Sustainability Report 2021/22

Value Created for Supply Chain 43 Sun Hung Kai Properties Limited • Sustainability Report 2021/22 Collaboration with Industrial Partners In 2018, we invested considerable resources to enhance our capabilities in BIM and Design for Manufacturing and Assembly (DfMA), which is a principal strategy for increasing construction productivity and strengthening our competitiveness to deliver higher quality products to our valued customers. In 2021, we organized the first-ever summit BIM and DfMA. Our long-standing partners, including experienced architects, surveyors and engineers, were invited to share their insights on creating greater value for our stakeholders by utilizing the application of BIM and DfMA. We have strong beliefs in the importance and future potential of BIM and DfMA in the construction industry. Our senior executives offered support by expressing their determination to join hands with the partners to nurture young talents to scale new heights in furthering growth and success. As BIM and DfMA have continued to be rooted and developed in our daily operations, we will be more capable of meeting our customers’ needs by delivering higher-quality products. Looking ahead, we will closely integrate innovation into our operations and business development. We are committed to investing additional resources in construction innovation with great potential and facilitating the architectural and structural designs of various professional practitioners. We aim to embed sustainability considerations, building quality and efficiency into the whole property development lifecycle from planning, design and construction to sales/leasing, property management and customer services, thereby achieving a win-win outcome for both SHKP and its long-standing partners. Ensuring Safe Construction Sites Workplace health and safety is our prime concern, and we particularly focus on safe construction sites. We uphold strict standards by observing relevant laws and regulations as well as our own Health and Safety Policy. Our safety targets, which apply to all construction sites, and to all employees, whether from SHKP or from our contractors – include: • Zero fatal accidents • Fewer than 0.5 serious accidents per 1,000 workers (work-related injuries that result in hospitalization for more than 21 days, loss of 20% of working ability, or fatalities) • Fewer than 7.5 accidents per 1,000 workers All contractors are required to strictly follow our Health and Safety Policy, health-and-safety protocols and all relevant environmental and occupational health-and-safety (OHS) standard to avoid work-related injuries and fatalities. They are also required to operate OHS systems that conform to ISO 45001 certifications. We closely monitor construction sites’ efforts to meet our safety targets. A safety app is also under development to better manage health and safety at sites. For those that fall short, project managers and site agents are required to attend a Safety Executive Committee meeting and submit action plans to enhance performance. To foster a safety-first culture, we encourage workers to alert supervisors or site managers regarding work-related hazards or hazardous situations, and to consider leaving unsafe work environments without fear of reprisal. Employees’ safety performance is considered and reflected in the annual performance bonus. During the reporting year, the accident rate for our contractors at construction sites – calculated using methodology adopted by the Hong Kong Construction Association – was 10.3 per 1,000 workers. This was much lower than the industry average of 29.5 per 1,000 2 . It is regrettable that one fatality among our contractors was recorded during the reporting year. Our senior management immediately conducted a review meeting and accident investigation. Comprehensive safety checks and lifting appliances maintenance were undertaken. Construction resumed only after safety enhancements that satisfied Labour Department’s requirements. To prevent the recurrence of similar incidents in the future, all lifting appliances repair and maintenance works shall be subject to permit to work and we will take all necessary measures such as provide regular construction safety course to our contractor and subcontractor to enhance their occupational safety and health knowledge. To achieve our internal target of fewer accidents and zero fatalities, we continue to enhance awareness of safety standards and guidelines. Before construction begins, health-and-safety training – tailored to the specific conditions of each site – is offered to all workers. During construction, site-specific training covers complex procedures that require specialist knowledge. Toolbox talks are also conducted weekly, or whenever there are changes in procedures. During the reporting year, over 1.1 million attendances were recorded for health and safety training that covered topics such as the safe use of lifting equipment, working at height, safety card 2 Industry rate is calculated on the calendar year. Reference was made to Occupational Safety and Health Statistics Bulletin (August 2022) from the Hong Kong Labour Department.