Century International : Environmental, Social and Governance Report 2021

ENVIRONMENTAL, SOCIAL AND

GOVERNANCE REPORT 2021

Century Group International Holdings Limited

世紀集團國際控股有限公司

(incorporated in the Cayman Islands with limited liability)

Stock Code: 2113

CONTENTS

INTRODUCTION	2
OUR APPROACH TO SUSTAINABILITY	3
OUR BUSINESS	3
CORPORATE GOVERNANCE	3
COMPLIANCE WITH LAW AND REGULATIONS	4
STAKEHOLDER ENGAGEMENT	5
SUSTAINABILITY MODEL	6
ENGAGING IN STRONGER SOCIAL RELATIONSHIPS	7
HEALTH AND SAFETY	7
EMPLOYMENT	8
TRAINING AND DEVELOPMENT	9
COMMUNITY INVESTMENT	9
DRIVING OPERATIONAL EXCELLENCE	10
SUPPLY CHAIN	10
QUALITY ASSURANCE	11
CUSTOMER RELATIONS	11
PRESERVING OUR ECOSYSTEMS AND RESOURCES	12
MANAGEMENT OF EXPLOSIVES	12
AIR AND NOISE EMISSIONS	13
WASTE GENERATION AND DISPOSAL	14
WATER AND ENERGY USAGE	15
ESG PERFORMANCE TABLE	16

Century Group International Holdings Limited | Environmental, Social and Governance Report 2021

1

INTRODUCTION

This is the fifth Environmental, Social and Governance ("ESG") report of Century Group International Holdings Limited (the "Company" or "Century Group") and its subsidiaries (collectively, the "Group"). The Board of Directors (the "Board") is responsible for the Group's ESG strategy and reporting, and endeavours to ensure that appropriate and effective ESG risk management and internal control systems are in place.

Century Group is committed to annually report on its sustainability programme, including both qualitative and quantitative information about its economic, environmental and social impacts and initiatives in a transparent and accountable manner. Its sustainability programme includes the Group's ESG management approaches, strategies, priorities and objectives, which are communicated along with our ESG performances through this report.

Through stakeholder engagements, the Group understands the concerns of its stakeholders, and intends to address these concerns through this annual ESG report (the "Report"). It presents the Group's sustainability management approach, initiatives and performances undertaken within the Group's corporate office and project sites for the year ended 31 March 2021 (the "Reporting Period"), unless specified otherwise. Relevant environmental and social key performance indicators may be further limited to the Group's corporate office only. The Group will continuously improve its data collection system and expand the scope of data in the future.

The Report has been prepared in accordance with the "comply or explain" and "recommended disclosures" provisions of the Environmental, Social and Governance Reporting Guide contained in Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange").

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OUR APPROACH TO SUSTAINABILITY

OUR BUSINESS

The business of the Group is based mainly in Hong Kong and partly in the People's Republic of China ("PRC"). The subsidiary in PRC was acquired in March 2020. Considered being insignificant operation in scale, its effect on ESG is insignificant during the Reporting Period. Therefore, the ESG Report focuses mainly on the Group's business in Hong Kong.

The Group is committed to achieving sustainable growth in site formation works in Hong Kong. As a subcontractor, the Group offers comprehensive and innovative site formation solutions to our customers.

COMPREHENSIVE SITE FORMATION SOLUTIONS

	TUNNEL		ROAD AND
	EXCAVATION	FOUNDATION	DRAINAGE	ANCILLARY
GENERAL EARTHWORKS	WORKS	WORKS	WORKS	SERVICES
Soil and rock excavation,	Rock excavation works	ELS works and	Construction of	Steel fabrication and
disposal of construction	for construction of tunnels	associated structural	access roads and	installation of steel
and demolition materials,	through drill and break	works for construction	drainage systems	working platform
backfilling and compaction	and/or drill and blast	of pile caps for	at construction
for forming a new site	methods as well as	commercial and	sites
or achieving designed	construction of associated	residential building
formation level	temporary tunnel support	projects
	structures

We are dedicated to ensuring that our business operations bring sustained value to our shareholders, employees and customers, and make a positive contribution to the environment and communities in which we work and live in. We shall continue to operate in an accountable and sustainable manner through integrating sustainable development considerations into our daily operations.

CORPORATE GOVERNANCE

Corporate ethics is central to our operations. We are committed to operating our business with integrity and in accordance with the highest ethical standards. Our operations are guided by a fraud risk management system to prevent fraud through corporate governance, internal control and risk management. Designed according to our company size, business complexity and processes, an appropriate fraud risk management plan is developed through prevention, detection and response. The Group has also built appropriate control procedures in relevant aspects, and has a sound and effective internal control and auditing mechanism. The Board also plays a major role in continuously monitoring the operations of fraud risk management.

Century Group International Holdings Limited | Environmental, Social and Governance Report 2021

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OUR APPROACH TO SUSTAINABILITY

Fraud risk management system defines fraud as corruption, misappropriation of assets, and misrepresentation. It is the Board and management's responsibility to engage in prevention and detection of fraud, to ensure the effective reduction in fraud risk. By implementing various preventative strategies and initiatives, the Group strives to establish and promote a corporate culture based on honesty and integrity as its core values. Periodic trainings and communications are given to continuously instil and promote corporate ethics.

Employees are encouraged to submit any positive and constructive criticism for the Group to enhance its services or work environment. All comments are seriously considered, and may be implemented with management approval. All requests for confidentiality are treated in confidence.

Whistleblowing channels are established within the Group and are detailed within the staff handbook, which are issued and distributed to every employee. Employees are encouraged to raise concerns and report any possible improprieties or matters in relation to business ethics. All reports are treated confidentially.

Confidentiality is also stressed for employees who receive or draft all records and memos that may contain trade secrets or confidential information, pertaining to the company, its suppliers, subcontractors, or customers. Employees are expected to keep all information confidential, even after employment with the company, and to prevent release of any confidential information for personal or public use.

An internal control manual sets out the Group's internal control policies and the specific roles of different departments on the Group's operations. Employees are expected to follow the operational procedures explained in the manual to avoid malpractices and ensure customer satisfaction. The manual is subject to the Board's periodic review and amendments to maintain the efficiency and effectiveness of our operations.

Details of our corporate governance structure and practices are available within the Corporate Governance Report on pages 12 to 22 in our 2021 Annual Report.

COMPLIANCE WITH LAW AND REGULATIONS

Compliance is essential to the healthy operations of our Group. We are meticulous and are committed in ensuring compliance with all applicable statutory and regulatory requirements, especially for material ESG aspects that have a significant impact on our operations. During the Reporting Period, we were not aware of any material non-compliance incidents with relevant statutory or regulatory requirements that has a significant impact on our operations.

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