Promoting health in body and mind

We enhance well-being through our business ventures and wellness programmes, and by designing spaces that work better for people.

Nurturing our communities and culture

We create opportunities wherever we are by supporting local communities, providing training for our people and their families, and preserving local heritage and identity for all to enjoy.

Using innovation to unlock potential

We enable green, wellness-related and caring initiatives with technology and collaborations.

12

NWS Holdings Limited Sustainability Report 2019 | Our Approach to Sustainability

Contributing towards Global Sustainable Development Goals

The United Nations Sustainable Development Goals (SDGs) tackle the most pressing environmental and social challenges of our time. As a responsible company, we pledge to protect the planet, and support stable and thriving societies.

This year, we have drawn on the SV2030 to focus on the four SDGs that are most relevant to the Group and that enable us to have the greatest impact.

Sustainable Development Goals (SDGs) of focus

SDGs' Relevance to NWS Holdings' Business Strategy

SDGs

SV2030

How We Help

  • Provide access to safe, effective and high-quality health care, offering

quality medical treatment

• Enhance access to clean water; reduce environmental impacts through proper handling of emissions including hazardous chemicals, air, water and soil pollution

• Enhance customer experiences by improving quality of services in transportation, facilities management and roads operation

  • Contribute to economic growth

• Enhance economic productivity through business diversification, technological upgrades and innovation

  • Provide employment and decent work for women and men, including young people and those with disabilities, and provide equal opportunity and pay for work of equal value
  • Protect labour rights and provide safe and secure working environments for all employees
  • Provide safe, affordable, accessible and sustainable transport

systems to the wider community and improve road safety

• Enhance inclusive and sustainable urbanisation in which people feel a sense of community

  • Support positive economic, social and environmental links between urban and rural areas by strengthening national and regional development planning
  • Environmental Conservation
  • Promote the development, transfer, dissemination and diffusion of

environmentally sound technologies to communities in need

• Support effective and targeted capacity-building in communities to support the implementation of SDGs (environment related)

• Encourage and promote effective public, public-private and civil society partnerships

13

NWS Holdings Limited Sustainability Report 2019 | Our Approach to Sustainability

TARGET SETTING

While we are still refining our comprehensive strategic approach towards ESG, we are contributing to NWD's SV2030 and have set environmental targets for energy consumption, greenhouse gas emissions, freshwater consumption and waste production. Please refer to the Environment Performance section for further details.

EMBEDDING SUSTAINABILITY IN OUR PRACTICES

As we expand our business, we are well-positioned to promote sustainable growth by supporting and growing sectors that have a positive impact on the environment and the communities in which we live and operate. Our investment decisions are driven not only by where the highest monetary returns are likely to be, but also where we can use to leverage our strengths to help make the world a better place. Our business spans a diverse range of industries, and we have varied levels of ownership and operational control over the entities in which we have a stake. We are progressively increasing consideration of ESG issues in our investment strategies, even for business units that are not currently covered by our Sustainability Report. For example, our Roads division is piloting smart monitoring to improve safety, traffic management and efficiency, and our Environment division is actively seeking out climate-related business opportunities such as waste-to-energy and wastewater treatment projects. We are constantly improving our approach to ESG and encouraging sustainability stewardship in our investment portfolio.

14

NWS Holdings Limited Sustainability Report 2019 | Our Approach to Sustainability

S TA K E H O L D E R E N G A G E M E N T

A N D M AT E R I A L I T Y

We maintain ongoing engagement and open dialogue with our key stakeholders, so that we understand their expectations and views on how we manage sustainable development.

STAKEHOLDER ENGAGEMENT

In FY2019, we commissioned an independent consultant to conduct stakeholder engagement that included an online survey, interviews and focus group discussions. These targeted more than 500 of our key internal and external stakeholders, including employees, customers, suppliers, business partners and peers, investors and financial analysts, non-governmental organisations (NGOs) and the media. Quantitative and qualitative data were collected to serve as the basis for constructing a materiality matrix and provide us with insights to enhance our sustainability strategies.

Identification

Identified 27 ESG issues for consideration, referencing the SEHK ESG Reporting Guide (Appendix 27), GRI Standards, MSCI ESG Ratings Key Issues, and the SASB Materiality Map for Infrastructure, Engineering & Construction Services Industry.

Step 1

Prioritisation

Ranked the importance of ESG issues to the Group through an online survey completed by stakeholders;

Analysed the results to create a ranked list of material issues for review and validation.

Step 2

Validation

Discussed the assessment output with senior management and agreed on the list of material issues.

Step 3

In addition to the above-mentioned stakeholder engagement exercise, we carry out regular engagement with various stakeholder groups. A summary of their key areas of concern and their respective engagement channels are summarised in the table on the next page. We have addressed and followed up on recommendations and concerns raised during the engagement process, and elaborated on our responses in the respective sections of the Sustainability Report.

15

NWS Holdings Limited Sustainability Report 2019 | Stakeholder Engagement and Materiality

Key Stakeholder Groups and Communication Channels

Stakeholder

Groups

Topics of Concern

Communication Channels

Employees

• Corporate culture

• Intranet and company mobile apps

• Group or company business and policy

• Management briefings, e.g. "Town Hall"

updates

meetings

• Occupational health and safety

• Communication with union groups

• Remuneration and benefits

• Annual Sustainability Seminar

• Training and development

• Executive directors' luncheons

• Working conditions

• Staff newsletter e.g. New Voice

Clients and

• Compliance with laws and regulations

• NWFB and Citybus and NWFF mobile apps

Customers

• Customer satisfaction

• Passenger liaison groups

• Sustainability aspects of products and

• Customer satisfaction surveys

services

• Hotlines

• Pricing

• Social media and company websites

• Service quality

Supply Chain

• Construction site safety

• Supplier Code of Conduct

Partners

• Product and service specifications and

• Tendering and procurement processes

quality

• Regular management-partner meetings

• Labour rights and environmental protection

• Collaboration sessions

• Innovative solutions

• Site audits

Government

• Service quality

• Project meetings

• Transportation fares and scheduling

• Compliance with laws and regulations

Local

• Construction impacts on nearby

• District Council meetings

Community

neighbourhoods

• Site visits

• Occupational health and safety

• Transportation fares and scheduling

• Customer safety and satisfaction

Trade and

• Experience and best-practice sharing

• Membership/representation in trade and

Industry

• Labour issues

industry associations including unions

Associations

• Market trends

• Seminars and conferences

• Occupational health and safety

• Environmental issues

Shareholders

• Financial, economic and operating

• Annual and interim reports

and Investors

performance

• Annual general meetings and results

• Growth strategies and business prospects

announcements

• Sustainability/ESG approach

• Roadshows and briefings

• Analyst meetings

16

NWS Holdings Limited Sustainability Report 2019 | Stakeholder Engagement and Materiality

Stakeholder

Groups

Topics of Concern

Communication Channels

Media

• Business performance and new

• Press conferences

opportunities

• Press releases

• Community investment

• Communication events, e.g. luncheons

• Customer satisfaction

• Environmental performance

• Labour issues

• Health and safety

• Transportation fares and scheduling

NGOs

• Community investment

• Partnership programmes

• ESG performance

• Sponsorships and donations

• Key sustainability trends

• Award schemes

Academia

• New technologies

• Partnership programmes

• Recruitment and job opportunities

• Internships

• Training

• Student research projects

• Transportation fares and scheduling

• Workshops and seminars

Materiality Result

A materiality matrix was constructed based on information collected during our stakeholder engagement with materiality of ESG issues prioritised. To help us better focus, nine ESG issues were identified as being both closest to the hearts of our stakeholders and most relevant to our business as follows:

Influence on Stakeholder Decision

NWS Holdings' Materiality Matrix 2019

1.

Corporate governance

2.

Procurement practices

3.

Materials

Medium priority

High priority

4.

Energy management

12

5.

Water management

6.

Biodiversity protection

7.

Greenhouse gas and air

11

20

emissions management

1

18

8.

Waste management

9.

Sustainable construction

10.

Climate change mitigation

13

7

9

and adaptation

8

11.

Employee wellness and

10

4

benefits

5

12.

Occupational health and

2

3

safety

13.

Diversity and equal

6

19

opportunities

14.

Freedom of association

14

16

17

and collective bargaining

15

15.

Child labour and forced

labour

16.

Community investment

Low priority

Medium priority

17.

Influence on public policy

18.

Customer health and

Significance to Business

safety

19.

Marketing and labelling

20.

Customer privacy

17

NWS Holdings Limited Sustainability Report 2019 | Stakeholder Engagement and Materiality

Top 9 ESG Issues

Corporate Governance

Employment

Occupational health and safety

Corporate governance

Employee wellness and benefits

Customers

Environmental

Customer privacy

Sustainable construction

Customer health and safety

Greenhouse gas and air emissions

management

Waste management

Energy management

The following table presents which stakeholder groups and industries are most significantly impacted by or are most concerned with the individual top material ESG issues.

Top Material ESG issues and their impact on stakeholder groups

Impact to internal stakeholders

Impact to

external

Corporate

Facility

Top Material Aspects

stakeholders

level

Construction

Transport

management

Roads

Corporate Governance

Employee Wellness & Benefits

Occupational Health and Safety

Customer Health & Safety

Customer Privacy

Sustainable Construction

Greenhouse Gas and Air Emissions

Management

Waste Management

Energy Management

Material issues posing most impacts to the stakeholder group

We proactively manage and monitor the identified material issues. For details, please refer to the Corporate Governance Report section, Risk Management section and Management Discussion and Analysis section of our Annual Report 2019 and relevant chapters in this report for more information on management approach.

18

NWS Holdings Limited Sustainability Report 2019 | Stakeholder Engagement and Materiality

HUMAN CAPITAL

H U M A N C A P I TA L

We believe human capital is essential to the success of our company. We are committed to attracting and retaining talent, and believe that creating a diverse and inclusive environment for our staff improves innovation, employee retention and financial returns. We offer employees competitive remuneration and benefits, training and development opportunities, and a healthy work-life balance. We are determined to ensure our team thrives in a safe, healthy and friendly working environment with equal opportunity. Understanding the aspirations of our talented people is key to cultivating a strong sense of belonging, which in turn improves job satisfaction and productivity.

EMPLOYMENT

We respect and appreciate people's social and cultural backgrounds and we instil the importance of inclusion into the entire workforce. We hire people based on their talent and potential, regardless of age, gender, ethnicity, religion, disability, sexual orientation or any other aspect of diversity in accordance with our Sustainability Policy.

