China Information Technology Development Limited — Environmental & Social Information 2021

Jun 29, 2021

==> picture [452 x 121] intentionally omitted <==

Environmental, Social and 2020 Governance Report

Table of Contents

1.	Introduction................................................................................................. 3	Introduction................................................................................................. 3
2.	Preface......................................................................................................... 5
3.	Communication with Stakeholder & Materiality Assessment.......................... 7
4.	Environmental............................................................................................ 10
	4.1	Air and Greenhouse Gas Emissions..................................................... 10
	4.2	Discharge into Water and Land, and Generation of Hazardous and non-
		Hazardous Waste............................................................................... 13
	4.3	Energy Consumption and Intensity .................................................... 14
	4.4	Policies and Use of Resources ............................................................ 15
	4.5	Responses to Climate Change............................................................. 16
5.	Social – Employment and Labour Practices ................................................. 17
	5.1	CITDL - Employment.......................................................................... 17
	5.2	Macro Systems - Employment ............................................................ 18
	5.3	Composition of the Workforce at a Glance.......................................... 21
	5.4	Health and Safety .............................................................................. 23
	5.5	Development and Training ................................................................ 24
	5.6	Labour Standards .............................................................................. 27
6.	Social – Operating Practices........................................................................ 28
	6.1	Supply Chain Management ................................................................ 28
	6.2	Product Responsibility and Quality Management ............................... 29
	6.3	Anti-corruption................................................................................. 31
	6.4	Social - Community............................................................................ 32
		6.4.1 Community Investment............................................................. 32
7.	Key Performance Indicators ....................................................................... 33
8.	Index of Environmental, Social and Governance Reporting Guide of SEHK ... 39

China Information Technology Development Limited 2020 ESG Report

2

1. Introduction

This is the Environmental, Social and Governance Report (this “ Report ”) of China Information Technology Development Limited for the year ended 31 December 2020 (the “ Year ”), compiled in accordance with the Environmental, Social and Governance Reporting Guide published by The Stock Exchange of Hong Kong Limited (“ SEHK ”). This Report aims to disclose relevant environmental, social and governance (“ ESG ”) information, including information on the policies and compliance with relevant laws and regulations that have a significant impact on the group, as well as environmental and social key performance indicators (“ KPIs ”), to the stakeholders of the headquarter of China Information Technology Development Limited and its subsidiaries.

Reporting Specification

To improve readability, the headquarter of China Information Technology Development Limited will be referred to as “ the Company ” or “ CITDL ”, Macro Systems Limited will be referred to as “ Macro Systems ” and the headquarter of China Information Technology Development Limited and its subsidiaries will be collectively referred to as “ the Group ”.

Reporting Standard

This Report is prepared:

• in accordance with Appendix 20, Environmental, Social and Governance Reporting Guide, of the Rules Governing the Listing of Securities on the GEM of SEHK (“ the GEM Listing Rules ”); and

• with reference to the Global Reporting Initiative Standards published by the Global Reporting Initiative.

Reporting Boundary

The scope of this Report includes:

• the operation in Hong Kong of the headquarter of CITDL incorporated in the Cayman Islands with limited liability; and

• the main operation in Hong Kong by Macro Systems which is incorporated in Hong Kong with limited liability (a major subsidiary of the Company).

China Information Technology Development Limited 2020 ESG Report

3

Reporting Period

The reporting period of this Report is from 1 January 2020 to 31 December 2020, which is the same as the reporting period of the Company’s annual report.

Reporting Cycle

This Report is to be published annually.

Access to the Report

The English and Chinese versions of this Report can be browsed or downloaded from:

• the Company’s official website http://www.citd.com.hk

• HKEXnews website by Hong Kong Exchanges and Clearing Limited http://www.hkexnews.hk

Contact Us

If you have any opinions regarding this Report, please contact our ESG reporting team via email.

Email address: info@citd.com.hk

China Information Technology Development Limited 2020 ESG Report

4

2. Preface

This is the ESG Report of the Group for the year-ended 31 December 2020, which is prepared in accordance with the GEM Listing Rules. The Group continues to monitor the public’s expectation of sustainable development and disclosure of ESG information. Stakeholders, including government, stock exchange, investors, suppliers, customers, employees and other social groups, expect to understand the Group’s ESG policies and non-financial risks more thoroughly. As a responsible corporation, the Group is committed to maintaining the highest environmental and social standards to ensure sustainable development of its businesses.

The Group understands that good ESG governance is the key to the long-term development of an enterprise. The board of directors of the Company (the “ Board of Directors ”) upholds its primary leading role and management responsibilities in the ESG aspects, including overseeing the Group’s assessment of relevant environmental and social impacts; understanding the potential impact of ESG issues on the Group’s business model and associated risks; aligning with the expectations of investors and the requirements of regulatory authorizations; improving materiality assessment and reporting processes to ensure that policies are implemented and enforced decisively and consistently; and promoting a top-down culture to ensure that ESG considerations are integrated into the business decision-making process.

To prepare and compile this Report, the Group has specifically formed a reporting team consisting of director, company secretary, management and external consultant, which updates the Board of Directors on a regular basis regarding the reporting progress. The main responsibilities of the team include: to formulate the Group’s ESG strategy and report, and is also responsible for identifying and assessing the Group’s ESG related risks to ensure an effective ESG risk management and internal control system, thereby enhancing the ESG performance of the Group; to review, recognize and report to the Board of Directors on the Group’s ESG framework, standards, prioritization and objectives, and to supervise and implement the ESG strategies on the Group’s level; to monitor, review and evaluate the Group’s ESG performance; to review and advise the Board on the Group’s reporting to the public. The department heads are responsible for overseeing their respective ESG risks and objectives, and reporting regular updates to the ESG reporting team and the Board of Directors on relevant progress and challenges encountered.

China Information Technology Development Limited 2020 ESG Report

5

The Group is committed to operate in a sustainable manner and at the same time maintain the balance of rights and interests between different stakeholders. With a view to improving our ESG disclosure, the procedures and matrix diagram of materiality assessment has been added in this Report. Quantitativeness of the Report has also been improved by providing narrative to explain the basis for KPIs calculation.

The Group has measured and reported various environmental and social KPIs. The measurement and reporting of KPIs is an ongoing and consistent process, allowing for meaningful comparisons of ESG data in subsequent ESG reports. By comparing the environmental KPI of 2019 and 2020, the Board of Directors is pleased that the Group has achieved a lower carbon footprint.

When preparing and compiling this Report, the Group has reviewed its existing policies and achieved a better understanding of the values of ESG reporting. During the reporting process through the approach of measurement, management and changes, the Group hopes to drive improvement and innovation while minimizing the Group’s non-financial risks. The Group understands a better future depends on everyone’s participation and contribution. It has encouraged employees, customers, suppliers and other stakeholders to participate in environmental and social activities which benefit the community as a whole.

The Board of Directors is pleased to present the 2020 ESG Report for the period from 1 January 2020 to 31 December 2020, which outlines the Group’s policies and performance in four areas which are environmental, employment and labour practices, operating practices and community investment.

China Information Technology Development Limited 2020 ESG Report

6

3. Communication with Stakeholder & Materiality Assessment

Communications is an important aspect of our daily operations. Stakeholder engagement and communications are crucial in understanding the expectations and priorities of our stakeholders. The Group values the opinion of our stakeholders and has thus set up and maintained various communication channels for different stakeholder groups. Comments and suggestions are welcomed as they represent an opportunity to improve the Group and its services.

Stakeholder	Stakeholder	Stakeholder		Key Communication Channels
Shareholders			•	Announcements and circulars
			•	Quarterly, interim and annual reports
			•	Shareholders’ meetings
			•	Company website
Customers			•	Customer hotline
			•	Regular debriefing sessions with frontline staff to collect
				customer feedback
Employees			•	Correspondences, suggestion box
			•	Annual performance appraisal
Suppliers and	subcontractors		•	Business correspondences
			•	Procurement contracts and letters of undertaking
			•	Performance appraisals
Government	and	regulatory	•	Compliance inspections
authorities			•	Due submissions
			•	Conferences and seminars
Community and public			•	Press releases and news

Apart from regular communication channels, the Group has also conducted an environmental, social and governance survey to collect opinion from employees, management and external stakeholders, so that the Group can better assess the materiality of various environmental, social and governance aspects.

China Information Technology Development Limited 2020 ESG Report

7

The implementation of materiality assessment has been divided into three main phases:

• i. identifying the potential material ESG aspects that may have impacts on the Group’s business or stakeholders based on the Group’s actual development and industry characteristics;

• ii. inviting internal and external stakeholders to complete questionnaires to understand their level of concern for each aspect; and

• iii. analysing the results of questionnaires to determine the priority of the potential material aspects.

The following matrix diagram is prepared by the Group to illustrate the significance of various issues to our stakeholders and business:

==> picture [482 x 447] intentionally omitted <==

----- Start of picture text -----

25
26 24
22
23 16 20 14 9
13
17
15 21
18
5 4 10 12
19 11
6 7
1
8 27 29 28
3
2
Low Mid High
High
Mid
Significance to stakeholders
Low
----- End of picture text -----

Significance to business

China Information Technology Development Limited 2020 ESG Report

8

	Environment		Labour Practices	Operating Practices	Community Investment
1.	Environmental	9.	Employment	16. Operational	27. Charity work
	compliance		compliance	compliance
2.	Vehicle emissions	10. Remuneration and		17. Management of	28. Promotion of
	management		benefits	environmental risks in	community
				the supply chain	development
3.	Greenhouse gas	11. Working hours and		18. Management of social	29. Poverty alleviation
	emissions		holidays	risks in the supply	work
				chain
4.	Waste	12. Diversity and equal		19. Purchasing practices
	management		opportunities
5.	Use of energy	13. Occupational		20. Quality management
			health and safety
6.	Use of water	14. Training and		21. Customer health and
	resources		development	safety
7.	Green office	15. Prevention of child		22. Protection of
			labour and forced	intellectual property
			labour
8.	Responses to			23. Research and
	climate change			development
				24. Information security
				25. Customer privacy
				protection
				26. Anti-corruption

Based on the above materiality assessment, 13 material aspects has been identified for the Group’s business and stakeholders. The Group has spent more effort to assess, control, monitor and report the material aspects to meet stakeholders’ expectations.

		Material Aspects
4.	Waste management	16. Operational compliance
9.	Employment compliance	20. Quality management
10.	Remuneration and benefits	22. Protection of intellectual property
11.	Working hours and holidays	24. Information security
12.	Diversity and equal opportunities	25. Customer privacy protection
13.	Occupational health and safety	26. Anti-corruption
14.	Training and development

China Information Technology Development Limited 2020 ESG Report

9

4. Environmental

CITDL is principally engaged in investment holding and office management. Macro Systems is principally engaged in providing comprehensive end-to-end solutions and services, ranging from (i) procurement and deployment of IT equipment and facilities; (ii) systems integration; (iii) consulting services on IT infrastructure and business solutions; and (iv) technical support and managed services.

Due to the fact that the Group’s business activities were tertiary production, the amount of emission was relatively limited.

During the Year, the Group has complied with relevant environmental laws and regulations that have a significant impact on the Group, including but not limited to Air Pollution Control Ordinance, Water Pollution Control Ordinance, Waste Disposal Ordinance, Noise Control Ordinance and Product Eco-responsibility Ordinance in Hong Kong.

4.1 Air and Greenhouse Gas Emissions

During the Year, the Group’s source of direct air and greenhouse gas emissions from gaseous fuel consumption was from the private cars. The air emissions of the private cars included 3,965 grams (2019: 5,629 grams) of nitrogen oxides (NOX), 115 grams (2019: 155 grams) of sulphur oxides (SOX) and 292 grams (2019: 414 grams) of respiratory suspended particles.

KPI A1.1: The types of emissions and respective

==> picture [432 x 214] intentionally omitted <==

----- Start of picture text -----

emissions data
414
Respiratory suspended particles
292
155
Sulphur oxides
115
5,629
Nitrogen oxides
3,965
0 1,000 2,000 3,000 4,000 5,000 6,000
g
2019 2020
Private cars emissions
----- End of picture text -----

1 The Vehicle emission factors were calculated based on the Hong Kong Environmental Protection Department’s Vehicle Emission Calculation Model.

China Information Technology Development Limited 2020 ESG Report

10

While the greenhouse gas emissions of the private cars included carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O), with a total of 21,147 kilograms (2019: 28,604 grams) of carbon dioxide (CO2) equivalent emission of greenhouse gas.

Other major direct greenhouse gas emissions were hydrofluorocarbons (HFC) and perfluorocarbons (PFC), which are resulted from the use of air conditioning equipment in the office. The central air conditioning was provided by the property management company, therefore, such emission data was not available for collection.

During the Year, CITDL and Macro Systems operated in the same office premise and encouraged employees to reduce unnecessary business air travel, with a view to lowering the Group’s carbon footprint and achieving more efficient use of resources. Its major indirect greenhouse gas emission were: 9,869 kilograms (2019: 18,983 kilograms) of carbon dioxide (CO2) resulted from the generation of electricity, which was used in the office and purchased from CLP Power Hong Kong Limited; and 669 kilograms (2019: 1,260 kilograms) of carbon dioxide (CO2) emission resulted from business air travel by employees.

China Information Technology Development Limited 2020 ESG Report

11

Other minor and indirect greenhouse gas emissions sources were: 967 kilograms (2019: 923 kilograms) of carbon dioxide (CO2) equivalent emission resulted from office waste paper; carbon dioxide (CO2) emissions resulted from disposal of office solid waste at landfills; and carbon dioxide (CO2) emissions resulted from the electricity used for processing fresh water and sewage. The processing of fresh water, sewage and solid waste were handled by the property management company or relevant local government departments, therefore such emission data was not available for collection.

During the Year, the total carbon dioxide (CO2) equivalent emission of the Group was 32,651 kilograms (2019: 49,769 kilograms), and the carbon dioxide (CO2) equivalent emissions intensity was 0.71 kilogram / thousand Hong Kong Dollar revenue (2019: 0.78 kilogram / thousand Hong Kong Dollar revenue).

KPI A1.2: Greenhouse gas emissions in total

==> picture [427 x 249] intentionally omitted <==

----- Start of picture text -----

49,769
Total
32,651
1,260
From business air travel
669
923
From paper waste
967
18,983
From purchased electricity
9,869
28,604
From private cars
21,147
0 10,000 20,000 30,000 40,000 50,000 60,000
kg
2019 2020
Carbon dioxide equivalent emissions
----- End of picture text -----

1 The carbon dioxide equivalent emissions from private cars was calculated based on the “Guidelines to Account for and Report on Greenhouse Gas Emissions and Removals for Buildings (Commercial, Residential or Institutional Purposes) in Hong Kong” published by the Hong Kong Environmental Protection Department and Hong Kong Electrical and Mechanical Services Department.

2 The carbon dioxide equivalent emissions from purchased electricity was calculated based on the emission factor obtained from the “2020 Sustainability Report” of CLP Group.

3 The carbon dioxide equivalent emissions from paper waste was calculated based on the “Guidelines to Account for and Report on Greenhouse Gas Emissions and Removals for Buildings (Commercial, Residential or Institutional Purposes) in Hong Kong” published by the Hong Kong Environmental Protection Department and Hong Kong Electrical and Mechanical Services Department.

4 The carbon dioxide emissions from business air travel was calculated bas by Carbon Calculator of International Civil Aviation Organization.

China Information Technology Development Limited 2020 ESG Report

12

4.2 Discharge into Water and Land, and Generation of Hazardous and nonHazardous Waste

During the Year, the Group’s major source of discharge into water was from use of water in the office and the amount of discharge was not available for collection since water supply and processing of sewage were handled by the property management company or relevant local government departments.

Batteries, printer toners and waste toner box were the major sources of hazardous waste, the total weight of hazardous waste generated was 6.06 kilograms and the intensity was 0.00013 kilogram / thousand Hong Kong Dollar revenue. The hazardous waste was collected and recycled by relevant service providers.

The major source of non-hazardous waste was from the solid waste of the office, the amount generated was 2,194 kilograms and the intensity was 0.048 kilogram / thousand Hong Kong Dollar revenue. The non-hazardous waste was handled by the property management company.

China Information Technology Development Limited 2020 ESG Report

13

4.3 Energy Consumption and Intensity

During the Year, the direct and indirect energy consumption of the Group included 75,683 kilowatt hours (2019: 102,464 kilowatt hours) of energy consumption by private cars and 26,673 kilowatt hours (2019: 34,554 kilowatt hours) of energy consumption from purchased electricity.

The total energy consumption of the Group was 102,355 kilowatt hours (2019: 137,018 kilowatt hours), and the energy consumption intensity was 2.24 kilowatt hour / thousand Hong Kong Dollar revenue (2019: 2.15 kilowatt hour / thousand Hong Kong Dollar revenue).

KPI A2.1: Direct and/or indirect energy consumption by type in total

==> picture [426 x 226] intentionally omitted <==

----- Start of picture text -----

137,018
Total
102,355
34,554
By purchased electricity
26,673
102,464
By private cars
75,683
0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000
kWh
2019 2020
Energy consumption
----- End of picture text -----

1 The energy consumption by private cars was calculated based on the data obtained from the “Energy Statistics Manual” issued by the International Energy Agency.

China Information Technology Development Limited 2020 ESG Report

14

4.4 Policies and Use of Resources

As an enterprise with social responsibility, the Group encourages its employees to use their best endeavours to reduce waste and emissions, with a view to contributing to the community and the environment. The Group believes in ‘many a little makes a mickle’, despite the fact that the amount of emission is very limited due to its business nature and the Group is in a relatively passive position in reducing waste and emissions. Regarding emission policies, all emissions are handled by relevant government agencies or property management, in ways that are in accordance with local laws and regulations. In addition, the Group considers the efficient use of resources, such as electricity and water, is of equal importance to emission policies. Efficient use of resources not only can reduce waste and emissions from the sources, but also reduce operating expenses, which is mutually beneficial to the Group and the environment.

Policies relating to reduction of waste and emissions, and efficient use of resources include:

• encourage employees to use their best endeavours to take public transport during business trips;

• encourage employees to reduce unnecessary overseas business trips, thus reducing indirect carbon emissions;

• consider energy efficient products when procuring and replacing equipment, e.g. replacing incandescent lighting with LED lighting;

• turn off electrical appliances or switch them to standby mode when they are not in use, thus reducing the amount of electricity used;

• use duplex printing, recycle papers and use electronic means to reduce paper usage;

• reuse office stationaries (e.g. envelopes and folders);

• turn off all unnecessary lighting, air conditioning and electrical appliances before leaving the office;

• encourage employees to recycle paper, plastic bottle and tin can;

• encourage employees to recycle equipment such as computers and communication devices through the recycling programme of Environmental Protection Department.

• provide removal service plan for clients for proper recycling of regulated electrical equipment; and

• provide electronic invoices and monthly bills for clients to reduce use of paper.

China Information Technology Development Limited 2020 ESG Report

15

During the Year, in order to reduce waste produced, Macro Systems has donated various computer and networking equipment to Caritas Computer Workshop for recycling, including hard drives, servers, printers, monitors, firewalls and routers.

Through the implementation of the emission and efficient use of resources policies stated above, and monitoring of the enforcement of the policies, the Group successfully reduced its carbon footprint by controlling the amount of emissions, waste produced and resources used. The Group shall continue to optimize the above measures in order to control or reduce the intensity of emissions, wasted produced and resources used.

4.5 Responses to Climate Change

The increase in climate change has led to extreme weather events such as global warming, rising in sea level and drought, which may affect the Group’s operation indirectly. The Group has identified disruption of supply chain of IT equipment as the major risk that may have a significant impact on the Group.

In response to climate change and the supply chain risk to the Group’s operation, the Group shall continue to control or reduce its impact to the environment. In addition, the Group shall diversify the supply chain and reduce reliance on a few suppliers, so as to mitigate risks of suspension of suppliers’ factory due to extreme weather events.

China Information Technology Development Limited 2020 ESG Report

16

5. Social – Employment and Labour Practices

The Group believes employees are essential assets in driving corporate sustainable development and long term success, thus maintaining a good relationship with employees is of utmost importance. By regular communication through different channels, the employees are encouraged to express their opinions on the policies relating to employment and labour practices.

During the Year, the Group has complied with relevant laws and regulations relating to employment that have a significant impact of the Group, including but not limited to Employment Ordinance and various anti-discrimination ordinance.

5.1 CITDL - Employment

CITDL has formulated employment policies and guidelines that comply with the Employment Ordinance in Hong Kong, the highlights are:

• remuneration and benefits are based on prevailing practices in local market and subject to adjustments based on experiences and qualifications;

• annual discretionary bonuses are adjusted according to annual performances, experiences and positions;

• provide employees with Mandatory Provident Fund schemes in accordance with the laws of Hong Kong;

• provide medical insurance or allowances for employees;

• provide paid annual leave of not less than 7 days for employees;

• provide employees with medical leave in accordance with the laws of Hong Kong;

• adopt policies relating to equal opportunities which aim to eliminate discrimination of sex, family status and disability in workplace;

• CITDL has implemented five-day work scheme with working hours of 8 hours a day and 40 hours a week; CITDL encourages employees to maintain a work-life balance and avoid unnecessary overtime; and

• dismissal or voluntary termination of employee’s contracts shall be enforced in accordance with the employment laws in Hong Kong.

China Information Technology Development Limited 2020 ESG Report

17

5.2 Macro Systems - Employment

The compensation and welfare provided by Macro Systems complies with the Employment Ordinance in Hong Kong.

Compensation

The salaries and benefits of the employees are based on prevailing local market rate and subject to adjustment based on experiences and qualifications. In order for Macro Systems to attract and retain outstanding employees, the remuneration packages are subject to review from time to time. In addition, commissions are awarded to qualified employees in the sales department based on the performance of Macro Systems and individual employee. Salaries are paid monthly on or before the 1st of each month. Employee performance reviews are carried out from time to time, which aims to ensure adequate communication between Macro Systems and its employees, and give feedback on employee’s performance.

Benefits

Macro Systems operates a Mandatory Provident Fund Scheme (the “ MPF scheme ”) under the Mandatory Provident Fund Schemes Ordinance for employees employed under the jurisdiction of the Hong Kong Employment Ordinance. The MPF scheme is a defined contribution retirement plan administered by independent trustees. Under the MPF scheme, the employer and its employees are each required to make contributions to the plan at 5% of the employees’ relevant income, subject to cap of monthly relevant income of HK$30,000. Contributions to the plan vest immediately.

After satisfactory completion of probation period, a comprehensive medical scheme under the insurance package are provided to employees. Macro Systems is also in possession of a valid insurance policy to cover its liabilities both under the Employees’ Compensation Ordinance and at common law for the work injuries for the employees.

China Information Technology Development Limited 2020 ESG Report

18

Working Hours

Employees are in general required to work 5 days a week from 9am to 6pm. Due to operational requirement, employees may be required to work outside the normal working hours at the discretion of the department manager for the proper performance of the assigned duties and that the compensation leave would be given for those arrangement. Macro Systems encourages the management and employees to maintain a work-life balance, avoid unnecessary overtime and maintain a good corporate culture.

Holidays

Macro Systems provides holidays and leaves for the employees including:

• public holidays of 17 days per annum, set by the General Holidays Ordinance (Chapter 149 of the Laws of Hong Kong) with the dates published in the Government Gazette;

• paid annual leave of not less than 12 days per annum;

• sick leave in accordance with the Employment Ordinance (Chapter 57 of the Laws of Hong Kong); employees have to provide proper medical certificate;

• 10 weeks of maternity leave, in accordance with the Employment Ordinance;

• 5 days of paternity leave, in accordance with the Employment Ordinance;

• special leaves including 3 days of marriage leave and 1 to 3 days of bereavement leave;

• birthday leave; and

• compensation leave for overtime work hours.

China Information Technology Development Limited 2020 ESG Report

19

Recruitment, Dismissal, Equal Opportunity, Diversity and Anti-discrimination

In order to standardise recruitment and dismissal procedures and comply with relevant laws in Hong Kong, Macro Systems has formulated recruitment policies, guidelines and Employee Handbook for the human resources and administration department (the “HR & Admin Department”).

The major principle of recruitment is the suitability of the candidates in relation to the positions. Other factors such as required practical knowledge of the position, the quality, attitude, skill, potential and experience of the candidates are also considered. During recruitment, Macro Systems encourages to provide equal opportunity to people with different social statuses, races and genders, with a view to increasing internal diversity and strengthening competitivity.

Macro Systems complies with Personal Data (Privacy) Ordinance when handling personal data. The HR & Admin Department shall keep the recruitment related documents and employment related data according to the regulation and Macro Systems’ requirements on record retention, and ensure the records are destroyed with care in accordance with the information classification procedure. When employment reference check is required, Macro Systems shall obtain a prior written consent from the candidate.

Upon the employment of an employee, an employment contract which is prepared in accordance with the Employee Handbook and relevant local laws and regulations, shall be signed with the employee including terms on non-disclosure agreement. Probation period is usually 3 months and subject to the performance review for extension.

The conditions of terminating employment contract are thoroughly communicated to the employees through the Employee Handbook and their employment contracts, and the terms and conditions comply with relevant local laws and regulations.

China Information Technology Development Limited 2020 ESG Report

20

5.3 Composition of the Workforce at a Glance

(This refers to employees of the Group as at 31 December 2020)

By Gender By Employment Type

==> picture [398 x 216] intentionally omitted <==

----- Start of picture text -----

7
16%
15
15 33%
5
33%
11%
30
67%
18
40%
Senior Management
Middle Management
Male Female
Technical Staff
General Staff
----- End of picture text -----

By Age Group By Geographical Location

==> picture [395 x 203] intentionally omitted <==

----- Start of picture text -----

2 2
6
4% 4%
13%
37
82% 43
96%
----- End of picture text -----

Below Age 30 Age 30 to 50

Hong Kong Mainland China

Above Age 50

China Information Technology Development Limited 2020 ESG Report

21

Employee Turnover Rate

From the period of 1 Jan 2020 to 31 December 2020, there were 11 employees (2019: 6) who left the Group, with a total turnover rate of 27% (2019: 11%), all of whom were working in Hong Kong. The turnover rate of male and female employee were 37% (2019: 14%) and 7% (2019: 6%) respectively. The employee turnover rate by age group was as follows:

• Below age 30: 150% (2019: 0%)

• Age 30 to 50: 24% (2019: 15%)

• • Above age 50: 0% (2019: 0%)

The employee turnover rate by geographical region was as follows:

• Hong Kong: 28% (2019: 15%)

• Mainland China: 0% (2019: 0%)

KPI B1.2: Employee turnover rate by gender, age group and geographical region

==> picture [426 x 219] intentionally omitted <==

----- Start of picture text -----

0%
Mainland China
0%
15%
Hong Kong
28%
0%
Above age 50
0%
15%
Age 30 to 50
24%
0%
Below age 30
150%
6%
Female
7%
14%
Male
37%
11%
Total workforce
27%
0% 20% 40% 60% 80% 100% 120% 140% 160%
Turnover Rate
Category
----- End of picture text -----

==> picture [6 x 6] intentionally omitted <==

2019 2020

China Information Technology Development Limited 2020 ESG Report

22

5.4 Health and Safety

The Group is committed to provide employees a safe working environment to protect them from occupational hazards.

Due to employees’ prolonged use of computer, the Group has provided employees with desks of suitable height and task chairs of adjustable height, and encourages them to pay attention to their usual sitting posture, take breaks and do stretching exercises regularly, thus reducing occupational strain. Employees are also reminded to take safety precautions and use suitable tools when lifting heavy goods or reaching items at height.

To safeguard health of employees during COVID-19 situation, the Group has enforced various measures, including but not limited to providing COVID-19 test through medical benefit, allowing employees to work from home, providing software and equipment to enhance communication for internet conferencing and strengthening office sanitization.

During the past three years, there were no workplace injury or work-related fatality incidents in the Group. The Group has secured employees’ insurance policies in accordance with the laws of Hong Kong and has complied with relevant laws and regulations relating to health and safety that have a significant impact on the Group, including but not limited to Employees’ Compensation Ordinance and Occupational Safety and Health Ordinance.

China Information Technology Development Limited 2020 ESG Report

23

5.5 Development and Training

The Group values employees’ development of skills and knowledges, believing that talent retention can drive innovations and business development. The Group expects to grow and create values together with its employees.

Regarding new employee orientation of CITDL, the human resources department will first provide basic training in relation to the CITDL’s policies and guidelines. Employee will be briefed about CITDL’s background, introduced to the department head and presented with a set of reference materials. The head and members of the department will be responsible for the training of new employee.

Regarding new employee orientation of Macro Systems, the HR & Admin Department is responsible for organizing orientation for new employee such that they can understand the responsibilities and rights in terms of their job duty and the requirement of the information security management system.

In order to comply with ISO/IEC 20000 standard for IT service management and ISO 27001 standard for information security management system, employees of Macro Systems have to undergo training in relation to service management policy and procedures.

Macro Systems provides educational compensation to enhance employees’ continuing professional development. Fees of work related examinations, certification programmes and training programmes are usually paid by Macro Systems. Employees can also apply for fees reimbursement of other development programme upon prior discussion with the management and successful completion of the programme.

On the subject of employees’ career prospects, if vacancies or new positions are available, the Group shall consider internal promotion or transfer, thus encouraging upward mobility of employees.

In respect of development and training of the directors of CITDL, each director receives comprehensive, formal and tailored induction on the first occasion of his appointment so as to ensure the he has appropriate understanding of the business and operations of the CITDL and that he is fully aware of his responsibilities and obligations under the GEM Listing Rules and relevant regulatory requirements. CITDL is committed to arranging and funding suitable training to all directors for their continuous professional development.

China Information Technology Development Limited 2020 ESG Report

24

Each director is briefed and updated from time to time to ensure that he is fully aware of his responsibilities under the GEM Listing Rules and applicable legal and regulatory requirements and the governance policies of the Group. All directors also understand the importance of continuous professional development and are committed to participating any suitable training to develop and refresh their knowledge and skills.

The company secretary of CITDL supports the Board of Directors, ensures good information flow within the Board and board policy and procedures are followed; advises the Board on governance matters, facilitates induction and monitors the training and continuous professional development of directors. He has attained not less than fifteen hours of relevant professional training during the Year.

China Information Technology Development Limited 2020 ESG Report

25

Percentage of Employees Trained and Average Training Hours Completed

From the period of 1 January 2020 to 31 December 2020, the Group’s percentage of employees trained for male and female employees were 72% (2019: 65%) and 28% (2019: 6%) respectively.

The percentage of employees trained by employee category was as follows:

• Senior Management: 12% (2019: 30%)

• Middle Management: 20% (2019: 0%)

• Technical Staff: 44% (2019: 73%)

• General Staff: 24% (2019: 51%)

KPI B3.1: The percentage of employees trained by gender and employee category

==> picture [426 x 243] intentionally omitted <==

----- Start of picture text -----

47%
Total workforce
56%
51%
General Staff
24%
73%
Technical Staff
44%
0%
Middle Management
20%
30%
Senior Management
12%
6%
Female
28%
65%
Male
72%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Percentage of employees trained
2019 2020
Category
----- End of picture text -----

China Information Technology Development Limited 2020 ESG Report

26

The average training hours completed per employee for male and female employees were 11.57 hours (2019: 8.41 hours) and 2.27 hours (2019: 0.13 hours) respectively.

The average training hours completed per employee by employee category was as follows:

• Senior Management: 7.14 hours (2019: 0.3 hours)

• Middle Management: 14 hours (2019: 0 hours)

• Technical Staff: 13.78 hours (2019: 16.97 hours)

• • General Staff: 0.87 hours (2019: 1.54 hours)

KPI B3.2: The average training hours completed per employee by gender and employee category

==> picture [429 x 233] intentionally omitted <==

----- Start of picture text -----

5.91
Total workforce
8.47
1.54
General Staff
0.87
16.97
Technical Staff
13.78
0
Middle Management
14
0.3
Senior Management
7.14
0.13
Female
2.27
8.41
Male
11.57
0 2 4 6 8 10 12 14 16 18
Average training hours completed per employee
2019 2020
Category
----- End of picture text -----

5.6 Labour Standards

The Group strictly complies with the policies and guidelines in the employment laws of Hong Kong, including elimination of child and forced labour. All operating units have to ensure no child or forced labour are employed. During the recruitment process, the human resources department requires candidate to provide identification document to check if the age of candidate complies with the laws.

China Information Technology Development Limited 2020 ESG Report

27

6. Social – Operating Practices

6.1 Supply Chain Management

CITDL continues to monitor closely on its daily operation and encourages suppliers and contractors to join force in promoting performance of sustainable development. Suppliers and contractors are bound by contracts and the laws and regulations of Hong Kong, ensuring their compliance with laws and regulation relating to environmental and social policies. For instances, they are forbidden to employ under-age labour and the products supplied must meet environmental standards.

During procurement for CITDL, the procurement manager is responsible for selecting and reviewing suppliers. During procurement for Macro Systems, the department or team which is responsible for handling a customer sales order or internal order should follow the supplier management policies in the Information Security Management System Procedural Manual (“ ISMS Procedural Manual ”). A database of suppliers are kept and monitored by procurement department. If there are significant changes in environmental and social risks along the supply chain, the procurement department should discuss with other departments and decide on risk responses.

More environmental friendly products or services should be procured when it is feasible, with a view to minimizing negative impacts to the environment and human health, and also conserving natural resources.

During the Year, the Group’s number of suppliers by geographical region are as follows:

• Hong Kong: 115 (2019: 50)

• • Mainland China: 2 (2019: 0) • Others: 0 (2019: 9)

China Information Technology Development Limited 2020 ESG Report

28

6.2 Product Responsibility and Quality Management

The Group has formulated regulations relating to software security, network security and privacy, to ensure its products are safe and responsible.

Employees must strictly comply with anti-virus protection regulations, the highlights are:

• anti-virus software must be installed on all computers;

• update the operating system and anti-virus software on a prompt and regular basis, thus fixing security vulnerabilities;

• backup employees’ computers and servers on a regular basis, hence protecting possible data loss caused by hardware or software failures; and

• when computers or servers showing signs of anomaly, promptly notify the management, and conduct quarantine and inspection based on relevant protocols, so as to minimize potential risks.

To protect confidential information, privacy and interests of the Group and its stakeholder, employees must strictly comply with regulations relating to information handling, the highlights are:

• disclosure of the Group’s information relating to strategies, researches, technologies, financial, clients and other confidential information, to unrelated third parties or employees, is prohibited;

• employees will have to keep such information confidential after resignation;

• To avoid potential leak of information, meeting with clients and visitors should be carried out in conference room, instead of in working area of the office;

• reading other employees’ working information, computer and personal items without consent is prohibited;

• permissions must be granted before entry to the finance office or server room with confidential information;

• proper networking and server permissions are configured to avoid employee accessing information unrelated to his work; and

• handle personal information in accordance with Personal Data (Privacy) Ordinance.

To ensure its products’ safety and responsibility, Macro Systems has formulated policies and regulations relating to software security, network security and privacy in the ISMS Procedural Manual and service management policy documents, which complies with local laws and regulations, as well as international standards including ISO/IEC 20000 and ISO 27001.

China Information Technology Development Limited 2020 ESG Report

29

To protect confidential information, privacy and interests of Macro Systems and its stakeholder, employees must strictly comply with regulations relating to information handling. Employees are required to keep confidential to all matter or information touching or concerning the business or affairs of Macro Systems both during the course of employment and at any time thereafter. Information security risks are evaluated and identified according to the ISMS Procedural Manual and respective procedures and measures are in place to minimise the risks and mitigate potential damages. In additional, information access control has been in place to protect information from unauthorised access.

The ISMS Procedural Manual also provides guidance in these areas, including but not limited to:

• risk management, including identification, assessment, treatment and control of risk;

• document and record control;

• internal audit procedures;

• asset management and information classification;

• access and cryptographic control;

• physical and environmental security;

• operation security; and

• incident management.

During the Year, the Group’s percentage of total products sold or shipped subject to recalls for safety and health reasons was 0% (2019: 0%) and the number of products and service related complaints received was 0 (2019: 0).

During the Year, the Group has complied with relevant laws and regulations relating to product responsibility that have a significant impact on the Group, including but not limited to Product Eco-responsibility Ordinance and Personal Data (Privacy) Ordinance.

China Information Technology Development Limited 2020 ESG Report

30

6.3 Anti-corruption

The Group considers ethical conduct is of utmost importance in corporate sustainable development and long-term success. Employees must comply with relevant laws and regulations in Hong Kong, prohibiting individual and commercial bribery, extortion, fraud and money laundering. Ethics and compliance training, and various operating procedures have been in place to ensure there are sufficient effort spent on anti-corruption. Directors and employees were abided by the code of ethics or employee handbook. The Group shall strengthen its ethical culture by regular anti-corruption training or materials to directors and employees.

The Group has established a complete complaint mechanism. If an employee discovers illegal activities within the company, he/she can report it to the administrative department or his/her senior. If the reply to the complaint is not satisfactory or if the employee does not want the complaint to be handled by the administrative department nor his/her senior, he/she can report it directly to the general manager. All complaints filed are confidential and the Group is responsible for protecting the legitimate rights and interests of the whistle blower.

If any corruption, bribery, blackmail, fraud and money laundering incidents are discovered, the Group will take necessary legal actions to protect the rights and interests of the Group and its stakeholders.

During the Year, the number of concluded legal cases regarding corrupt practices brought against the Group or its employees was 0 (2019: 0) and the Group has complied with relevant laws and regulations relating to anti-corruption that have a significant impact of the Group.

China Information Technology Development Limited 2020 ESG Report

31

6.4 Social - Community

6.4.1 Community Investment

The Group is committed to create a positive impact on the communities in which it operates. Employees are encouraged to participate in community projects and activities.

Macro Systems has been awarded the Caring Company Logo since 2008. This is an indication that Macro Systems recognise the concept of corporate social responsibility. The Caring Company scheme was launched by the Hong Kong Council of Social Service in 2002, which aims to foster strategic partnerships between the business and social services sectors to promote good corporate citizenship and create a more inclusive society. The scheme also helps corporations and social services organisations to know and understand one another at a much deeper level. This will create more room for working together to develop cross-sector community projects that focus on the needs of the community.

During the reporting period, Macro Systems has provided monetary donation and the employees have provided over 200 hours of voluntary services for supporting the leadership development programmes and activities for young people for the Scout Association of Hong Kong.

In the coming year, the management shall review policies relating to community investment and explore the feasibility of increasing community investment activities.

China Information Technology Development Limited 2020 ESG Report

32

7. Key Performance Indicators

The Group continually improves by managing, monitoring and reporting its KPIs. The tables below present a quantitative overview of our 2020 performance.

Subject Area A. Environmental

KPI A1.1: The types of emissions and respective emissions data[1]

Item	Unit	2019	2020
Private cars NOXemissions	g	5,629	3,965
Private cars SOXemissions	g	155	115
Private cars RSP emissions	g	414	292

KPI A1.2: Greenhouse gas emissions in total and intensity

Item	Unit	2019	2020
Scope 1 – Direct emissions from sources
CO2equivalent emissions from private
cars2	kg	28,604	21,147
Scope 2 – Energy indirect emissions
CO2equivalent emissions from
purchased electricity3	kg	18,983	9,869
Scope 3 – Other indirect emissions
CO2equivalent emissions from paper
waste4	kg	923	967
CO2emissions from business air travel5	kg	1,260	669
Total CO2equivalent emissions	kg	49,769	32,651
Revenue	HK$’000	63,712	45,694
CO2equivalent emissions intensity	kg/HK$’000	0.78	0.71

1 The Vehicle emission factors were calculated based on the Hong Kong Environmental Protection Department’s Vehicle Emission Calculation Model.

2 The carbon dioxide equivalent emissions from private cars was calculated based on the “Guidelines to Account for and Report on Greenhouse Gas Emissions and Removals for Buildings (Commercial, Residential or Institutional Purposes) in Hong Kong” published by the Hong Kong Environmental Protection Department and Hong Kong Electrical and Mechanical Services Department.

3 The carbon dioxide equivalent emissions from purchased electricity was calculated based on the emission factor obtained from the “2020 Sustainability Report” of CLP Group.

4 The carbon dioxide equivalent emissions from paper waste was calculated based on the “Guidelines to Account for and Report on Greenhouse Gas Emissions and Removals for Buildings (Commercial, Residential or Institutional Purposes) in Hong Kong” published by the Hong Kong Environmental Protection Department and Hong Kong Electrical and Mechanical Services Department.

5 The carbon dioxide emissions from business air travel was calculated bas by Carbon Calculator of International Civil Aviation Organization.

China Information Technology Development Limited 2020 ESG Report

33

KPI A1.3 & A1.4: Total hazardous	and non-hazardous waste produced and	and non-hazardous waste produced and	and non-hazardous waste produced and	and non-hazardous waste produced and
intensity
Item		Unit		2020
Total hazardous waste produced		kg		6.06
Total non-hazardous waste produced		kg		2,194
Revenue		HK$’000		45,694
Intensity of hazardous waste produced		kg/HK$’000		0.00013
Intensity of non-hazardous waste produced		kg/HK$’000		0.048
KPI A2.1: Direct and/or indirect energy consumption by type in total and
intensity
Item	Unit		2019	2020
Energy consumption by private cars1	kWh		102,464	75,683
Energy consumption by purchased
electricity	kWh		34,554	26,673
Total energy consumption	kWh		137,018	102,355
Revenue	HK$’000		63,712	45,694
Energy consumption intensity	kWh/HK$’000		2.15	2.24

1 The energy consumption by private cars was calculated based on the data obtained from the “Energy Statistics Manual” issued by the International Energy Agency.

China Information Technology Development Limited 2020 ESG Report

34

Subject Area B. Social

KPI B1.1: Total workforce by gender, employment type, age group and geographical region

. geographical region	,		,
		2019		2020
Category	Number	Percentage	Number	Percentage
Total workforce	54	100%	45	100%
Gender
Male	38	70%	30	67%
Female	16	30%	15	33%
Employment Type
Senior management	10	19%	7	16%
Middle management	7	13%	5	11%
Technical staff	18	33%	18	40%
General staff	19	35%	15	33%
Age Group
Below age 30	7	13%	2	4%
Age 30 to 50	42	78%	37	82%
Above age 50	5	9%	6	13%
Geographical Region
Hong Kong	41	76%	43	96%
Mainland China	12	22%	2	4%
Others	1	2%	0	0%

China Information Technology Development Limited 2020 ESG Report

35

KPI B1.2: Employee turnover rate by gender, age group and geographical region

. region				,
				2019		2020
Category			Turnover Rate		Turnover Rate
Total workforce				11%		27%
Gender
Male				14%		37%
Female				6%		7%
Age Group
Below age 30				0%		150%
Age 30 to	50			15%		24%
Above age 50				0%		0%
Geographical Region
Hong Kong				15%		28%
Mainland	China			0%		0%
KPI B2.1: Number and rate of work-related fatalities
		2018		2019		2020
Category	Number	Percentage	Number	Percentage	Number	Percentage
Work-	0	0%	0	0%	0	0%
related
fatalities

KPI B2.2: Lost days due to work injury

	2019	2020
Category	Number	Number
Lost days due to work injury	0	0

China Information Technology Development Limited 2020 ESG Report

36

KPI B3.1: The percentage of employees trained by gender and employee category

KPI B3.2: The average training hours completed per employee by gender and employee category

. employee category
		2019		2020
Category	Average	Percentage	Average	Percentage
	training		training
	hours		hours
	completed		completed
Gender
Male	8.41	65%	11.57	72%
Female	0.13	6%	2.27	28%
Employee Category
Senior Management	0.30	30%	7.14	12%
Middle Management	0	0%	14.00	20%
Technical Staff	16.97	73%	13.78	44%
General Staff	1.54	51%	0.87	24%
Total workforce	5.91	47%	8.47	56%

KPI B5.1: Number of suppliers by geographical region

		2019		2020
Geographical Region	Number	Percentage	Number	Percentage
HongKong	50	85%	115	98%
Mainland China	0	0%	2	2%
Others	9	15%	0	0%
Total	59	100%	117	100%

KPI B6.1: Percentage of total products sold or shipped subject to recalls for safety and health reasons

. safety and health reasons
	2019	2020
Category	Percentage	Percentage
Percentage of total products	0%	0%
sold or shipped subject to
recalls for safety and health
reasons

China Information Technology Development Limited 2020 ESG Report

37

KPI B6.2: Number of products and service related	complaints received	complaints received
	2019	2020
Category	Number	Number
Number of products and service related complaints	0	0
received
KPI B7.1: Number of concluded legal cases regarding corrupt practices
brought against the issuer or its employees during the reporting period
	2019	2020
Category	Number	Number
Number of concluded legal cases regarding corrupt	0	0
practices brought against the issuer or its employees
during the reporting period

China Information Technology Development Limited 2020 ESG Report

38

8. Index of Environmental, Social and Governance Reporting Guide of SEHK

Reporting Guide of SEHK
Subject Areas and Aspects	Page
Subject Area A - Environmental
Aspect A1: Emissions
General Disclosure	Pages 10-16
Information on:
a) the policies; and
b) compliance with relevant laws and regulations that have a significant
impact on the issuer
relating to air and greenhouse gas emissions, discharges into water and land,
and generation of hazardous and non-hazardous waste.
KPI A1.1 The types of emissions and respective emissions data.	Page 10
KPI A1.2 Greenhouse gas emissions and, where appropriate, intensity	Pages 11-12
KPI A1.3 Total hazardous waste produced and, where appropriate, intensity.	Pages 13
KPI A1.4 Total non-hazardous waste produced and, where appropriate,	Pages 13
intensity.
KPI A1.5 Description of emission target(s) set and steps taken to achieve	Pages 15-16
them.
KPI A1.6 Description of how hazardous and non-hazardous wastes are	Page 13
handled, and a description of reduction target(s) set and steps	Pages 15-16
taken to achieve them.

China Information Technology Development Limited 2020 ESG Report

39

Subject Areas and Aspects	Subject Areas and Aspects	Page
Aspect A2: Use of Resources
General Disclosure		Pages 10-16
Policies on	the efficient use of resources, including energy, water and other raw
materials.
KPI A2.1	Direct and/or indirect energy consumption by type in total and	Page 14
	intensity.
KPI A2.2	Water consumption in total and intensity	Page 13
KPI A2.3	Description of energy use efficiency initiatives and results achieved.	Pages 15-16
KPI A2.4	Description of whether there is any issue in sourcing water that is fit	Not
	for purpose, water efficiency target(s) set and steps taken to	applicable
	achieve them	to the
		Group’s
		operation
KPI A2.5	Total packaging material used for finished products and, if	Not
	applicable, with reference to per unit produced.	applicable
		to the
		Group’s
		operation

Aspect A3: The Environment and Natural Resources

KPI A2.5 Total packaging material used for finished products and, if applicable, with reference to per unit produced. Aspect A3: The Environment and Natural Resources	Not applicable to the Group’s operation
General Disclosure	Pages 15-16
Policies on minimising the issuer’s significant impact on the environment and
natural resources.
KPI A3.1 Description of the significant impacts of activities on the	Pages 15-16
environment and natural resources and the actions taken to manage
them.
Aspect A4: Climate Change
General Disclosure	Page 16
Policies on identification and mitigation of significant climate-related issues
which have impacted, and those which may impact, the issuer.
KPI A4.1 Description of the significant climate-related issues which have	Page 16
impacted, and those which may impact, the issuer, and the actions
taken to manage them.

China Information Technology Development Limited

40

2020 ESG Report

Subject Areas and Aspects Page Subject Area B - Social Employment and Labour Practices Aspect B1: Employment

General Disclosure Pages 17-20 Information on:

• a) the policies; and

• b) compliance with relevant laws and regulations that have a significant impact on the issuer

relating to compensation and dismissal, recruitment and promotion, working

hours, rest periods, equal opportunity, diversity, anti-discrimination, and other

benefits and welfare.

a) the policies; and b) compliance with relevant laws and regulations that have a significant impact on the issuer relating to compensation and dismissal, recruitment and promotion, working hours, rest periods, equal opportunity, diversity, anti-discrimination, and other benefits and welfare.
KPI B1.1 Total workforce by gender, employment type, age group and	Page 21
geographical region.
KPI B1.2 Employee turnover rate by gender, age group and geographical	Page 22
region.
Aspect B2: Health and Safety
General Disclosure	Page 23
Information on:

• a) the policies; and

• b) compliance with relevant laws and regulations that have a significant impact on the issuer

relating to providing a safe working environment and protecting employees from occupational hazards.

KPI B2.1	Number and rate of work-related fatalities occurred in each of the	Page 23
	past three years including the reporting year.
KPI B2.2	Lost days due to work injury.	Page 23
KPI B2.3	Description of occupational health and safety measures adopted,	Page 23
	how they are implemented and monitored.

China Information Technology Development Limited 2020 ESG Report

41

Subject Areas and Aspects	Page
Aspect B3: Development and Training
General Disclosure	Pages 24-25
Policies on improving employees’ knowledge and skills for discharging duties at
work. Description of training activities.
KPI B3.1 The percentage of employees trained by gender and employee	Page 26
category (e.g. senior management, middle management).
KPI B3.2 The average training hours completed per employee by gender and	Page 27
employee category.
Aspect B4: Labour Standards
General Disclosure	Page 27
Information on:
a) the policies; and
b) compliance with relevant laws and regulations that have a significant
impact on the issuer relating to preventing child and forced labour.
KPI B4.1 Description of measures to review employment practices to avoid	Page 27
child and forced labour.
KPI B4.2 Description of steps taken to eliminate such practices when	Page 27
discovered.

China Information Technology Development Limited 2020 ESG Report

42

Subject Areas and Aspects	Page
Operating Practices
Aspect B5: SupplyChain Management
General Disclosure	Page 28
Policies on managing environmental and social risks of the supply chain.
KPI B5.1 Number of suppliers by geographical region.	Page 28
KPI B5.2 Description of practices relating to engaging suppliers, number of	Page 28
suppliers where the practices are being implemented, how they
are implemented and monitored.
KPI B5.3 Description of practices used to identify environmental and social	Page 28
risks along the supply chain, and how they are implemented and
monitored.
KPI B5.4 Description of practices used to promote environmentally	Page 28
preferable products and services when selecting suppliers, and
how they are implemented and monitored
Aspect B6: Product Responsibility
General Disclosure	Pages 29-30
Information on:
a) the policies; and
b) compliance with relevant laws and regulations that have a significant
impact on the issuer
relating to health and safety, advertising, labelling and privacy matters relating
to products and services provided and methods of redress.
KPI B6.1 Percentage of total products sold or shipped subject to recalls for	Page 30
safety and health reasons.
KPI B6.2 Number of products and service related complaints received and	Page 30
how they are dealt with.
KPI B6.3 Description of practices relating to observing and protecting	Pages 29-30
intellectual property rights.
KPI B6.4 Description of quality assurance process and recall procedures.	Pages 29-30
KPI B6.5 Description of consumer data protection and privacy policies, how	Pages 29-30
they are implemented and monitored.

China Information Technology Development Limited 2020 ESG Report

43

Subject Areas and Aspects	Subject Areas and Aspects	Page
Aspect B7: Anti-corruption
General Disclosure		Page 31
Information on:
a)	the policies; and
b)	compliance with relevant laws and regulations that have a significant
	impact on the issuer
relating to bribery, extortion, fraud and money laundering.
KPI	B7.1 Number of concluded legal cases regarding corrupt practices	Page 31
	brought against the issuer or its employees during the reporting
	period and the outcomes of the cases.
KPI	B7.2 Description of preventive measures and whistle-blowing	Page 31
	procedures, how they are implemented and monitored
KPI	B7.3 Description of anti-corruption training provided to directors and	Page 31
	staff.

Community

Aspect B8: Community Investment

KPI B7.2 Description of preventive measures and whistle-blowing procedures, how they are implemented and monitored KPI B7.3 Description of anti-corruption training provided to directors and staff. Community Aspect B8: CommunityInvestment	Page 31 Page 31
General Disclosure	Page 32
Policies on community engagement to understand the needs of the
communities where the issuer operates and to ensure its activities take into
consideration the communities’ interests.
KPI B8.1 Focus areas of contribution (e.g. education, environmental	Page 32
concerns, labour needs, health, culture, sport).
KPI B8.2 Resources contributed (e.g. money or time) to the focus area.	Page 32

China Information Technology Development Limited 2020 ESG Report

44

==> picture [181 x 100] intentionally omitted <==

If you have any opinions regarding this Report, please contact our ESG reporting team via email.

Email: info@citd.com.hk

China Information Technology Development Limited 2020 ESG Report