TOM : Sustainibility Report 2023

ACCELERATING

OUR SUSTAINABLE

TRANSITION

Sustainability Report 2023

Incorporated in the Cayman Islands with Limited Liability

(Stock Code: 2383)

About TOM Group

TOM Group Limited (stock code: 2383) is a technology and media company listed on the Main Board of the Stock Exchange of Hong Kong. TOM Group has technology operations in Social Network and Mobile Internet; investments in E-Commerce, Fintech and Advanced Data Analytics sectors. In addition, its media businesses cover both publishing and advertising segments. Headquartered in Hong Kong, the Group has regional headquarters in Beijing and Taipei with approximately 1,200 employees. TOM Group is a member of CK Hutchison Holdings Limited.

Contents

P.06-13

About TOM Group

Company Overview 02

Sustainability at a Glance 03

Message from the Chief Executive Officer 04

Our Approach to Sustainability 06

Sustainability Governance 07

Sustainability Policy 09

UN Sustainable Development Goals ("UNSDGs") 11

Materiality Assessment 13

Investing in our People 14

Talent Attraction and Recruitment 15

Employee Health and Safety 17

Development and Retention 19

Workplace Well-being 20

Regulatory Compliance 21

II

Protecting the Environment 22

2025 Targets 23

Operational Eco-efficiency 24

Use of Resources 26

Regulatory Compliance 27

Operating Ethically 28

Business Ethics and Compliance 29

Cybersecurity and Customer Privacy 31

Intellectual Property Protection 34

Supply Chain Management 34

Regulatory Compliance 35

Serving the Community 36

About this Report 39

Key Performance Data 40

Environmental Data 40

Social Data 41

Hong Kong Stock Exchange 43 ESG Guide Content Index

Company Overview

Sustainability at a Glance

of TOM Group Limited and its subsidiaries ("Group" or "TOM Group")

Sustainability Governance

◉ Conducted two Sustainability Committee meetings to discuss the development and implementation of our sustainability-related matters.

◉

Received positive feedback from the Sustainability Governance and Management Assessment Questionnaires, highlighting the Group's exceptional governance and robust processes in managing sustainability issues and risks.

Protecting the Environment

◉ Achieved a 23% year-on-year Scope 1 emissions reduction as part of our effort to protect the environment.

◉

On track to achieving our 2025 environmental targets as a demonstration of our long-term ambition.

Serving the Community

◉ Organised the "New Chapter of Net Zero"

conference to facilitate the discussion of sustainability reports and the development of disclosure practices.

◉

Initiated the "Read for Love" charity event to support and advocate for children affected by rare diseases.

Our primary objectives include optimising resource usage, and collaborating with business associates and supply-chain partners when applicable. We adhere to environmental laws both locally and globally, while actively pursuing the UNSDGs, focusing on the environment, people, business, and community.

I am pleased to present the third standalone Sustainability Report ofTOM Group as a timely assessment of our ongoing efforts to decarbonise our operational footprint in accordance with our overarching objectives.Through this publication, we aim to reacquaint readers with our sustainability vision, placing emphasis on the strategies that will expedite our transition to becoming an increasingly sustainable organisation.

This report delivers updates on the Group's commitment and recent initiatives, leveraging our influence as a prominent technology and media company to inspire stakeholders- business partners, customers, employees, and community members-to join the sustainability cause. It also emphasises our deepening role as a caring employer in the Greater China region.

Facing climate's urgent reality

Climate action is of increasing urgency as the world faces a pivotal moment in sustainability. Operating in Greater China, we have witnessed firsthand the recent threats posed by extreme weather, impacting lives, properties, and our living environment through unprecedented floods and erratic weather patterns-symptomatic of the broader impact of global climate change. From experiencing warmer winters in Taiwan following the El Nino phenomenon, to China marking its hottest year on record in 2023, and witnessing the ferocious rainstorm in Hong Kong during the same year, it's becoming clear in Asia how susceptible we are to the worsening effects of climate change. In this veiw, TOM Group

Message from the Chief Executive Officer

is committed to consistent action, progressively enhancing and fine-tuning our policies and programs to address multiple facets of this challenge.

