Sustainability Governance

Hutchison Telecommunications Hong Kong Holdings Limited (the “Company” or “HTHKH”) and its subsidiaries (collectively the “Group”) is a pioneer in mobile data communication technologies, offering diverse and innovative mobile telecommunications and data solutions that create new digital value and unprecedented opportunities to consumers and businesses in the ever-changing digital landscape. The key sustainability mission of the Group is to create long-term value for all stakeholders by aligning its sustainability objectives of the Group to the strategic development of its businesses. The Group is committed to contributing to sustainable living by providing connectivity and innovative services to its customers, while engaging in responsible and ethical business actions that build trust with all its stakeholders.

Sustainability Governance

The sustainability governance structure of the Group has laid a sturdy foundation for fulfilling its sustainability commitment. This structure is deeply integrated throughout the Group, including the Board, the Sustainability Committee, the Audit Committee, the Security Committee, working groups and business units. It provides the Group with comprehensive guidance on executing sustainability strategies, establishing goals, setting targets, and implementing reporting processes. Moreover, it fosters robust stakeholder relationships and ensures accountability across all business operations.

The governance structure of the Group is reinforced by bi-annual self-assessment reviews conducted across business units, in conjunction with internal audit assurance. These reviews enable the Group to effectively manage enterprise and process risks, and to ensure compliance with statutory and regulatory requirements, including sustainability-related reporting, as well as to provide reasonable assurance to the Board through the Sustainability Committee and the Audit Committee. The Group has adopted and implemented corporate governance principles and practices that prioritise a high-quality Board, effective risk management and internal control systems, rigorous disclosure practices, transparency and accountability. These efforts aim to relentlessly enhance and foster an ethical corporate culture.

The Board

The Board has oversight and ultimate accountability for the Group’s sustainability strategy, management, performance and reporting. With the complementary support from the Sustainability Committee and the Audit Committee, the Board examines and approves the sustainability objectives, strategies, priorities, initiatives and goals, along with related policies and frameworks of the Group. The Board also conducts periodic examinations and reviews of climate-related risks and opportunities reported by the Sustainability Committee and the Audit Committee, and assesses their impact on business strategies inclusive of new investments. Through these processes, the aforesaid Committees contribute to the Group’s comprehensive approach to sustainability and its integration into core business practices.

Board Diversity

The Group strives to attain and maintain high standards of corporate governance in terms of Board diversity with a broad and diverse mix of director skills, experience and attributes. Since December 2022, the Group has appointed an additional Independent Non-executive Director, resulting in the total number of Independent Non-executive Directors exceeding the minimum one-third requirement under the Listing Rules. In addition, Gender diversity of the Board stands at 30%, a relatively high level amongst companies listed on the Stock Exchange.

Sustainability Committee

The Sustainability Committee was formed in 2020, and is chaired by a Non-executive Director, Executive Director and Chief Executive Officer, and Independent Non-executive Director, as members. The Sustainability Committee holds meetings bi-annually. The Sustainability Committee holds key responsibilities in making recommendations to the Board on the Group’s sustainability objectives, strategies and goals. It plays a vital role in overseeing, reviewing and evaluating actions taken by the Group to advance its sustainability priorities and goals. In addition, the Sustainability Committee reviews and reports to the Board on climate-related risks and opportunities, while assessing and monitoring emerging sustainability issues and trends that may affect the Group’s business operations and performance. Furthermore, it considers the impact of the Group’s sustainability initiatives on stakeholders and provides the Board with value-accretive advice on external communication, disclosure and publications related to sustainability performance.

Audit Committee

In accordance with the Audit Committee Terms of Reference, the Audit Committee is responsible for supervising and ensuring the effectiveness and sufficiency of the Group’s risk management and internal control systems. This oversight includes financial, operational and compliance aspects, ensuring comprehensive coverage across these key areas.

Sustainability Working Group

The Sustainability Working Group, consisting of two Co-Chairs, Chief Executive Officer and Chief Financial Officer, alongside senior executives from key business functions that have a significant influence on the Group’s material sustainability topics, provides support to the Sustainability Committee. Sustainability Working Group meeting is held bi-annually.

Governance Working Group

To facilitate the fulfilment of responsibilities by the Audit Committee and the Sustainability Committee, a Governance Working Group chaired by the Non-executive Director has been established. This working group includes representatives from key business functions of the Group. Its primary functions include providing timely updates, identifying emerging compliance matters and developing suitable compliance policies and procedures for adoption throughout the Group.

Security Committee

The Security Committee, led by the Vice President – Digital Innovations & IT Development, consists of technical specialists from the Information Technology department and the Corporate Security & Fraud Management function. Its primary responsibility is to oversee the Group’s cyber security risks and defences, ensuring their effectiveness, coherence and coordination. In addition, the committee also monitors the cyber threat landscape to gain insights into emerging and existing attacks and their implications.

Internal Audit Assurance

Internal Audit, reporting directly to the Audit Committee, delivers independent assurance on the effectiveness of the Group’s risk management activities and controls, including those associated with sustainability matters.

Risk Management

As part of its enterprise risk management, the Group conducts bi-annual self-assessment reviews to evaluate various aspects, including operational performance, compliance with statutory and regulatory requirements such as tax and anti-fraud and anti-bribery practices as well as sustainability goals and targets. Following the internal audits, the self-assessment results are submitted to the Directors, the Audit Committee and the Sustainability Committee for review and approval. Relevant results are also shared with the external auditor to ensure transparency and accountability.

In light of the escalating significance of climate change risk, the Sustainability Working Group actively collaborates with different business units to gain insights into the latest developments in the external and internal environment. This collaborative effort enables the Group and the Board to proactively respond to emerging risks and capitalise on opportunities. Taking into account diverse perspectives and leveraging collective knowledge and expertise, the Group is better positioned to navigate sustainability challenges and to drive sustainable practices throughout its operations.

(Updated to 5 March 2024)