2015 — Page 50

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED)

4.

ENVIRONMENTAL STEWARDSHIP (Continued)

a.

Energy Efficiency and Emissions (Continued)

Nitrogen oxides, sulphur oxides, along with other common greenhouse gases such as carbon dioxide are emissions produced from the operations of our dangerous goods vehicular ferry services. To mitigate these emissions, the main engines and generators of our fleet have been replaced by more energy efficient hardware, compliant with regulations stipulated by the International Maritime Organisation. The new marine engines are more efficient than the old ones by about 10-15%. The Hongkong and Yaumati Ferry Company Limited has also taken environmental commitments a step further by gradually replacing its fleet's old generators with environmentally-friendly ones, furthering our efforts in reducing carbon emissions.

At the Property Development Operations, environmental considerations are taken into account during the entire project life cycle, starting from the planning stage. For example at the residential project in Hung Hom, an energy simulation modelling study was conducted to identify opportunities to save energy and thereby reduce carbon emissions. The energy efficiency requirements of the Performance- based Building Energy Code ("PBEC") of the Electrical and Mechanical Services Department ("EMSD") were followed.

At our tour operations and travel business, 20% of the coaches that

we use are green coaches, switching from normal sulphur diesel to Ultra Low Sulphur Diesel ("ULSD"). This fuel contains 10 times less sulphur than normal sulphur diesel. Emission of SOX have been reduced, contributing to better roadside air quality.

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Hong Kong Ferry (Holdings) Company Limited Annual Report 2015

New generator of the ferry fleet

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