ALL IN ALL CARE - ESG REPORT 2019/2020 - HKR International Ltd.
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CONTENTS 02 MESSAGE FROM MANAGEMENT 03 ABOUT THE REPORT 04 ABOUT HKRI 04 OUR SUSTAINABILITY APPROACH 10 MEMBERSHIPS AND AWARDS 12 CHERISHING OUR ENVIRONMENT 26 VALUING OUR PEOPLE 36 CARING FOR OUR COMMUNITY 44 OPERATING RESPONSIBLY 52 PERFORMANCE DATA SUMMARY 61 HKEX ESG REPORTING GUIDE CONTENT INDEX
MESSAGE FROM MANAGEMENT ABOUT THE REPORT Reporting Scope and Standard Together we can overcome every This ESG Report (“Report”) is produced HKRI holds diversified business interests businesses, joint ventures and subsidiaries challenge, becoming stronger and wiser by HKRI to communicate the Group’s (“HKRI and its subsidiaries”) sustainability across Hong Kong, mainland China and Asia. As an ongoing effort to enhance our operated by HKRI in Hong Kong, mainland China and Thailand as reported in last year. to do the right thing. management approach and performance in four key areas: environment, human transparency and reflect our geographic footprint, this year we increased the We decided to emphasise on our core operations which have significant capital, community and value chain. The disclosures to include quantitative contribution to the Group in terms of Report covers the period from 1 April information of HKRI Taikoo Hui's asset size, profitability and staff strength. 2019 to 31 March 2020 (the “year”). operations in Shanghai in addition to the Reporting scope is listed in the chart below: This Report discloses the Group’s ESG performance, while details of our corporate governance and financial performance can be found in our Annual Report 2019/2020. To aid readers in navigating the Report content, a Content Index is available for reference on pages 61 to 62. 2019/2020 was a bittersweet year that we can support through our social In early 2020, the outbreak of COVID-19 The Report has been prepared in accordance with the Property Property Investment and for us. While celebrating the Group’s and environmental initiatives. Keeping sadly posed significant threats to ESG Reporting Guide (“ESG Guide”), Appendix 27 Development a Management a 30th listing anniversary on The Stock up with the latest market trends and mankind. Putting the health and safety of the Rules Governing the Listing of Securities on Exchange of Hong Kong Limited standards in relation to sustainability of our employees, customers and every The Stock Exchange of Hong Kong Limited issued by Hong Kong Exchanges and Clearing Limited (the “Stock Exchange”) with all our stakeholders, we were adversely governance, we established the ESG Committee on top of the existing community member as top priority, we immediately took all possible measures. (“HKEx”). In response to the latest revisions Operations affected by the social event and the economic downturn followed by the CSR task force, to further increase the involvement of the Board and Other than performing intensified cleaning and disinfection works and keeping effective for financial year commencing on or after 1 July 2020, we have further enhanced our of the Group spread of COVID-19 pandemic in the senior management. Through the ESG our customers updated on the latest reporting framework to address most of the newly Discovery Bay second half of the year. These issues Committee, the relevant risks and situation, we also took extra measures introduced reporting requirements and disclosed Healthcared City Management & together posed challenges not only opportunities are thoroughly evaluated to help those who were subject to home our full process in ESG governance and materiality assessment. Transportationb on our operations, but also on our and integrated into our overall strategy quarantine and offered rental concession Environmental, Social and Governance in order to work towards a better to help the tenants in need to overcome (“ESG”) performance. common future. Supplementary policies difficulties. To keep our employees safe, Your feedback is valuable to our continuous improvement. are put in place to guide sustainable proper protective gears were provided Please email your queries, comments or suggestions to In 2019, HKR International Limited development across our diverse business and special work arrangements including info@hkri.com. Hospitality c (“we”, “HKRI” or the “Company”) portfolio. work from home and utilisation of online continued to strive for perfection and video conferencing tools have been create a harmonious and rewarding We are pleased to see the remarkable adopted since February 2020. We believe Reporting Principles lifestyle in the communities we built. progress we have made in building that together we can overcome every Decades of commitment and excellence, comfortable accommodation, vibrant challenge, becoming stronger and wiser The following principles have been adopted in the preparation of this Report: together with the long-standing workplace and supportive communities. to do the right thing. support from our stakeholders, helped With the advancement of green Materiality: information deemed ESG important is Quantitative: quantitative information is provided with us succeed as a leading multinational technology, we keep tabs on the Looking forward, I would like to covered in this Report. A materiality assessment exercise narrative and comparative figures where possible. The relevant corporation to embrace sustainable concept of sustainable community, thank all of our stakeholders who was conducted for determination of material ESG issues standards, methodologies as well as assumptions used to prepare growth, which in return, has become leveraging green construction have stayed with and supported HKRI with results approved by the ESG Committee. the quantitative information are disclosed as appropriate. a key motivation for us to make techniques and designs to combat tremendously throughout the years. We continuous contributions back to the climate change, as well as mitigating hope the impacts we have made will Consistency: ESG data are prepared and presented using Balance: information is presented without selections, omissions community. our environmental impact. The continuously influence society positively consistent methodologies, unless otherwise specified, to or other forms of manipulation that may potentially affect the harmonious balance between nature and maintain over time. Joining hands allow for meaningful comparison. objectiveness of the Report. As the pioneer in Asia in bringing and built infrastructure as presented with our valuable stakeholders, we are innovative and distinctive living concept in our property development projects committed to growing our business and for our customers to a new level, further enhances the quality of living. devoting ourselves for another 30 years a The Report covers the Group’s property development and investment projects in Hong Kong, mainland China and Thailand, including the newly added quantitative we have responded to the global Practised on a daily basis, our eco- and more. information of HKRI Taikoo Hui in Shanghai. call for sustainable development and friendly initiatives in city management b Discovery Bay is based in Hong Kong. c The reporting scope covers operations based in Hong Kong, mainland China and Thailand. identified six areas in the United Nations and hospitality operations are effective CHA Mou Zing Victor d The reporting scope is confined to operations based in Hong Kong. Sustainable Development Goals (SDGs) in driving positive changes. Deputy Chairman & Managing Director 2 HKR International Limited ESG Report 2019/2020 ESG Report 2019/2020 HKR International Limited 3
