Sustainability Report 2019/20

Head Office Construction Hotels Property Management Number of Suppliers – (Hong Kong) 55 320 1,874 2,300 Number of Suppliers – (Non-Hong Kong) 0 9 41 43 Strategies and Management Upholding its belief in Building Homes with Heart, SHKP extends its values by contributing to the creation of a safe, green and sustainable society through its supply chain. We join hands with our supply chain partners to pursue SDGs, specifically in areas relating to regulatory compliance, ethical practice and conduct, as well as health and safety. Green procurement policies are in place to guide the purchase of building materials, building services equipment and office products so as to minimize environmental impacts in the supply chain. All our suppliers and contractors are required to comply with relevant environmental and social laws and regulations, such as the Waste Disposal Ordinance, the Employment Ordinance and the Occupational Safety and Health Ordinance, as well as to perform in accordance with the Group’s environmental policy, occupational health and safety policies, quality requirements, human rights policy, and corporate governance standards as set out in the Code of Conduct. We also encourage our suppliers to act according to the 10 principles of the United Nations Global Compact (UNGC) which are in line with the Group’s commitment to human rights. Child or forced labour is thus strictly prohibited along the supply chain and we promote a discrimination-free and inclusive work environment. We work closely with our new and existing suppliers to monitor their sustainability performance through our comprehensive supply chain management mechanism. This has enabled us to effectively evaluate suppliers’ compliance in these aspects using a vertically integrated approach that covers the process of selecting and retaining suppliers, regular assessment of their performance and the development of evaluation systems. Adhering to Responsible and Sustainable Procurement Collaborating with a diverse pool of suppliers creates additional value to our business. We worked with over 4,600 suppliers during the reporting year, spending more than HK$7 billion. To stabilize our product supply, we have deployed multiple sourcing strategies to avoid over-reliance on single suppliers in any specific area. During the reporting year, our five largest suppliers contributed to less than 30% of our total purchases. While promoting environmental and social responsibility among our business partners, we are dedicated to integrating social and environmental considerations into our procurement decisions. In our supplier selection process, we give preference to suppliers who have made strong environmental commitments such as adopting ISO 14001 environmental management system standards and implementing green procurement policies. During the reporting year, procurements that took environmental factors into consideration accounted for 41% of our total procurements. We also strive to support small, medium and social enterprises by including them during our procurement process whenever possible. Local suppliers are preferred whenever possible to reduce carbon emissions from transportation and to support local economies. During the reporting year, 98% of our suppliers were based locally. Value Created for Supply Chain Sun Hung Kai Properties Limited • Sustainability Report 2019/20 31