Sustainability Report 2021/22

Value Created for Supply Chain 41 Sun Hung Kai Properties Limited • Sustainability Report 2021/22 welcome to submit tenders. This year, COVID-19 continued to disrupt tendering and threaten our supply chain. In response, Hong Yip further utilized self-developed online tendering system, ePro. Leveraging the Short Message Service (SMS) technology, the system combines the functions of online tender invitation, submission and tender opening. Our suppliers could receive tender invitations and submit their tenders via the ePro system, which helped mitigate the transmission risk of COVID-19 and foster paperless work practices. In our hotel business, food safety is a priority. As such, we uphold high standards for food processing and transportation. All suppliers are required to sign a Food Safety Declaration Form and Health Declaration form, and to comply with our safety and quality standards. During preliminary qualification checks, suppliers must submit business registration documents, food factory licenses, product laboratory test reports, food health and safety certificates, and food-grade certificates to prove their materials meet our safety and quality requirements. To maintain our standards, we periodically assess suppliers’ product quality, punctuality of deliveries and aftersales service through questionnaires, food sample laboratory tests, pre-delivery quality checks and end-product quality surveys. We conduct annual audits and on-site inspections to check personal hygiene, food processing and storage conditions, waste management, site safety, the validity of food safety certifications, chemical storage management, equipment cleaning and pest control. Special attention is given to high-risk products such as ready-to-eat food and fresh seafood. In instances of non-compliance, immediate rectification is required, followed by a re-audit. During the reporting year, 100% of our active suppliers fulfilled the requirements of our food audits. We strive to reduce our environmental and social impacts with suppliers and contractors through the adoption of new technologies. For example, we engaged a third party to tailor energy solutions for our construction sites, and phase out diesel-driven energy generators by adopting Enertainers. To date, 15 Enertainers have been equipped in our construction sites, saving around 2,800 tonnes of carbon emissions. Our efforts to manage environmental and social risks and impacts across the supply chain have been recognized by award associations: • The Sai Sha Road Widening Comprehensive Development Project used hybrid reality and 3D visualizations to facilitate sustainable construction, while on-site sensors monitored and managed the health of more than 1,600 trees. This innovative approach earned the Gold Award at the HKAEE 2020 • Our Wetland Seasons Park project received the Leading Environmental Initiative Awards at the ESG Leading Enterprise Awards 2021, in recognition of its success in balancing development and environmental protection • Our smart construction solution ‘SmartWorks’ – which uses 5G to enhance construction workers’ health, safety and operational efficiency – won the Leading Social Initiative Award at the ESG Leading Enterprise Awards 2021 Enertainers at construction sites