Policies and guidelines including the Code of Conduct, Human Rights Policy, and General Guidelines on Employment for the Race Discrimination Ordinance, guide our approach to employment. These help us address issues such as compensation and dismissal, equal opportunities and diversity, health and safety, and the environment. In addition to competitive remuneration and standard employee provisions such as retirement schemes and medical benefits, we offer benefits to full-time employees that go beyond those required by local labour laws. For example, full-time bus captains are provided with life and accident insurance as well as free travel passes for themselves and their families.

CARING

OF OUR

EMPLOYEE

We care about our employees, and continuously raise the bar to provide better working environment and enhance job satisfaction. Our continuous effort enabled us to be named one of the HR Asia Best Companies to Work for in Asia 2019 - Hong Kong Chapter.

20

NWS Holdings Limited Sustainability Report 2019 | Human Capital

We regularly review and update our policies and guidelines to ensure we meet regulatory requirements. Our Corporate Policy on Staff Responsibility provides guidelines on best management practices and personal integrity was last updated in 2019. We comply with the Employment Ordinance (Cap. 57), Employment of Children Regulations (Cap. 57B), Employment of Young Persons (Industry) Regulations (Cap. 57C), anti-discrimination ordinances in Hong Kong, and local labour laws in other markets where we operate.

During the reporting year, there were no reported cases of non-compliance regarding employment that were significant to our business.

As of 30 June 2019, the total workforce of the reporting entities covered in the scope of this report was 10,798 employees; 14% were new hires and our employee turnover rate was 11% (including voluntary and involuntary leavers). Other demographic breakdowns are illustrated below:

Total Workforce by Industry

Total Workforce by Age Group

Corporate

Office

Roads

Under

2%

6%

30 years old

13%

Transport

Over

55%

Construction

Total

24%

50 years old

Total

Workforce

47%

Workforce

= 10,798

= 10,798

Facilities

30-50

Management

years old

13%

40%

Gender Profile of Workforce by Industry

100

7%

17%

of Employees

80

47%

43%

52%

60

Percentage

93%

83%

40

53%

57%

48%

20

0

Transport

Construction

Facilities

Roads

Corporate

Management

Office

Male

Female

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NWS Holdings Limited Sustainability Report 2019 | Human Capital

HUMAN RIGHTS AND LABOUR PRACTICES

We respect human rights and implement fair labour practices. We are committed to conducting business in a manner consistent with the principles of the United Nations Global Compact (UNGC) and have adopted its principles in our Human Rights Policy.

To provide a fair and inclusive workplace, no form of discrimination based on gender, race, religion, age, trade union membership, etc. is allowed as indicated by our Corporate Policy on Staff Responsibility. In line with UNGC principles, we strictly prohibit child labour and forced labour across our businesses. We respect the freedom of association and recognise the right to collective bargaining, such as that undertaken by employee unions for staff members at our transport and construction businesses. Throughout the year, we consistently hold meetings with representatives of unions or employees to discuss on topics from wage adjustments to benefits such as working conditions. For details on our efforts to provide employees with decent working conditions, please refer to the Employee Health and Safety section.

During the reporting year, there were no reported cases of non-compliance regarding labour practices on child and forced labour employment.

TALENT MANAGEMENT

The long-term development of our employees is crucial to the growth of the Group. We invest in the development of employees to unleash their full potential as committed in our Sustainability Policy. We manage and motivate our staff, offering rewards such as performance-based bonuses and a share option scheme. Our employees are entitled to the Education Subsidy Scheme, which aims to enhance their job-related skills and encourage their self-development.

OVERSEAS TRAINING FOR HIGH-PERFORMING EMPLOYEES

HML offers comprehensive training to employees whose focus is on venue management. During FY2019, high-performing employees are selected to participate in two overseas professional programmes: the Venue Management School (VMS) Programme in Australia, and the International Association of Convention Centres' (AIPC) Academy Professional Development Programme, in Belgium.

The Venue Management Association, a globally-recognised industry body, offers a two-year VMS Programme, with five days of training each year in Australia. The programme gives our future leaders the opportunity to exchange knowledge with practitioners from different countries, focusing on industry operation and higher-level management topics.

The five-day AIPC Academy Professional Development Programme offers our middle-management employees an opportunity to upgrade their skills and knowledge to meet industry best practice.

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NWS Holdings Limited Sustainability Report 2019 | Human Capital

Average Training Hours by Employees per Category in FY2019

Assistant General Manager/

11.8 hours

Assistant Director and above

Senior Manager

10.6 hours

and Manager

17.3 hours

Assistant Manager

12.9 hours

General Staff

Operational Staff

16.4 hours

Average Training Hours by Gender per Category in FY2019

Female

17.1 hours

Male

15.8 hours

To nurture young talent and maintain a stable talent pool, some of our business units, particularly those prone to shortages of skilled workers offer on-the-job trainee programmes for fresh graduates. HML, NWFB and Citybus offer engineering and graduate trainee programmes for university graduates, while Hip Hing offers scholarships for universities and Vocational Training Council students studying construction-related courses, to attract qualified people to the industry and improve the pool of talent for future construction projects.

EMPLOYEE ENGAGEMENT

The Group strives to engage employees by understanding individuals' needs and enhancing their sense of unity with the Group. We facilitate dialogue between management and staff, with regular employee satisfaction surveys, "Town Hall" meetings to communicate with staff members on corporate direction and business development, and regular meetings with unions to discuss employees' ideas on improving the workplace environment.

To strengthen team spirit, we hold regular recreational events, celebrate the promotion of high- performing employees, and welcome new joiners. The Hip Hing Spirit/Vibro Spirit/Quon Hing Spirit Annual Recognition Award ceremony is just one of the ways in which we show our appreciation of high-performing employees.

EMPLOYEE HEALTH AND SAFETY

Occupational health and safety (OHS) is essential to our operations, and we are committed to building a healthy and safe workplace for our employees as stated in our Sustainability Policy. We strictly observe the Occupational Safety and Health Ordinance (Cap. 509) and have policies and dedicated management committees for OHS, especially in high-risk areas such as construction sites and transport operations. Hip Hing has a management- worker safety committee at each construction site to review site conditions and implement site-specific safety measures. Going beyond compliance with local legislation, the occupational health and safety management system at Hip Hing is certified with OHSAS 18001 and ISO 45001. NWFB and Citybus also have their own Health and Safety Policy, committed to uphold health and safety of our staff, customers, contractors and others who may be affected by our bus operations and work activities.

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NWS Holdings Limited Sustainability Report 2019 | Human Capital

INNOVATIVE MEANS TO IMPROVE SITE SAFETY: UNMANNED AIRCRAFT SYSTEM (UAS)

Technologies are briskly changing our lives and the way we work. At Hip Hing, we have adopted the unmanned aircraft system technology to improve the way we operate and manage safety on site.

Drones in our LOHAS Park residential development site in Tseung Kwan O help maintain the safety of our workers and prevent accidents. They enable the site team to conduct inspections more effectively and efficiently, from fire patrol to scaffolds and suspended working platforms.

Regular OHS-related education and training sessions are arranged. Hip Hing construction workers are trained in the use of safety equipment and tools, as well as precautionary measures to reduce injuries and prevent diseases. Our bus captains receive regular OHS training, and are encouraged to seek counselling and other assistance from the company to mitigate stress. In FY2019, more than 9,500 hours of OHS-related training were provided to Hip Hing staff, while NWFB and Citybus staff collectively received 10,000 hours of training.

Given the higher risks associated with labour- intensive work, measures have been taken to protect the wellbeing of Hip Hing site workers and our bus captains. We have special facilities for workers in hot and cold weather. These include shelters to provide respite from the heat, and hot drinking water for cold days.

Since the Transport Department (TD)2 revised the Guidelines on Bus Captain Working Hours, Rest Times and Meal Breaks (Guidelines) in 2018, both NWFB and Citybus have fully implemented the revised Guidelines by end of February 2019. We have capped the maximum duty hours in a special shift at 13.5 hours, going beyond the requirement as stipulated in the Guidelines.

To enhance the overall bus safety, we embarked on trials on Advanced Driver Assistance Systems (ADAS), which adopts video intelligence technology to automatically detect and analyse driving and road conditions. If the system detects a risk of imminent collision with a vehicle ahead or changing lanes without signalling, an audio alert will be provided to the bus captain. The initial trial results have now been submitted to TD for review and comment before extending the trial to a wider fleet of buses.

2The Transport Department of the Hong Kong Special Administrative Region, is the authority for administering the Road Traffic Ordinance and legislation for the management of road traffic, regulation of public transport services and operation of major transport infrastructures.

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NWS Holdings Limited Sustainability Report 2019 | Human Capital

RETROFITTED BUS RESTING STATION

In 2019, we improved resting stations for our bus captains by providing additional facilities to meet their needs. A new lounge was set up in our Chai Wan depot with facilities such as beds, sofas and microwave ovens. Two decommissioned buses were retrofitted as resting stations at the Ocean Park parking site and Sheung Wan servicing site, giving bus captains places to relax and rest.

STAFF AND FAMILY WELLNESS

Employee wellbeing is essential to the Group's long-term development. For many years, we have introduced measures and initiatives to promote family- friendly practices and a healthy work-life balance.

In February 2019, NWS Holdings and other business units like HML, established a Flexible Working Hours Policy to foster a more efficient and motivated working culture, and enable a better balance between family needs and work. Caring rooms have been set up at offices to provide comfortable areas for breastfeeding employees as part of our family-friendly practice. We have also extended the coverage of our initiatives for employees' family members via the NWS Scholarships for Employees' Children programme. These incentives support children pursuing their life goals and enhance family wellbeing.

The Group also takes care of employees' health outside work. We organise recreational activities such as sports competitions, hiking trips and art workshops

to help relieve stress and maintain a healthy lifestyle. Additionally, employees are entitled to different types of leave to cater for employees' needs and wellbeing. For example, NWS Holdings and HML offers examination leave, and Hip Hing offers volunteer leave.

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NWS Holdings Limited Sustainability Report 2019 | Human Capital

VALUE CHAIN

V A L U E C H A I N

It is our responsibility to manage environmental and social risks throughout our value chain. The Group complies with all relevant laws and regulations and we expect the same from our business partners. We have established policies and procedures to monitor the effectiveness of our suppliers' environmental and social management. We have strict customer service protocols that guide our service quality and manage customers' satisfaction, health and safety and data privacy.

