2015/16 Sustainability Report - Hopewell Holdings Limited
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Contents 01 About This Report 02 Managing Director’s Message 03 Our Business 08 Vision and Focus 10 Stakeholder Engagement 11 Our People 17 Environmental Performance 24 Our Communities 32 Our Customers 35 Procurement and Supply Chain 36 Economic Performance Table 37 Environmental Performance Tables 40 Social Performance Table 42 Verification Statements 43 Index Table About This Report This Sustainability Report (“Report”) demonstrates our commitment to transparency and accountability to our stakeholders. A summary of this Report is incorporated into our Annual Report 2015/16. Scope of the Report Our sustainability reporting period follows the financial year 2015/16 (from 1 July 2015 to 30 June 2016). This Report presents our Group-wide approach to sustainability and our performance in the economic, environmental and social aspects of our business. It covers the core activities of the Group (including Hopewell Holdings Limited (“HHL”) and its key subsidiaries) and its joint venture operations in Hong Kong and Mainland China, involving four business sectors: property investment and development, hospitality, highways and power generation. How We Report This Report covers topics and indicators that reflect the most significant economic, environmental and social impacts from our operations, identified by our management and ongoing engagement with stakeholders and industry dialogue. Different internal and external stakeholder groups have been engaged to ensure that we are responding to their expectations and concerns. To benchmark our sustainability reporting, the Report is prepared in accordance with the core option stipulated in G4 Guidelines of the Global Reporting Initiative (GRI) and the Environmental, Social and Governance (ESG) Reporting Guide from Hong Kong Exchanges and Clearing Limited (HKEx) and verified by the Hong Kong Quality Assurance Agency (HKQAA). Performance indicators included in this Report are summarised in the Index Table presented at the end of this Report. While this Report presents a brief overview of our business and economic performance, full details of these aspects, including corporate governance, regulatory issues and directors’ remuneration are presented in our Annual Report 2015/16 (downloadable at http://www.hopewellholdings.com/eng/hhl_annual_interim_reports.htm).
MANAGING DIRECTOR’S MESSAGE Since our establishment in the 1970s, we have been The Group’s major project, Hopewell Centre II, is striving to create shared value by developing and expected to be one of the largest hotels in Hong Kong managing building clusters and infrastructure that foster with comprehensive conference facilities once completed. economic development and supporting initiatives that Site formation work of Hopewell Centre II is in progress promote sustainability. Our performance demonstrates and the hotel is targeted to commence operation in 2019. our continuous efforts to sustain our business growth A road improvement scheme and a green park which will whilst maintaining longstanding partnerships with be open to the public will be completed alongside this stakeholders in the communities where we operate. project. The road improvement scheme will improve the area’s traffic flow and enhance pedestrian safety, while the We see the importance of running our business in a green park will provide a venue for public recreation and pragmatic way that meets the bottom line, addresses the amenity. needs of our stakeholders and fulfils our environmental responsibility. All our core businesses — properties, The ongoing district redevelopment is expected to bring highways and power plant — begin with sustainable significant changes to Wan Chai. Demolition of 155–167 design and construction and continue during their QRE was completed and construction works are underway. operations to enhance their environmental efficiency. It is envisioned to commence operation in 2019 with a development similar to that of QRE Plaza in scale. The Group proposed that the Grade l historical building at Nam Koo Terrace will be restored and preserved, and a residential building with open space provision will be developed. Resubmission of the preservation cum development plan of Hill Side Terrace Cluster to Town Planning Board is pending. I would like to thank our employees for their outstanding efforts and our stakeholders for providing feedback and support to help us to improve. Our Sustainability Report will further elaborate on our work and plans for the future, reflecting our stakeholders’ expectations and what is important to us as a responsible corporation. Our commitment to corporate sustainability guides our business decisions every day. Over the years we have strengthened our effort to build a solid foundation by integrating ESG into our key business practices. Our ultimate goal as we move forward is to sustain our business growth whilst achieving economic, environmental and social development on a long-term basis. Thomas Jefferson WU Managing Director, Hopewell Holdings Limited 02 Hopewell Holdings Limited
OUR BUSINESS Listed on the Main Board of The Stock Exchange of Hong Kong Limited in 1972, HHL established a solid foundation in the property and infrastructure sectors in Hong Kong and the Pearl River Delta (“PRD”) region of Mainland China. Group Structure Hopewell Holdings Limited Property Segment Infrastructure Segment Property Investment and Development Hospitality Highway Energy Division Division Division Division PROPERTY AND HOSPITALITY Our business in the property investment and development division consists of properties for rental and for sale. In the property development process, we are involved in project planning, design supervision, tendering, and overseeing the cost and quality control of premises from conception to completion. We also provide a wide range of high-quality facilities management and leasing services to tenants and customers of our rental properties and owners of sold units in Hong Kong and Mainland China. Our portfolio of completed investment properties includes a cluster of office buildings, shopping arcade and serviced apartments in Wan Chai with Hopewell Centre as our flagship office building, Lee Tung Avenue and the cluster of retail outlets under the brand “The East”. Our properties also include Kowloonbay International Trade and Exhibition Centre (“KITEC”), a large office, retail, convention and exhibition complex with a cineplex operated in-house located in Kowloon Bay and Panda Place, a shopping mall located in Tsuen Wan. We have also expanded our presence in the hospitality business over the years. We developed our first hotel project in the early 1980s and pioneered the “Build-Operate-Transfer” model of the 5-star China Hotel in Guangzhou. In Hong Kong, we currently operate Panda Hotel in Tsuen Wan, which has over 900 guest rooms serving both business and leisure travellers worldwide. We also operate restaurants and catering business at KITEC. Sustainability Report 2015/16 03
