Sustainability Report 2015/16

Our Approach to Sustainability Addressing Key Stakeholder Concerns We are pleased to note that stakeholders generally consider the Group to be a trusted brand. They identified Compliance, Occupational Health and Safety, and Customer Privacy as top material issues during a stakeholder engagement exercise. The Group welcomes these comments and addresses them as follows: Compliance The Groupmaintains that robust corporate governance is highly important and therefore promotes an ethical culture in its operations to ensure compliance with applicable laws and regulations for all material ESG issues that have a significant impact on its operations. All employees must follow the Group’s Code of Conduct and are informed of any applicable regulatory changes by its Legal and Company Secretarial Department. The Residential Properties (First-hand Sales) Ordinance came into effect in April 2013, and the Group has engaged external legal consultants to provide training to raise staff and management awareness on compliance with the Ordinance. We ensure that all our sales brochures and marketing materials are also fully compliant with the Ordinance. The renamed Audit and Risk Management Committee is responsible for assisting the Board of SHKP in assessing and maintaining the effectiveness of SHKP’s risk management and internal control systems in accordance with new provisions contained in the Corporate Governance Code of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited. More information on the Group’s compliance can be found i n the Corporate Governance Report section of our annual report. 1 Industry rate is calculated based on calendar year. Reference was made to the Occupational Safety and Health Statistics Bulletin (August 2016) from the Hong Kong Labour Department. Occupational Health and Safety Ensuring the physical and mental health of employees is regarded as highly important, especially in the construction business where the risk of accidents is greatest. The Group has put in place operational safety policies that provide relevant training for staff and create safe working environments, thus protecting their well-being. Appropriate preventive measures have kept the Group’s accident incident rate at 12.24 per 1,000 workers this year at construction sites, significantly lower than the Hong Kong industry average of 39.1 per 1,000 workers 1 . The Group also attaches great importance to the mental health of employees. It offers support with a 24-hour counselling Hearty Hotline while a Staff Caring team has been formed to promote well-being among employees and their families through organizing regular social events. Customer Privacy Stakeholders are concerned with our customer data security, particularly in light of the increasing number of data leaks occurring around the globe. The Group is well aware of the risk and understands that data privacy is a significant concern for customers. We have a Customer Data (Privacy) Policy at Group level to safeguard customer data in all operations while an IT Governance Steering Committee oversees information security management issues. The Group’s customer data protection mechanism has proven to be effective with no privacy breaches recorded this year. Corresponding guidelines exist at relevant business unit levels according to different staff roles and the data to which they have access. The Group’s property management subsidiary has achieved ISO 27001 Information Security Management certification for data privacy. Affordable Housing The Group is also well aware of stakeholders’ concerns about the shortage of affordable housing in Hong Kong. It is a recurring theme in our stakeholder engagement. Although it is a complex issue that involves many stakeholders, the Group supports the government’s strategy to increase the supply of small to medium- sized residential units. The Group will continue to increase the number of residential units for sale, and will continue to obtain pre-sale consents and put new projects on the market as soon as they are ready. For details, please refer to the Value Created for People For details, please refer to the Value Created for Customer 10 Sun Hung Kai Properties Limited Sustainability Report 2015/16