SERVICE QUALITY

We take pride in the quality of services provided to our customers. For NWFB and Citybus, we strive to enhance the accessibility of bus services. "Transport for All" is what we believe in. We are committed to providing Hong Kong with the best possible bus service at affordable fares. We care about the travel needs of people with disabilities. We listen to the views of seniors on bus compartment designs and adopt suggestions that are feasible. Imbued with a caring mindset, our bus captains are committed to accommodate the needs of seniors and passengers with disabilities in every journey. To better understand our passengers' needs and concerns and to continuously improve our bus services, we engage them via channels such as liaison group meetings to collect feedback and suggestions.

Our entire bus fleet is designed to be barrier-free with features such as low-floors and wheelchair ramps that enhance accessibility. Additional wheelchair space is also available on some new buses. Braille signs with bus fleet numbers and customer service hotlines are displayed in bus compartments to assist the visually impaired. For the comfort of passengers, we regularly install additional shelters and seats at our bus stops. And we offer free rides on the International Day of Persons with Disabilities and Senior Citizens Day.

TRANSPORT FOR ALL

The entire bus fleets of NWFB and Citybus are designed to be barrier-free. Features such as low-floors and wheelchair ramps enhance accessibility.

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NWS Holdings Limited Sustainability Report 2019 | Value Chain

To support the public with better road traffic planning, we offer an online interactive route search3. We have also enhanced our bus services by sharing real-time arrival information via our mobile application. In 2019, NWFB and Citybus were the first public transport operators to open up real-time arrival data to "Data.Gov.HK"4 for free public access in Hong Kong in support of the city's smart mobility development.

Please visit our website for the service pledge of NWFB and Citybus.

As a leading contractor in Hong Kong, Hip Hing is committed to developing outstanding, high-quality projects that exceed clients' expectations. After eight years in development and construction, Xiqu Centre, a unique venue dedicated to Chinese opera, opened in 2019. This was one of Hip Hing's most challenging projects to date.

Major design challenges of this unique venue included a 1,073-seat Grand Theatre suspended above the atrium and six concrete mega-columns, signifying the six major roles in Cantonese opera. Building involved not only heavy structural steelwork within a congested site, but also the deployment and operation of the tallest standalone tower crane at the time during construction. The building was designed and constructed to meet BEAM Plus5 Gold rating.

XIQU CENTRE

The building was designed and constructed to meet BEAM Plus Gold rating. Examples of green features adopted during construction included:

  • Reduced use of timber formwork in temporary works
  • Use of solar water heating
  • Full implementation of BIM6 to reduce clashes and rework during construction
  • Use of wet scrubber (precursor of Venturi Cyclone) to reduce air emissions from generator sets
  • Installed sensor in tower crane control (joystick) to signalise the generator sets to idle mode when the machine is stalled to reduce diesel use
  1. NWFB and Citybus online interactive route search http://www.nwstbus.com.hk/routes/index.aspx?intLangID=1
  2. As part of the Hong Kong Strategies and Government IT initiatives, the website disseminates public sector information in digital format including demographic, socio-economic, geographical, meteorological and municipal management data etc.
  3. BEAM Plus - A Hong Kong standards for sustainable built environment, mainly on buildings development.
  4. Building Information Management (BIM) - A process that utilises three-dimensional modelling software to generate and manage data from building design to operation, facilitating cross-disciplinary collaboration and management.

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NWS Holdings Limited Sustainability Report 2019 | Value Chain

Hip Hing has been appointed the main contractor for the construction of InnoCell at the Hong Kong Science Park. This project is one of the first in Hong Kong to showcase Modular Integrated Construction (MiC). Free- standing modules complete with fixtures, fittings and finishes are prefabricated off-site, then transported to the site for installation. By prefabricating most of the construction in a factory environment, we have better control over the quality of the building from its structure to interior finishes. We can shorten construction period and minimise on-site works, reducing environmental impacts such as waste generation and air emissions as well as noise nuisance to the community. Overall construction safety, time and cost can be optimised.

ADOPTION OF MODULAR

INTEGRATED CONSTRUCTION (MiC) METHOD

At the intersection of Chong San Road and Science Park Road in Pak Shek Kok, the InnoCell is a 17-storey building that provides around 500 residential units. The project exemplifies the modern concepts of smart living and co-creation communities by providing working-space-cum-temporary accommodation for companies and incubatees working at Hong Kong Science and Technology Park. The 1/F to 15/F will be constructed using steel modular integrated construction. This helps reduce on-site processes, enhancing overall productivity and safety, construction quality and sustainability. In addition to MiC, the project has also adopted an integrated construction information platform for real-time information access and paperless inspection, enhancing construction efficiency. The project is expected to be completed in the third quarter of 2020.

CUSTOMER EXPERIENCE

HML uses the latest technology to continually improve customer experience. Last year, nearly 500 sensors were installed in the HKCEC venue to collect and transmit real-time indoor environment data, via Internet of Things (IoT) networks in the Building Management System. Coupling with our Smart Building Management System, we can better monitor, control and optimise the venue's indoor comfort and temperature more effectively and efficiently. We have begun a Five-year Advancement Project that will involve large-scale renovation of the HKCEC facilities and infrastructure. The new improvements will contribute towards our energy and water conservation efforts.

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NWS Holdings Limited Sustainability Report 2019 | Value Chain

With our goal to continually improve road safety and traffic for better customer experience, in 2018, Hangzhou Guoyi was actively involved in the development of the Smart Ring Road City platform, to support "Hangzhou City Brain 2.0", a joint project initiated by the Hangzhou City Government and the Alibaba Group. More than 300 sets of cameras are installed along the entire ring road, extending over 100km. These will support key functions such as real-time monitoring, smart scheduling and vehicle management. The platform will receive an immediate alert if undesirable situations such as car accidents and traffic congestion occur. Timely solutions will be initiated, enhancing road users' experience.

CUSTOMER COMMUNICATION

We actively engage with our customers to obtain comments and feedback for service excellence. Satisfaction surveys for key parties and customers are conducted regularly by all our business units. Our bus and ferry services interact with customers via Passenger Liaison Group meetings, which discuss our service quality. Thirteen such meetings were held in FY2019. Suggestions raised by customers are considered throughout the year.

Each of our business units has its own official complaint-handling platform and guidelines. Contact information is available at each of their websites7. Comments and complaints are carefully handled by dedicated teams. All are properly recorded and reviewed by management on a regular basis to identify areas for improvement.

Advertising and labelling are not central to our business. However, we ensure the accuracy of information in marketing and promotional materials used to communicate with our customers. All materials and messages for the public are reviewed by designated staff to ensure accuracy and compliance with the Trade Descriptions Ordinance (Cap. 362). All video broadcasts aboard ferries are certified by The Office for Film, Newspaper and Article Administration.

There were no reported cases of regulatory non-compliance regarding advertising or labelling during the reporting year.

CUSTOMER HEALTH AND SAFETY

Customer health and safety is a priority for our business operations; in particular, for transport services by NWFB, Citybus and NWFF, and the facility management service by HML at the HKCEC. We have measures and systems to ensure the services that we provide are safe, reliable and environmentally responsible.

To address the indoor air quality (IAQ) of our bus compartment, we regularly monitor the carbon dioxide content to ensure that the cabin air quality is good. The indoor air quality (IAQ) of buses inspected in 2019 have all met the Level 1 good air quality in accordance with the "Practice Note for Managing Air Quality in Air-conditioned Public Transport Facilities" formulated by the Environmental Protection Department.

Our bus service's crisis-management procedure details our protocols and mechanisms to prepare for, and respond to, crises. A 24-hour control centre handles emergencies and accidents involving our employees or buses, as well as any traffic abnormalities. If a major incident occurs, the Crisis Management Committee - comprising the company's top management - leads the response. Should such incidents occur, debriefings are conducted to avoid or to minimise the impact of similar incidents in the future. Automated external defibrillators are installed at ferry piers with high passenger flows to safeguard our passenger's safety and employees are trained in their use.

To enhance road safety, Advanced Driver Assistance Systems with forward collision warning, lane departure warning, headway monitoring and warning, and driver state monitoring, were trialled on 17 buses in FY2019. On our ferries, additional fixtures such as handrails and luggage racks were installed to improve customer safety.

7NWFB and Citybus service corner: http://www.nwstbus.com.hk/routes/enquiry/index.aspx?intLangID=1

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NWS Holdings Limited Sustainability Report 2019 | Value Chain

HML prioritises food safety and facility security in its daily operations. During the year, two restaurants in the HKCEC successfully renewed their Hazard Analysis and Critical Control Points (HACCP) certification. Regular monthly audits - covering all kitchens, catering services and restaurants - are conducted by our dedicated Food Safety and Hygiene Manager. Improvements in hardware and procedures have been enforced and comprehensive training conducted to ensure all catering employees are up-to-date with food safety and hygiene requirements.

New measures were enforced by HML's Security team to safeguard thousands of contractors and workers during exhibition booth construction and dismantling periods. These measures cover strict regulations related to working at heights, use of certified ladders, reflective vests and reservation of emergency access routes.

CUSTOMER PRIVACY AND PROTECTION

To protect privacy and personal data, we collect minimal information from our customers and restrict the use of that data. Personal information collection statements are available for customers of HML before they make bookings, submit enquiries or subscribe to the HKCEC newsletter. These statements ensure customers know the reason for the collection of personal data and understand their rights. HML references the EU General Data Protection Regulation in a pop-up message about its cookie policy on the HKCEC website. This clarifies the purposes of data being collected from the website users.

All customer data is handled in compliance with the Personal Data (Privacy) Ordinance (Cap. 486). The Data Confidentiality and Protection Policy section of the Group's IT Policy and Procedures provides further guidance on data storage and handling for computer users, the IT department and IT service providers. This ensures all information is managed properly.

We ensure our staff and service providers comply with our standards of security and confidentiality. We have implemented physical, technical and administrative measures to safeguard and secure the customer data we collect. This relates to unauthorised access, data use and data retention. Privacy Policy Statements and Disclaimers8 for our various business units are also available.

In FY2019, there were no reported cases of regulatory non- compliance regarding personal data privacy.

8Privacy Policy Statements/Disclaimers of various business units:

NWS Holdings: https://www.nws.com.hk/EN/Home/Privacy-Policy

NWFB and Citybus: http://www.nwstbus.com.hk/content/default.aspx?intLangID=1§ion=footer&page=privacyPolicy

NWFF:

http://www.nwff.com.hk/public/getitem.php?lang=en&id=03c55b92-25ab-4cdb-aaa1-c50338ade3ec

HML:

https://www.hkcec.com/en/privacy-policy-statement-and-disclaimer

Free Duty:

https://www.freeduty.com.hk/en/about/privacy

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NWS Holdings Limited Sustainability Report 2019 | Value Chain

USING TECHNOLOGY TO ENHANCE ROAD SAFETY

We continually identify new ways to enhance the safety of our bus services. FY2019 saw the introduction of 119 buses with new safety features, including seat belts on all seats, and the latest speed controls and stabilising devices.