OUR BUSINESS In Hong Kong, our current projects under development include Hopewell Centre II, 155–167 Queen’s Road East (“QRE”) and Hill Side Terrace Cluster in Wan Chai. Hopewell Centre II is expected to be one of the largest hotels in Hong Kong with comprehensive conference facilities once completed. The construction works of 155–167 QRE are underway and is planned to be developed into a commercial property. In Guangzhou, our project is the ongoing residential development of Hopewell New Town in Huadu District. Construction Timeline for Projects* CY 2014 2015 2016 2017 2018 2019 >>> Hong Kong Hopewell Centre II (HHL 100%) Operation Construction works start: 2019 155-167 Queen’s Road East (HHL 100%) Operation Construction works start: 2019 Hill Side Terrace Cluster^ (HHL 100%) Pending resubmission of preservation cum development plan to Town Planning Board ^ Includes 1-3 Hill Side Terrace, 1A Hill Side Terrace, Nam Koo Terrace, Miu Kang Terrace and Schooner Street Site * Present planning, subject to change INFRASTRUCTURE: HIGHWAYS HHL holds an approximately 66.69% stake in Hopewell Highway Infrastructure Limited (“HHI”) which focuses on highways development and operation in Mainland China. Listed on the Main Board of The Stock Exchange of Hong Kong Limited, HHI has interests in four highway projects — the 122.8 km Guangzhou-Shenzhen Superhighway (“GS Superhighway”) and the 97.9 km Western Delta Route comprising phase I, II and III through joint ventures (JVs) with Guangdong Provincial Highway Construction Company Limited. Both the GS Superhighway and the Western Delta Route are currently in operation. INFRASTRUCTURE: ENERGY The Group began its power plant operations in the mid-1980s to address the shortage of energy infrastructure in Mainland China. The Group currently operates, through a JV company, Heyuan Power Plant in Guangdong province, one of the most environmentally efficient coal-fired power plants. 04 Hopewell Holdings Limited
OUR BUSINESS OUR BUSINESS AT A GLANCE 2015/16 Core Sector Current Brands and Projects Property & Hospitality Properties for rental in Hong Kong: • Hopewell Centre (Wan Chai) • Kowloonbay International Trade and Exhibition Centre (Kowloon Bay) Office E-Max Conventions, Exhibitions and Entertainment The Metroplex (multi-cinema complex) • QRE Plaza (Wan Chai) • Lee Tung Avenue (Wan Chai) • GARDENEast serviced apartments (Wan Chai) • Wu Chung House retail outlets (Wan Chai) • Panda Place (within Panda Hotel in Tsuen Wan) Residential properties for sale in Hong Kong and Mainland China: • The Avenue (Wan Chai) • Hopewell New Town (Huadu, Guangzhou) • Broadwood Twelve (Happy Valley) Properties under development in Hong Kong and Mainland China: • Hopewell Centre II (Wan Chai) • 155–167 Queen’s Road East (Wan Chai) • Hill Side Terrace Cluster (Wan Chai) • Hopewell New Town (apartments, townhouses, commercial areas and recreational facilities being developed in phases, in Guangzhou) Hospitality business in Hong Kong: • Panda Hotel (Tsuen Wan) • Xi Shan Chinese Restaurant and “MENU” Restaurant (E-Max of KITEC) • 1563 at the East • Catering services Infrastructure Toll expressways in operation in Mainland China: • Guangzhou-Shenzhen Superhighway • Phase I of the Western Delta Route (Phase I West) • Phase II of the Western Delta Route (Phase II West) • Phase III of the Western Delta Route (Phase III West) Power plant in Mainland China: • Heyuan Power Plant Phase I (2 x 600MW coal-fired power plant) • Heyuan Power Plant Phase II (currently studying 2 x 1000MW coal-fired power plant, subject to approval by the People’s Republic of China (“PRC”) authorities) Please refer to the Annual Report 2015/16 of HHL for more detailed economic performance of its various business operations, such as occupancy rate, sale and pre-sale results. The Annual Report shows the list of principal subsidiaries and jointly controlled entities under the Group. Sustainability Report 2015/16 05
OUR BUSINESS AWARDS & RECOGNITION Governance performance: • HHL and HHI were selected as constituent stocks of Hang Seng Corporate Sustainability Benchmark Index for five consecutive years • To benchmark our sustainability reporting, HHL Sustainability Report 2014/15 was prepared in accordance with the core option stipulated in G4 Guidelines of the GRI and the ESG Reporting Guide from HKEx and verified by the HKQAA • Best IR Company — Mid Cap (Hong Kong Investor Relations Association, HKIRA 2nd Investor Relations Award) Environmental performance: • HHL actively participated in Government’s campaigns to reduce our environmental impact and promote environmental awareness. Major campaigns include: Waste Check Charter Charter on External Lighting Energy Saving Charter Carbon Reduction Charter • Green Office Label (World Green Organisation (WGO), Green Office Awards Labelling Scheme (GOALS)) • Better World Company Label (United Nations Millennium Development Goals (UNMDG)) • Gold (Save Energy Mission) and Bronze (Save Resources Mission) (Friends of the Earth (HK), Earth Partner) Individual premises received the following environmental awards: • Bronze Award (Yan Oi Tong Plastic Recycling Partnership Scheme 2015–2016) — Hopewell Centre and Wu Chung House • Certificate of Appreciation (Environmental Protection Department (EPD), The 5th Friends of EcoPark) — HHL, Hopewell Centre and GARDENEast • EcoPartner (Federation of Hong Kong Industries and Bank of China (Hong Kong), Corporate Environmental Leadership Awards 2015) — Panda Place • Wastewi$e Certificate “Excellence Level” (Environmental Campaign Committee (ECC) and Environmental Protection Department (EPD), Hong Kong Awards for Environmental Excellence) — Hopewell Centre, Panda Place, GARDENEast and Villa Lotto • Wastewi$e Certificate “Good Level” (Environmental Campaign Committee (ECC) and Environmental Protection Department (EPD), Hong Kong Awards for Environmental Excellence) — Panda Hotel and Broadwood Twelve • IAQwi$e Certificate “Good Level” (Environmental Campaign Committee (ECC) and Environmental Protection Department (EPD), Hong Kong Awards for Environmental Excellence) — GARDENEast • Indoor Air Quality Certificate (Good Class) (Environmental Protection Department (EPD), Indoor Air Quality (IAQ) Certification Scheme) — Hopewell Centre, Wu Chung House and GARDENEast • Gold Certificate (Water Supplies Department, Quality Water Supply Scheme for Buildings — Fresh Water (Plus)) — Hopewell Centre, QRE Plaza, GARDENEast and Wu Chung House • Silver Certificate (Water Supplies Department, Quality Water Supply Scheme for Buildings — Fresh Water (Plus)) — KITEC and Panda Place • Blue Certificate (Water Supplies Department, Quality Water Supply Scheme for Buildings — Fresh Water (Plus)) — Panda Hotel • Blue Certificate (Water Supplies Department, Quality Water Supply Scheme for Buildings — Flushing Water) — Hopewell Centre and KITEC 06 Hopewell Holdings Limited