ABOUT HKRI ABOUT HKRI P Pioneer In 1977, the family of Dr CHA Chi-ming, - Break new grounds the late founder and chairman of a R group of companies whose holding entity later became known as HKRI, Vision Mission Values Respect - Value the individual and cherish our environment acquired the equity interest of Hong I Innovation Kong Resort Company Limited, the Contributed owner and developer of Discovery Bay - Think outside the box 1,546 hours and on Lantau Island. Formed in 1989, HKRI I Integrity about became the holding company of the To be the pioneer of innovative living space We strive to create a healthy, stylish and distinctive living PRI2DE - Uphold high ethical standards HK$ 4,340,000 to Group listed on the Stock Exchange. the communities for experience through D Devotion charitable purpose teamwork and passionate - Be committed and passionate Living up to the vision and aspirations of to our business that benefits our pursuit of innovation the late Dr CHA, the Group has seized stakeholders and supports sustainable and excellence E Excellence Obtained opportunities to diversify its business development in places where we - Consistency in the pursuit 6 interests in real estate development and operate. Guided by the Group’s vision, green building of our quality standards investment, property management, mission and values, we extend our certification luxury hotels and serviced apartments, mission of creating a healthy, stylish and recognitions healthcare services and other investments distinctive lifestyle to other parts of the in Hong Kong, mainland China and region and expand our positive influence across Asia. Throughout the years, we to the wider community and beyond. Earned a turnover of The Board HK$ 4,696.5 million Maintains oversight have incorporated a holistic approach in 2019/2020 of ESG issues, reviews A professional ESG risks, reviews and team of approves strategic direction 2,410 recommended by Geographic employees ESG Committee and endorses 5 presence across as at 31 March 2020 Asia Pacific including ESG Reports HKRI major business Handbook and Code of Conduct. segments namely Hong Kong, Shanghai, at-a-glance Vigorous monitoring and control A publicly listed property development Jiaxing, Hangzhou, Founded in mechanisms are in place to detect and company in and investment, Bangkok, Tokyo and 1977 Hong Kong with Hokkaido prevent bribery, fraud, or other forms of hospitality, healthcare by Dr CHA Chi-ming stock code risk management steering group in and services malpractice. Our annual risk assessments 00480 provided identifying, assessing and prioritising risks, ESG Committee covering all business units enable us to as well as establishing risk mitigation Develops ESG policies and identify and mitigate potential risk of plans and assigning risk owners to closely initiatives for business corruption. The Group has developed operations, evaluates ESG risks, OUR SUSTAINABILITY APPROACH monitor identified risks and implement mitigation plans. Independent review on a standard whistleblowing procedure for our employees to report suspected develops and recommends strategic direction for these systems is performed regularly by the Board’s approval, Sustainability Governance misconduct to our internal audit the Internal Audit Department. On this proposes improvement supervisor. All cases are treated in strict basis, we work to strategically address and recommendations, reports Building on the solid foundations of to bring new perspectives and lift line with the ESG risks and opportunities confidence to protect the whistleblower. progress to the Board and minimise the ESG risks in our operations corporate governance structure and organisation performance. We have identified during the year. It also provides reviews ESG Reports and supply chains. Further information can practices, the Group has established four Executive Directors, and seven Non- guidance to the CSR task force for the To refresh employees’ anti-corruption be found in the Corporate Governance a formal ESG Committeee this year to executive Directors of whom four are execution of ESG related matters. knowledge, we have invited the Report on pages 64 to 85 of the Group’s facilitate ESG management in building Independent Non-executive Directors, Independent Commission Against Annual Report 2019/2020. a sustainable and resilient business. constituting more than one-third of the Furthermore, under the established Corruption (“ICAC”) to deliver training The chart on the next page shows our Board. The Board receives reports from risk management framework and course to employees, including CSR Task Force sustainability governance framework. the ESG Committee on progress made governmental structure, which consists Anti-corruption management, annually and circulated Executes ESG strategies against relevant strategies and goals, of the Board, the Audit Committee, the relevant materials to board members. and policies, monitors ESG We uphold the highest ethical standard performance and impacts The Board assumes the overall as well as appropriate improvement risk management steering group and and strictly adhere to all anti-corruption During the year, there were no cases of of ESG issues to business responsibilities to ensure HKRI creates recommendations to further enhance the business lines, the ESG risks are also operations, reports related laws and regulations throughout non-compliance with relevant laws and long-term value to our stakeholders Group’s sustainability performance. incorporated into the Group’s enterprise progress to the ESG our operation and value chain. All regulations relating to bribery, extortion, and maintains high standard of risk management structure to ensure the Committee and prepares employees must strictly observe all fraud and money laundering in our corporate governance at all levels. The The ESG Committee comprises Group maintains a sound and robust risk ESG Reports regulations related to conflict of interests operationsf. Board comprises 11 Directors with a department heads of different functions management and internal control system. as stipulated in the Group’s Employee diverse mix of genders, professional and is responsible for determining the Our Risk Management Policy guides the experiences, skills and knowledge Group’s ESG objectives and priorities in f The laws and regulations that are most relevant to the Group include, but not limited to, the Prevention of Bribery Ordinance (Cap.201), the Law of the People’s e The Terms of Reference to the ESG Committee can be found on our website (https://www.hkri.com/en/CSR/ESG-Committee). Republic of China for Countering Unfair Competition, the Law of the People’s Republic of China for Anti-Monopoly, and the Act Supplementing the Constitution Relating to the Prevention and Suppression of Corruption in Thailand. 4 HKR International Limited ESG Report 2019/2020 ESG Report 2019/2020 HKR International Limited 5