100% Seatbelt Installation

Three-point seatbelts on all seats in new buses provide extra protection for our passengers.

Active Speed-limiting Device

Additional to limiting speed via fuel feed to the engine, this device prevents speeding when driving downhill via gearbox control.

Speed Monitoring System

This monitors and records bus speeds. It is enhanced by Global Positioning System (GPS) data. The system provides real-time alerts to bus captains if they speed.

Electronic Stability Control

Bus stability is improved via technology that detects and prevent under- or oversteering, minimising the risk of rollover. If anomalies are detected, the control system reduces fuel feed to the engine and activates brakes of individual wheels to stabilise the vehicle.

Advanced Driver Assistance Systems (ADAS) is an intelligent systems under pilot to assist bus captains by providing vital information about road situations. The system also detect when a driver is distracted or fatigued, and sound alerts as a precaution. ADAS can be linked to the backend system of bus companies and support a timely exchange of information.

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NWS Holdings Limited Sustainability Report 2019 | Value Chain

PROCUREMENT

We are committed to managing the environmental and social impact of our supply chain. Guided by the Sustainable Procurement Policy of our parent company, we require all our suppliers to adhere to our Sustainability Policy, and the Supplier Code of Conduct developed by NWD.

These policies relate to reducing our environmental footprint, encouraging responsible and ethical sourcing, and integrating sustainability into supplier selection and management. We seek to work with suppliers who value and act on the principles of sustainable development. All suppliers must comply with legal requirements in employment practices, ethical business, human rights and environmental practices, and must prohibit forced labour and child labour.

We uphold the highest ethics and governance standards in our business operations and value chain. Longstanding policies demonstrate our commitment and expectations regarding the ethical conduct of our staff and suppliers, the prevention of bribery and discrimination, human rights, and health and safety. The Corporate Policy on Staff Responsibility and the Code of Conduct set out standards of behaviour expected from the Group and provide guidelines on how to handle business situations. We require all staff and suppliers to conduct themselves with the highest standards of integrity and professionalism, as stated in our Supplier Code of Conduct. The Group offers anti-corruption briefings and communication sessions to suppliers and employees, to avoid bribery and conflicts of interest.

Social and environmental issues vary across our business units and are managed according to the business needs of each, within the Group's framework. We are guided by the NWD's Sustainable Procurement Policy and prioritise sourcing from local suppliers. Each of our business units also has procurement policies, procedures and guidelines that suit their needs. ESG and sustainability are factored into the assessment of new suppliers and performance reviews of existing suppliers. For example, the use of Forest Stewardship Council (FSC) timber is adopted as the major flooring material of our new buses and for formworks during construction.

Major supplier types by business units:

Facilities

Construction

Transportation

Management

Roads

Key suppliers

Subcontractors,

Vehicles

Food and wines

Maintenance

engaged

materials suppliers,

procurement, fuel

suppliers,

materials suppliers,

professional

providers,

professional

equipment

consultants,

equipment

engineering

providers,

equipment rental

providers

consultants, banquet

maintenance crew

service staff,

engineering service

providers

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NWS Holdings Limited Sustainability Report 2019 | Value Chain

ENVIRONMENTAL PERFORMANCE

E N V I R O N M E N TA L P E R F O R M A N C E

The Group strives to apply innovative solutions and initiatives to our services and operations as we reduce greenhouse gas emissions, waste, and the consumption of resources, from energy to water in accordance with our Sustainability Policy. We endeavour to go beyond regulatory compliance, and consistently benchmark ourselves against local and international standards and best practices. This ensures we are well positioned to continually enhance our environmental performance.

COMBATING CLIMATE CHANGE

As two of Hong Kong's major bus operators, we play an important role in supporting the city's climate action plan by encouraging citizens to opt for public transport over private cars. Last year, the number of passengers carried by our NWFB and Citybus fleets totalled over 370 million9. We encourage the use of buses by enhancing the quality of our services and improving the overall travel experience through the use of technology, and the enhancement of the bus routing network and associated facilities.

We now offer real-time communication with commuters on the status of buses, and provide timely updates on emergency conditions that may impact on scheduled bus services. In 2019, we improved the flexibility of commuters' journeys by increasing the number of bus routes eligible for interchange fare discount by 5% to 179 bus routes. We also improved passenger facilities by providing seats and shade at bus stops, as well as enhancing bus safety features and disabled access. For full details of improvements to our services, please refer to our bus companies'website.

Having observed the impact of climate change, such as the extensive damage to Hong Kong caused by typhoon Mangkhut in 2018, the Group is reviewing the potential effects of climate change on our businesses. In anticipation of more frequent and more acute weather events, we have revised our emergency plans to guide employees on ways to stay safe and to maintain secure operations. As part of the wider NWD initiative to assess climate hazards and their impact on assets, we are conducting climate-scenario planning for HKCEC to identify areas of susceptibility.

We are still in the progress to meet the disclosure recommendations of the TCFD. However, we take note of its four key themes: governance, strategy, risk management and metrics and targets, as we identify and mitigate more of our climate-related risks.

ENVIRONMENTAL TARGETS FOR FY2030

As we work to play a role in combating climate change, we are constantly exploring ways to improve energy and water efficiencies, with the aim of reducing carbon emissions from our operations. This year, the Group announced its Environmental Targets for FY2030. Using FY2013 data as the baseline, we aim to reduce greenhouse gas (GHG) intensity by 30%, energy intensity by 25% and water intensity by 30%, and to achieve at least 90% reuse of construction and demolition (C&D) materials by FY2030.

9 http://www.nwstbus.com.hk/company/overview/service/index.aspx?intLangID=1

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NWS Holdings Limited Sustainability Report 2019 | Environmental Performance

Environmental Targets for 2030 (Baseline year: FY2013)

30% 25% 30% 90%

tonne(s)CO2e/

GJ/ HK$'m

m3/ HK$'m

Reuse of C&D

HK$'m revenue

revenue

revenue

materials

These targets demonstrate our long-term commitment to being part of a low-carbon economy. Among the Group's wide range of businesses, we have identified which business unit contributes most significantly to each target and are setting out a roadmap towards those goals. We will continually monitor the progress on actions identified and update the status of achieving our objectives regularly.

FY2019 Environmental Performance by Industry

Roads

1%

Construction

10%

Facilities

Management

Total:

13%

Transport

366,869

Transport

Roads

1% Construction

8%

Facilities

Management

5%

Total:

76%

tonnes CO2e

86 4,610,688 GJ

%

Carbon emissions

Roads

Transport

7%

14%

Facilities

Total:

Management

Construction

Energy

Facilities

Management

7%

Total:

20%

1,274,208 m3

Construction

59%

Water Consumption

93 56,376 tonnes

%

General Waste

to Landfill10

10

Excludes recycled materials and inert C&D materials to public fill facility.

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NWS Holdings Limited Sustainability Report 2019 | Environmental Performance

Environmental Objectives and Planned Actions for FY2019-2020

GHG Emissions

and Energy

Consumption

  • Adopt more fuel-efficient bus fleet
  • Pilot alternative-fuel buses
  • Adopt more efficient measures to reduce diesel consumption for power generation during construction
  • Adopt retro-commissioning of building operation systems of HKCEC to optimise performance on energy efficiency
  • Adopt energy-efficient designs in HKCEC's Five-Year Advancement Project

Freshwater

Use

  • Enhance practices in construction project management from design to site management
  • Adopt water conservation management practices and installation of water-efficient fixtures at
    HKCEC

C&D

Waste

  • Maximise the adoption of the in-house Materials Transfer Programme
  • Enhance waste management on site e.g., waste sorting
  • Promote off-site construction
  • Adopt more widely use of technology such as Building Information Modelling (BIM) to enhance construction efficiency and minimising wastage
  • Enhance collaboration with value-chain on waste minimisation

ENVIRONMENTAL MANAGEMENT

The function of the Sustainability Department has been redefined as one that emphasises driving Group-wide initiatives on sustainability across our businesses and functions. Our Environmental Management Committee meets twice a year and is chaired by an executive director. It provides a platform for the development and implementation of green initiatives, and the exchange of knowledge, experience and environmental best practices among business units.

To better support environmental management, international management standards have been adopted. In FY2019, Hip Hing had 42 active construction sites certified for ISO 14001 Environmental Management System and ISO 50001 Energy Management System. The business is focused on sustainable construction, and 17 additional projects have met green construction standards set out by BEAM Plus or equivalent during the same reporting period. HML was the first organisation in Hong Kong to attain ISO 20121 Event Sustainability Management System certification.

We comply with local environmental laws and regulations wherever we operate. These include but are not limited to the Air Pollution Control Ordinance (Cap. 311), the Waste Disposal Ordinance (Cap. 354), the Water Pollution Control Ordinance (Cap. 358) and the Environmental Protection Law of the People's Republic of China.

During the reporting year, there were no cases of environmental non-compliance that resulted in fines or prosecution.

AIR EMISSIONS

Air emissions are a significant issue for the transportation, roads and construction industries. As major bus operators in Hong Kong, the Group supports strongly on roadside air emissions reduction. Last year, we invested in building a fleet of more energy-efficient vehicles by commissioning 145 low- emission Euro 6 buses. These produce one-fifth of the nitrogen oxide (NOX) emissions of Euro 5 buses, and half the levels of particulate matter (PM) emissions. Now, 95% of our entire bus fleet meets Euro 5 emission standards or above, versus 90% in the previous reporting year. We have also completed the

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NWS Holdings Limited Sustainability Report 2019 | Environmental Performance

SINGLE-DECKER ELECTRIC BUS

In addition to concerted efforts to improve emissions from conventional diesel buses, we have completed a trial of "zero-emission"single-deck electric buses. The pilot scheme was subsidised by the Hong Kong Government to study the reliability and economic feasibility of these vehicles. The results suggest it may be some time before electric buses could overcome the unique challenges of Hong Kong to become commercially viable. However, we continue to collaborate on the development of electric buses with the government and the industry. We have retained the electric single-deckers for two of our busiest routes after the trial.

first round of test-trialling on running electric buses in the existing infrastructure of the Hong Kong bus network and we are continually exploring means to better commercialise the technology for a wider application in the coming years.

