Tysan : 2021 Environmental, Social and Governance Report

TYSAN HOLDINGS LIMITED泰昇集團控股有限公司

(Incorporated in Bermuda with limited liability)

(Stock Code : 687)

Table of Contents

Pages

1. Company Profile 2

2. About this Report 2

2.1. Reporting Standard, Period and Scope 2

2.2. Access and Response to this Report 3

3. Board's Statement 3

4. Ongoing Communication with Stakeholders 4

5. Sustainability in Operations 6

5.1. Responsible Sourcing 6

5.2. Energy Efficiency 8

5.3. Water Conservation 11

5.4. Waste Management 12

5.5. Mitigation of Environmental Impacts 13

5.6. Implementing Good Environmental Mitigation 14 Measures at Construction Sites

5.7. Climate Change 15

6. Value Creation for People 15

6.1. Developing a Workplace Safety Culture 15

6.2. Recruiting and Retaining Talents 18

6.3. Adhering to Business Ethics 22

6.4. Building a Harmonious Workplace 22

7. Striving for Operational Excellence 23

7.1. Quality Assurance 23

7.2. Complaint Handling Mechanism 25

8. Caring for Community 25

9. Way Forward 26

10. ESG Content Index 27

Environmental, Social and Governance (ESG) Report

• 1. Company Profile

  Tysan Holdings Limited (the "Company", together with its subsidiaries the "Group") has been listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") since 1991 (Stock Code: 687). The principal businesses of the Group include foundation piling and site investigation, property development and investment, and investment businesses. The Group believes that sustainable development is the foundation to high-quality property development and foundation works.

• 2. About this Report

  2.1. Reporting Standard, Period and Scope

This report was prepared in accordance with the Environmental, Social and Governance ("ESG") Reporting Guide set out in Appendix 27 of the Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules"). Information regarding corporate governance is included in the section of corporate governance report in the annual report of the Company according to Appendix 14 of the Listing Rules.

This report covers the Group's ESG-related activities from 1 January 2021 to 31 December 2021 (the "Reporting Period"). The Group strictly adheres to the principles of materiality, quantitative, balance and consistency to report on the relevant measures and performances during the Reporting Period.

REPORTING PRINCIPLESAPPLICATION

MATERIALITY

To identify the material ESG-related issues to the Group, we conducted stakeholder engagement surveys to collect the opinions from the management and general staff, and incorporated the material ESG issues into the Group's core business strategy.

QUANTITATIVE

e Group discloses its ESG performances in a quantitative manner to allow assess and comparison of performance over time. Definition and calculation formulae are clearly explained for better understanding by the stakeholders.

BALANCE

e Group prepares this report based on balance and fair information, and discloses the achievements and challenges of the ESG performanc-es in a transparent manner.

CONSISTENCY

is report is prepared according to the ESG Reporting Guide issued by the Stock Exchange to provide consistent and comparable disclosures.

The reporting boundary and scope of this report covers the Group's operations involving foundation piling in Hong Kong only, including the head office and 19 construction sites.

The Group has appointed Allied Sustainability and Environmental Consultants Group Limited (Stock Code: 8320) as an independent consultant to provide ESG consultancy and reporting services.

Environmental, Social and Governance (ESG) Report

2.2 Access and Response to this Report

The electronic versions of this report (in both English and Chinese versions) are available on the websites of the Stock Exchange (www.hkexnews.hk) and the Company (www.tysan.com). If there is any conflict or inconsistency, the English version shall prevail.

To continue to improve the Group's sustainability strategies, we welcome any feedbacks and suggestions from our stakeholders. If you have any comments or enquiries, please contact the Group at:

Tysan Holdings Limited

20/F, One Island South,

2 Heung Yip Road, Wong Chuk Hang, Hong Kong

Tel: [phone] E-mail:[e-mail]

3. Board's Statement

The board of directors of the Company (the "Board") is fully responsible for the oversight and decision making of the Group's ESG governance. Other departments such as the Foundation Division, Safety Department, Human Resources and Administration Department and Corporate Affairs Department collaborate and implement the ESG approaches, policies and action plans of the Group.

We have established environmental and social policies that compose the groundwork of our internal Integrated Management System ("IMS"). This functions as the channel to introduce sustainability elements into our daily operations and protect the well-being of the environment, our staff and our community. In order to systematically implement the IMS, the Group has implemented the Integrated Management Policy in fulfilling the terms of quality, environment, occupational, health and safety, risk and energy aspects.

Environmental protection and social contributions of enterprises play an important role in the Group's business and the steady growth of the Group relies on the support and trust from stakeholders, such as customers, suppliers, employees, shareholders, investors, business partners and the local community. We have invited our management staff to take part in a stakeholder survey for the purpose of collecting their perspectives on various ESG topics. With their valuable insights, the Company is better positioned to make informed decisions on allocating resources on major ESG matters.

Environmental, Social and Governance (ESG) Report

4. Ongoing Communication with Stakeholders

The Group recognizes the importance of stakeholders' participation for the continuous improvement of its sustainability performance. In order to understand the opinion of the stakeholders on its operations and ESG-related issues, the Group maintains close communication with different stakeholders which benefits the Group's business development by addressing and prioritizing the issues that stakeholders are more concerned. With the stakeholders' opinion, the allocation of resources of the Group has been enhanced and the Group would be able to address major issues identified accordingly.

The Group appointed an independent consultant to identify and review various ESG issues and the following major issues were identified:

SOCIAL TOPICS

ENVIRONMENTAL TOPICS