OUR SUSTAINABILITY APPROACH OUR SUSTAINABILITY APPROACH Sustainability Policy Supporting the United Nations Sustainable Development Goals Sustainable development is fundamental The approaches and principles stipulated and monitor our performance to building The SDGs launched by the United Nations in 2015 is an action plan for the planet and people to thrive by 2030. It provides a to HKRI’s vision, mission and core values. in the Sustainability Policy, relating to sustainable, liveable and socially framework for the users to track their progress towards the sustainable goals. As a corporate citizen, we are determined to The Sustainability Policy g has been environment protection, workplace, responsible communities that people support this initiative and set agenda to shift to a more sustainable path. We have identified six SDGs that are most relevant to established to formalise our longstanding value chain and community investment, are proud to be an integral part of. our business and we are committed to achieving them in the future: sustainability practices, ensuring that the lay the foundation for achieving our management of related issues is carried sustainability aspirations. We will out consistently within the Group. continue to develop different measures Sustainability Strategies Reducing Environmental Impact Building a Sustainable and Caring Providing Quality and Reliable Good Health Affordable Decent Work Sustainable Responsible Climate • To mitigate our impact on the Community Services and Products and and and Cities and Consumption Action environment by reducing our emissions • To build sustainable communities by • To deliver responsible and quality Well-being Clean Energy Economic Communities and and consumptions, streamlining waste offering care and support to the local services and products; Growth Production management and maximising the use communities we operate; • To respect and uphold data privacy of environmentally friendly materials; • To participate in volunteering and of all stakeholders Looking ahead, we will establish targets on different ESG aspects to accelerate our sustainable development. • To raise stakeholders’ environmental community activities; awareness • To support artistic and cultural development Maintaining a People-first Workplace Creating a Responsible Value Chain • To attract and retain the best talents; • To uphold high ethical standards; • To provide an equal, safe and healthy • To engage with and drive suppliers, workplace with adequate development customers and tenants in achieving opportunities; sustainability visions Customers • To promote open communication with Employees (including residents, tenants, various transparent channels Management Team • i-Pri2de staff newsletters passengers, customers of • Websites and social media healthcare services, hotel guests • i-Pri2de staff newsletters Investors • Intranet and club members) • Websites and social media • Press releases • Annual / interim reports • Customer satisfaction surveys • Intranet • Investor Relations page • ESG reports • Customer service hotlines, emails • Annual / interim reports Stakeholder Engagement Business Partners on website • ESG reports • Press releases and mobile phone applications • Websites and social media Methods : • Websites and social media • Annual / interim reports • Press releases • Interviews • Annual / interim reports • Annual / interim reports • ESG reports • Interviews • Annual dinners • Annual general meetings • Meetings • Newsletters • ESG reports • Annual dinners Government and • Investor meetings and • CSR activities • ESG reports • Meetings • Meetings Industry Associations conference calls • Employee engagement activities • Recreation clubs • Industry forums • CSR activities • CSR activities • Websites Suppliers • Annual / interim reports • ESG reports • Websites • Public consultations • Annual / interim reports • Industry forums • ESG reports • Audit and assessment Media • Meetings Stakeholder Engagement • Press releases • Websites and social media We respect and value our stakeholders’ their expectations with regard to the To supplement these communication • Press conferences views, with the belief that they are economic, environmental and social channels, we collected feedback • Annual / interim reports • ESG reports valuable pieces of information that matters related to our operations. from some external and internal cannot be neglected for the Group's The stakeholder engagement process stakeholders through an online survey Non-governmental Organisations continued success. The ESG Committee allows us to make informed decisions during the year. These stakeholders • Websites and social media has identified nine core internal and and enhance our operational as well as included ESG Committee, directors • Corporate social responsibility external stakeholder groups that have sustainability performance. The above and senior management, employees, (“CSR”) activities considerable dependency and influence provides an outline of our stakeholder contractors, tenants, non-governmental • Annual / interim reports • ESG reports on us. We constantly engage with engagement methods. organisations (“NGO”) and members of these stakeholders to understand Discovery Bay community. More information on the Sustainability Policy can be found on our website (https://www.hkri.com/en/csr/sustainability-policy). g 6 HKR International Limited ESG Report 2019/2020 ESG Report 2019/2020 HKR International Limited 7
OUR SUSTAINABILITY APPROACH OUR SUSTAINABILITY APPROACH Materiality Assessment The results of materiality assessment conducted during the year are mapped into the materiality matrix below: The opinions and feedbacks collected from the stakeholder engagement exercise aforesaid were incorporated into a structured materiality Materiality Matrix assessment to identify a list of key material ESG issues to be included in the Report. The Moderately Important Important Highly Important materiality assessment process is outlined below: 1 Identification Stage Peer benchmarking: HKRI’s disclosures are 2 Importance to External Stakeholders 1 benchmarked against the disclosures of suitable peer companies from the property development, investment 13 10 9 3 5 and management, as well as hospitality, healthcare and 23 15 12 4 14 19 18 service provider industries to pinpoint material 24 22 ESG issues. 21 29 20 30 25 11 17 6 8 Stakeholder engagement: internal and external 16 26 stakeholders are invited to rank the importance of 31 7 each ESG issue and provide feedback regarding their 27 key concerns on the Group’s ESG issues during our stakeholder engagement exercise. 28 Stage Prioritisation Importance to Internal Stakeholders 2 The results of the peer benchmarking exercise and our stakeholder engagement exercise are consolidated. A list of potential material ESG issues Operate Value Our Cherish Our Care for the were brought forward for discussion in Stage 3: Validation. Responsibly People Environment Community 1 Anti-corruption and 9 Occupational health and 18 Use of energy 29 Responsible money laundering safety 19 Use of water investment 2 Personal data and 10 Equal opportunity and 20 Air emission 30 Charity event and privacy anti-discrimination donation 21 Greenhouse gas 3 Intellectual property 11 Training and development (“GHG”) emission 31 Volunteering and rights 12 Promotion and social participation 22 Sewage 4 Product quality and safety compensation 23 Hazardous waste 5 Customer satisfaction 13 Employee benefits and welfare 24 Non-hazardous 6 Green and ethical waste Stage Validation procurement 14 Recruitment and dismissal 25 Climate resilience 3 Findings from the first two stages are presented to the ESG Committee, who subsequently confirms a list of key material ESG issues, and the respective aspects 7 Advertising and labelling 15 Anti-child and forced labour 26 Food waste 27 Packaging materials 8 Supply chain 16 Working hours and holiday and KPIs stipulated in the ESG Guide for disclosure. sustainability 28 Biodiversity 17 Diversity A total of 31 ESG issues were identified through the materiality assessment. Seven issues are classified as highly important, 21 issues are classified as important, and the remaining three issues are classified as moderately important. 8 HKR International Limited ESG Report 2019/2020 ESG Report 2019/2020 HKR International Limited 9
