Sustainability Report 2015/16

Promoting Sustainable Supply Chain The Group is a responsible corporation accountable for its sustainability. Accordingly, it also cares about the impact brought about by its supply chain. The Group’s expectations for environmental and social performance from suppliers are incorporated in its tender invitations and supplier contracts. Adhering to ISO 14001 Environmental Management System requirements and its internal green procurement guidelines when selecting suppliers, the Group gives priority to contractors and suppliers that demonstrate environmental commitment. It also identifies opportunities to include small, medium and social enterprises as its suppliers. Sustainability in the supply chain is a long process that requires continuous improvement. All suppliers must operate in accordance with local laws and regulations and are encouraged to conduct businesses with integrity and in accordance with codes of conduct that comply with the Group’s environmental and occupational health and safety policies, as well as strict standards for corporate governance. Suppliers are also given regular training to help them meet our standards. The Group adheres to the principles of the United Nations Global Compact and expects the same from its suppliers. It supports freedom of association and believes that all employees within the supply chain should be free from discrimination. Child or forced labour is strictly prohibited, with zero tolerance for such malpractices. The Group believes that high-quality buildings require equitable conditions for workers and is the first developer in the industry to establish a Construction Wage Protection Partnership Scheme that ensures contractors’ workers receive wages in a timely and fair manner and are included in the Mandatory Provident Fund scheme. Regular reviews monitor compliance in various ways. The Group’s property management division evaluates contractors and suppliers on sustainability biannually, in which all results are recorded in the tender-management process for future supplier selections. Suppliers that fail to meet the required standards, violate laws or commit serious misconduct will be downgraded or removed from the tender list. Food safety in the Group’s hotel business is viewed as a high-level risk in the supply chain. Therefore strict annual audits are conducted on food suppliers. Special attention is paid to high-risk items such as oysters and ready-to-eat food. The audits cover a wide range of criteria including personal hygiene, food processing and storage, pest control, equipment hygiene, waste management and chemical storage. A full 100% of food suppliers received satisfactory results in the assessment carried out this year. Suppliers that fail to achieve satisfactory results are immediately removed from our approved supplier list. Upholding Our Health and Safety Commitment Construction workers are the cornerstone of the Group’s property development business. The Group’s concern over health and safety however goes beyond its operations; it takes good care of contractors’ health and safety with well-defined protocols in this area in which contractors are required to follow strictly. One way to minimize health and safety risk at construction sites is through training. Accordingly, all construction staff are required to attend a safety course before starting work. The training covers safety card renewal, safe use of lifting appliances and lifting gears, working at height, manual handling, safety management and housekeeping on sites. Over 750,000 attendances of health and safety training programmes were recorded this year. Value Created for Supply Chain Sun Hung Kai Properties Limited Sustainability Report 2015/16 35