The Towngas Smart Energy Board of Directors (the Board), the highest governance body, has the overall responsibility of overseeing material Environmental, Social and Governance (ESG) issues, and evaluating, determining and integrating relevant risks and opportunities into our key governance processes. The Group has established a multi-level ESG governance framework led by the Board, forming a tiered management structure through the ESG Committee and ESG Steering Committee.
The Board-level ESG Committee oversees the Group’s ESG development, strategies, policies and practices. The ESG Committee is chaired by the Independent Non-Executive Director, who reports ESG matters to the Board on a regular basis.
Under the leadership of the ESG Committee, the ESG Steering Committee is composed of representatives from business units and relevant functional group department heads. The ESG Steering Committee is responsible for formulating relevant performance indicators, managing and enhancing ESG performance, and advancing the Group-level ESG management approach. The Group ESG Department is led by the Head of ESG, who reports directly to the Chief Financial Officer, and is responsible for overall coordination and support to ensure the effective implementation of relevant strategies and measures.
To demonstrate the Group’s commitment to ESG and to further strengthen ESG management and promote the implementation of related targets, the Group has linked 5% of the variable compensation for the Chief Executive Officer and senior executives to the achievement of ESG targets (such as improving ESG ratings, reducing greenhouse gas emissions, and meeting health and safety performance indicators). The Group has also established dedicated funding to support employees in actively implementing high-quality ESG (including climate-related) projects.