MEMBERSHIPS AND AWARDS MEMBERSHIPS AND AWARDS HKRI Auberge Discovery Bay The Sukhothai Shanghai MICHELIN Guide Shanghai 2020 - The Sukhothai Shanghai and Taikoo Hui Hong Kong Business Traveller China Awards 2019 La Scala The Must-go Shopping Mall Say Yes to Breastfeeding 2020/2021 - Best Design Hotel in China Organiser 2019 - Gold Label of Breastfeeding Friendly Organiser Michelin Organiser Premises Business Traveller dianping.com - Breastmilk Storage Service Label Time Out Hospitality Awards The Best BANG Awards 2019 HKR International Limited Grade Evaluation For China Organiser - Boutique Hotel of the Year - Hotel Brunch of the Year UNICEF Hong Kong - Best Guest Experience Hotel “15 Years Plus Caring Company” Logo Asia Property Awards Shopping Center - La Scala Organiser Organiser - Best Developer (Hong Kong) - Five Star Shopping Center Traveller Review Awards Shanghai BANG Organiser The Hong Kong Council of Social Service Organiser TimeOut Shanghai magazine Organiser Organiser PropertyGuru Commercial Cultural Tourism Booking.com The Best Business Hotel Award 2019 th The 10 Hong Kong Outstanding Corporate Committee of China Real Estate 2019 TOP 50 Hotels in China Organiser Citizenship Awards 2019 China Real Estate Fashion Awards Association Ctrip Awards 2019 - 1 Diamond City Traveler - Corporate Citizenship Logo - Enterprise - Influential Leader of the Year - Mr Victor - Best Resort Hotel Organiser Category Cha 2019 Lifestyle Awards Organiser Voyage magazine The Gold List 2019 Organiser Organiser - Shopping Destination of Ctrip.com - China Top 10 Hotels The Hong Kong Productivity Council Boao Real Estate Forum 2019 The Year The 10 Best New Hotels in the World Loved by Guests Award Winner 2019 Organiser Organiser Organiser Condé Nast Traveler China magazine Hong Kong Green Awards 2019 Beijing Evening News Industrial Economy that’s magazine Organiser Make It Better Media Group - Corporate Green Governance Award - Annual Report Hotels.com Stakeholder Engagement - Contribution Figure of the Year - Mr Victor Cha Top 30 Hotels for Honeymoon Organiser Green Council Organiser Top 5 4-Star Hotels The Sukhothai Bangkok Best of Bangkok Award Top 5 Hotels with Infinity Pool Organiser Beijing Evening News Star Award Winners Organiser TripExpert Eco-brand Awards 2019 - 4 Star Rated Hotels th Travelmyth Organiser The 9 China Charity Festival - 4 Star Rated Spas - Spa Botanica East Week magazine - 2019 Social Responsibility Business Guest Review Award 2019 2019 Partner Employer Award Organiser Leader of the Year - Mr Victor Cha - Outstanding Corporate Forbes Travel Guide Organiser Silver Award for Volunteer Service - 2019 Public Welfare Communication of Discovery Organiser Booking.com the Year Organiser Organiser Bay Services The Hong Kong General Chamber of Small Top Italian Restaurants Special Readers’ Choice Awards 2019 Social Welfare Department and Medium Business Awards 2020 China Charity Festival Committee Management Limited - Three Forks Awards - La Scala - Top 10 Hotels in Bangkok Green Office and Eco-Healthy Awards 2018 Hong Kong Awards for Organiser Organiser Labelling Scheme Good MPF Employer 2018-19 Condé Nast Traveler magazine Environmental Excellence Gambero Rosso - Green Office and Eco-Healthy Workplace - Good MPF Employer 5 Years - Bronze Award - Property Labels - E-Contribution Award Management (Residential) - MPF Support Award Organiser Organiser Organiser Discovery Bay World Green Organisation Corporate Member Mandatory Provident Fund Schemes Authority Environmental Campaign Recreation Club Committee Name of Organisation Type of Membership China Finance Summit 2019 “5 Years Plus Caring Company” Logo Employer of Choice Award 2019 The Real Estate Developers Association of Hong Kong Corporate Member - Business Leader in New Era - Mr Victor Cha CLP Smart Energy Award 2019 Organiser - Next Generation Development Award The Hong Kong General Chamber of Commerce Corporate Member - CSR Model - Joint Energy Saving Award The Hong Kong Council of Social Service Organiser Employers’ Federation of Hong Kong Corporate Member Organiser Organiser Organising Committee of China Finance JobMarket Hong Kong Institute of Human Resource Management Corporate Member CLP Power Summit The Chartered Institute of Logistics and Transportation in Hong Kong Organisation Member Mental Health Workplace Charter 7th Best Property Safety The Hong Kong Association of Property Management Companies Member Hong Kong Business Management - Mental Health Friendly Organisation Management Award Hong Kong Hotels Association Member Excellence Awards 2019 Organiser - Merit China Residential Projects - Executive of the Year Award for The Federation of Hong Kong Hotel Owners Member Department of Health and Advisory Committee Real Estate - Mr Victor Cha Organiser The Thai Hotel Association Member on Mental Health Sohu Focus (Jiaxing) Occupational Safety & Health Organiser Council American Chamber of Commerce (Thailand) Member - Habitat of Honour of the Year Hong Kong Business 2019/20 Mercury Excellence Awards Thailand Incentive and Convention Association Member - Creekside One - Websites/ Mobile Media: Redesign/ - The Most Valuable Project of the Year Association of Thai Travel Agents Member Relaunch - Silver Award - Mansion One Organiser Organiser Charter MerComm, Inc. Sohu Focus Name of Organisation Type of Charter HKSAR Environment Bureau Energy Saving Charter Food Grace Food Saving Pledge 10 HKR International Limited ESG Report 2019/2020 ESG Report 2019/2020 HKR International Limited 11
CHERISHING OUR ENVIRONMENT 10 times Total Amount of Non-hazardous Wastes Recycled Compared to 2018/2019
