Power Assets Holdings: Trending Unfavorably Across ESG Initiatives

4.57
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Power Assets Holdings Ltd. is an investment holding company which, along with subsidiaries, operates across the investment in power and utility-related businesses, investment in generation and supply of electricity in Hong Kong, along with other businesses. The company is a generator of thermal and renewable power, electricity transmission, along with the distribution of electricity and gas. The company operates its businesses globally. An analysis of the company's environmental, social, and governance policies are as follows:


Environment


From an environmental perspective, the company scores unfavorably, outperforming on the Resource Use Score front, but underperforming on the Emissions Score front.


For instance, it has implemented a resource reduction policy, which compares to the presence of a clear policy in the prior year. The company has implemented a water efficiency policy, with an energy efficiency policy implemented as well. This compares to the presence of a similar policy in the prior year.


Environmental policy areas the company is currently lacking include Resource Reduction Targets, Water Efficiency Targets, Energy Efficiency Targets, the setup of an Environment Management Team, Environmental Materials Sourcing, and Toxic Chemicals Reduction. Meanwhile, areas the company has addressed include Environmental Supply Chain Policy and Environment Management Training


The company has also implemented renewable energy use, which compares to the presence of a clear policy in the prior year. The company has also notably implemented green buildings as well, which compares to the presence of a defined policy in this regard in the prior year.


In terms of its carbon footprint, the company's Estimated CO2 Equivalents Emission Total stands at 10,885,046 in the latest fiscal year, which compares to 12,642,974 in the prior year and 12,195,081 in the year before based on Reported CO2 Estimates.


Social


From a social standpoint, the company scores unfavorably, outperforming on the Community Score front, but underperforming on the Product Responsibility Score front.


For instance, it has implemented a health and safety policy, which compares to the presence of a clear policy in the prior year. The company has also implemented an Employee Health & Safety Policy, with a Supply Chain Health & Safety Policy not implemented. This compares to the lack of a similar policy in the prior year. The company has produced a notable rise in Net Employment Creation relative to the prior year.


As of the latest fiscal year, there have not been Management Departures, while the prior year saw no departures. Meanwhile, the company experienced no strikes this year, which compares to no strikes in the prior year.


Governance


From a governance standpoint, the company scores unfavorably, outperforming on the Shareholders Score front, but underperforming on the Management Score front.


The company does not have a Corporate Governance Board Committee, but has a Nomination Board Committee, has an Audit Board Committee, and has a Compensation Board Committee. The company does have a Board Structure Policy but does not have a Policy for Board Independence in place. The Board has held four meetings in the last fiscal year, which compares to 4 in the prior year. The Board size currently stands at 11 members based on the latest annual/ESG report.


The Board has an average tenure of 18.6 years, which compares to 17.6 in the prior year. Board diversity stands at 9.1% for cultural diversity but lacks gender diversity.


The company has implemented a Policy for Executive Compensation Performance but has not tied its Executive Compensation Policy to ESG Performance. The company has implemented a Policy for Executive Retention and has implemented a Succession Plan, along with an External Consultant policy.


The company has not implemented CEO-Chairman Separation and does have its CEO as a Board member. Its chairman is not an ex-CEO. Board member term duration stands at three years. In total, senior executives' compensation has increased slightly in the latest fiscal year, along with Board member compensation. Notably, the CEO compensation is not linked to total shareholder return. Meanwhile, executive compensation is not linked to long-term objectives. Sustainability compensation incentives have not been implemented. Thus far, there have not been any executive compensation controversies.


Sources:


https://www.powerassets.com/en/investor-relations/financial-reports


https://www.csrhub.com/CSR_and_sustainability_information/Power-Assets-Holdings-Limited

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