In accordance with the requirements set forth in Appendix 27-Environmental, Social and Governance Reporting Guide (the “ESG Guide”) of the Listing Rules, the Group hereby presents the Environmental, Social and Governance report for the year ended 31 December 2018, covering the Group’s principal business and operations in Macau as well as its headquarter in Hong Kong.
The Board is responsible for the Group’s Environmental, Social and Governance (“ESG”) strategy and reporting including evaluating and determining ESG-related risks and ensuring that appropriate and effective ESG risk management and internal control systems are in place. The Group has engaged the management and staff of the Group across the Group’s key subsidiaries and functions to review their operations to identify relevant ESG issues to the Group. ESG issues which are considered as material to the Group’ as well as to the internal key stakeholders are included in this ESG report.
The Group has established environmental policies for the Group’s employees which covered the material environmental issues including emissions, use of resources and other environmental impact as described in the sections below. The Group also comply with relevant environmental laws and regulations and did not note any cases of material non-compliance during the year ended 31 December 2017.
Since the Group is principally engaged in the provision of casino management services as well as the development, sale and leasing of electronic gaming equipment and system, no significant pollutants or hazardous wastes are discharged into the air or water due to its business nature. The Group’s carbon emissions are also mainly generated from the use of energy.
The main source of the Group’s carbon emissions is the use of energy. The Group has developed various energy-saving initiatives to reduce its energy emissions. Please refer to the section headed “Use of Resources” below for further details.
The Group is also aware of the carbon footprint produced by business travels although the amount is not significant. As part of the Group’s green policy, staff are encouraged to reduce business travel as possible. Telephone conference facilities are installed in the offices and some meetings by means of telephone conference have been conducted in lieu of physical conferences. In turn, physical travels have been minimised, and so as carbon emissions.
Waste generated from the Group’s operation mainly consists of paper (e.g. consumption of paper in office). In order to reduce waste, the Group advocates the policy “Reduce, Reuse and Recycle”, and encourages its staff to reduce paper usage and recycle paper where possible. For example, the use of recycled papers and double-sided printing and photo-copying are adopted. Moreover, waste toners are recycled. On the other hand, in order to reduce waste plastic bottles (from bottled distilled water to casino players), there are water bars in the Group’s casinos where hot water, distilled water dispenser and metallic cups are provided to casino players. Since the adoption of water bars, waste plastic bottles have been reduced drastically.
A2 Use of Resources
To reduce the Group’s negative impact on the environment, the Group sets the policy for effective use of resources in order to protect the environment and make its operation more cost-efficient. The Group has implemented green office practices in order to minimise the use of resources like papers, electricity and water wherever possible. The Group’s current green measures include double-sided printing, the use of energy-saving lightings such as LED, and reducing energy consumption by switching off idle lightings, computers and electrical appliances, etc. Collection boxes have been put in place to collect single-side used papers for reuse as draft papers and other scrap papers for recycling. In order to reduce consumption of water, there are water bars in the Group’s casinos where hot water, distilled water dispenser and metallic cups are provided to casino players. Under such arrangement, water is consumed by patrons on an as-needed basis, as opposed to constraining patrons to take bottled water which may be beyond their needs. Since the adoption of water bars, consumption of water has been reduced drastically.
A3 The Environment and Natural Resources
The Group recognises the responsibility in managing the Group’s impact on the environment. The Group shall assess the environmental risks of the Group’s operations, and ensure the Group’s compliance with relevant laws and regulations regularly.
Indoor Air Quality
In order to improve quality of air in the office and casinos, air-refreshers are in place. Moreover, in order to improve the quality of air in the Group’s casinos, smoking lounges are set up in the casinos.
Employees are the greatest asset of the Group. The Group strives to attract, recruit, retain and train its employees. Employee handbooks have been established, with sets of policies to govern employees’ affairs such as payroll, attendance, termination and rules of conduct. The Group’s office in Hong Kong and Macau are in compliance with the relevant labour laws and regulations in Hong Kong and Macau, respectively.
The Group recognises the importance of maintaining a stable staff force for its continued success. Staff remuneration is determined by reference to personal qualifications, performance, relevant experience, responsibilities and market trends. Discretionary bonuses are granted to employees based on merit and in accordance with industry practice. Other benefits including share options, subsidised medical care, pension funds and sponsorship for external education and training programmes are offered to employees.
The Group respects cultural diversity and is committed to providing a working environment which is free from all forms of discrimination (i.e. age, religion, gender, pregnancy, marital status, disability, family status and race). Therefore, any employee dismissal due to discrimination or unlawful reasons is forbidden in the Group. Besides, opportunities for hiring, training and promotion are equal and open to all qualified candidates or employees and the Group has developed a systematic and objective evaluation mechanism to assess their performance based on qualifications, work experience, skills and abilities.
