Global issues like climate change and the COVID-19 pandemic let us know that we have to accelerate all sustainability actions to curb these crises before it’s too late. “Business as usual” is no more a viable option. The Ambitions 2030 we determined in 2018 and the associated strategic actions are a commitment as well as real actions we have for tackling these pressing issues that guide the needed transformation of Alliance. The re-structure of our sustainability governance structure in 2022 is a means to accelerate the integration of sustainability management into all business functions which aims at responding to sharply increasing expectations pertaining to material sustainability issues, and in the long run will enable Alliance to turn risks into opportunities under such a turbulent environment.
I am honored to be appointed as the Head of ESG in 2022. The creation of this leadership position within Alliance reflects the inextricable role that ESG will play in Alliance’s success and how we are going to shape the Company for the future. Right after the setup of a dedicated ESG Team we established the Sustainability Committee at the most senior level, reviewed the ESG policies and determined the reporting requirements. At present we are improving the ESG data consolidation and verification process. All these are foundations for further improvement of the sustainability management within Alliance.
The transition to a net zero carbon future is one of the greatest challenges ahead. While it is perceived by many organizations and individuals that it’s a slow-moving problem that requires a long journey to find solutions, the accelerated temperature rise, and all the resulted impacts shown that the need for solutions is becoming more urgent. Our initiative to collaborate with stakeholders along the supply chain driving the low carbon concrete solutions, new energy transportation, circular economy, and responsible sourcing, is vital to our strategy as we are part of the solution to climate change.
At Alliance, we accept our advocacy role in the industry. Under the fast changing landscape that is impacted by all the global issues, we understand that we have to lead in the face of many unknown factors, challenging us to exert the expertise and skills that make us the market leader.
Sustainability is a journey that requires enthusiasm from all Alliance members, and the engagement of all stakeholders. I look forward to work together with all of you to realize our purpose.
Compliance Officer is not a new role in Alliance. Following the retirement of Mr. Nelson Pang, the former Compliance Officer, I was appointed to take up this role since Feb. 2022. To my understanding the Compliance Officer’s role in Alliance is more than a ‘gate keeper’ to ensure the compliance to statutory compliances, legislation requirements and ethical business standards, but also needs to proactively promote employees’ ethical conduct, the importance of compliance and to encourage an ethical culture within the organization.
As the leader in the compliance function, I have to stay on top of the latest laws, regulations, and business trends and to translate these into practical requirements and procedures for the operations of the organization.
Education is another essential area for me to focus on as we must ensure employees are equipped with necessary knowledge and to have thorough understanding of the Company policies and relevant regulations as well as their underlying principles. We introduced an enhanced E-learning platform earlier this year to facilitate the regular provision of training to employees.
To carry out business with ethical business conduct is our guiding principle. We set legal compliance as a baseline and strive to exercise highest possible standards in everything we do. Our ESG policies give all Alliance members clear directions on how our businesses should be carried out. The robust control procedures and reporting requirements we put in place in different processes according to the risk level we assessed, govern our ethical business practices while providing guidelines for employees to follow when carrying out businesses. Through provision of training and the continuous promotion of ethical business conduct we aim to foster an ethical culture within the organization. However, we’ll never underestimate the possibility of unlawful or unethical incidents from happening and their consequences. The Ethics Hotline we established is a whistle blowing mechanism that enables anonymous reporting of any unlawful or unethical incidents for timely and strictly handling.
In addition to the competition law which we have established robust system and procedures to ensure its full compliance, the compliance risks associated with climate change threat cannot be underestimated. Resulting from a rapidly growing concern towards climate change, demand for green or sustainable products and services has increased in recent years. While it creates opportunities for the construction materials industries, to prevent greenwashing that misleads consumers and erodes trust in products and services with sustainable value becomes a prominent challenge. We disclose our carbon footprint data via the independently verified sustainability report and to have our low carbon concrete products certified the CIC Carbon labels are examples of how we ensure provision of adequate and accurate information for customers.
Since the formation of Alliance in 2004, we have incorporated the human rights principles into our Guiding Principles. Influenced by our parent companies we issued our human rights policy in 2022. We provide clear direction in this policy to prohibit any unlawful employment and the respect of employment rights. These are important principles for the prevention of modern slavery which is a global concern.
Digitalization transformation comes with IT compliance and risks. On one hand we must ensure IT cybersecurity and adopt every strategy to protect the business environment, while we also need to make every effort to deploy defined infrastructure that protects stored data and its privacy.
Hong Kong is an international city, from the perspective of legal compliance, not only do we need to comply with local laws, international legal requirements such as the UN sanction requirements are also applied. With the support from parent companies for monitoring of applicable sanction requirements, and the control procedures we put in place in purchasing process we can ensure the compliance to applicable requirements.