Annual Report 2024

62 2024 Annual Report Transport International Holdings Limited SUSTAINABILITY REPORT Our Environmental Targets In 2023, TIH appointed an external consultant to review the environmental performance of the Group. Tomove forward, the Board has already established new Environmental Targets for the period from FY2024 to FY2028. We have ensured consistency in our targets by once again using FY2019 as the baseline year. Additionally, we have expanded the scope to include Hong Kong Franchised Public Bus Operations, Hong Kong Non-franchised Transport Operations and Property Holdings and Development, incorporating six modified environmental targets that specifically address diesel consumption (Scope 1), electricity consumption (related to property/real estate operations only) (Scope 2), GHG emissions (Scopes 1 & 2), Water consumption, solid chemical waste (hazardous), andmetal waste (non-hazardous). The environmental targets for key performance indicators in FY2024 yielded an overall positive result. The Company will monitor all aspects of its operations and implement effective measures to control energy consumption and reduce waste, minimising greenhouse gas emissions in both Scopes 1 & 2. Safety has always been the Group’s top priority. To uphold high safety standards in our public transportation services, the Group has implemented various measures, including the adoption of technology to monitor the performance of bus systems and components, and timely replacement of bus parts to minimise the risk of mechanical failures, all of which are aimed at ensuring driving safety across both our franchised and non-franchised bus operations. A key indicator of our safety performance is mechanical reliability — measured as the average distance a bus operates before experiencing a breakdown with passengers onboard. This metric improved dramatically from 74,914 km:1 in 2019 to 187,932 km:1 in 2024. We achieved this substantial improvement by implementing Diesel Consumption (Scope 1) Water Consumption Electricity Consumption (Related to Property/Real Estate Operations only) (Scope 2) GJ/million km (Intensity) -13 % m 3 /no. of buses (Intensity) -34 % kWh/m 2 (Intensity) -35 % Mechanical Reliability - KMB & LWB 35,000 70,000 105,000 140,000 175,000 210,000 0 2024 2020 2019 2021 2022 2023 Note: Mechanical reliability refers to the average number of kilometres a bus operates before it experiences one mechanical breakdown on the road with passengers on board. more frequent and comprehensive maintenance protocols, including the proactive replacement of metal components before they reached failure thresholds. While these essential safety improvements have delivered excellent results, they have inevitably led to an increase in metal waste. Additionally, the adjustment of our electric vehicle deployment plan to align with the Government’s policy, further contributed to the rise in metal waste during FY2024. Furthermore, our service level and operating kilometres have reduced compared to FY2019 due to post-pandemic changes in people’s travel patterns together with the expansion of the railway network. The ESG Task Force is reviewing our environmental targets and sustainability performance in operations, maintenance work and procurement, while also implementing upcycling programmes with an aim to achieve our environmental targets. Environmental Targets for Key Performance Indicators by FY2028 (Baseline: FY2019) GHG Emissions (Scopes 1 & 2) tCO 2 e (Absolute) -11 % tCO 2 e/million km (Intensity) -13 % Progress by FY2024: -5% Progress by FY2024: -49% Progress by FY2024: -30% Progress by FY2024: -11% Progress by FY2024: -6% Metal Waste (Non-hazardous) kg/million km (Intensity) -7 % Progress by FY2024: 29% Solid Chemical Waste (Hazardous) kg/million km (Intensity) -13 % Progress by FY2024: -6%