The Group strives to maintain the work-life balance of its employees by establishing fair and reasonable working hours and leave policy to ensure employees have sufficient time for rest and leisure.
The Group did not note any cases of material non-compliance regarding the Group’s labour practices during the year ended 31 December 2017.
B2 Health and Safety
The Group strives to provide a safe working environment for all employees. Auxiliary facilities and protective equipment are provided to the employees in order to reduce the possibilities of injury.
Training courses on fire extinguishing and escape exercises are held regularly. All cases of injury are required to be reported to the head office for assessment of the cause of injury, consideration of corresponding preventive measures and to ensure proper handling of the cases in compliance with relevant regulations.
The Group did not note any cases of material non-compliance in relation to health and safety laws and regulations during the year ended 31 December 2017.
B3 Development and Training
The Group strives to improve employee’s knowledge and skills for discharging their duties at work and to make them valuable assets to the Group. For this reason, vocational training courses are provided to the employees. The Group also sponsors the employees for external training courses.
B4 Labour Standards
Anti-Child and Forced Labour
The Group strictly prohibits the use of child and forced labour in the Group’s operations or activities.
The Group’s operations strictly comply with local labour laws and regulations. Forcing labour to work by means of physical punishment, abuse, involuntary servitude, peonage or trafficking is strictly forbidden.
Employment of any person who is under the age as set forth by the local labour law is prohibited. The
Group formally requires all job applicants to present their identity cards when they attend recruitment interviews.
The Group did not note any cases of material non-compliance with laws and regulations in relation to labour standards during the year ended 31 December 2017.
B5 Supply Chain Management
The Group promotes green and environmental friendly procurement in its operations. Suppliers using recycled materials and products made of recycled material are preferred, in order to mitigate the amount of waste produced. The suppliers are encouraged to align their ESG policies with that of the
Group, including but not limited to:
– Provision of safe working environment;
– Prohibition of child and forced labour; and
– Fair wages and fair working environment without discrimination.
B6 Product Responsibility
Safety and Quality of Food
The Group operates staff canteens and restaurants serving the Group’s employees, and casino patrons and other customers respectively. The Group believes that in order to operate its canteens and restaurants successfully, it is required to ensure that food being served there are safe for consumption and are of high quality. Therefore, the Group have implemented a series of food safety controls including but not limited to:
– All food materials are purchased from licensed suppliers and their food sources can be traced;
– All restaurants, canteens, food equipment and utensils are properly sanitised before use; and
– All food handlers are trained on food safety and personal hygiene before they perform their job duties.
Apart from the internal food safety controls, the Group’s restaurants and canteens are also regularly inspected by the relevant authorities according to regulatory standards. The Group did not note any material incidents in relation to food safety during the year ended 31 December 2017.
As a group engaged in the provision of casino management services, the Group is committed to promoting responsible gaming. Notice boards and posters are in place to improve the awareness of problem gambling among the Group’s employees and to prevent problem gambling among the casino players.
The Group understands the importance of data privacy. The Group is committed to protecting the privacy of its customers in the collection, processing and use of their personal data. The Group has adopted policies on consumer data protection in compliance with relevant laws and regulations. Training courses on data privacy and protection of data have been conducted. The Group did not note any cases of material non-compliance in relation to data privacy during the year ended 31 December 2017.
The Group believes that honesty, integrity and fairness are of vital importance to its business operations. The Group does not tolerate corruption, bribery, money-laundering and other fraudulent activities in its operations. All employees of the Group are expected to observe the highest standards of ethical, personal and professional conduct.
Training on anti-money laundering, anti-bribery and anti-corruption are provided to employees.
Moreover, there are whistle-blowing procedures stated in the staff handbook which provides a private communication channel to all staff to report suspicious fraudulent actions to the Group’s management directly. Review of the effectiveness of the internal control systems is also conducted on a regular basis for prevention of corruption. During the year ended 31 December 2018, the Group did not note any cases of material noncompliance with laws and regulations on money laundering or corruption.
B8 Community Investment
The Group demonstrates its care for society by giving back to the community. The Group strives to enhance the community’s well-being and social services. The Group has sponsored various social and cultural activities. Moreover, the Group has set up a showroom known as “Street Steel-Heavy Metal Bike Gallery Macau” in Casino Kam Pek Paradise in Macau with more than 20 collectable and luxury motorbikes, which is free for public visit.