CHERISHING OUR ENVIRONMENT Quick Answers to Your Concerns Q How does HKRI approach Green Building? A HKRI has adopted green building design and nurtured green community for years. Discovery Bay Plaza Extension compliance with BEAM Plus, a series Our commitments are well of green measures with respect to demonstrated in Discovery Bay. Discovery Bay was our first property waste management, pollution control, HKRI works to obtain more development project in Hong Kong. GHG emissions, energy use, water green building certifications With more than two-thirds of its areas and indoor air quality have been including Leadership in Energy being landscaped as green zones, the put in place during construction and HKRI fully acknowledges the importance of operation. Examples of the green and Environmental Design (LEED) massing, height profile, building and protecting and conserving the environment. As measures include: and Chinese Green Building street orientation of the unique “Eco- a pioneer in the industry, we strive to be a role Label, with a strategic focus on friendly Town” have been carefully model and create healthy, stylish and sustainable technological innovation. We designed to promote sustainable living Achieve more than 30% living experiences in a responsible manner. We closely will continue to be the pioneer and weave nature into the community. recycling rate with on-site monitor the potential adverse environmental in green building design to Discovery Bay has won the “Urban wastes sorting and recycling; impacts that may arise from operations; and facilitate industry advancement Design & Master Planning Award” continuously develop innovative solutions, and generate sustainable values to and the “Green Development Award” Save up to 20% of water such as designing green buildings, to customers, visitors, tenants and the at the “CAPITAL The Outstanding annually by using devices with minimise those impacts. Through promoting environment. Developer Awards” organised by of grade 1 water efficiency green workplace and endorsing green CAPITAL Magazine and CAPITAL label; production processes, we aspire to build a WEEKLY for six consecutive years since more sustainable future for our employees, Q What does Climate customers and the wider community. After 2012, recognising the community’s exceptional planning and sustainability Use of non-chlorofluorocarbon (“non-CFC”) refrigerants; Change mean to HKRI? years of dedication, satisfactory results and remarkable improvement in our sustainability excellence. Carry out laboratory analysis A It is a global issue that affects performance have been seen. Ever since we started developing and inspections to ensure good every corner and everyone in the Discovery Bay, we have been water and air quality. world. In September 2019, the Sustainable Building committed to making Discovery United Nations called the Climate Bay a better place to live. The new Besides, the new plaza extension features Action Summit and urged for Sophisticated and prudent planning is the core of Discover Bay Plaza extension, equipped various green building design elements, concrete and realistic plans toward our business development. We understand that good design is with more leisure and shopping such as a vertical green wall, glass façade the goal of net zero emission by necessary for the success of a property development project, both financially choices, and added greeneries to the and an over-15,000-square-feet roof 2050. As a responsible corporate, and environmentally. Our internal Project Management Guideline encourages community, is scheduled to complete garden. Landscaped area is also increased HKRI shares the responsibilities to the incorporation of green building design features in every stage of property in 2020. Alleviation of environmental to more than 40,000 square feet. These reduce emissions and relieve the development and pursuance of the Hong Kong Building Environmental Assessment impact was carefully considered elements will provide better leisure space impact from climate change. At Method (“BEAM”) Plus certification, as well as meeting LEED standard for our during the planning stage, and, in for residents and at the same time help the same time, HKRI recognises properties. Green technologies and materials such as diatomite are widely adopted create a greener environment. and is prepared to mitigate the to make buildings more resource-efficient. risks presented by climate change in natural and human system. In addition, we also closely monitor the level of dust, fumes, odour, waste, noise, vibration, lighting, emissions and other sources of pollution generated from construction, operation and maintenance of our buildings. Environmental assessments, record tracking and independent audits are regularly performed to ensure our green building principles are thoroughly applied to create a safe, healthy and eco-friendly living environment. 14 HKR International Limited ESG Report 2019/2020 ESG Report 2019/2020 HKR International Limited 15
CHERISHING OUR ENVIRONMENT Rainwater Roof Concave-down Permeable Greenland IL PICCO green spaces roads In line with our Sustainability Policy, IL PICCO, the latest residential project in Discovery Bay, has incorporated a range of eco-friendly designs. For instance, double glazed windows with better heat insulation are used to reduce the need for air conditioning and subsequent electricity consumption. Benefits of Using Thermally-broken Glass façade is adopted to maximise daylight ultilisation. Aluminium Window Flow controllers with grade 1 water efficiency label are installed on water faucets for water conservation. In addition, cut and fill excavation method has been used throughout the construction to preserve appearance and biodiversity on land surface while the excavation soil is reused for constructing roads and parks. Trees along the pavement and green roof on the plant room also bring additional Pipes and wells environmental benefits. Greater heat Replenishment retention Recycled River Irrigation (In winter) Washing Greater heat gain reduction (In summer) In view of the increasing risks of severe flooding resulted from climate change, the “Sponge City” concept was deployed in Riviera One to integrate flood control into overall planning. Over 60% of the underlying surfaces are made Greater water with water-permeable materials to prevent surface runoff and soak rainwater RIVIERA ONE penetration for various uses. This approach reduces flooding and allows evaporation for resistance temperature moderation. The design of “Sponge City” has been adopted in Incorporating a range of green elements, including LED other upcoming residential projects at Jiaxing city. lighting, thermally-broken aluminium window with low-emissivity and insulating glass, and air-to-water heat pump system, Riviera One in Jiaxing city has attained 2 Star rating in the Chinese Green Building Label. Reducing noise transmission Anti-frost and anti-fog 16 HKR International Limited ESG Report 2019/2020 ESG Report 2019/2020 HKR International Limited 17
CHERISHING OUR ENVIRONMENT CHERISHING OUR ENVIRONMENT Conserving Our Resources Energy Saving and Emission Reduction As an ongoing effort to relieve global During the year, HKRI Taikoo Hui warming and fulfil the responsibility of a implemented cloud-based smart energy good corporate citizen, HKRI is committed management platform to track and to reducing GHG emissions throughout its optimise energy consumption, as well operations. We are particularly concerned as improving the operation of cooling with the impacts resulted from energy and heating systems, lighting and consumption at our investment properties other electronic appliances, resulting in and hotels, and fuel consumption by our approximately 250,000 m3 reduction in transport operations, while also being the use of natural gas and 4,300,000 kWh alert of our other business operations drop in electricity consumption. that generate GHG emissions. We take a Energy-efficient appliances holistic approach to energy conservation such as those specified by labels under and emission reduction. A diverse range of measures are adopted in our operations, the Mandatory Energy Efficiency Labelling with achievement of considerable results. Scheme of the Electrical and Mechanical Meanwhile, we closely monitor monthly Services Department to replace obsolete and energy consumption data to identify