Mitigating greenhouse gas emissions

I strongly urge individuals and organisations to embrace the reduction of greenhouse gas emissions, a significant contributor to global climate change. I am pleased to announce that the Group has accomplished a notable year-on-year reduction of 23% in our Scope 1 emissions for 2023. Given that our data centres account for over 72% of our total energy consumption, our sustainable initiatives are focused on enhancing the energy efficiency of these facilities and their equipment. Overall, we are on course to meet our 2025 environmental targets, reaffirming our unwavering commitment to sustainability.

As a media publisher, we have adopted both electronic and traditional paper publications that are complementary to each other in our offerings. Reducing of the prevalence of paper publications will help mitigate the adverse environmental impact of paper usage, which often involves logging and deforestation. Beyond digital publishing, we are consistently taking measures to minimise the use of virgin plastic in packaging materials for our books and magazines.

Sustainability management and adaptation

The Sustainability Committee, a subgroup chaired by myself within the Group, provides expertise on supply chain, sustainability, and the oversight of this report.We are adaptable to evolving needs and circumstances, prepared to modify our green strategies, policies, and initiatives. Our primary objectives include optimising resource usage, and collaborating with business associates and supply-chain partners when applicable.We adhere to environmental laws both locally and globally, while actively pursuing the UNSDGs, focusing on the environment, people, business, and community. Sustainability is ingrained in all aspects of our daily operations, including investment decisions. Notably, we've invested in MioTech, an AI platform aligning with our sustainability principles. MioTech addresses sustainability challenges, including climate change, carbon emissions reduction, and social responsibility, benefiting financial institutions, corporations, governments, and its other customers. Its contributions extend to ESG reporting, energy efficiency enhancement, and carbon emissions monitoring, empowering informed choices in green finance and responsible investments.

People-Centred Inclusivity

At TOM Group, our commitment to people-centred inclusivity is paramount.We prioritise developing and retaining an engaged and resilient workforce, recognising their integral role in our sustainable growth and ESG priorities.Through strategic investments in professional and personal development, including future-ready skills training, we empower our team.

Our dedication to inclusivity extends beyond the professional realm, fostering a workplace culture that values diversity and inclusion. We actively seek diverse perspectives, believing it enriches our collective capabilities. Initiatives implemented by the Group ensure our stakeholders feel heard, valued, and empowered to contribute their best. Employee well-being is equally a priority, supported by comprehensive wellness programs and work-life balance initiatives.

Our diverse and dynamic workforce, coupled with a positive mindset, is vital to our enduring success.The Group's above-average female representation at the Board level, management level, and overall workforce reflects our commitment to gender diversity.We encourage inclusion through idea-sharing and feedback mechanism. Gender diversity is embedded in our recruitment practices, ensuring equal opportunities in training and career development. Championing a people-centric approach fortifies our workforce and lays the foundation for sustained success and innovation.

Conclusion

Let me extend heartfelt gratitude to your unwavering support of the Group's vision, commitment, and sustainability endeavours. Achieving emissions reduction demands dedication and collaboration from every individual.Together as a force for change, I am confident that we can address the sustainability challenges ahead and shape a positive future for our community across generations.

Yeung Kwok Mung Chief Executive Officer/

Chairman of Sustainability Committee Hong Kong, 8 March 2024

OUR APPROACH

TO SUSTAINABILITY

Sustainability plays a vital role in generating enduring value for our Company and society.The Group firmly believes that businesses should no longer distinguish between benefiting the planet and excelling in their operations, as driving positive change in the world helps cultivate sustainable value in our business operation.

TOM Group is committed to incorporating sustainability and corporate responsibility into every aspect of our business.This commitment is reflected in the comprehensive set of policies, guidelines, practices and benchmarks we have developed, along with our consistent integration of sustainability principles into our daily operations and business decisions.The Sustainability Committee of the Group, comprised of highly skilled professionals in their respective fields and led by the CEO, develops comprehensive strategies to fulfil our sustainability responsibilities, oversees their execution and holds itself accountable for the outcomes.

