ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED)

3. ENVIRONMENTAL STEWARDSHIP (Continued)

a.

Energy Efficiency and Emissions (Continued)

Case Study

Completion of Engine and Generator

Replacement Programme

Almost all sea freighters are powered by combustion engines that emit sulphur oxides, oxides of nitrogen, particulate matter and carbon dioxide, which affect the air quality of the harbour.

In 2005, The Hongkong and Yaumati Ferry Company Limited first invested in a set of eco- friendly generators for the vessel "Man Lok". By 2008, the Company, wishing to strengthen their environmental stewardship, decided to initiate a replacement program for all generators and engines on board their five vessels.

Besides the need for costly

investments, each vessel was

Total of

By

2015

Total of

10 Generators

10 Engines replaced

2016

Completion of Replacement Programme Total of 13 Generators 10 Engines replaced

By 2010

2005

First

6 Generators

Generator replaced

4 Engines replaced

subject to a period of dry docking to complete the replacement. In May 2016, Man On, the last vessel in the fleet, was fitted with new environmentally-friendly generators, concluding this 11-year replacement programme.

1.

b. Water Preservation

This reporting year we initiated various water-saving measures in our subsidiaries.

The Hong Kong Shipyard Limited's water consumption was considerably lessened by improving our cleaning practices. Each day of cleaning work, our foremen provided proper training to the workmen to adjust and optimise their waterjet applications.

In addition, renovation works to all restrooms in the Principal Office have been completed to enhance water efficiency. With the application of automatic water tap sensors, we are reaching our common goal of reducing domestic fresh water consumption. Harbour Cruise - Bauhinia also managed to reduce their water consumption by 15% simply by installing automated water faucets in the restrooms.

Hong Kong Ferry (Holdings) Company Limited Annual Report 2016

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