low energy performance appliances; replacing potential improvement areas. As a result, existing tubes with LED lighting system. compared to 2018/2019, this year we have reduced our electricity consumption in Hong Kong by around 9.6%. Renewable energy Eye-catching such as solar energy to power electrical reminders and appliances including fans at bus stops, Electricity Consumption notices lighting and hot water systems, sensor lights in Hong Kong along walking paths and insect control to remind staff and customers of systems at Discovery Bay; high-speed their environmental responsibility. -20.5% elevators powered by renewable energy at HKRI Taikoo Hui. ’000 kWh electricity usage in Hong Kong comparing to 2015/2016 32,000 -4.5% ENERGY SAVING 29,500 -2.8% Policies INITIATIVES Smart systems and devices 27,000 -5.3% to switch off idle electrical appliances and with computing capabilities, motion sensors IN 2019/2020 set air-conditioning temperature within and automation technologies to optimise 24,500 -9.6% the range from 24 to 26 degree Celsius; energy efficiency of lighting, heating, suspend usage of lifts after midnight; ventilation and air-conditioning and to suit 22,000 and perform regular cleaning and seasonal changes; wall insulation was also maintenance of fan coils, compressors, deployed to reduce heat loss. chillers and condenser tubes. 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 18 HKR International Limited ESG Report 2019/2020 ESG Report 2019/2020 HKR International Limited 19
CHERISHING OUR ENVIRONMENT CHERISHING OUR ENVIRONMENT Apart from energy saving, we are proactive in minimising air emissions. We adopt different emission reduction initiatives in our operations, especially our transportation services, and monitor the emission data regularly to further explore ways for reducing air emissions and improving air quality. All of our goods vehicles at Discovery Bay are using Euro V diesel, and we are on track to replace ageing buses with new models that align with the Euro VI standard. Meanwhile, we also use marine light diesel with a sulphur content less than 0.05% for all ferries to further reduce emissions. Additional Emissions Reduction Initiatives Moving ahead, we plan to reinforce our commitment to reducing emissions in the coming years. To achieve this, we shall utilise more green technologies and improve current process to make them more emission friendly. We will continue to uncover ways and innovative green measures to make our operation more sustainable. Property Development and Investment • Adopt automated parking system in Corporate Office some of our commercial properties • Install various energy-saving devices such as to reduce car emissions from driving automatic switch-off timers and motion sensors around to find parking lot • Adopt open-office design to facilitate air ventilation • Develop eco-friendly buildings to • Set out green office guidelines regarding the use increase energy and resource efficiency of paper, energy and water, as well as handling of • Uphold green construction principles waste to reduce, reuse and recycle used Transportation • Encourage employees to utilise video conference materials and utilities whenever • Replace aging auxiliary engines in vessels systems and online applications to reduce travelling possible and feasible • Upgrade air conditioning systems of • Advocate use of public transport for commuting ferries and use environment-friendly purpose refrigerants • Lower water resistance of ferries by applying “antifouling system” bottom paint to reduce fuel consumption • Limit the “stand-by” time of buses Hospitality by turning on bus engines only three • Reuse collected steam from laundry and hot water generator in minutes before departure boiler to reduce consumption of electricity and liquefied petroleum • Continue with trial runs of electric bus gas (“LPG”) • Replace refrigerants with non-CFC type in Thailand operation • Use diesel exhaust fluid and emission friendly fuels, such as Euro V diesel, to reduce emissions • Switch off idle decorative, promotional, or advertisement lighting at certain time 20 HKR International Limited ESG Report 2019/2020 ESG Report 2019/2020 HKR International Limited 21
CHERISHING OUR ENVIRONMENT CHERISHING OUR ENVIRONMENT Water In view of the scarcity of fresh water worldwide, we have strengthened our efforts in preserving water resources Food waste is another major focus Climate Resilience and increasing water usage efficiency. In Discovery Bay, we reduce the use of municipal water through of our waste management. As the sourcing water from our own reservoir for flushing and irrigation; meanwhile, a water leakage detection Group’s most significant source of Designing for Climate Resilience system and five additional water leakage monitoring devices are in place to track water flow and food waste, our hospitality operation minimise water wastage. Our new projects in Discovery Bay have adopted devices with grade 1 has taken various actions in this Climate change is becoming one water efficiency label to reduce up to 20% of water consumption. regard. Besides recycling food of the greatest issues confronting waste, we apply close monitoring humanity today. Understanding Extra attention was given to our hospitality operation, as it accounts for the majority of and tight controls over the use our corporate role in addressing the Group’s water consumption. On top of making use of the reservoir water, hospitality of raw ingredients to minimise climate change threats, we operation in Discovery Bay has adopted additional initiatives. For instance, Discovery possible wastage due to adopted a proactive and forward- Bay Golf Club stores rainwater at golf course ponds for irrigation and has installed improper handling, while portion thinking approach to assess our a smart irrigation system to determine the optimal irrigation frequency and sizes are carefully managed to vulnerability to climate risks and water usage based on soil type, grass type, and weather information such as avoid food spoilage. On the other integrate such considerations into our humidity, temperature and rainfall collected from an on-site weather station. hand, we foster food waste recycling mid- to long-term strategic planning. Our hospitality operation in Thailand and property projects in mainland China through the Environmental Protection Different business units have set up their and Thailand make effort in recycling water and reuse it for gardening. Department’s “Waste Cooking Oils” own policies and procedures to better Office towers of HKRI Taikoo Hui have grey water recycling system Recycling Administrative Registration prepare for operating under extreme in place to optimise water use. Other water conservation Scheme to convert waste cooking weather, such as typhoon and rainstorm. measures adopted in our managed properties include the oil into biodiesel. During the year, Our green approaches The idea of climate resilience is 25.6% use of dual-flush systems, automatic faucets as well as hospitality operation had recycled in hospitality operation: embedded in our property development flow restrictors. In future, we will upgrade our bus about 260,000 kg of food waste projects to mitigate physical risks washing machines with water recycling function to and about 15,000 kg of cooking oil, • Deploy biodegradable posed by extreme weather situations. further