BC Technology : ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

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ABOUT

THIS

REPORT

Introduction 

BC Technology Group Limited ("Company") and its subsidiaries (hereinafter referred to as "BC Group", or the "Group") believe that sustainable business practices are integral to the creation of long-term value to society. The Group is committed to corporate citizenship and adding value to its stakeholders through the integration of Environmental, Social and Governance ("ESG") considerations in its business practices.

The Group is also committed to improving its ESG performance by upholding good corporate governance standards, adopting climate friendly practices, engaging its stakeholders and promoting diversity.

Reporting Period 

This ESG Report (the "Report") provides an overview of BC Group's sustainability

Reporting Principles 

BC Technology Group Limited is listed on the Main Board of the Stock Exchange of Hong Kong Limited ("HKEX") under the stock code "863". This is the seventh ESG report of the Group and it has been prepared in compliance w i t h t h e " E n v i r o n m e n t a l , S o c i a l a n d Governance Reporting Guide" set out in Appendix 27 of the Rules Governing the Listing of Securities of Stock Exchange ("Listing Rules"), with reference to the Global Reporting Initiative ("GRI") Standards, Task Force on Climate-related Financial Disclosure ("TCFD") Recommendations, Sustainable Development Goals ("SDGs") and based on actual conditions of the Group. It is the second long-form ESG report for the Group to be published separately from the Group's Annual Report . For a comprehensive understanding of the Group's ESG performance, this Report should be read in conjunction with the Corporate Governance Report in the Group's 2022 Annual Report.

The Group has complied with the "comply or explain" provisions and adopted the four fundamental reporting principles of the HKEX's Environmental, Social and Governance Reporting Guide as follows:

Materiality

The content of this Report is determined through stakeholder engagement and materiality assessment. The Group engaged an external consultant to a s s e s s i t s m a t e r i a l i t y t h r o u g h stakeholder engagement. Key material ESG issues were identified and endorsed by the Group's ESG Committee, and approved by the board (the "Board") of directors (the "Directors").

Quantitative

The standards and methodologies used in the calculation of relevant data in this R e p o r t , a s w e l l a s a p p l i c a b l e a s s u m p t i o n s a r e d i s c l o s e d . K e y performance indicators ("KPI(s)") were established, and are measurable and applicable to valid comparisons under appropriate conditions.

Balance

To provide a fair and unbiased picture of BC Group's ESG performance, both the Group's achievements and areas for improvement are disclosed.

Consistency

BC Group is consistent in its annual data c o l l e c t i o n a n d K P I c a l c u l a t i o n methodologies to ensure meaningful comparisons of its ESG data are made over time.

recommendations and SDGs are also available at the end of the Report for reference. This Report is prepared and published in both Chinese and English and is available on the Group website at bc.groupand on the HKEX website at www.hkex.com.hk. In the event of contradiction or inconsistency between the Chinese version and the English version, the English version shall prevail.

Reporting Boundaries 

The Report covers all the Group's global operations over which we exercise full management control during the Reporting Period, including Hong Kong, Mainland China, Singapore, the United Kingdom (the "UK"), the Americas and Australia. The Group regularly reviews the scope of the Report to ensure that any significant impact on the Group's overall business portfolio is covered.

Review and Approval 

The Board acknowledges its responsibility for ensuring the accuracy and completeness of this Report and to the best of their knowledge, this Report has addressed all relevant material issues and has fairly presented the ESG performance of the Group during the Reporting Period. The Board has reviewed and approved the content of the Report.

performance for the period from 1 January 2022 to 31 December 2022 (the "Reporting Period", "2022"). The Reporting Period aligns with the Group's financial year.

The information contained herein is derived from official documents and statistics of the Group, as well as the combined control, management and operations information provided by the subsidiaries in accordance with the Group's internal management systems . Complete lists of indexes in compliance with the ESG Reporting Guide and with reference to the GRI Standards, TCFD

Information and Feedbacks 

The Group is committed to maintaining the long-term relationship with our stakeholders and are actively engaged in addressing their concerns with timely follow-up actions. If you, as one of our stakeholders, have any questions on the content of the Report or comments on the Group's sustainability practices, please contact us via email at ir@bc.group.

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ABOUT

BC GROUP

BC Group is Asia's leading public fintech and digital asset company and is the parent company of the OSL digital asset and blockchain platform ("OSL"). OSL provides markets services including brokerage, exchange and custody (" Markets") and software-as-a-service ("SaaS") technology solutions, which deliver institutional clients and professional investors access to the best-in- class digital asset platform, as well as the world's deepest liquidity pools. Our secure and insured hot and cold wallet infrastructure also ensures the safekeeping of digital assets with timely transaction settlements. OSL operates its digital asset platform business through its headquarters in Hong Kong and office in Singapore.