OUR BUSINESS Workplace and social performance: • Manpower Developer 1st (2010–2018) (Employees Retraining Board (ERB), The 6th ERB Manpower Developer Award Scheme) • Manpower Developer (Employees Retraining Board (ERB), The 6th ERB Manpower Developer Award Scheme) — The Metroplex • Merit Award (Enterprise Category) and Corporate Citizenship Logo (Volunteer Category) (Hong Kong Productivity Council, The 6th Hong Kong Corporate Citizenship Program) • Family-Friendly Employer 2015/16, Special Mention 2015/16 (Gold) and Award for Breast-feeding Support 2015/16 (Family Council, 2015/16 Family-Friendly Employers Award Scheme) • Award of Merit 2015/16 (The Community Chest of Hong Kong) • Certificate of Appreciation of Hong Kong Community Volunteers (Corporate Member) (Agency for Volunteer Service) • Excellent Corporate Partnership Award (Tung Wah Group of Hospitals, Tung Wah Group of Hospitals Corporate Partnership Recognition Ceremony 2016) — Hopewell Real Estate Agency Limited • Silver Emblem Award (The Hong Kong Council of Social Service, Silver Emblem Recognition Scheme) — The Metroplex • Certificate of Appreciation (Education Bureau, Business-School Partnership Programme) — The Metroplex • Caring Company Logo (The Hong Kong Council of Social Service) 10 years Plus Caring Company Logo Caring Company Logo Panda Hotel Hopewell Property and Facility Management 5 years Plus Caring Company Logo Limited Hopewell Holdings Limited GARDENEast Management Limited Hopewell Highway Infrastructure Limited Hopewell Property Management Company Limited Hopewell Real Estate Agency Limited Hopewell Centre Management Limited KITEC Management Limited Panda Place Management Limited IT Catering and Services Limited (“ITC”) Sustainability Report 2015/16 07
VISION AND FOCUS At Hopewell, we take an integrated approach to sustainability, incorporating environmental and social considerations into our decision-making and actions. We focus on minimising the impact of our operations on the environment and creating positive impact in the community through our business. In doing so, we are guided by a set of core sustainability values and an effective governance structure. Our core sustainability values: • We regard the promotion of sustainable community growth to be as important as achieving long-term business growth • We believe a thriving community facilitates our continuing business success • We consider ongoing communication with our stakeholders as vitally important to upholding the well-being of the community • We will continue to engage with our stakeholders’ views and work together with them to achieve a win-win scenario We work closely with various stakeholders on four key areas (1) Environmental Protection, (2) Community Engagement, (3) Youth Development, and (4) Sports, Arts and Culture. All subsidiaries also follow the group-wide direction and incorporate relevant market best practices into their operations. 08 Hopewell Holdings Limited
VISION AND FOCUS OUR GOVERNANCE STRUCTURE: Hopewell Holdings Limited Board of Directors Managing Director Hospitality Human Project Sustainability Resources Development IT Steering Management Committee Steering Committee Committee Committee Committee Property Investment and Hospitality Highway Energy Corporate CSR Development Division Division Division Functions Sub-Committee Division The Group’s highest governance body is the Board of Directors (“the Board”), which comprises seven Executive Directors (including the Chairman), two Non-executive Directors and six Independent Non-executive Directors. The position and responsibilities of the Chairman remain separated from those of the Managing Director to ensure that there is a clear division of duties. The Board is responsible for setting the strategic direction and policies of the Group, assessing and managing business and ESG risks and provides supervision of the management. For details of our corporate governance structure, please refer to the Corporate Governance Report inside the HHL Annual Report 2015/16 (downloadable at http://www.hopewellholdings.com/eng/hhl_annual_interim_reports.htm). Our risk management processes are supported by all staff and they have the responsibility to evaluate, understand and report risk issues under their areas of responsibility to their superiors. Where appropriate and necessary, mitigation measures and reporting should also be made to the Executive Directors. All employees are required to sign the Group-wide Code of Conduct (“Code”) upon employment and comply fully with it during their tenure to keep a high degree of integrity. The Code is our central guide and is written based on our core values; issues include bribery, conflicts of interest, relations with suppliers and contractors, investors, customers and consumers. Briefing sessions for employees were organised to explain how it governs the behavior of the organisation. Relevant policies and mechanisms are detailed in the Employee Handbook provided to staff on their first day at the company and are communicated to employees on our intranet and training whenever applicable. We issued a Whistleblowing Policy to provide a confidential platform for our employees to report on any issues arising from our operations. Briefing sessions on the policy were conducted for employees to understand the procedures. We also continued to organise training on integrity, bribery prevention, equal opportunities, customer data and personal data privacy as well as the new Competition Ordinance. Sustainability Report 2015/16 09
STAKEHOLDER ENGAGEMENT Stakeholder engagement is an integral part of our business development and commitment to corporate sustainability. We develop long-term relationships with stakeholders and consider their views on our business development through various formal and informal, independent and internal stakeholder engagement exercises. Through our annual stakeholder engagement exercise for the Sustainability Report and regular engagement activities, we are able to keep an ongoing dialogue with our stakeholders, enabling us to make more informed decisions, and better assess and manage any resulting impact. • Annual customer • Month-long campaign satisfaction survey to raise service standards and maintain customer • Organising public events satisfaction • Commuter satisfaction • Guest comment card and survey for highway users client feedback survey at our venues • Up-to-date traffic • Designated customer hotline condition mobile application and website • Corporate website for highway users • Social media (e.g. Facebook) mers