Annual Report 2025

51 2025 Annual Report Transport International Holdings Limited About the Report Caring for the Environment Caring for Customers Caring for Employees Caring for the Community Performance Statistics Reporting Content Index Table Safety First Our Vision and Strategy To ensure our business remains resilient to climate change, we assess its potential impact on different business units and develop plans to mitigate and adapt accordingly. As we refine our business strategy, the Group recognises that sustainable development is crucial to long-term success. The Group has identified physical, sustainability-related and transition risks, such as more frequent extreme weather events, regulatory changes and shifts in customer demand, which may affect our operations to varying degrees. By identifying and effectively managing the financial risks and opportunities associated with climate change, the Group acknowledges the growth potential that comes with transitioning towards a low-carbon economy. As such, to align with the National 15 th Five-Year Plan and the emissions reduction target of the Hong Kong SAR Government, the Group has determined a clear roadmap for upgrading its whole fleet with new energy buses. In addition, we have set six environmental targets for key performance indicators over a three-year period, starting in the financial year (“FY”) 2021. Using FY2019 as the baseline, we plan to reduce both carbon and energy intensity, including the carbon footprints of buses, as well as oil, electricity and water consumption. We are pleased to announce that both KMB and LWB have reached positive results in all six environmental targets by 2023. The Board has already established new environmental targets for the period from FY2024 to FY2028. We have maintained consistency in our targets by using FY2019 as the baseline year once again. Additionally, we have expanded the scope of our assessment to cover key business segments, including Hong Kong Franchised Public Bus Operations, Hong Kong Non-franchised Transport Operations, and Property Holdings and Development. Six revised environmental targets have been introduced to 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), and metal waste (non-hazardous). More details are provided on page 64. Risk Management Sustainability-related risks have been incorporated into the Group’s Enterprise Risk Management System, utilising a systematic approach and consistent risk assessment criteria to identify and manage risks. Accurate risk information is provided to Management to assist them in decision-making and risk control without compromising cost-effectiveness and efficiency. A Key Risk Indicator Report (“KRI Report”) summarising the Group’s major risks as identified by Management is submitted to the Audit and Risk Management Committee three times a year. The KRI Report provides a comprehensive overview of major risks and outlines the established mechanisms for monitoring them. For further details on our corporate governance, please refer to pages 124 to 147 of our 2025 Annual Report. Stakeholder Engagement and Materiality Assessment Stakeholder engagement exercises and materiality assessments provide a solid basis for developing our sustainability report. These exercises help identify the sustainability topics that are most relevant to both our operations and stakeholders. Our stakeholders include passengers, employees, suppliers, contractors, legislative councillors, district councillors, transport advisory bodies, interest groups and the government. We have established several engagement programmes to gauge their views on our operations and services. Dialogues with stakeholders are conducted through various channels, including the chatbot platform on the KMB and LWB websites and APP1933, KMB’s social media channels, corporate publications, as well as face-to-face meetings and media networking. Through engagement exercises, such as annual passenger liaison group meetings and interviews with representatives from various interest groups, we have identified stakeholder concerns and incorporated them into our sustainability strategies. The latest Annual Report of TIH contains more information about the Group, including details on corporate governance and financial performance. If you have any comments regarding the Report, please contact us at kowloonbus.cus@kmb.hk.