The Group has adopted a practical, proactive and outcome-focused approach to our business operation. By aligning our sustainability policies with the UNSDGs resonating with our sustainability cause, we dedicate our efforts to areas where we can make the most significant economic, social, and environmental contributions.

Our sustainability strategy is anchored in four critical areas of focus - The Business,The People,The Community andThe Environment.These areas serve as guiding principles for the Group's business operations as we adapt to the ever-changing sustainability landscape.

Sustainability Governance

The Group firmly believes that robust governance is essential for effectively implementing our Group's overarchingdirection and strategy towards sustainability. Under our top-down sustainability governance structure, the Group's Sustainability Committee reports to the Board of Directors, chaired by Executive Director and Chief Executive Officer Mr.Yeung Kwok Mung and comprising Independent Non-Executive Director Dr. Fong Chi Wai, Alex and the Chief Financial Officer and Company Secretary Mr. ManTak Cheung.At the Group's highest level, the board oversees policy coordination and execution.

The Group's Sustainability Committee holds the following responsibilities:

• • To propose and recommend to the board on the Group's corporate social responsibility and sustainability objectives, strategies, priorities, initiatives and goals;

• • To oversee, review and evaluate actions taken by the Group in furtherance of the corporate social responsibility and sustainability priorities and goals, including coordinating with the business divisions of the Group and ensuring that their operations and practices adhere to the relevant priorities and goals;

• • To review and report to the board on sustainability risks and opportunities;

• • To monitor and review emerging corporate social responsibility and sustainability issues and trends that could impact the business operations and performance of the Group;

• • To oversee and review the Group's corporate social responsibility and sustainability policies, practices, frameworks and management approach, and to recommend improvements;

• • To consider the impact of the Company's corporate social responsibility and sustainability initiatives on its stakeholders, including employees, shareholders, local communities and the environment;

• • To review and advise the Board on the Company's public communication, disclosure and publications (including the Sustainability Report) as regards its corporate social responsibility and sustainability performance.

Please refer to the Terms of Reference of the Sustainability Committee for details.

For the year ended 31 December 2023, the Sustainability Committee conducted two meetings to discuss the development and implementation of the Group's sustainability-related matters, such as review of sustainability-related policies, target settings and understanding of the key ESG trends. Below is a summary of the work performed by the Sustainability Committee during the reporting period.

Sustainability-related work performed March September

Overseeing and reviewing the Group's corporate social responsibilities towards stakeholders, including its employees, shareholders, local communities and the environment

Reviewing and reporting to the Board on sustainability risks and opportunity facing the Group

Monitoring and reporting KPI updates on sustainability target

Reviewing the Group's sustainability-related policies

Tabulated below are the responsibilities of our Sustainability Committee:

Responsibilities:

• • Oversee the functioning of the Company's Sustainability Committee;

• • Examine and approve the Company's sustainability objectives, strategies, priorities, initiatives and goals, targets as well as the related significant policies and framework.

Responsibilities:

• • Oversee, review and evaluate actions taken by the Company with regard to its corporate social responsibility as well as sustainability priorities and goals;

• • Evaluate the impact of the Company's corporate social responsibility and sustainability on its stakeholders, including employees, shareholders, local communities and the environment;

• • Review and report to the

  Board on sustainability risks and opportunities.

Responsibilities:

• • Identify operation-specific sustainability-related risks and opportunities;

• • Monitor and track progress against agreed targets and initiatives;

• • Provide feedback to the Sustainability Committee on sustainability-related performance and progress.

During the review period, the Group, through the Sustainability Governance and Management Assessment Questionnaire, collects feedback from our diverse sub-groups and business units regarding their sustainability concerns and risks encountered within our core operations. Biannually, all our core business units are required to identify and assess the risks they face, and the relevant control measures implemented to manage these risks. Our Sustainability Committee reviews the outcomes of such self-assessment and then reports to the Board.The feedback received to date has been positive, highlighting the exceptional level of governance and robust processes and systems to proactively manage material sustainability issues and risks across our business operations.