and tenan sto ts • Training, seminars, briefing Cu sessions • Annual General Meeting • HH Social Club activities • Investor briefings and Inv reholders sha press conferences Employees • 24-hour Employee estors and Assistance Programme • Face-to-face meetings Hotline Stakeholder Group • Conference calls • Face-to-face meetings & Engagement • Corporate website • Independent focus groups and interviews ne ess • Recreational and Co & N rs volunteering activities m in s t m u G n it i e s Bupar Os S u p p li e r s • Employee volunteering • Face-to-face meetings activities • Independent interviews • Participation in • Briefing sessions and programmes initiated by seminars NGOs • Face-to-face meetings • Organising public events • Daily work review • Independent interviews • Supplier assessment • Independent interviews Over the past year we continued to adopt a proactive approach towards stakeholder engagement as an integral part of our business. Our stakeholder engagement plan is reviewed regularly to ensure that we continue to engage with our main stakeholders, key issues and concerns effectively. For details of our past stakeholder engagement exercises, please refer to our previous Sustainability Report downloadable at http://www.hopewellholdings.com/eng/hhl_sustainability_report.htm. 10 Hopewell Holdings Limited
OUR PEOPLE Employees are the greatest asset of a corporation, lifelong learning and development of our employees is the reason we enjoy continued success. We aim to recruit the best talent who fit our business need. Our employees are offered regular training to help them make the most of their talent on the job. As an equal opportunity employer, we are committed to providing a harmonious, respectful and safe workplace. We advocate equal opportunity by eliminating discrimination, including gender, age, disability, marital status, pregnancy, family status, sexual orientation and race. Employment, promotion, salary review and redeployment are made strictly based on individual performance. In addition to full compliance with all relevant local rules and regulations, the Group’s senior management works closely with our partners to ensure that all workers employed at our JV operations are treated fairly in accordance with the same high standards applicable within the Group. SEPARATION & BUSINESS RETIREMENT NEED TALENT DEVELOPMENT ACQUISITION & & RETENTION RECRUITMENT Organised in-house and external training Developed a structured Management Trainee courses and seminars for staff Programme with all-round support Emphasised health and safety Expanded recruitment coverage to non-degree HH Social Club encouraged work-life graduates by launching Master Serve - balance Hospitality Trainee Programme Employee Assistance Programme offered Created a new internship programme to provide stress management and wellness-related job training and career coaching opportunities training and counselling services Recruited Hong Kong athletes since 2008 Sustainability Report 2015/16 11
OUR PEOPLE TALENT ACQUISITION & RECRUITMENT Master Serve — Hospitality Trainee To support our business development, we run a number Programme of talent recruitment programmes and new engagement programmes at different levels of the Group for high potential individuals who fit our business needs, such as Management Trainee (MT) Programme, Master Serve — Hospitality Trainee Programme, internship programme, recruitment of Hong Kong athletes. Management Trainee (MT) Programme With the Master Serve — Hospitality Trainee Programme, we expanded our existing recruitment coverage from degree graduates to non-degree graduates. The programme also provides another career development opportunity for our internal staff. We offer job rotation within our hospitality portfolio, together with training workshops, and Mentorship & Buddy Scheme. In its tenth year, our MT Programme provides a structured Internship Programme and effective training programme for young talent. The Every year, we co-ordinate with different business units programme offers a comprehensive view of the Group’s and offer summer internship vacancies for undergraduates business and equips MTs with the practical skills and to apply. We created a new internship programme to knowledge necessary for their career and personal provide job training and career coaching opportunities for development. They are assigned mentors, coaches and both university undergraduates and secondary students. It buddies who can provide all round support and regular received the award of “Outstanding Volunteer” from the feedback for their career planning. This year, we recruited Hong Kong Student Aid Society. two MTs from Google Ignite, a new talent development programme initiated by Google to develop digital Recruit Hong Kong Athletes marketing talent in Hong Kong. HHL is among the first We continued to participate in the Hong Kong Athletes batch of selected employers to participate in this Career and Education Programme (HKACEP) organised by programme. the Sports Federation and Olympic Committee of Hong Kong, China which aims to help former elite athletes find mainstream employment following their retirement from professional sport. We have been recruiting retired athletes since 2008 for our Management Trainee Programme, Summer Internship Programme and Job Shadowing Programme. Our athlete recruits performed well and were able to develop and achieve their goals in the company. 12 Hopewell Holdings Limited
OUR PEOPLE Recruit Disabled Talent Employee Benefits and Welfare Business units at KITEC explored the feasibility of To attract, motivate and retain talent, we provide a wide engaging the disabled upon any job opening and during range of employee benefits and welfare. We conduct the recruitment process. KITEC modified its Box Office external and internal salary benchmarks to provide fair and Concierge counters to accommodate the needs of a and competitive remuneration packages for our disabled staff who required wheelchair use. A mentor was employees. Additional financial incentives include share assigned to coach the disabled staff on relevant job skills options, share award schemes and discretionary bonuses and help him adapt to the working environment. In based on individual and business performance. Other addition, an Equal Opportunities Training Workshop was financial benefits, such as transportation allowance and arranged to explain anti-discrimination ordinances and reimbursement of tuition fees are provided to eligible legal obligations to managerial staff, helping them to employees. We also provide medical insurance coverage better understand how to work with colleagues with to all employees. Different paid leave provisions are also disabilities. provided, including marriage, maternity, paternity, compassionate and examination leave. At Panda Hotel, Social