Annual Report 2022

82 China Merchants China Direct Investments Limited Annual Report 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED) ENVIRONMENTAL PROTECTION (CONTINUED) Environmental Impact Management (continued) Water Consumption The Company and Investment Manager operate in a sub-leased office, and the source of water and its supply are controlled and managed by the office’s management. Therefore, there is no designated water meter to monitor the water usage of the office of operations. We fully understand that water is very precious and measures are necessary to be taken to keep the consumption of water to minimal. For example, to emphasise the importance of cultivating employees’ awareness and habits of water conservation, we constantly encourage employees to develop good habit of conserving all types of resources including water in order to reasonably avoid water wastage. The water source is from Hong Kong Water Supply Department and it poses no sourcing and issues or risks to our operations. The Company and the Investment Manager have set the following target: Target 6 To consider the water conservation policy and measures adopted by the buildings as one of the selection criteria for new rental offices by 2025. We would consider a number of factors when selecting new rental offices; for example, whether the landlord has been: ‧ implementing efficient water system design with a smart function of leakage detection; ‧ collecting used water for cooling purposes, floor cleaning and yard washing; and ‧ turning off the water supply system at night and on holidays. During the Reporting period, we continue to consider the water conservation policy in place for selection of new rental offices to attain Target 6. Climate Change Climate change has gradually become a global concerning issue in recent years. The Company recognises that these risks may have impacts on the Company’s investment returns. Such risks should be timely identified, and measures should be established in order to mitigate these climate-related risks caused by extreme weather conditions. The Company has established its climate change policy to provide guidelines for the Company and the Investment Manager to identify and mitigate these risks and potential impacts to the Company and its shareholders. Moreover, the climate change policy also provides guidance to climate risks identification, mitigation and adaptation to help build resilience to these potential climate events, which can help the management to prevent and cope with the impacts from extreme weather.