Annual Report 2022

81 China Merchants China Direct Investments Limited Annual Report 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED) ENVIRONMENTAL PROTECTION (CONTINUED) Energy Consumption (continued) Greenhouse gas emissions Due to the fact that the majority of business activities of the Company and the Investment Manager are performed in an office environment, there is no generation of scope 1 direct greenhouse gas emissions (GHG). For scope 2 indirect GHG emissions, they are attributed to electricity consumption of electrical appliances, lighting and air- conditioning. The scope 3 other indirect GHG emissions are mainly attributed to paper consumed. The Company and the Investment Manager consider the amount of these emissions are insignificant due to the business nature. Despite the above mentioned, the Company and the Investment Manager have set the following target: Target 5 To consider the ESG performance of potential investments during the investment evaluation process, as a regular practice. The Investment Manager is responsible for adopting the following measures to realise the goals: ‧ incorporating ESG performance as one of the key performance indicators (KPIs) when making any investment decisions; and ‧ requiring the investment team to consider whether there are significant non-compliance ESG issues happened with the proposed investment projects and to report such issues in the investment proposals. During the Reporting Period, all the new investment proposals indicated that no significant non-compliance ESG issues have been identified. Therefore, we consider that we have achieved Target 5 during the Reporting Period. Environmental Impact Management The Company and the Investment Manager aim to reduce our footprint on the environment and natural resources. An environmental management system has been founded and is carried out along with the “Green Office Guideline” that is included in the induction package, offering useful sustainable office tips for employees and the management to adapt in and out of the office environment. The ESG Taskforce is in charge of promoting and updating the guideline. Given the business nature of the Company and the Investment Manager, we have not been aware that there is any significant impact from our business operations on the environment, natural resources and climate change. Nevertheless, the Company and the Investment Manager will try to minimise the impacts we have on the environment to a reasonable extent. An example is to considering environmental friendliness as one of our criteria when making procurement decision.