enhance water usage efficiency. drop of water accounting for 98% of total food materials for packaging of The “Sponge City” design concept consumption waste of the operation. hotel room amenities adopted in our projects in Jiaxing city intensity compared demonstrates their resilience to heavy Waste to last year Other initiatives such as responsible • Replace plastic cutleries with precipitation and flooding issues. procurement, reducing excessive wooden utensils, and plastic Besides, the building standards in our Our Sustainability Strategy and internal policies purchase, recycling of different Thailand project exceed minimum bottled water with water provide guidelines on waste management. We strive materials are also adopted as requirements to combat natural hazards. stations or glass bottles to reduce waste generation at the source, especially appropriate across our operations Our infrastructures show high resistance non-hazardous waste, which accounts for a majority of our to reduce other types of waste. City to heat stress, excessive rainfall and total waste production and encourage reuse and recycling. We are management operation at Discovery • Use recyclable takeaway earthquake. The ground floor and determined to reduce our impacts to the environment through adopting Bay has particularly installed a wood boxes, drinking straws, soup basement levels are raised above the this holistic approach in waste management. chipper to facilitate wood recycling or cups, shopping bags, coffee highest flood level to ensure better upcycling. and tea cups protection against flooding. Paper is a major source of our non-hazardous waste. As such, we have adopted various measures to reduce the paper usage. At our offices, we Despite that hazardous waste only Promoting Environmental encourage the use of double-sided printing, paperless communication such as accounts for a relatively small portion Awareness email and e-approval system, as well as soft copies whenever possible. Electronic of our total waste production, we health record has been implemented at our healthcare operation to reduce use of handle such waste seriously and apply During the year, there were no Along the process to build climate paper. To facilitate recycling of paper as well as other administrative wastes including all necessary precautions in compliance non-compliance cases with relevant laws resilience, we are keen to minimise plastic, ink and toner cartridges, we place collection boxes at different locations. with laws and regulations. Clinical and regulations relating to air and GHG our carbon footprint and reduce waste Furthermore, recognising that a large amount of paper may be used during the design and wastes produced by our healthcare emissions, discharges into water and production across our value chains. We tendering process of property development projects, we have established the policy of issuing operation are segregated from land, and generation of hazardous and also strive to inspire our employees, soft copies of tender drawings and other documentation. Option is provided to shareholders to other wastes, labelled and packaged customers, partners and residents to non-hazardous waste h. receive electronic financial reports and other communication materials to reduce paper consumption. properly. For transportation operation, embrace a sense of environmental the used engine oil is collected and responsibility through various events and processed by qualified external facilities. collectors while wastewater is properly channelled to a treatment plant before discharge. h The laws and regulations that are most relevant to the Group include, but not limited to, the Water Pollution Control Ordinance (Cap.358), The Environmental Impact Assessment Law of the People’s Republic of China, and the Enhancement and Conservation of National Environmental Quality Act in Thailand. 22 HKR International Limited ESG Report 2019/2020 ESG Report 2019/2020 HKR International Limited 23
CHERISHING OUR ENVIRONMENT CHERISHING OUR ENVIRONMENT We provide convenience to encourage Pledge and donated about 150 pieces of respectively. Residents and passengers can Hike Around Discovery Bay low-carbon lifestyle. For example, recycle mooncakes to the needy since 2018. We also choose to support the glass recycling bins are provided in public areas of our also encouraged colleagues to send festive campaign co-organised by city management Boasting a number of scenic trails and beaches, properties. Facilities for charging electric wishes using e-cards to promote food and transportation operations, and our Discovery Bay is one of the best hiking spots in vehicles are also installed to promote the saving. cleaning contractor Baguio Cleaning Services Hong Kong. Starting from Discovery Bay, there use of green transportation.Within our Company Limited. Idle toys, used bicycles are hiking trails to Mui Wo, Lo Fu Tau, Finger offices across the Group, we regularly We also use our best endeavour to raise and books are collected in Discovery Bay Hill and Peng Chau. We have thus published put up posters and notices which serve environmental awareness amongst to help underprivileged groups. Different the Discovery Bay Hiking Guide and uploaded as mini-tools of education to promote residents in Discovery Bay and tenants in environmental awareness building activities the routes on visitdiscoverybay.com to illustrate sustainable practices. Memos are also our managed properties. In Discovery Bay, are also being regularly organised, such as these four popular trails. Last year, an online circulated to remind employees of green food waste composters and a glass grinding DIY glass bottle lamp workshop, family farm, hiking challenge was launched to promote behaviours. To supplement these unilateral machine have been installed to encourage flea market, plant market and recycling day. our natural resources and enhance public communications, we often organise tenants and residents to recycle food waste We also arrange visits to the DB Nursery and awareness for the conservation of biodiversity different activities and campaigns, so as and glasses. A total of 23,600 kg of food Green.Icon@DB, our eco exhibition centre in Hong Kong. to deepen knowledge and nurture their waste and 106,500 kg of bottles were that showcases up-to-date information on Declutter awareness on environmental protection. recycled during the year. The compost green initiatives. We believe these activities With Love We have signed the Food Grace’s and glass sand generated were used for can successfully deliver the message of Recycling Green Mid-Autumn Festival Food Saving gardening purpose and repair works environmental conservation and sustainable Month development. Adidas Run For the Ocean 10 timesi Six-month Sesame total amount of non-hazardous Eat Pilot wastes recycled Programme compared to 2018/2019 Drop-off stations were Love.Together@DB Discovery Bay Family Farm set up at HKRI Taikoo Hui to invite tenants Since 2014, Discovery Bay Family Farm has been providing valuable opportunity to donate their old for residents to cultivate crop and practise green living. The 1 x 3 metre plots Sea you clothes and electronic are allocated to families for planting their own organic vegetables. Individuals Tomorrow appliances to NGOs without planting experience would learn to prepare the soil and control the use for the underprivileged. Around 100 HKRI Taikoo of fertiliser. It is a fun, fulfilling and rewarding process to promote a balanced Hui colleagues and family diet and environmental sustainability. Sesame Eat is a sustainable members joined the Run packaging programme For the Ocean fundraising The initiative has been well received by residents and that advocates reusable running day to support competitions are organised every year to encourage packaging. The Parley Oceans School photo sharing and attract more participants. programme was launched programme in solving in HKRI Centres 1 & 2 Our other for tenants to order food marine plastic pollution. delivery services via GREEN WeChat application. The PROGRAMMES meals came in reusable food containers which outside of were collected, washed Hong Kong A team formed by colleagues of The and returned to restaurants for reuse. Sukhothai Residences joined this mini marathon to raise fund for a sea turtle hospital. i The increase was contributed by the growth of recycling amount and 24 the inclusion of HKRI Taikoo Hui. ESG Report 2019/2020 HKR International Limited 25
