2016 — Page 42

ENVIRONMENTAL. SOCIAL AND GOVERNANCE REPORT CONTINUED

1. ABOUT THIS ESG REPORT Cont

C.

Materiality Assessment

Whre the ESG Recording Guide articulates a wide spectrum of ascects, they are not all relevant to the operations of the Hong Kong Ferry Group. The following three-step materiality assessment was conducted by an independent consultant to determine the material sustainability issues for disclosure.

Step 1: Identification

The are many step was to identify and review the sustained ity disclosures of Hong Kong Ferry Group's local ceers. This ceer centmmanding exercise gave an indication of the most appropriate ESG issues for the Hong tangler, Groun

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DIE,Masterpers were also invited to complete an online survey to rank the mochance of Eddssues faces oy Hong song Fery Group. As employees possess in-depth operational

・etce considered material.

Step 2: Prioritisation

Results from the

st of material 3

normaring exercise and stakeno ceronline suney were consolidated to identify a for Hongkong Ferr, Gouo.

Step 3: Validation of the Material Issues

s senior management convened a meeting with the independent consultant to confirm a

any Ferormance indicators Ps for disclosure.

Hong Kong Ferry (Holdings) Company Limited Annucl Report 2016