Message from CEO
2023 was a record-breaking year for HAESL as the business output 301 engines, the first time we have broken the 300 barrier and a 14% increase on the previous record. This achievement is even more impressive when the difficulties facing the industry, in particular strained supply chains, are considered. None of this would have been achieved without the dedication and resilience of our people, who demonstrated their professionalism and skill in navigating the challenges they faced.
The health and safety of our workforce remains, as ever, our first priority at all times. The company recorded two LTIs for the year, which was an increase on the one recorded in the previous year and reinforces the necessity to diligently maintain our efforts in driving towards our target of zero harm. To support this, we continued to focus on proactive risk reporting throughout 2023 as well as ensuring senior management conducted regular safety walks. These initiatives were supported by company wide safety campaigns to raise awareness of the risks to individual safety.
To keep pace with the growth across the business, HAESL recruited at full speed throughout 2023, increasing headcount by 21.6% during the year. In 2022 we set ourselves targets on gender balance and we made progress on this in 2023.Whilst the gender balance remains strongly weighted to male staff, progress has been made, with the percentage of female staff increasing by 2.3% through the year. HAESL became a signatory to “The Racial Diversity and Inclusion Charter for Employers” organised by The Equal Opportunities Commission in 2023, pledging to work towards the goals of racial equality and diversity. We have continued to promote the HAESL Women’s Network and Male Allies as well as rolling out learning programmes to specifically reinforce our staffs’ understanding of Diversity and Inclusion.
2023 saw HAESL continue to make progress on our journey to meet our environmental targets. To align with the environmental commitment of our shareholders, the HAECO Group and Rolls-Royce, HAESL has established 10-year and annual goals to actively track and focus on three prioritised environmental aspects, namely carbon emissions, water intensity and waste recycling. To manage this and improve environmental performance in a systematic approach, HAESL set up the ISO14001 Environmental Management System (EMS) in 2023 and was awarded with ISO14001 certification in January 2024.
In 2023, the total greenhouse gas emission of HAESL increased by 11.3% compared to the prior year. The overall emissions growth was driven by the 15% increase in engine output combined with an increase in the percentage of XWB engines tested, which use more fuel during the test process. Whilst overall emissions grew there was a 16.2% reduction in carbon intensity. This was achieved by investing in energy efficiency enhancement projects, with US$847,000 invested in 2023.
HAESL’s water consumption in 2023 increased by 7.3%, due to higher water usage resulting from persistent hot weather and growth in staff numbers. However, the year-on-year water intensity decreased by 19.2%.
HAESL has been making significant efforts to improve its recycling rate over the past few years. The recycling rate increased from 37.0% in 2022 to 41.2 % in 2023. The total quantity of recyclables increased from 214 to 273 tonnes (+27.6%) and the waste to landfill rose from 364 to 390 tonnes(+7%). This was achieved by focusing on several waste reduction initiatives including an increase in the number of reverse vending machines, mixed material recycling, the introduction of safety shoe and battery recycling, and the continuation of the Green Canteen campaign.
HAESL continues to play an active role in the Hong Kong community. Over 2,000 hours were volunteered for community projects and more than US$50,000 donated. HAESL also conducted its biennial Community Day in 2023, which saw near 800 staff participate in volunteering activities supporting 12 Hong Kong NGOs.
Achieving our long-term environmental targets requires a collective effort by all our staff, our shareholders, and our key stakeholders. I would therefore like to thank all those who played a part in the progress made in the year.