VALUING OUR PEOPLE +49% Total Training Hours Compared to 2018/2019
VALUING OUR PEOPLE O case of For transportation operation, the safety and health of our bus drivers and ferry crew members are especially important to the Group and the passengers. We maintain the same attitudes in the provision of safe and healthy office space. Periodic inspections are performed to ensure our office equipment meets work-related OSH messages are delivered to staff in the latest health and safety standards. In We value our employees and fully recognise their contribution to the continued Quick Answers success of HKRI. We are committed to creating a dynamic, cohesive and open fatality regular assembly. In addition, the OSH Committee performs yearly review of the our mainland China office, in addition to using MERV 13 filters in air-conditioning working environment where staff members are able to realise their potentials and to Your Concerns develop innovative solutions to improve our business processes. With the PRI2DE safety performance of our ferry and bus system, qualified specialists are engaged operations to identify improvement areas to monitor indoor air quality and plants values deeply integrated into our daily operations, our staff are empowered and on training, emergency preparedness and are placed to further purify the air. motivated to deliver quality services in a professional and responsible manner. The safety-first culture also prevails in response, vehicle and vessel maintenance At The Sukhothai Bangkok, on top of Q How does HKRI respond our Discovery Bay operations, where checks and inspection. Above all, the conducting regular inspections at certain Employee Health and Safety to the growing demand a cross-departmental OSH Committee work schedules of our bus drivers and areas including laundry and kitchen, the offers guidance and advice on mitigation crew members are carefully planned to Safety Committee reviews staff accidents of work-life balance, We are dedicated to providing a safe working environment. of safety risks. Refresher meetings and avoid performance being affected by during monthly meetings to identify To strengthen employees’ awareness of occupational safety especially from the and health (“OSH”), we have formulated a group-level specific safety trainings are organised on a regular basis. Together with fatigue. We also make sure that all traffic signs, road markings and navigation potential drawbacks and address them accordingly. younger generations? OSH Policy. Our business units have maintained their own OSH management committees that are responsible for other audits, drills and safety-related facilities are functioning properly such materials, we cultivate an environment that clear traffic directions are provided During the year, there were no cases A HKRI advocates work-life balance. addressing specific OSH concerns for respective operations and tailoring training courses. We provide necessary for nurturing and reinforcing safety at all times. of non-compliance relating to the In pursuit of sustainable business awareness. City management operation provision of a safe working environment growth, continuous contribution safety equipment and protective gears, such as safety goes further to review and investigate For healthcare operation, extra and the protection of employees from from employees is crucial. This helmets, belts, gloves, goggles and safety shoes. the root causes of safety-related attention is paid towards employees occupational hazards. could not be achieved if employees Besides, we also arrange medical insurance and incidents, and share findings and offer who are exposing to higher safety lack physical and mental strength, physical check-ups for our employees. suggestions to employees as an effort risk. For instance, every employee who and this is where work-life balance to avoid recurrence. In addition, a safety comes into contact with radiation, is plays an important role. As such, Although majority of construction site management system in accordance required to comply with the Radiation we constantly organise various workers are not our employees, we equally with the ISO 45001 has been set up for Ordinance (Cap. 303) and to wear a recreational activities to relieve their take care of their health conditions as ten business units in Discovery Bay to radiation dosimeter at all times and work pressure. a responsible corporate citizen. We Safety Trainings Held facilitate safety management work. City undertake annual medical examinations require all contractors of our property in the Year management operation’s remarkable in Occupational Health Clinics. Monthly development projects to follow safety performance had won recognition check of the radiation doses of each a set of OSH requirements that How does a desirable are in compliance with relevant in the 7th Best Safety Management concerned employee is also conducted • Health and safety briefings Q workplace look like to regulations. Meanwhile, a Property Award. through the monitoring services provided to new hires by the Radiation Health Division of the • Emergency response team designated safety inspection HKRI? officer is appointed to submit bi- Department of Health. training weekly safety reports and we • First Aid, CPR & AED Open and connected. Workplace A is more than a place where conduct regular site check to ensure proper implementation certificate courses individuals work, it is a platform of all safety precautions. • Safety drill exercises where a group of people sharing For all of our property the same values strive towards • Health and safety related talks development projects, the a common goal. A desirable Group provides Contractors workplace should facilitate All Risks Insurance and Third open discussion and promote Party Liabilities Insurance collaboration and connection and incorporate safety- among employees. Towards this related contractual terms end, our renovated offices in Hong to ensure business partners Kong and Shanghai have adopted have taken reasonable the “open-office” design. and practicable steps to guarantee workplace safety. Safety talk event held in The Sukhothai Bangkok 28 HKR International Limited ESG Report 2019/2020 ESG Report 2019/2020 HKR International Limited 29
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