Innovation for Talent Acquisition and staff are given an additional birthday leave and red Development packet. With the approval of divisional or department heads, employees below managerial grade are eligible for leave in compensation for overtime work. All office staff are entitled to five-day work week arrangement. We offer Long Service Awards to acknowledge long-serving employees in a manner commensurate with their period of service. All full-time employees receive retirement benefits according to the labour laws in Hong Kong and Mainland China. Performance appraisal is an important process for staff development and performance management. In 2015, we enhanced our employee performance appraisal system and collected additional information about training needs. We believe social media is an effective tool to enhance This interactive e-appraisal platform also facilitated the communication with the younger generation. We started process of providing feedback on the performance of staff a Facebook page to share information on the job market, and formulating development plan for the coming year. life of MTs and networking event opportunities, creating Staff can effectively communicate their career aspirations an interactive platform to communicate with young talent. and expectations. Besides, a knowledge sharing and networking workshop, We plan to develop an “e-Exit Interview” and optimise Living Library, was created. Various seminars and the current exit interview process to collect data on staff’s networking events were organised, most important that reasons for leaving. In doing so, we aim to refine our the platform enhanced the exposure of our talent. strategies on staff recruitment and retention. Sustainability Report 2015/16 13
OUR PEOPLE DEVELOPMENT AND RETENTION We create an environment where every employee can develop their full potential and contribute their skills and experiences to the long-term development of the company. Ample training opportunities are provided for staff to facilitate their personal and professional growth. Training courses and seminars on different topics, conducted in-house or by external experts, are organised for staff members of different grades in management, operation and technical divisions. Average Training Hours for Our Employees (FY16) Operations Cu d st BY GENDER an des o o ry ns C m nta io er Female 7.80 Volugulat Se Over rvic Male 5.41 Re e 8,800 Occupational He and Safet alt BY EMPLOYMENT CATEGORY Training Hours grity Managerial 5.85 in FY16 Inte y General 6.47 h d W an We offer educational allowances and tuition or k -l h ip in g if e er s ld reimbursement to staff who enroll in approved career- B ala L e a d B ui nce Team related learning programmes. We encourage our staff to attend external programmes and training to enhance functional and technical skills and acquire more business- related knowledge to facilitate their daily work. We organise regular workshops on different management skills, including communication, problem solving, team building and stress management. In 2015, training workshops such as Personality Dimension, Game Theory, Communication Skill — Transaction Analysis, Learning@Lunch and SharePoint Learning were held. Additionally, we conducted an Online Survey of Staff Training Needs to collect staff opinion on training needs related to personal and professional growth. The survey result enables us to better design appropriate training courses for different categories of staff. 14 Hopewell Holdings Limited
OUR PEOPLE The Independent Commission Against Corruption (ICAC) was invited to run briefing sessions on integrity to raise our staff’s awareness on the risks of corruption and related malpractices in the workplace. Representatives from the Office of the Privacy Commissioner for Personal Data and the Equal Opportunities Commission were invited to hold seminars on statutory requirements on a regular basis. In 2015, we invited a professional lawyer to brief our staff on the newly enacted Competition Ordinance. After each training session, we obtained staff feedback to At Heyuan Power Plant, we received 3 Star Certificate of improve our training strategies and arrangements. As National Occupational Safety Association Five Star System recognition of staff motivation and learning effort, we and First-Class Enterprise for Work Safety Standardisation. issue a Training Certificate to each participant. We see We set medium and long term targets on the overall effective training programmes and workshops as an operation safety and formed an occupational health and important means to enhance employees’ performance as safety committee. Committee members include the well as sense of belonging to the Company. Chairman and senior management staff of Heyuan JV are responsible for internet security, road safety, fire safety, Health and Safety occupational safety and health, risk management and Health and safety issues are important focus areas across safety training. We conducted various training and all our businesses. workshops during the year, covering safe storage of hazardous chemicals, fire rescue and first aid. In Mainland China, both the GS Superhighway JV and the West Route JV continued to run Safety Operation Month In Hong Kong, fire safety measures are in place at all our to reinforce the culture of safe operation, strengthen premises. We have been working with the Fire employees’ awareness on safety and improve their Services Department of the Hong Kong Government to knowledge of work safety law. We also published safety arrange relevant seminars, fire drills and training for our management regulations which were distributed to Fire Safety Ambassadors to raise employees’ awareness frontline staff. on fire safety. Regular safety inspections and improvement works on our premises are conducted to safeguard our employees, tenants, residents and users of our buildings. Our premises have pledged support to the Workplace Hygiene Charter advocated by the Occupational Safety and Health Council (OSHC). We also organised safety training and workshops for frontline staff of our property management division. We keep track of the latest government information on the spread of communicable diseases and provide prompt preventive advice and measures on our intranet. Within the Group, 23 employees were trained as Certified First Aiders. Sustainability Report 2015/16 15
