Interim Report 2023

Management Discussion and Analysis 18 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED EMPLOYEES AND REMUNERATION As at 30 June 2023, the Group employed 8,407 fulltime staff, of which 159 worked in Hong Kong, 5,248 worked in Mainland China, and the remaining 3,000 worked overseas. The remuneration paid by the Group during the period amounted to HK$1,036 million, representing 27.1% of the total operating expenses of the Group. During the first half of 2023, the Group addressed the challenges brought by various uncertainties in an active manner. In order to achieve high-quality development and to become a global leading comprehensive port service provider, the Group adhered to the people-oriented philosophy and implemented numerous measures simultaneously, generating new vitality and enhancing new momentum. The Group implemented a market-based talent selection and employment mechanism, and established a hierarchical, categorized, and market-based open recruitment mechanism, ensuring that the process was fair, open and impartial. By exploring the internal talent market operation mechanism, the Group revitalized the internal talent resources, and broadened the talent cultivation and development path. The Group insisted on meritocracy and performance oriented, in order to deepen the tenure system and contract-based management for each level of the management personnel, thus realizing the full coverage of the system, rigorous examination and solid commitment. The Group enhanced the exchange offered through job rotation, especially the cultivation and appointment of outstanding young leaders. The Group also focused on the internationalized talents and sorted out the key overseas positions and key talents in order to implement specific cultivation and precise motivation. The Group strengthened the steering effect of remuneration incentive, which was implemented with benchmarking of business performance and remuneration, attached equal importance to incentives and restraints, strengthening the analysis on human resources efficiency and optimizing the resources allocation, thereby implementing the “rigorous motivation and rigid constraints” that enable the income can be adjusted upward and downward. The Group continuously promoted the establishment of motivation mechanism, integrating both short-term motivation and mid- to long-term motivation, and exploring the establishment of technological innovated talent motivation mechanism, thus forming a mechanism of sharing both interests and risks by shareholders, employees and the Group. SUSTAINABLE DEVELOPMENT In response to the nation’s call for green and sustainable development, the Group has set its goal of “building a world’s leading green and smart port with high quality”. The Group also undertook the corporate responsibilities towards stakeholders such as shareholders, employees and business partners, and to propel both the enterprises and the society towards the sustainable development together. F i r s t , t he Gr oup s t r eng t hened t he env i r onmen t a l management. The Group actively responded to the national “3060” dual carbon target (that is, “carbon peak” and “carbon neutrality”), and the development strategy of low- carbon transformation, in which works on conserving energy, reducing emission and addressing climate change were carried out properly in terminal construction, production and operation at domestic and overseas. In the meantime, the Group strengthened the resource conservation and ecological protection and management, in an attempt to minimize the effect of business operation on the environment and natural resources. On energy conservation and emission reduction front, the Group commenced projects like “Shore-Powered Supply for Vessels”, “New Energy Truck”, “Electrification of RTG” and “Energy-saving Lighting Renovation” in an active manner. While on the front on addressing climate risk, the Group progressively considered to incorporate risks arising from climate changes into the internal general risk assessment and management systems and strengthened the measures for addressing climate risks through setting up indicators, goals and transformation plans related to dual-carbon targets. On the front of conserving resources, the Group incorporated the rationale of resources conservation into its daily operation from the perspectives of water saving, electricity saving