NWFF has equipped ferries with environmentally-friendly engines to reduce soot emissions at low engine speeds and to reduce fuel consumption. We have applied non-toxic,anti-fouling paint to the bottom of vessels to prevent a build-up of marine life, which slows ships and reduces fuel efficiency. In addition, on-shore power supply has been built to enable ferries docking at the Cheung Sha Wan dockyard, Central Pier 5, Cheung Chau Pier and North Point Pier to draw cleaner energy from the local grid than from diesel, minimising air emissions.

As a highways operator, we are not a direct contributor to road emissions. However, we support the nation-wide objective to enhance air quality. We try to keep road traffic moving as smoothly as possible to minimise idling of vehicles; we attend promptly to road incidents and use auto-toll stations to minimise tailbacks. Furthermore, Hangzhou Guoyi supports the use of electric vehicles by providing charging facilities at service areas. We have installed more than 10 charging points, and more are being rolled out.

38

NWS Holdings Limited Sustainability Report 2019 | Environmental Performance

VENTURI CYCLONE

Venturi Cyclone removes air pollutants from diesel generators on construction sites using recycled water. Removal efficiency is in the range of 70% to 90% for major pollutants such as NOX and sulphur oxides (SOX). The equipment also reduces around 85% of direct CO2 emissions.

At Hip Hing, we prefer early adoption of temporary or permanent electricity provisions, a cleaner source of energy in Hong Kong where possible during the construction period. We ensure environmental site management is in place. This includes identifying site-specific environmental conditions, and routine monitoring to ensure the implementation of mitigation measures. Our colleagues go above and beyond regulatory compliance by introducing ways to enhance on- site safety and environmental performance. Venturi Cyclone and the Auto Power Supply (APS) System are examples of innovative solutions to reduce air pollutant emissions from diesel generators on construction sites. Further details of the APS feature in the Energy Section of this report.

GHG EMISSIONS AND ENERGY CONSUMPTION

Energy consumption remains the prime source of the Group's GHG emissions. Transportation is the business segment that contributes most to our carbon footprint. The Group is committed to reducing our energy and carbon footprint, and continues to identify ways to achieve this.

Our long-term vision is for our road transportation businesses to operate electric buses. In the meantime, we are utilising the best available technology by phasing in increasingly energy-efficient vehicles. We maximise the efficiency of our fleet by ensuring buses are properly maintained, by designing efficient routes, and by promoting environmentally-friendly driving techniques to our bus captains.

For NWFF, we optimise fuel efficiency with vessel maintenance, and use tinted glass windows to better insulate passenger areas of ferries and reduce the need for air-conditioning.

At Hip Hing, we trialled the use of APS on one of our sites last year to minimise the use of diesel on site. Biodiesel has also been widely adopted, and accounted for over 80% of our total diesel usage in construction sites in FY2019.

AUTO-POWER SUPPLY (APS) SYSTEM

Comprising several connecting generator sets, APS forms a mini power station that regulates and distributes electricity to designated equipment on site through a local network. It uses fewer generator sets than a typical site setting and reduced fuel use by about 45% at our trial site at Tsing Yi Vehicle Examination Centre. Other benefits included also environmental noise reduction, carbon emission reduction and operational costs saving.

39

NWS Holdings Limited Sustainability Report 2019 | Environmental Performance

Retro-commissioning of HKCEC's building operation systems to optimise energy performance has been ongoing since the energy audit conducted in 2016. Target specific measures from the replacement of equipment to enhancing operation practices have been set and implemented in phases. Continual monitoring and analyses of big data from building services are also in place to continually improve the facility's energy performance. The HKCEC's Five-Year Advancement Project involves significant, state-of-the-art improvements to the building to provide a safer and more efficient and comfortable environment for all users.

RENEWABLE ENERGY

The introduction of the Feed-in Tariff (FiT) scheme by power companies and the Hong Kong government in 2018 incentivised the use of solar power. To demonstrate our support for renewable energy, we have installed solar panels at several business sites - some connected to the grid and others solely for local use. There are now solar panels on the rooftops of office buildings, at bus depots, and even on our ferries.

ADOPTION OF RENEWABLE ENERGY SYSTEM

Solar panels installed on the rooftop of the NWFF office building are connected to the grid. They are expected to generate approximately 10,500 kWh of energy per year, saving 5,400kg of CO2 emissions. We have also installed solar panels on one of our ferries, "Xin Zhong", to facilitate the use of six new on-board ventilation units.

40

NWS Holdings Limited Sustainability Report 2019 | Environmental Performance

WATER CONSUMPTION

Water plays an important role in our operations and we are committed to using it efficiently. Although we do not anticipate any difficulty in sourcing water, we have launched initiatives to reduce consumption. These include upgrading water pipes to prevent leaks, and installing water-saving fixtures in washrooms as part of the HKCEC Five-Year Advancement Project.

Automatic taps have been installed at bus depots, and freshwater toilet flushing has been replaced with seawater flushing on five NWFF vessels to reduce the consumption of freshwater. At Hip Hing, we reuse treated wastewater on site to cool construction equipment, to suppress dust and to wash vehicles. Yet, freshwater consumption increased in construction during the reporting year. Two anticipated reasons were due to the increased number of construction sites we had and the more intensive flushing needs required to enhance drinking water quality in heavy metals from the plumbing networks during buildings commissioning. We will continually monitor the water use in this aspect and seek for improvements in the future.

WASTE MANAGEMENT

Construction waste and municipal solid waste comprise the majority of waste from our businesses. We use resources on a needs-only basis to minimise hazardous wastes. We try to reuse and recycle non-hazardous wastes where practical.

To fulfil our commitment to minimising waste, we have introduced a range of initiatives. These include the internal campaign "Make a Pledge for a Sustainable Future" via which employees promise to take green actions. We have also deployed an electronic system for bus maintenance records at NWFB and Citybus, while HML has introduced an E-Purchase Requisition System, and uses e-invoices and e-payment statements. NWS Holdings uses e-Leave and e-Payslip systems to reduce paper usage, and HML has introduced QR codes and digital menus to promote environmentally-friendly consumer behaviour.

At Hip Hing, we strive to minimise waste from our construction sites, and recycled around 90% of our C&D wastes in FY2019. We have also reused over 1.27 million tonnes of C&D materials for site-formation and other construction works via our in-house Inert Materials Transfer programme.

At HML, a food waste-management plan was introduced in June 2018. Food waste is separated at banquets, kitchens and the staff canteens and is delivered to O · Park 111. Food that has not been served remains edible is donated to Food Angel to help people in need.

At Hangzhou Guoyi, a waste-separation initiative has been operating since April 2019. We have extended its scope to cover the office and all service stations. Approximately 44,000 tonnes of asphalt pavement materials were collected and sold to the local government for reuse in FY2019.

11 O · Park 1 is the Organic Resources Recovery Centre located in Lantau Island, Hong Kong. Built and operated by Suez NWS, O · Park 1 treats food waste into energy and organic fertiliser.

41

NWS Holdings Limited Sustainability Report 2019 | Environmental Performance

Echoing the global campaign to reduce the plastic footprint of companies and individuals, a Group-wide campaign has been launched to reach out to staff and customers, urging them to reduce their use of plastics. NWFF's First Ferry BYOC+ Campaign promotes a reduction in disposable plastic food/beverage containers by offering fare rebates to passengers using their own reusable products. In ferry waiting halls, eco-friendly distilled water stations have been phasing in since May 2019 to encourage customers to bring their own cups or bottles to fill with water.

To encourage communities and our stakeholders to join us on our sustainability journey, the Group cooperated with a social venture for the Have a Plastic-Free Day campaign, held in August 2018 in Cheung Chau. Reusable food containers and cutlery were available to borrow, allowing visitors to enjoy street food without needing single- use plastic. The campaign generated significant publicity and the idea gained traction in the community.

WIDE ENGAGEMENT WITHWASTE REDUCTION:

"THINK BEFORE PLASTIC"

In June 2019, HML was awarded the UFI Sustainable Development Award 2019 for its "Think Before Plastic" initiative. This annual award by UFI, a globally-recognised exhibition industry association, rewards effective and innovative communications that have a positive environmental impact. Our initiative saved the use of 1.7 million pieces of disposable plastic during FY2019.

42

NWS Holdings Limited Sustainability Report 2019 | Environmental Performance

COMMUNITY

C O M M U N I T Y

The Group's community investment strategy is spearheaded by the NWS Holdings Charities Foundation and the NWS Volunteer Alliance. We encourage partnerships with non-profit organisations to deliver community programmes that create lasting value to the community. Our volunteers are encouraged to support the local community development via their contribution of time and skills.

Our community investment strategy is designed to help us make connections with the community, through impact-driven social investment. We leverage the Group's business strengths and resources to optimise positive social impact through community services. Our objectives are to:

  • Empower the next generation
  • Foster a volunteering culture

• Promote environmental sustainability

We seek to achieve our community investment

objectives through direct community engagement,

nurturing and supporting social enterprise

development and closer collaboration with our

Empower

Foster a

Promote

parent company, NWD.

the next

volunteering

environmental

generation

culture

sustainability

In recognition of our contributions to the community, NWS Holdings and five of our business units have been awarded the Caring Company

Logo by the Hong Kong Council of Social Service for more than 10 consecutive years. NWFB and Citybus won the Age-Friendly Facilities Award from the Jockey Club Age-Friendly City Partnership Scheme in 2019, and our YWCA NWS Y-Care Centre (North District) won the Age-Friendly Collaborator Award.

Our volunteer team earned a Silver Award at the 2019 Hong Kong Outstanding Corporate Citizenship Awards.

YOUTH EMPOWERMENT

Youth unemployment rate has remained high in recent years. Meanwhile, labour-intensive industries are experiencing difficulties in recruiting new blood. The Group has been partnering with NGOs since 2016 via our flagship NWS Career Navigator for Youth programme to create opportunities and provide training for young people in Hong Kong. The programme provides a diverse workplace experience for high-school students and help them plan their future careers. Through this cross-sector collaboration among business, social welfare and education, the Group's diverse business network provides opportunities for young people to meet industry experts and receive advice on career planning. There have been visits to the Corporate Office of NWS Holdings, the headquarters of NWFF, NWFB and Citybus and Hip Hing, where participants experienced mock interviews and saw real workplaces in action.

