Sustainability Report 2018/19

Upholding High Expectations of Our Suppliers and Contractors The Group upholds high expectations regarding the environmental and social performance of our suppliers and contractors. Compliance with local laws and regulations is the basic requirement in order to be eligible to work with us. The requirements for environmental and social standards in the pursuit of attaining sustainable development along the Group’s value chain are clearly listed in our tender invitations and supplier contracts. Our Property Management division, for example, requests that our suppliers and contractors sign an Environmental Commitment Form and follow its environment and energy related policies before they are hired. All suppliers and contractors who have been accepted on our tender list are subject to regular assessments and evaluations as part of a supplier-monitoring mechanism to ensure that they are operating according to our sustainability standards. Suppliers who violate laws and regulations, fail to meet tender requirements, commit misconducts during the contract period, or fail to achieve satisfactory results in the process of the evaluations can be downgraded or delisted from our tender list. We regularly inspect construction sites to identify potential environmental violations, such as issues related to air quality, waste management and wastewater treatment. The Property Management division implements sustainability evaluations of suppliers and contractors after the completion of their work and during annual performance appraisals. The results of the evaluations are considered an important indicator in the selection of future contractors and suppliers. In our hotel business, food safety is one of the most critical risk factors. Accordingly, our management personnel place a high priority on proper food processing and transportation, which are essential to maintaining food safety and quality. To fulfil public health and food safety standards, we conduct supplier audits and on-site inspections to evaluate personal hygiene as well as food-processing and storage conditions, waste management, chemical storage management, equipment cleaning and pest control. Extra attention is paid to high-risk foods such as ready-to-eat items and fresh seafood. During the reporting year, 100% of our food suppliers satisfied the requirements of our food audits. Our construction subsidiary’s subcontractor selection requirements and monitoring mechanism are fully aligned with the Group’s expectations. Environmental as well as occupational health and safety requirements are clearly listed in contracts and tenders for contractors. The expected performance of subcontractors is continually evaluated, and this oversight regimen also serves as regular occupational health and safety training for subcontractors to enhance their overall safety awareness. Valuing and Respecting Our Construction Workers As a property developer, construction workers are our most important assets. For this reason, the importance of health and safety is greatly emphasized at our construction sites. All contractors who work at our sites are covered under the Group’s occupational health and safety management systems. Designated safety targets are established for all construction sites managed by our construction subsidiary, including zero fatal accidents, zero convictions and fewer than 10 incidents per 1,000 workers. Our construction contractors are required to follow strict health and safety protocols to avoid work-related injuries and fatalities at construction sites. In addition to protocols, health and safety training courses are also offered at different stages of a project to raise the awareness of workers on the importance of avoiding health and safety hazards. Prior to the commencement of any projects, training on health and safety issues is provided based on specific conditions for each individual construction site. During construction, toolbox talks are conducted weekly, or whenever there are changes in procedures. In addition, site-specific training is provided for complicated procedures that require special technical knowledge. Safety effectiveness evaluations are also performed after the completion of projects to identify potential improvements that can be incorporated into future projects. During the reporting year, over 847,000 attendees were recorded at health and safety training sessions, covering topics such as the safe use of lifting equipment, working at a height, safety card renewal, manual materials handling, general safety management and on-site housekeeping. Value Created for Supply Chain Sun Hung Kai Properties Limited • Sustainability Report 2018/19 31