Sustainability Report 2014/15

Unlocking Value through Collaboration

We are a big believer in collaboration and embrace the growing interrelation between

business partners, peers and the community within the business eco-system.

Working with over 1,000 suppliers and subcontractors, we collaborate with our business

partners to drive innovation and create win-win relationships. Over 95% of our total

procurement budget was spent on local suppliers as part of our sustainable sourcing strategy.

We exert a positive influence on our business partners and guide them in incorporating

sustainability in their operations, for example extending our safety expectations down the

supply chain. The accident incident rate for our contractors remained at a low 19.46 per

1,000 workers

as compared to 41.9 per 1,000 for Hong Kong’s industry average.

We have a fair operating practices code of conduct and communicate it to all employees

and business partners, and expect them to uphold it in all our operations. We have a strong

stance against bribery and corruption extending from the Group down our supply chain.

We deliver value to the broader community with a three-pronged approach: promoting

reading and education, supporting sports for charity and healthy living and taking care of

the underprivileged. We invested HK$70 million and over 120,000 volunteer hours

in our

community in 2014/15.

Optimizing Asset Efficiency and Empowering Sustainable Choice

Being environmentally conscientious helps a company manage its impacts and reduce

operational costs to improve efficiency in utilizing resources. To a broader extent, by

developing greener products and services that enable customers to make more sustainable

choices, the Group moves away from the traditional cost-driven business model and

develops a set of common values with the wider community.

As a business that operates in various sectors, we acknowledge the environmental impacts

of our operations and have been working diligently to minimize them. We received 43

international certifications for our properties in recognition of sustainability in 2014/15.

Our Energy Optimization Committee (EOC) monitors the energy consumption of major

investment properties and helps guide energy and carbon footprint reductions. Some

buildings under our management went through refurbishment programmes of various

extents in 2014/15 to continually improve energy performance.

We encourage owners and residents of our managed properties to take part in the Hong

Kong SAR Water Supplies Department’s Let’s Save 10L Water campaign and take the

first step towards conserving water use in Hong Kong. We actively work to reduce waste

generation and encourage recycling to reducing our own impacts. We recycled over 8,000

tonnes of municipal solid waste and nearly 90% of construction waste generated from our

sites in 2014/15.

We also empower our customers with innovative products and services that enable them

to make more sustainable choices. Our IT infrastructure is constructed and operated in line

with the leading practices to provide customers with an optimum balance of performance

and energy efficiency.

Calculation is referenced to the methodology adopted by the Hong Kong Construction Association.

Industry rate is calculated based on calendar year. Reference was made to Occupational Safety

and Health Statistics Bulletin (August 2015) from the Labour Department of Hong Kong SAR

government.

Volunteer hours are calculated based on calendar year.

Value Created for Stakeholders

Sun Hung Kai Properties Limited Sustainability Report 2014/15