We believe high-school students need to be inspired of their career ambitions and be encouraged to make career plans. It is necessary for them to understand the development of different professions and the reality of the workplace at an early stage. As such, they can be prepared for a smooth transition to the labour market after graduation. As part of this collaboration with Hong Kong Council of Social Service (HKCSS) and the Centre of Social Impact, we are thus conducting a social impact assessment for this 4-year programme. This reviews its effectiveness and analyse its social impact on individuals, communities and organisations, and more importantly, identifying means for improvement in our future contribution to the programme.

44

NWS Holdings Limited Sustainability Report 2019 | Community

NAVIGATING

THE CAREER

JOURNEY FOR THE

YOUTH

Students in the NWS Career Navigator for Youth programme visit the Group's construction company to learn about the industry. Since 2016, the programme has organised more than 240 activities and provided career experiences to more than 7,200 participants.

Our new community programme Catch Your 5** was launched in FY2019, in partnership with the Salvation Army. It provides opportunities for children with special educational needs (SEN) to develop their talents, and fosters diversity and social inclusion. Multi-disciplinarynon-academic training sessions and workshops enable SEN children to develop confidence and strengthen their social skills. The programme also supports the children's families and aims to increase the public's understanding of people with SEN.

VOLUNTEERING CULTURE

Our community investment has evolved from our strong tradition of philanthropy and charity via volunteering. Last year, the Group partnered with more than 50 non-profit organizations to assist social causes with donations and in-kind support. The NWS Volunteer Alliance explores volunteering opportunities with community partners. In FY2019, approximately 17,000 volunteer hours were contributed by our volunteers in more than 230 community activities. The Group emphasises skills-based volunteering; in the past year, we have provided over 1,400 hours of volunteer training to support our volunteer services.

Our focus on skills-based volunteering helps us leverage our skills and knowledge and share them effectively with the broader community. One example of this in action is the partnership between Hip Hing and Tung Wah Group of Hospitals, which has been serving elderly residents of Ping Shek Estate since 2012. Our volunteers include Grade A electricians and painters from Hip Hing and its subcontractors, whom provide household repairs and maintenance services for the elderlies. So far, nearly 300 households have benefited from these service.

45

NWS Holdings Limited Sustainability Report 2019 | Community

ENVIRONMENTAL SUSTAINABILITY PROMOTION

The NWS Hong Kong Geo Wonders Hike has been a signature programme for the Group for over a decade, fulfilling our aim to support geo-conservation and promote greener living. The programme is run in partnership with the Association for Geo-conservation, Hong Kong, and has two major components: the NWS Geo Hero Run and the Young Ambassadors for Geoconservation Training programme.

Over 1,500 runners took part in the 10 km and half-marathon of the NWS Geo Hero Run 2018, held in the Hong Kong UNESCO Global Geopark in Sai Kung in December 2018. In addition to promoting geoconservation and giving runners an opportunity to enjoy the beauty of nature, it set an example of how to run a green event by encouraging waste reduction. As one of the first running events in Hong Kong to be entirely paper cup free, the NWS Geo Hero Run 2018 was awarded the Green Event Award by Green Earth. It was the only event organised by the commercial sector to earn an award.

The popular Young Ambassadors for Geoconservation Training programme has provided more than 50,000 training hours to over 1,600 secondary school students since it began in 2011. Participants are introduced to the unique landforms and rich cultural heritage of different tour routes. Once trained, these young ambassadors support guided public tours in Long Kwu Tan, Tai O and Ma Shi Chau of Hong Kong. These took place every Saturday in January 2019, and were linked to other activities including beach and trail-cleaning. Twenty of this year's outstanding students also visited the Yandangshan UNESCO Global Geopark in Mainland China's Zhejiang province, to learn about landscape formations, meet the management committee and understand the challenges and opportunities of managing a Geopark.

UNLEASHING

THE POTENTIAL

OF SEN CHILDREN

SEN children enjoy a range of activities as part of Catch Your 5**, which help them to develop non- academic skills and self-confidence.

46

NWS Holdings Limited Sustainability Report 2019 | Community

A W A R D S A N D M E M B E R S H I P S

AWARDS

Organiser(s)

Awards and awardee(s)

HR Asia Magazine and Business Media

HR Asia Best Companies to Work for in Asia 2019 - Hong

International

Kong Chapter (NWS Holdings)

Family Council

Special Mention - Gold in the 2017/18 Family-Friendly

Employers Award Scheme (NWS Holdings, HML)

Awards for Breastfeeding Support in the 2017/18 Family-

Friendly Employers Award Scheme (NWS Holdings, HML)

Meritorious Family-Friendly Employers in the 2017/18 Family-

Friendly Employers Award Scheme (NWS Holdings, Hip Hing,

HML)

Hang Seng Indexes Company Limited

The constituent stock of the Hang Seng Corporate Sustainability

Benchmark Index 2018/19 (NWS Holdings)

The Hong Kong Council of Social Service

Gold Star Award and Sustainable Promotion Award in 2018/19

Age Friendly City Appreciation Scheme (NWFB and Citybus)

15 Years Plus Caring Company Logo (NWS Holdings, Free Duty,

Hip Hing, HML, NWFF, NWFB and Citybus)

List of Barrier-free Companies/Organisations (NWFB and Citybus)

Hong Kong Development Bureau

Gold Awards in the 25th Considerate Contractors Site Awards

(Non-Public Works - New Works - Group A) and Outstanding

Environmental Management Performance Awards (Hip Hing)

Hong Kong Internet Registration

Triple Gold Awards in the Website category under the Web

Corporation Limited

Accessibility Recognition Scheme 2018/19 (NWS Holdings and

NWFF)

Hong Kong Labour Department

"Good Employer Charter" Certificate (NWS Holdings, HML and

NWFF)

Hong Kong Public Relations Professionals'

Silver Award in the Corporate Social Responsibility category of

Association Limited

the 4th Hong Kong Public Relations Awards 2018 - "Have a

Plastic-Free Day" (NWS Holdings)

Hong Kong Productivity Council

Silver Award in the Enterprise category and Silver Award in the

Volunteer Team category at the 9th Hong Kong Outstanding

Corporate Citizenship Award (NWS Holdings)

Human Resources Magazine

Best Recruitment Evaluation Technique Silver Award in the Asia

Recruitment Awards 2019 (NWS Holdings)

Excellence in Workplace Wellbeing 2019 (NWS Holdings)

Promoting Happiness Index Foundation

"Happiness-at-work" label 2019 (NWS Holdings, HML and NWFF)

Mandatory Provident Fund Schemes

Good MPF Employer Award 2018/19 (NWS Holdings)

Authority

47

NWS Holdings Limited Sustainability Report 2019 | Awards and Memberships

Organiser(s)

Awards and awardee(s)

The China Finance Summit

Best Employer Award 2019 (NWS Holdings)

The Community Investment and Inclusion

Social Capital Builder (SCB) Logo Award 2018 (NWS Holdings,

Fund (CIIF)

HML, NWFF, NWFB and Citybus)

The Green Earth

Green Event Award - "NWS Geo Hero Run 2018" (NWS

Holdings)

The Hong Kong Jockey Club Charities

Age-friendly Facilities Award in Jockey Club Age-friendly City

Trust

Partnership Scheme (NWFB and Citybus)

Age-friendly Collaborator Award in Jockey Club Age-friendly City

Partnership Scheme - "YWCA NWS Y-Care Centre (North

District)" (NWS Holdings)

Jockey Club Age-friendly City Partner (NWS Holdings, NWFB and

Citybus)

World HRD Congress

Award for Best Talent Management Strategy in the HR Talent

Management Leadership Awards 2019 (NWS Holdings)

Award for Continuous Innovation in HR Strategy at Work in

Global Best Employer Brands Award 2019 (NWS Holdings)

Dream Employer of the Year 2019 (NWS Holdings)

UFI, the Global Association of the Exhibition

2019 UFI Sustainable Development Award - "Think Before

Industry

Plastic" (HML)

Bloomberg Businessweek/Chinese Edition

Listed Enterprises of the Year 2018 (NWS Holdings)

Agency For Volunteer Service

Hong Kong Community Volunteers (Corporate Member) The

Highest Service Hour Award Bronze Award (NWS Volunteer

Alliance)

48

NWS Holdings Limited Sustainability Report 2019 | Awards and Memberships

MEMBERSHIPS

Organisation

Level of membership

bSHK (Building SMART Hong Kong)

Corporate member (Hip Hing)

Business Environment Council

Corporate Member

Clear Air Charter

Signatory

Green Event Pledge

Signatory

Employers' Federation of Hong Kong

Corporate Member

Hong Kong Construction Association

Corporate Member (Hip Hing)

Hong Kong Council on Smoking and

Corporate Member (NWFF, NWFB and Citybus)

Health - Smoke-free Drivers Club

Hong Kong Exhibition & Convention

Full Member (HML)

Industry Association

Hong Kong General Chamber of

Full Member

Commerce

Hong Kong Green Building Council

Silver Patron Member (Hip Hing)

Hong Kong Public Relations Professionals'

Corporate Member

Association Limited

Occupational Safety and Health Council

Green Cross Group Member (Hip Hing and NWFF)

Occupational Safety and Health Council -

Signatory (NWFB and Citybus)

Occupational Safety Charter

The Chartered Institute of Logistics and

Organisation Member (NWFF, NWFB and Citybus)

Transport in Hong Kong

The Hong Kong Management Association

Charter Member (HML and Hip Hing)

The International Congress & Convention

Member (HML)

Association

UFI - The Global Association of the

Member (HML)

Exhibition Industry

49

NWS Holdings Limited Sustainability Report 2019 | Awards and Memberships

E N V I R O N M E N TA L P E R F O R M A N C E D ATA S U M M A R Y 1

The Group's Total

Parameter

Unit

FY2019

FY20182

Revenue

HK$'m revenue

22,967

23,123

Revenue3

Air Emissions4, 5

Nitrogen oxide (NOX)

Tonnes

2,604

2,665

Sulphur oxide (SOX)

Tonnes

2.53

2.60

Particulate matter (PM10)

Tonnes

110

111

Energy Consumption6, 7

Purchased electricity

GJ

405,007

352,265

Diesel

GJ

3,969,299

4,051,119

Biodiesel

GJ

199,808

230,990

Unleaded petrol

GJ

12,482

11,946

Towngas8

GJ

23,541

25,294

Liquefied petroleum gas

GJ

551

669

On-site generated renewable energy9

GJ

22

-

Total energy consumption

GJ

4,610,688

4,672,283

(-1%)

Total energy consumption intensity

GJ/

201

202

(-1%)