OUR PEOPLE Work-life Balance To encourage work-life balance and enhance employee relationship, we established HH Social Club — a platform to engage employees through volunteering and leisure activities. We encourage our employees to create and host interest groups based on their interest. In addition to football, bowling and photography groups, running and basketball groups were set up during this year. We organised various interest classes such as Muay counselling services. A 24-hour hotline allows employees Thai, 3D cake, silver accessories and ukulele, allowing staff and their immediate family members to address personal to explore new interests and build up team relationships. problems or financial distress in confidence. We were This year, we incorporated volunteering initiatives when awarded Family-Friendly Employers and Special Mention organising interest classes. (Gold) of 2015/16 Family-Friendly Employers Award Scheme by Family Council and ERB Manpower Developer We care about our staff’s physical and mental health. In Award Scheme — Manpower Developer 1st (2010–2018) 2015, we set up a “Health Booth Day” on which staff in recognition of our work. could experience the “Chinese Medical Check Up” and “Massage” during office hours. In addition, an Employee In Mainland China, the GS Superhighway JV organised a Assistance Program (EAP) is available to offer stress 2-day project adventure in Shenzhen to strengthen management and wellness-related training and leadership and team spirit among staff and also spring activities to promote local culture. HH Social Club volunteers attended a lesson to learn to play ukulele and then partnered with the Wan Chai Methodist Centre for Seniors to teach elderly people to play ukulele. HH Social Club aimed to bring joy and laughter to the elderly via this event and encourage them to try new hobbies. 16 Hopewell Holdings Limited
ENVIRONMENTAL PERFORMANCE OUR MANAGEMENT APPROACH We are committed to protecting the environment and environmental considerations are taken into account seriously during our decision-making process. Our Sustainability Steering Committee has overall responsibility for environmental considerations across the Group while each business unit has its own responsibility to implement appropriate environmental measures. We strive to promote environmental awareness among staff as they are key to improving our environmental performance. We have carried out various awareness- raising activities through our Go Green Workplace campaign. A Green Captain from each department was nominated for executing and driving our office green measures as well as engaging our employees in carrying out effective environmental practices. KEY BUSINESS IMPACTS We strive to minimise the environmental impact of our business by implementing a variety of green measures, including responsible use of resources, reducing carbon emissions, energy saving, waste management and pollution prevention. Key Business Direct Operations Property Hospitality Highway Energy Environmental Impact Emissions (carbon, NOx, SOx and dust) Waste (commercial waste and residential waste) Pollution (noise and water) Biodiversity Impact mitigation priority High Medium Low Sustainability Report 2015/16 17
ENVIRONMENTAL PERFORMANCE EMISSIONS Key Business Operations Property Hospitality Highway Energy Electricity and Coal and Emission source Electricity Electricity and fuel town gas electricity Property Division According to Hong Kong Climate Change Report 2015 issued by Environment Bureau, buildings account for about 90% of total electricity consumption and contribute more than 60% of greenhouse gas (GHG) emissions in Hong Kong. As a responsible property developer and asset owner in Hong Kong, we actively monitor our carbon emissions and incorporate a series of energy saving measures in our buildings as well as engage our partners and tenants to raise their awareness on energy saving. Upgrading Our Facility Our Group actively invests in energy efficient technology to save energy. KITEC has replaced the deteriorated and defective insulations for the aged chilled water risers at Mechanical and Electrical Room Zone 3 to reduce energy loss in March 2016. Panda Place has replaced all existing T5 fluorescent tubes and light fittings with 211 sets of LED tubes at the 5/F car park to save energy and reduce maintenance cost. It has also dismantled and replaced the defective insulation of chilled water pipes at some shops and replaced the defective thermal insulation in storeroom at G/F in order to maintain thermal insulation of pipes in good condition and save engrgy. HREA joined hands with Infiniti, Green City Solutions, JOS and Microsoft Hong Kong to install Asia’s first City Tree outside Hopewell Centre. A pioneering urban and roadside feature standing 3 metres high, the City Tree is the first air-purification installation with a combination of Internet of Things (IoT) technology and biotechnology in Asia. The special moss culture and vascular plants absorb and filter fine dust, nitrogen oxides and other air pollutants emitted from car exhaust to alleviate surrounding air pollution. The “German-design, Made-in-Hong- Kong” City Tree was built with solar panels and digital systems that reduce the need for regular maintenance. Inside the unit are a number of sensors that enable City Tree to monitor the moisture level of its purifying moss and report on air quality in real time. Similar installations have already been in place in numerous European cities, including Paris, Berlin, Munich, Dresden and Oslo, and they are positively received. 18 Hopewell Holdings Limited
ENVIRONMENTAL PERFORMANCE Our Group is also actively promoting the use of cleaner vehicles which can help to reduce greenhouse gas emissions. We continue to set up more electric vehicle (EV) chargers at our properties to promote the use of EVs. 4 new Tesla superchargers were installed at both KITEC and Panda Place this year in order to meet the growing demand for EV chargers. General EV Tesla Taxi Site Charger Charger Charger USAGE OF EV CHARGERS AT 8 Hopewell 1 (6 Superchargers, 2 HOPEWELL CENTRE IN 2015 Centre 2 Regular Chargers) 10 3,500 KITEC 4 (4 Superchargers, 0 3,000 6 Regular Chargers) 2,500 Panda 4 2,000 4 2 Place (4 Superchargers) 1,500 No. of Cars Wu Chung 1,000 9 0 0 House 500 Broadwood 0 20 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Twelve Sustainability Report 2015/16 19
