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  • Philosophy of Sustainability
  • Sustainability Strategy
  • Sustainability Policies
  • Sustainability Governance Structure
  • Sustainability Risk Management
  • Stakeholder Engagement
  • Materiality Assessment

SUSTAINABILITY MANAGEMENT

PHILOSOPHY OF SUSTAINABILITY

Promoting green civilization, upholding sustainable development, and pursuing harmonious development between corporate growth, production, life, and ecological development.

SUSTAINABILITY STRATEGY

To realise our corporate vision of building a sustainable environment and enhancing the well-being of our stakeholders, we have our sustainability strategy that focuses on five key pillars. For each pillar, we have identified different key focus areas, which show our support for the United Nations Sustainable Development Goals (UNSDGs).


SUSTAINABILITY POLICIES

The Group has always been building a better society with innovative thinking and sustainable development ideas. We are committed to integrating innovation and sustainable development into our business, promoting a green business culture, and fulfilling our due environmental and social responsibilities. While we create long-term value for shareholders, we strive to foster harmonious development of both corporate and ecology.

We are committed to:

  • Health and Safety

    Continue strengthening safety management, training and risk controls to protect the occupational health and safety of our staff.

  • Environmental Protection

    Promote resource efficiency and emissions reduction, and foster green building development and lower-carbon operations.

  • Employment Management

    Foster a fair, inclusive and safe workplace that supports employee development and wellbeing.

  • Supply Chain Oversight

    Embed sustainability considerations into supplier management and work with partners to deliver ESG responsibilities.

  • Product Responsibility

    Enhance the quality, safety and reliability of our products and services, and leverage innovation to respond to client and market demand.

  • Anti-Corruption

    Uphold ethical business principles and strengthen controls to prevent bribery, corruption and misconduct.

  • Privacy and Information Security

    Establish robust information and cyber security management measures to safeguard data privacy and information security.

Detailed sustainable development and other related policies can be downloaded for reference




SUSTAINABILITY GOVERNANCE STRUCTURE

The Board serves as the highest decision-making and supervisory body for the Group's sustainability matters, responsible for providing strategic direction, reviewing strategies and objectives for material issues. The Group ensures that Board members possess the necessary expertise and competencies through the following measures:

• Formulate and implement the Board Diversity Policy, which considers factors such as gender, age, cultural background, educational qualification, experience, knowledge and length of service when nominating Board members, with the Nomination Committee overseeing the implementation of this policy;

• Provide annual sustainability-related training for Board members, covering topics such as latest sustainability trends, disclosure standards and regulatory developments, industry best practices in climate risk and opportunity management, and green finance, etc;

• Engage external experts and consultants when necessary to provide professional advice and guidance to the Board, ensuring scientific rigor and forward-looking perspectives in decision-making.

The Group's Sustainability Committee, appointed by the Board, is chaired by the Executive Director and Chief Financial Officer, with members including the Executive Director and Chief Executive Officer, as well as three Independent Non-executive Directors. The Committee is authorised by the Board to assist in overseeing and managing the Group's sustainability matters and their economic, environmental and social impacts. It is responsible for identifying, evaluating and managing material issues, whilst regularly reporting progress and management status to the Board. The Sustainability Committee also oversees the sustainability performance of both the Group as a whole and individual departments, and approves relevant reports.

To support the work of the Sustainability Committee and coordinate the implementation of sustainability-related initiatives, the Group has established a Sustainability Leading Group and a Sustainability Working Group. The Sustainability Leading Group, comprising senior management from different departments and subsidiaries, is responsible for formulating policies and development directions, as well as monitoring and regularly reporting the implementation status of various initiatives to the Sustainability Committee. The Sustainability Working Group is responsible for coordinating with various business units to drive the execution and implementation of sustainability strategies and action plans, whilst providing timely implementation updates to the Sustainability Leading Group. All relevant departments and subsidiaries actively cooperate with and respond to the sustainability policies and initiatives, ensuring their business operations align with sustainability strategies and action plans.

SUSTAINABILITY RISK MANAGEMENT

  • Identity List of Sustainability Risks

    Identify potential sustainability risks through research into industry trends, informed by materiality assessment, risk analysis and mega-trend analysis.

  • Develop Sustainability Risk Inventory

    Analyse the relevance and potential impacts of sustainability risks based on factors including business operations and financial performance.

  • Risk Assessment and Prioritization

    Assess the likelihood and potential impacts of each risk and determine the order of priority with department heads and management.

  • Risk Response

    Develop management measures for the identified high-risk issues, monitor progress continuously and report regularly.

STAKEHOLDER ENGAGEMENT

The Group firmly believes that stakeholder feedback and opinions are crucial for achieving sustainable development. As such, the Group not only annually reviews and identifies key internal and external stakeholder categories but also actively maintains effective communication with various stakeholders to promote open and sincere dialogue. During this year, the Group's identified key stakeholder groups, their areas of concern, and communication methods or channels are presented in the table below.

Stakeholder Group Stakeholder Concerns Communication Methods or Channels
The Board and Management
  • Healthy and sustainable business development
  • Compliant business operations
  • Business credit and influence
  • Board meetings
  • Executive meetings
  • Questionnaire
  • Interview with the management
  • Phone and e-mail
Employees
  • Occupational health and safety
  • Employee compensation and benefits
  • Occupational training opportunities
  • Employee training and workshops
  • Employee suggestion box and employee symposiums
  • Internal company newsletter
  • Employee activities and meetings
  • Questionnaire
Clients and Property Owners
  • Product and service quality
  • Protection of customer rights
  • Customer satisfaction survey
  • Product quality monitoring
  • Professional after-sales service
Suppliers and Contractors
  • Cooperation and mutual benefits
  • Contract fulfilment
  • Site inspection
  • Supplier selection management
  • Daily operation communication
  • Questionnaire
Shareholders and Investors
  • Healthy and sustainable business development
  • Compliant business operations
  • Risk control
  • Return on investment
  • Shareholders' meetings
  • Questionnaire
  • Announcements, circulars, annual reports and financial statements
Peer Enterprises and Partners
  • Cooperation and mutual benefits
  • Product and service quality
  • Contract fulfilment
  • Industry associations
  • Industry standard-setting organisations
 
Media
  • Information disclosure
  • Community investment
  • Announcements, circulars, annual reports and financial statements
  • Website and social media
 
Government
  • Compliant business operations
  • Occupational health and safety
  • Protection of customer rights
  • Response to national policies
  • Active cooperation with government agencies in their supervision and inspection efforts
  • Compliance with laws, regulations and government policies
Community and the Public
  • Environmental protection
  • Community investment
  • Community investment
  • Volunteering service
  • Charity and donations

MATERIALITY ASSESSMENT

Each year, the Group engages with internaland external stakeholders through anonline questionnaire to collect theiropinions, which serves as the basis of themateriality assessment. In 2025, with the assistance of an independent consultant, we conducted a materiality assessment through stakeholder questionnaire surveys combined with management focus group discussions. This process thoroughly examined CSC Development's policies and performance on various sustainability issues and their impact on internal and external stakeholders, while also gathering stakeholders' views and expectations regarding the Group's future development.

Procedures for the materiality assessment are as follows: