Governance Structure

The Towngas 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 Board ESG Committee and ESG Steering Committee.

The Board ESG Committee oversees the Group’s ESG development, strategies, policies and practices. The Board 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 Board 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 responsible for overall coordination and support, ensuring the effective implementation of relevant strategies and measures.

As part of overall ESG management, the Group has established a risk management system, which is able to effectively identify, assess, mitigate, report and monitor key risks (including ESG risks) of the Group. The Board Audit and Risk Committee supports the Board in overseeing the overall risk management system and provides assurance to the Board semi-annually that the system is operating effectively. 

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 Managing Director 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 projects. In Hong Kong, an additional performance bonus has been introduced to encourage broad-based participation in ESG (including climate-related) projects and initiatives.