ENVIRONMENTAL PERFORMANCE Participating in Government Campaigns We participated in the “Carbon Audit • Green Partner” organised by EPD, signed the “Carbon Reduction Charter” and set up various carbon reduction measures to reduce GHG emissions. Since 2012, we have been signing up for the Energy Saving Charter which was jointly organised by the Environment Bureau and the Electrical and Mechanical Services Department to promote energy conservation for combating climate change. Hopewell Centre, Wu Chung House, E-Max of KITEC and Panda Hotel pledged to save energy by maintaining an average indoor temperature between 24–26°C during the summer months from June to September, switching off electrical appliances when not in use and procuring energy efficient appliances. Our Group signed the Charter on External Lighting which was newly launched by Environment Bureau in 2016. We pledged to switch off external lighting installations of a decorative, promotional or advertising nature from 11p.m. or midnight to 7a.m. on the following day to minimise light nuisance and energy wastage. Working with NGOs As an Earth Partner of Friends of the Earth (HK), we participated in their Green Missions scheme and took part in two Green Missions, Save Energy Mission and Save Resources Mission to encourage energy saving and promote resource efficiency. Our staff are encouraged to save energy and resources in order to minimise our impact on the environment. We were awarded Gold Level in Save Energy Mission (5% reduction in electricity consumption) and Bronze Level in Save Resources Mission (2% to 3.9% reduction in paper usage and laser and ink cartridge usage as well as 2% to 3.9% increase in paper recycling and laser and ink cartridge recycling). We also participated in the GOALS organised by WGO and fulfilled a minimum of 30 criteria from their checklist. A green audit at our office workplace has been conducted to verify that our criteria checklist actions have been effectively implemented. As a result, we received the “Green Office” Label and “Better World Company” Label in recognition of our efforts towards a low carbon and green office. 20 Hopewell Holdings Limited
ENVIRONMENTAL PERFORMANCE Highway The GS Superhighway JV is a pioneer in Guangdong Province in replacing all conventional low-mast sodium lamps with LED lights on 122.8 km main alignment of the GS Superhighway. After full operation of LED lights since June 2013, electricity consumption on the main alignment has been maintained at a low level. Moreover, the GS Superhighway JV refitted the high-pole lamps with energy-saving lights to further reduce electricity consumption in June this year. Phase III West also adopted energy-saving LED lights along all tunnel sections and toll plazas since its opening in January 2013. We endeavour to explore possibilities of expanding our green car fleet. We now have three petrol-electric hybrid vehicles and one EV in our car fleet. From our experience, the use of petrol-electric hybrid vehicles reduces around 40% of fuel consumption when compared with other conventional vehicles. We also encourage staff to use petrol-electric hybrid vehicles and EV for business trips. Greenhouse gas emissions are expected to decrease with the use of petrol-electric hybrid vehicles and EVs. Fuel consumption in both JV companies was reduced by 11.6% year-on-year as a result of effective car usage management. Energy Heyuan Power Plant has planned to invest more than RMB300 million to upgrade a flue gas emission system for the plant, including low NOx burners modification, addition of flue gas heat exchanger, dry electrostatic precipitator improvement, NOx reduction system upgrade and addition of wet electrostatic precipitator. Unit 2 upgrade was completed and started to operate in March 2016, all the emission level met the China Flue Gas Super Low Emission Standard. Unit 1 will be completed by the end of 2016. SO2 NOx Dust (mg/Nm3) (mg/Nm3) (mg/Nm3) China Flue Gas Super Low Emission Standard for coal-fired power plants 35 50 10 Emission level during the trial run after the upgrade to super low emission system for Unit 2 10 35 1 Heyuan Power Plant has been implementing various energy saving initiatives. Around 2MW roof-top solar panels has been installed at major buildings, car park and free space in order to save energy. To improve energy efficiency and reduce air pollution, the plant is planning to supply steam gas to nearby industrial park by elimination of small-size boilers. Sustainability Report 2015/16 21
ENVIRONMENTAL PERFORMANCE Waste Management Our diverse business generates different kinds of waste and we have been actively implementing various 3R campaigns to reduce waste. We are also assessing the potential impact of the future implementation of quantity-based municipal solid waste (MSW) charging scheme and preparing possible solutions. Methods in Handling Different Kinds of Waste Electronic Waste 107 pieces of small waste electrical and electronic equipment were collected and sent to our recycler Li Tong Group for recycling. Hopewell Centre has joined the Computer Recycling Programme organised by EPD for used computers and computer accessories since 2013. GARDENEast donated over 100 pieces of “Green appliances” to the WEEE Go Green Scheme of St. James’ Settlement. Hopewell Centre, QRE Plaza, Wu Chung House and Broadwood Twelve also received the Certificate of Appreciation from the Computer & Communication Products Recycling Programme of EPD. Plastic Waste Hopewell Centre, GARDENEast and Wu Chung House have participated in the Yan Oi Tong Plastic Recycling Partnership Scheme organised by Yan Oi Tong EcoPark Plastic Resources Recycling Centre since 2011. Both Hopewell Centre and Wu Chung House won Bronze Awards in the categories of Housing Estate and C&I Building and 3 tonnes of plastic were recycled. Hopewell Centre has launched a Shopping Bag Recycling programme starting from August 2015. A recycling box was placed in prominent positions for collecting carrier bags which will be shared with others for reducing waste. ITC replaced plastic take-away bags with non-woven bags and paper bags which helped to reduce plastic bag consumption and encourage recycling. Food Waste Panda Hotel and ITC collected 72,645 litres and 49,941 litres of food waste respectively which were further processed into animal feed by recyclers. Starting from January and March 2015, the food waste was handled by South China Reborn Resources (Zhongshan) Co. Ltd, Hong Kong Division. Panda Hotel and ITC collected 7,164 liters and 311 litres of used cooking oil respectively for refining into bio-diesel by recyclers. In 2015, Broadview Villa purchased an on-site food waste composter to tackle the food waste problem. Waste Glass Panda Hotel sorted and delivered used bottles to proper recycling companies for further processing and continued to participate in the Glass Container Recycling Programme for the Hotel Sector supported by EPD and the Hong Kong Hotels Association. From July 2015 to June 2016, 8,186 kg of used bottles have been collected which will be manufactured into eco- bricks by recyclers. Chemical Waste Hopewell Centre, KITEC, Panda Place, Broadwood Twelve, GARDENEast, Wu Chung House and Villa Lotto have registered with EPD as chemical waste producers under the Waste Disposal (Chemical Waste) (General) Regulation. We have implemented a number of controls to ensure that all hazardous chemical wastes were transported and treated by licensed waste collectors. At Hopewell Centre, KITEC, Panda Place and Broadwood Twelve, 9.8 kg, 600 kg, 20 kg and 17.5 kg of chemical wastes were collected and transported by licensed waste collector respectively. Most of them are fluorescent