HK$'m revenue

Greenhouse Gas (GHG) Emissions10, 11

Scope 1 emissions

tCO2e

287,969

295,209

Scope 2 emissions

tCO2e

78,899

70,986

Total GHG emissions (scope 1 & 2)

tCO2e

366,869

366,195

(+0.2%)

Total GHG emissions (scope 1 & 2)

tCO2e/

16

16

(+0.8%)

intensity

HK$'m revenue

Water Consumption12

Municipal Freshwater used

m3

1,274,208

1,165,175

(+9%)

Water intensity

m3/HK$'m revenue

55

50

(+10%)

Waste

Hazardous waste disposed

Chemical waste disposed (liquid)13

Tonnes

627

603

Chemical waste disposed (solid)

Tonnes

62

58

Total chemical waste disposed14

Tonnes

688

66115

(+4%)

Non-hazardous waste

General waste to landfill

Tonnes

56,376

55,665

C&D waste to sorting facility

Tonnes

36,126

42,127

Total non-hazardous waste disposed

Tonnes

92,502

97,792

(-5%)

Materials recycled

C&D waste (to public fill facility)

Tonnes

695,513

782,741

Food Waste

Tonnes

23316

11

Cooking Oil17

Litres

9,442

10,495

Paper

Tonnes

262

323

Plastics Bottles

Kilograms

2,640

1,929

Aluminium Cans

Kilograms

1,327

174

Glass Bottles

Tonnes

35

40

Total materials recycled

Tonnes

696,056

783,12718

(-11%)

50

NWS Holdings Limited Sustainability Report 2019 | Environmental Performance Data Summary

  1. Figures are rounded to whole number, except for figures that are less than 10, which are rounded to two decimal places.
  2. Since NWCON is now a wholly owned subsidiary under NWD, the data in FY2018 was adjusted to enable like-for-like comparison.
  3. Figure denotes only revenues of business units under the reporting scope. Revenue from Hip Hing was discounted using Architectural Services Department (ArchSD) Building Works Tender Price Index, Civil Engineering and Development Department (CEDD) Works Index and Labour Cost index from the Census and Statistics Department, HKSAR for buildings, infrastructure and civil projects respectively. Fare revenue was used for NWFB and Citybus.
  4. Road air emission factors are based on the Hong Kong Environmental Protection Department's (EPD) EMFAC-HK Vehicle Emission Calculation model and the United States Environmental Protection Agency's (USEPA's) Vehicle Emission Modeling Software - MOBILE6.1. Starting from FY2019, marine air emissions are calculated according to the harbour craft emission estimation methodology in the Port of Los Angeles Inventory of Air Emissions 2005 Technical Report . PM emissions refers to respirable suspended particles (PM10).
  5. The FY2018 marine air emissions, NOX and PM10, were restated using the newly adopted methodology as stated in the previous footnote.
  6. Starting from FY2019, energy conversion factors of different fuel types are referenced from Greenhouse Gas Inventory Guidance: Direct Emissions from Stationary Combustion Sources , January 2016, published by USEPA. The FY2018 figure were recalculated using the same set of emission factors for comparisons.
  7. The amount of LPG and electricity consumption in FY2018 by Hangzhou Guoyi were restated.
  8. Each unit of Towngas consumption has a heat value of 48 MJ.
  9. NWFF has grid-connected solar panels installed in the Cheung Sha Wan office's rooftop since September 2018.
  10. Greenhouse Gas (GHG) emissions were calculated based on Guidelines to Account for and Report on Greenhouse Gas Emissions and Removals for Buildings (Commercial, Residential or Institutional Purposes) in Hong Kong, 2010 Edition published by the Environmental
    Protection Department and the Electrical and Mechanical Services Department, which includes CO2, methane (CH4) and nitrous oxide (N2O) of Scope 1 and 2 emissions.
  11. For Hong Kong operations, emission factors (EF) adopted for purchased electricity are 0.8 kgCO2e/kWh and 0.51 kgCO2e/kWh respectively as provided by Power Assets and CLP, subjecting to the location of operation. The EF for Towngas is 0.592 kgCO2e/unit as provided by The Hong Kong and China Gas Company Limited. For China operations, EF adopted for purchased electricity was referenced from 2012
    中國區域電網平均二氧化碳排放因子( kgCO2/kWh : http://www.cec.org.cn/d/file/huanbao/xingyexinxi/qihoubianhua/2014-10-10/5fbcb57bc d163a1059cf224b03b751d8.pdf
  12. Figure excludes water consumption at Corporate Office of NWS Holdings and Free Duty's head office as the amount of water use is not available from the landlord for rental premises. The increase of water use was explained in the "Water Consumption" section under "Environmental Performance".
  13. Chemical waste is handled by qualified third-party contractors as required by regulations.
  14. The weight of chemical waste in liquid is converted using the density figure 1.0kg/litre from the Australian Hazardous Waste Data and Reporting Standard 2017 revision .
  15. The amount of (liquid) chemical waste produced by NWFB and Citybus in FY2018 was restated.
  16. The increase in food waste recycling from HML in FY2019 was due to the opening of O · Park 1, the food waste recycling facility, in June 2018. The composter is no longer in use by HML.
  17. The weight of food processing oil is converted using the density figure 0.918 kg/litre from the Greenhouse Gas MRR Final Rule of the Federal Register/Vol. 74, No. 209/Friday, October 30, 2009/Rules and Regulations Table MM-2 to Subpart MM - Default Factors for Biomass-Based Fuels and Biomass.
  18. The overall reduction of materials recycled was due to the reduced amount of inert C&D materials sent to the public fill facility for reuse. The amount of inert C&D materials generated is subject to the type and stage of construction projects.

51

NWS Holdings Limited Sustainability Report 2019 | Environmental Performance Data Summary

S O C I A L D ATA S U M M A R Y

FY2019

Hong Kong

Hangzhou

Parameter

Unit

Male

Female

Male

Female

Workforce

Total Employees

No. of employees

10,798

By Employment Contract, Gender and Region

Permanent contract

No. of employees

7,315

1,494

372

281

Fixed-term or temporary contract

No. of employees

1,202

134

0

0

By Employment Type, Gender and Region

Full-time

No. of employees

8,310

1,525

372

281

Part-time

No. of employees

207

104

0

0

By Age Group and Region

Under 30 years old

No. of employees

1,312

55

30-50 years old

No. of employees

3,843

529

Above 50 years old

No. of employees

4,990

69

New Hires19

Number of New Hires by Gender and

No. of employees

1,057

263

15

15

Region

Rate of New Hires by Age Group, Gender and Region20

Under 30 years old

%

26

6

33

10

30-50 years old

%

25

9

17

40

Above 50 years old

%

29

5

0

0

Turnover21

Number of Turnover by Gender and

No. of employees

844

284

25

24

Region

Rate of Turnover by Age Group, Gender and Region22

Under 30 years old

%

15

6

10

6

30-50 years old

%

21

12

37

29

Above 50 years old

%

39

8

4

14

Return to Work after Parental Leave

Employees taken parental leave

No. of employees

75

24

12

20

Employees returned after parental leave

No. of employees

72

19

12

19

ended

Return to work rate

%

96

79

100

95

Injury and Lost-time

Fatalities

No. of fatality

123

Fatality rate24

%

0.01

Lost-time injuries (sick leave > 0 day)

No. of case

362

Reportable injuries (sick leave > 3 days)

No. of case

274

Lost-time injury rate (LTIR)25

per 100 employees

2.68

Training and Education

Total training hours by related-topics

Anti-corruption

No. of hours

667

Corporate culture

No. of hours

13,147

Environmental protection

No. of hours

2,483

Occupational health and safety

No. of hours

26,362

Professional development

No. of hours

130,064

52

NWS Holdings Limited Sustainability Report 2019 | Social Data Summary

  1. Number of total new hires covers permanent employees only.
  2. The denominator used to calculate new hires rate is the total number of new hires in the region as of 30 June 2019.
  3. Total turnover refers to permanent employees only, and include both voluntary and involuntary leavers.
  4. The denominator used to calculate turnover rate is the total number of voluntary and involuntary leavers in the region as of 30 June 2019.
  5. In March 2019, a traffic accident involving Citybus resulted in two deaths including a bus captain with more than 10 others injured. Investigation of the accident was conducted and necessary arrangements were made for the deceased. Follow-ups on the condition of the injured passengers are on-going.
  6. The fatality rate is calculated as the total number of fatalities divided by the total employees.
  7. The lost-time injury rate (LTIR) represents the number of injuries per 100 employees per year. It is calculated as the total injuries multiplied by 200,000 and then divided by total hours worked. The factor 200,000 is the annual hours worked by 100 employees, based on 40 hours per week for 50 weeks a year.

53

NWS Holdings Limited Sustainability Report 2019 | Social Data Summary

S E H K E S G R E P O R T I N G G U I D E C O N T E N T I N D E X

The following table indicates the location of or direct response to the disclosures required by SEHK ESG Reporting Guide included in this report and other publicly available NWS Holdings documents.

SEHK ESG Reporting Guide

General Disclosure

and Key Performance

Aspect

Indicators (KPIs)

Section/Remarks

A. Environmental

A1: Emissions

General Disclosure

Environmental Performance

KPI A1.1

Environmental Performance Data Summary

KPI A1.2

Environmental Performance Data Summary

KPI A1.3

Environmental Performance Data Summary

KPI A1.4

Environmental Performance Data Summary

KPI A1.5

Environmental Performance

KPI A1.6

Environmental Performance;

Environmental Performance Data Summary

A2: Use of Resources

General Disclosure

Environmental Performance

KPI A2.1

Environmental Performance Data Summary

KPI A2.2

Environmental Performance Data Summary

KPI A2.3

Environmental Performance

KPI A2.4

Environmental Performance;

Freshwater is sourced municipally and thus not

considered material, yet we strive to conserve water

consumption

KPI A2.5

Packaging material is not applicable in our operations

A3: The Environment and Natural

General Disclosure

Environmental Performance

Resources

KPI A3.1

Environmental Performance

B. Social

Employment and Labour Practices

B1: Employment

General Disclosure

Human Capital

B2: Health and Safety

General Disclosure

Human Capital

B3: Development and Training

General Disclosure

Human Capital

B4: Labour Standards

General Disclosure

Human Capital

Operating Practices

B5: Supply Chain Management

General Disclosure

Value Chain

B6: Product Responsibility

General Disclosure

Value Chain

B7: Anti-corruption

General Disclosure

Corporate Governance

Community

B8: Community Investment

General Disclosure

Community

54

NWS Holdings Limited Sustainability Report 2019 | SEHK ESG Reporting Guide Content Index

G R I S TA N D A R D S C O N T E N T I N D E X

The following table indicates the location of or direct response to GRI Standards disclosures included in this report and other publicly available NWS Holdings documents.

