Governance Responsibility

ESG Governance Structure

The ESG Committee is responsible for developing and monitoring the Group's ESG strategy and initiatives, as well as overseeing relevant workgroups and assigning responsibilities for promoting ESG. It reports to the Board at least twice a year on ESG progress. The ESG Committee is supported by four main workgroups – Marketplace, Workplace, Community and Environment, which are responsible for ensuring that ESG goals and initiatives can be implemented at all operating levels.

Corporate Governance

Good governance contributes to the long-term success of our Group, overseeing strategy execution and mission fulfilment and creating trust and engagement between the Group and its stakeholders. The Group and its subsidiaries are committed to high standards of corporate governance, and strictly abide by applicable laws and regulations. We embrace sound corporate governance framework and practices, with appropriate oversight of our businesses, internal control, risk management and operations. There is a clear division of responsibilities between the Boards and the Management. Moreover, the Boards have established Board Committees to assist them in performing their duties, taking into consideration international best practices of corporate governance.

The Group's major banking subsidiary in Hong Kong has implemented a comprehensive Board Governance Policy and Procedure with the adoption of the following enhanced procedures and practice:

• Board Code of Conduct Policy
• Board Conflict of Interest Policy and Procedures
• Board Appointment and Succession Policy
• Policy on Delegation of Authority and Oversight of Senior Management
• Performance Evaluation of the Board and Individual Directors
• Corporate Structure Policy
• Enhanced Terms of Reference of the Board

We will continue to review the Groups corporate governance principles and practices in light of experience, regulatory changes and market developments.