tubes/ lamps. No chemical spills happened on our property during the reporting period. Waste Water Hopewell Centre, QRE Plaza, Panda Place, Broadwood Twelve, Wu Chung House and Villa Lotto have obtained the “Waste Water Discharge Licence” from EPD to ensure that our effluent discharge meets regulatory standards prior to discharge. Our power plant is equipped with a wastewater treatment system to achieve zero discharge of wastewater. Our application of zero discharge of wastewater technology at our coal-fired power plant gained an Environmental Protection with Science and Technology Award (third prize) from the Ministry of Environmental Protection of the People’s Republic of China. Festive Waste Panda Hotel participated in the Chinese New Year Peach Blossom Recycling Programme organised by the Hong Kong Environmental Protection Association for the fourth year. Withered plants were recycled and further processed into organic fertilisers or compost which were then donated to local schools for planting use. Commercial 208kT of pulverised fuel ash, 46kT of gypsum, 17kT of slag, 0.3kT of crystalline salt, 0.6kT of pebble coal and 4.5kT of mud/ Waste sludge were reused or recycled by our power plant, these are refined into concrete, plasterboard, bricks, industrial grade salt, fuel and eco-bricks respectively. 22 Hopewell Holdings Limited
ENVIRONMENTAL PERFORMANCE During the reporting period, Hopewell Centre, KITEC and Panda Place joined the 18-month Waste Check Charter organised by EPD to promote waste reduction. We pledged to measure the quantity of waste disposed of and recyclables collected regularly. Our Group continues to participate in the Wastewi$e Certificate Programme under Hong Kong Green Organisation Certification led by ECC of the Hong Kong Government, which requires participants to achieve a set of requirements and targets in waste reduction, recycling and green purchasing. Hopewell Centre, Panda Place, GARDENEast and Villa Lotto were awarded the “Excellence Level” Wastewi$e Certificate while Panda Hotel and Broadwood Twelve were awarded the “Good Level” Wastewi$e Certificate. These recognise our efforts and commitment to environmental protection and waste reduction. In July 2016, we held a guided green tour of T•Park in Tuen Mun, Hong Kong’s first self- sustained sludge treatment facility which aimed to enhance awareness of sustainable development and to showcase the benefits of the waste-to- energy approach in waste management. 12 staff visited the Park and explored its green features and enjoyed a wide range of educational and leisure facilities, including a landscaped garden with five themes, a roof garden and a wetland habitat for wildlife. They all gained experience in waste management and learned about the treatment of waste in a sustainable manner. Biodiversity Food and beverage accounts for the largest element in hospitality industry. We strive to provide good quality food and educate the public in favour of sustainable consumption by raising their awareness of how their consumption can affect the oceans. They can in turn make an educated decision and go for choices that help protect our environment. Panda Hotel and ITC provide Ocean-Friendly Menu which made reference to WWF-Hong Kong Seafood Guide advocating consumption of sustainably-harvested seafood. In addition, our catering outlets continued to promote shark fin-free menu options in order to provide a sustainable alternative for our customers. Sustainability Report 2015/16 23
OUR COMMUNITIES We strive to build a sustainable community by leveraging our business resources, engaging our employees and partnering with NGOs. We have established four core sustainability areas, including Environmental Protection, Community Engagement, Youth Development and Sports, Arts and Culture to guide our community initiatives. During the reporting period, we donated around HK$2.7 million to 12 key NGO partners. We also completed 103 community programmes and contributed 980 hours to voluntary services. Community Contributions Community Contributions by Categories of Motivation by Input Category 1% 17% 24% 35% Charitable Gifts (Tend to be ad hoc or one-off contributions) Cash Contributions Commercial Initiatives (Tend to be business-related activities) 75% Contributions raised 48% by employees Community Investment (Tend to be more proactive and In-kind Contributions strategic than charitable gifts) 24 Hopewell Holdings Limited
OUR COMMUNITIES COMMUNITY ENGAGEMENT AT A GLANCE To enhance awareness of To serve the community and environmental protection improve the quality of life among employees and the public Business Community of the people we serve • E-Max “Green Carnival” Need Need • Tuen Ng Volunteer Visit 2016 • Electrical and Electronic • Ukulele Workshop with Waste Recycling Seminar the Elderly • The Green Heroes – • Elderly Home Visit Treasure for Green Fun Day • Happy Family Poon Choi • Earth Hour 2016 Feast 2016 • Hong Kong Tree Planting • Dress Casual Day 2015 Day 2016 • 2015/2016 Hong Kong • Hopewell Junior Volunteers and Kowloon Walk for Programme -“A Journey to Millions • Skip Lunch Day 2016 Food Saving” & Upcycling ey NGO Partne Workshop 12 K rs • Love Teeth Day 2015/2016 • T•PARK Tour • St. James’ Settlement Valentine’s Rose Charity • The Community Chest en tal 21% Sale 2016 Green Day 2016 nm ion • Go Green Fiesta o ect E • St. James’ Cup Kin-Ball t Pr ir Co gag Charity Tournament 2015 v • Bag-2-Bag o n En mm eme • Heifer’s Race to Feed 2015 103 980 uni nt • Mooncakes for Charity 2015 ty • TWGHs “iRun” — Programmes Volunteer Hong Kong Jockey Club a n d C u lt u r e Sp o r t s, A r t 2 % Participated Service Hours 47% Special Marathon 2016 • United Christian Hospital — To contribute to the Fund Raising Movie Screening HK$2.7M • Sponsorship of movie s development of sports, arts 1 and culture screening & cinema coupons Donation • SPCA Charity Raffle 2015 • Sponsorship of Asian De Y outh ve l Youth Orchestra op m e nt 20 % To nurture our young people • World Music Day in Wan Chai for the future • Wan Chai Wine Walk • JA Career Dimensions – & Music Stroll Career Check-in • Kids Drawing Charity @Panda Hotel • Sponsorship of 40th • Work Experience Hong Kong International @Panda Hotel Film Festival (HKIFF) • Hopewell Junior • 2015 Sundance Volunteers Programme Film Festival HK • Sponsorship of Soccer Team of • 2016 Sundance Wan Chai Sports Federation Film Festival HK — Business Economic Social • Sponsorship of Hong Kong Short Film Master Class & Value Growth Cohesion Outstanding Students’ Short Film Competition Association — “Explorez 2016” • Sponsorship of Lingnan University Fundraising Walkathon 2015 • Love Junior Campaign • Christmas and New Year Children’s Party • 2015 HKIFF Students Summer Programme Sustainability Report 2015/16 25
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