ESG Policy - ESG - Dah Sing Bank

1.	Introduction
	1.1.	The Group is strongly committed to environmental, social and governance ("ESG"), recognising that long-term business success is dependent on our relationship with all our stakeholders — both inside and outside the Group — and that adopting responsible management practices is essential. At our Group, ESG is about achieving commercial success in ways that honour ethical values and respect people, communities and the natural environment. The Group strives to embed socially responsible values throughout our organisation, impacting our day-to-day operations.
	1.2	The ESG Policy (the "Policy") has been developed by the ESG Committee ("the Committee"), which comprises representatives of the Business Units, Support Functions and Senior Management of the Group. The Policy sets out the environmental and social commitments of the Group which treats ESG as an integral element in maintaining the Group's position as a responsible business that contributes positively to the development of the communities in which the Group operates.

2.	Approach and Principles
	2.1.	The Group's ESG activities are in line with its strategy, mission, guiding principles and values as well as its corporate governance framework. We focus on sustainable development, and the promotion of responsible practices across the four ESG pillars:
		2.1.1. Marketplace To uphold the highest standards of governance and a set of core ethical values including honesty, integrity, diligence, fairness, responsible citizenship and accountability in conducting business; To provide a diverse range of products and services to enable customers to select the solution that best suits their needs; To provide clear and honest information to customers to help them make informed decisions; To listen to customer feedback, continually enhance customer service and customer satisfaction; To ensure privacy of customer data; To promote sustainable business practices through assessing the potential environmental and social impact when deciding to make a loan or investment; and To use suppliers that act in an environmentally, socially and ethically responsible manner.
		A) Green and Sustainable Banking (GSB) Task Force To develop relevant strategies and road map on implementing the overall GSB framework and incorporating GSB into day-to-day operations of the Dah Sing Banking Group ("DSBG") including Dah Sing Bank, Banco Comercial de Macau, Dah Sing Bank (China) and OK Finance; To coordinate the development of work plans by relevant business and support units for the achievement of GSB implementation and monitor the progress of development; To ensure compliance with the regulatory requirements on GSB under HKMA's White Paper on Green and Sustainable Banking.
		B) Customer Centricity Task Force To develop strategy and action plan, including targets and KPIs to continuously improve customer experience and satisfaction; To coordinate and monitor the execution of bank-wide customer-centricity initiatives; and To foster a culture of customer-centricity through communication and capacity building.
		2.1.2. Workplace To treat employees fairly and equally, respect their human rights, ensure employment practices that uphold equal opportunity and non-discrimination are in place; To provide competitive and fair reward and recognition; To provide a safe and healthy working environment; To support employee wellness, work-life balance and family friendly practices; To encourage open communication and provide channels for employees to express their concerns; and To nurture talent and support continuous development of employees.
		2.1.3. Community To work with partners to support community programmes that bring about positive social impact for youths in Hong Kong and the Greater Bay Area; To provide resources to encourage and facilitate employees to participate in volunteering service and charitable activities for youth welfare and development; and To contribute to sustainable economic development of Hong Kong and the Greater Bay Area region via supporting SMEs, job creation, e.g. internship, and raising financial literacy in the community.
		2.1.4. Environment To use eco-friendly materials and supplies; To reduce waste production and consumption of energy and natural resources; To increase recycling; To prevent pollution and reduce carbon footprint; To promote environmentally responsible practices among employees, customers, suppliers, contractors and business partners; and To encourage suppliers to adopt sustainable initiatives for promoting sustainable procurement practices.
		C) Green Working Committee To develop and coordinate programmes, initiatives and budget to manage and reduce our environmental footprint; To coordinate with Business Units to report on environmental data and monitor progress against targets; To raise the awareness of our employees and suppliers on environmental topics through engagement activities; and To obtain relevant environmental-related certifications and awards if appropriate.

3.	ESG Governance and Management
	3.1.	The Board of Directors supports our ESG commitment. The Committee, comprising members of Management of the Group, is responsible for setting the ESG strategy and directing the ESG activities. The Committee also reviews, approves, supervises and monitors the implementation of all ESG initiatives. Various support teams working under the direction of the Committee are responsible for promotion, support and organisation of ESG activities.
	3.2.	Details of the Group's ESG governance structure and the roles and responsibilities of the Committee are outlined in the Terms of Reference of the ESG Committee.
	3.3.	The ESG Policy and activities will be communicated to the stakeholders as appropriate.

4.	Applicability of this Policy
	4.1.	This Policy sets out the principles that are applicable to the whole Group.
	4.2.	Subsidiaries in overseas locations may customise the relevant parts where appropriate to address their local legal/ regulatory requirements, market situations, business needs and societal conditions.

5.	ESG Review and Disclosure
	5.1	The Committee regularly reviews the ESG practices and performance and reports to the Board of Directors. The Group's ESG performance is reported on an annual basis in the Group's ESG Report.

6.	Review of This Policy
	6.1	This policy will be reviewed annually or as required to ensure its relevance and effectiveness.

Last version: 17 Dec 2020 Updated and endorsed by ESG Committee on: 17 Jan 2022