In December 2020, OSL Digital Securities Limited ("OSL DS"), a wholly owned subsidiary of the Group, became the first firm to receive a license from the Hong Kong Securities and Futures Commission ("SFC") to conduct type 1 (dealing in securities) and type 7 (automated trading service (ATS)) regulated activities related to digital assets. It is now the world's first SFC-licensed, listed, digital asset wallet- insured and Big-4 audited digital asset platform for institutions and professional investors. In July 2022, OSL DS became the first SFC- licensed digital asset broker to sell security tokens to professional investors with its private security token placement in Hong Kong.

The Group also has two Mainland China-based business segments: an advertising business that provides customised advertising and marketing services to customers in the automotive and other industries, and a business park management division that provides operations and management services for commercial property in the Jingwei Park business park in Shanghai . During the Reporting Period, the Group made the strategic decision to gradually scale down its advertising business due to the impact of COVID-19 lockdowns.

To learn more about BC Group, please refer to the Group's 2022 Annual Report or visit bc.group.

Mission 

Deliver best-in-class access to digital assets, setting the global standard for innovation, performance, security, and compliance

Vision 

Lead the regulated, institutional evolution of the digital asset market

Value 

• Be trustworthy and do the right thing
• Ownership and accountability
• Teamwork, collaboration and respect
• Relentlessly innovate for the clients

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CHIEF EXECUTIVE OFFICER'S STATEMENT

On behalf of the Board of the Group, I am proud to present the BC Group annual Environmental, Social and Governance Report for the year ended 31 December 2022.

As the change and geopolitical hangover of the COVID - 19 pandemic continue to create economic uncertainty, the unprecedented challenges that we are facing remind us that it is critical to incorporate sustainability into our long-term business strategic planning.

We recognised that the question of energy use and carbon emissions related to digital assets and blockchain has brought ESG topics to the forefront in the digital asset space. As a leading digital asset and fintech company, the Group plays a critical role to support the transition to a net-zero carbon emission economy. Ever since 2020, we have committed to achieving net-zero GHG emission by 2050, which aligns with the sustainability goal of the Hong Kong Government to achieve carbon neutrality by the same year.

In April 2021, BC Group announced that it had fully offset its carbon footprint for three years (2018-2020) through the purchase and retirement of voluntary carbon credits by OSL via the AirCarbon Exchange (" A C X "), a Singapore-based carbon credit exchange. During the Reporting Period, along with a future looking two years estimated footprint. As our retired carbon credit is more than the carbon we emitted, we are proud to announce that we have achieved "carbon negative" for the Reporting Period.

The Group has the vision to lead the regulated, institutional evolution of the digital asset market. To ensure our long-term vision is carried out effectively and consistently throughout the Group, we had developed a sustainability framework covering ESG issues that we had identified material to our business operations. The framework serves to provide a strategic approach and clear agenda for our employees.

Effective governance is crucial to the success of the ESG strategy. The Board takes overall responsibility for ensuring effectiveness of the Group's ESG strategy and reporting so the Group can operate its businesses in a responsible and sustainable manner.

The Group's ESG processes and procedures focus on non-financial indicators that outline the Group's approach to sustainability. A number of ESG-related issues covering a number of business aspects are considered when determining these processes and procedures, including: operations, risk and compliance, internal controls, human resources ("HR"), and marketing and communications.

The Group has established an ESG Committee which comprises representatives from operations and supporting departments. The Committee evaluates, prioritises and advises o n t h e e f f e c t i v e n e s s o f t h e G r o u p ' s sustainability strategy, and reports to the Board to review its operations and the progress made against ESG-related goals and targets.

The Group acknowledges that ESG and climate- related risks have become more important in recent years. In response, we have engaged external consultants during the Reporting Period to conduct ESG and climate-related risk assessment, and incorporated the identified risks in our risk management framework.

As a leading digital asset and fintech firm, and the world's first SFC-licensed,Big-4 audited, listed and insured digital asset platform for institutions and professional investors, BC Group has a duty to examine its business t h r o u g h a n E S G l e n s , w i t h a v i e w t o contributing to a sustainable environment and establishing the Company as one of the best places to be employed.

BC Group's continues to play a meaningful role in shaping a sustainable future for the communities it serves while creating long-term value for all stakeholders. In alignment with these objectives, the Group is steadfast in its commitment to robust ESG and sustainability p r o g r a m s i n t a n d e m w i t h t h e r a p i d development of the regulated digital asset market.

The Group's ESG approach empowers it to deliver long-term value to stakeholders and deliver on the Company's mission, vision and values, and address its most material ESG topics through a clear program of goals, meaningful commitments, and tangible actions. For BC Group, therefore, continuing to embed ESG considerations into its business delivers value to all stakeholders and strengthens long-term shareholder value.

I w o u l d l i k e t o p e r s o n a l l y t h a n k a l l counterparties, shareholders, staff and our Board for their continued support and collaboration as we enable institutional adoption of the digital asset class, and set the global standard for ESG performance.

For and on behalf of the Board

Madden Hugh Douglas

Chief Executive Officer

BC Technology Group Limited

Hong Kong, 27 April 2023