GRI Standards

Disclosure Title

Section/Remarks

GRI 102: General Disclosures 2016

102-1

Name of the organisation

Our Business

102-2

Activities, brands, products, and services

Our Business

102-3

Location of headquarters

Our Business

102-4

Location of operations

Our Business

102-5

Ownership and legal form

Our Business

102-6

Markets served

Our Business

102-7

Scale of the organisation

Our Business;

Environmental Performance Data Summary;

Social Data Summary

102-8

Information on employees and other

Social Data Summary

workers

102-9

Supply chain

Value Chain

102-10

Significant changes to the organisation

No significant changes in supply chain during the

and its supply chain

reporting period

102-11

Precautionary Principle or approach

Corporate Governance

102-12

External initiatives

Our Approach to Sustainability;

Human Capital

102-13

Membership of associations

Awards and Memberships

102-14

Statement from senior decision-maker

CEO Message

102-16

Values, principles, standards, and norms

Our Business;

of behaviour

Corporate Governance;

Our Approach to Sustainability

102-18

Governance structure

Corporate Governance;

Our Approach to Sustainability

102-40

List of stakeholder groups

Stakeholder Engagement and Materiality

102-41

Collective bargaining agreements

Human Capital

102-42

Identifying and selecting stakeholders

Stakeholder Engagement and Materiality

102-43

Approach to stakeholder engagement

Stakeholder Engagement and Materiality

102-44

Key topics and concerns raised

Stakeholder Engagement and Materiality;

Human Capital;

Value Chain;

Environmental Performance

102-45

Entities included in the consolidated

Our Business

financial statements

102-46

Defining report content and topic

Stakeholder Engagement and Materiality

boundaries

102-47

List of material topics

Stakeholder Engagement and Materiality

102-48

Restatements of information

Environmental Performance Data Summary

55

NWS Holdings Limited Sustainability Report 2019 | GRI Standards Content Index

GRI Standards

Disclosure Title

Section/Remarks

102-49

Changes in reporting

About this Report

102-50

Reporting period

About this Report

102-51

Date of most recent report

Our previous report was published

in December 2018

102-52

Reporting cycle

Annually

102-53

Contact point for questions regarding

About this Report

the report

102-54

Claims of reporting in accordance with

About this Report

the GRI Standards

102-55

GRI content index

GRI Standards Content Index

102-56

External assurance

About this Report;

Verification Statement

GRI 201: Economic Performance 2016

103

Management Approach

Our Business;

Corporate Governance;

Stakeholder Engagement and Materiality

201-1

Direct economic value generated and

Our Business;

distributed

Refer to the Reports and Financial Statements

section of our Annual Report 2019

GRI 205: Anti-corruption 2016

103

Management Approach

Corporate Governance;

Stakeholder Engagement and Materiality

205-3

Confirmed incidents of corruption and

Corporate Governance

actions taken

GRI 206: Anti-competitive Behaviour 2016

103

Management Approach

206-1

Legal actions for anti-competitive

behaviour, anti-trust, and monopoly

practices

GRI 302: Energy 2016

103

Management Approach

302-1

Energy consumption within the

organisation

302-3

Energy intensity

302-4

Reduction of energy consumption

GRI 303: Water 2016

103

Management Approach

303-1

Water withdrawal by source

303-2

Water sources significantly affected by

withdrawal of water

Corporate Governance;

Stakeholder Engagement and Materiality

NWS is not involved in any legal actions regarding anti-competitive behaviour during the reporting period

Our Approach to Sustainability; Stakeholder Engagement and Materiality; Environmental Performance

Environmental Performance Data Summary

Environmental Performance Data Summary

Environmental Performance

Environmental Performance

Environmental Performance Data Summary

Freshwater is sourced municipally and thus not considered material, yet we strive to conserve water consumption.

56

NWS Holdings Limited Sustainability Report 2019 | GRI Standards Content Index

GRI Standards

Disclosure Title

Section/Remarks

GRI 305: Emissions 2016

103

Management Approach

305-1

Direct (Scope 1) GHG emissions

305-2

Energy indirect (Scope 2) GHG emissions

305-4

GHG emissions intensity

305-5

Reduction of GHG emissions

305-7

Nitrogen oxides (NOX), sulphur oxides

(SOX), and other significant air emissions

GRI 306: Effluents and Waste 2016

103

Management Approach

306-2

Waste by type and disposal method

GRI 307: Environmental Compliance 2016

Corporate Governance;

Our Approach to Sustainability; Stakeholder Engagement and Materiality; Environmental Performance

Environmental Performance Data Summary

Environmental Performance Data Summary

Environmental Performance Data Summary

Environmental Performance

Environmental Performance Data Summary

Corporate Governance;

Our Approach to Sustainability; Stakeholder Engagement and Materiality; Environmental Performance

Environmental Performance;

Environmental Performance Data Summary

103

Management Approach

Corporate Governance;

Our Approach to Sustainability;

Stakeholder Engagement and Materiality;

Environmental Performance

307-1

Non-compliance with environmental laws

Environmental Performance

and regulations

GRI 401: Employment 2016

103

Management Approach

Corporate Governance;

Our Approach to Sustainability;

Stakeholder Engagement and Materiality;

Human Capital

401-1

New employee hires and employee

Human Capital;

turnover

Social Data Summary

401-3

Parental leave

Social Data Summary

GRI 403: Occupational Health and Safety 2016

103

Management Approach

Corporate Governance;

Our Approach to Sustainability;

Human Capital

403-1

Workers representation in formal joint

Human Capital;

management-worker health and safety

All workers are covered by the management-worker

committees

safety committee at our construction sites

403-2

Types of injury and rates of injury,

Social Data Summary

occupational diseases, lost days, and

absenteeism, and number of fatalities

57

NWS Holdings Limited Sustainability Report 2019 | GRI Standards Content Index

GRI Standards

Disclosure Title

Section/Remarks

GRI 404: Training and Education 2016

103

Management Approach

Corporate Governance;

Our Approach to Sustainability;

Stakeholder Engagement and Materiality;

Human Capital

404-1

Average hours of training per year per

Human Capital

employee

GRI 406: Non-discrimination 2016

103

Management Approach

Corporate Governance;

Stakeholder Engagement and Materiality;

Human Capital

406-1

Incidents of discrimination and corrective

There are no reported incidents of workplace

actions taken

discrimination in FY2019

GRI 413: Local Communities 2016

103

Management Approach

Community

413-1

Operations with local community

Community

engagement, impact assessments, and

development programmes

GRI 416: Customer Health and Safety 2016

103

Management Approach

Corporate Governance;

Stakeholder Engagement and Materiality;

Value Chain

416-1

Assessment of the health and safety

Value Chain

impacts of product and service

categories

GRI 418: Customer Privacy 2016

103

Management Approach

Corporate Governance;

Stakeholder Engagement and Materiality;

Value Chain

418-1

Substantiated complaints concerning

Value Chain

breaches of customer privacy and losses

of customer data

GRI 419: Socioeconomic Compliance 2016

103

Management Approach

419-1

Non-compliance with laws and

regulations in the social and economic

area

Corporate Governance;

Our Approach to Sustainability; Stakeholder Engagement and Materiality; Human Capital;

Value Chain

NWS has not identified any significant non- compliance with laws and/or regulations in the social and economic area.

58

NWS Holdings Limited Sustainability Report 2019 | GRI Standards Content Index

A S S U R A N C E S TAT E M E N T

VERIFICATION STATEMENT

Scope and Objectives

Hong Kong Quality Assurance Agency ("HKQAA") has been commissioned by NWS Holdings Limited ("NWS") to conduct an independent verification of its Sustainability Report 2019 (the "Report") covering the fiscal year from 1st July 2018 to 30th June 2019.

The aim of this verification is to provide a limited assurance of the Report which is prepared in accordance with the Environmental, Social and Governance Reporting Guide ("ESG Reporting Guide") set out in the Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (SEHK), and with reference to the Core option of the Global Reporting Initiative Standards ("GRI Standards").

HKQAA provides independent assurance on the completeness, accuracy and reliability of the data and information stated in the Report through this verification process. The objectives are to:

  • assess whether the scope of the Report covers all significant aspects of NWS Holdings' sustainability performance;
  • verify whether the Report addresses the ESG Reporting Guide and the Core option of the GRI Standards;
  • evaluate whether the selected data and statements presented in the Report are accurate; and
  • review whether the data and information management mechanism for preparing the Report is reliable.

Level of Assurance and Methodology

The process applied in this verification was based on (i) the International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other Than Audits or Reviews of Historical Financial Information and (ii) the International Standard on Assurance Engagements (ISAE) 3410, Assurance Engagements on Greenhouse Gas Statements issued by the International Auditing and Assurance Standards Board. The verification procedure was designed for devising opinions and conclusions to obtain a limited level of assurance. The extent of this verification process undertaken covered the criteria specified in the ESG Reporting Guide and the GRI Standards (Core Option).

The verification procedures included reviewing systems and processes for collecting, collating and reporting of the performance data, verifying relevant documentation, interviewing responsible personnel with accountability for preparing the Report. Raw data and supporting evidence of the selected samples were thoroughly examined during the verification process according to the sampling plan.

Independence

NWS is responsible for the collection and presentation of the information. HKQAA did not involve in the collection and calculation of data or the compilation of the reporting contents where HKQAA's verification activities are entirely independent from NWS.

59

NWS Holdings Limited Sustainability Report 2019 | Assurance Statement

A S S U R A N C E S TAT E M E N T

Conclusion

Based on the verification results, nothing has come to our attention that causes us to believe that the information in the Report is not prepared, in all material aspects, in accordance with the GRI Standards (Core Option) and the ESG Reporting Guide. The data and information provided for verification is regarded as reliable.

Connie Sham

Head of Audit

Hong Kong Quality Assurance Agency

November 2019

60

NWS Holdings Limited Sustainability Report 2019 | Assurance Statement

NWS HOLDINGS LIMITED

(incorporated in Bermuda with limited liability)

28/F New World Tower

18 Queen's Road Central

Central, Hong Kong

Tel

: (852) 2131 0600

Fax

: (852) 2131 0611

E-mail

: nwsnews@nws.com.hk

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NWS Holdings Limited published this content on 18 December 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 December 2019 09:15:08 UTC