Sustainability Report 2019/20

Managing and Monitoring Suppliers’ Performance The Group communicates our expectations closely with suppliers and contractors in our tender invitations and contract documents, including stating our requirements for environmental and social performance. Our Property Management division, for instance, requires our suppliers and contractors to sign an Environmental Commitment Form and to follow our environment and energy related policies before approvals are made. We conduct regular assessments and evaluations of suppliers and contractors who have been accepted on our tender list on their environmental and social performance in addition to other quality-related criteria, to ensure that they are operating according to our requirement on sustainability. In cases where suppliers violate laws and regulations, fail to meet tender requirements, commit misconduct, or fail to achieve satisfactory results during the contract period, we will downgrade or delist them from our tender list. Our construction subsidiary also develops subcontractor selection requirements and assesses their performance during the tendering process. To monitor potential environmental and social risks arising from the supply chain, we perform bi-annual assessments and evaluations for suppliers and contractors as well as subcontractors. We also carry out inspections on our construction sites periodically to identify and monitor potential environmental issues arising from air pollution, waste management and wastewater treatment. Our Property Management division conducts sustainability evaluations on suppliers and contractors following the completion of their work and during annual performance appraisals, such as cleaning and facilities maintenance services. The results of the evaluations are considered as a vital indicator for our decision in selecting future contractors and suppliers. In addition to monitoring the supply chain in our construction subsidiary, we offer regular training related to occupational health and safety, environmental management and product quality to raise awareness on various sustainability issues. We also require all staff and subcontractors to attend training on quality assurance at least once every year. Food safety is one of the key risk factors in our hotel business operation. To this end, we attach great importance to ensuring proper food processing and transportation to minimize food safety risks. Audits and on-site inspections are carried out annually to assess personal hygiene, food-processing and storage conditions, waste management, safety of working conditions, validity of food safety certification, chemical storage management, equipment cleaning and pest control for the fulfilment of public health and food safety standards. In addition, supplier questionnaires, food sample laboratory testing and pre-delivery quality checks are conducted to further guarantee the quality of the products. High-risk foods such as ready-to-eat food and fresh seafood are handled with special attention. In case there is any non-compliance, food suppliers are required to immediately rectify and a re-audit will be arranged. During the reporting year, 100% of our food suppliers met the requirements of our food audits. Value Created for Supply Chain Sun Hung Kai Properties Limited • Sustainability Report 2019/20 33