SMART LINKS, LIVEABLE CITIES Sustainability Report 2017 CONTENTS Smart Links, Liveable Cities 1 Operating Responsibly 21 Building a Sustainable Future 74 Chairman’s Message 3 Safety 22 Performance Metrics 77 Introduction 78 CEO’s Message 4 Our Customers 32 Independent Assurance Report 79 About this Report 5 Performance Data Tables 82 Environment and Natural 38 CoMET Benchmarking Results 2016 100 Report Scope 5Resources Appendices 104 Stakeholder Engagement 6 Materiality 10 Our People 52 About MTR 13 Our Suppliers 61 Vision, Mission and Values 13 MTR Business 14 Contributing to Society 66 Financial Sustainability 16 Enabling Progress 67 Corporate Governance 18 Investing in Communities 69 SMART LINKS, LIVEABLE CITIES Sustainability Report 2017 SMART LINKS, LIVEABLE CITIES MTR’s vision is to connect and grow communities with caring service. Through our transport operations and properties, we leverage our assets, skills, and resources to enhance the liveability of our communities by providing safe and efficient rail services as well as connectivity to buildings and spaces outside railway premises. On every weekday in 2017, we transported an average of 5.76 million passengers in Hong Kong and carried around 6.49 million passengers overseas. 1 SMART LINKS, LIVEABLE CITIES Sustainability Report 2017 Our overarching Corporate Responsibility Policy (CoR Policy), updated in July 2017, guides MTR’s approach to corporate responsibility outlining our principles, objectives, and behavioural expectations. The CoR Policy also presents our focus areas categorised under Operating Responsibly and Contributing to Society.o T highlight our approaches and focus areas, this Sustainability Report has been inspired by, and largely echoes, the structure and content of the CoR Policy. For more on the CoR Policy, please see the Corporate Governance section of the Report. MTR publishes a sustainability report annually for the purpose of disclosing environmental, social and governance information deemed material and relevant by the Corporation and its stakeholders. Where relevant information is not provided in this Report, readers will find links to other publicly accessible sources such as our Annual Report and our website. For a complete list of relevant issues and where to find our disclosure on these issues, please refer to the content index. 2 SMART LINKS, LIVEABLE CITIES Sustainability Report 2017 Social Affairs, 60% of the global population is communities where we operate. In 2017, on expectedo t live in urban areas by 2030, with top of the various community engagement 41 mega-cities with 10 million inhabitants programmes we have been running, we ore mor . Providing mobility for the masses launched the inaugural STEM Challenge while minimising carbon footprint is a real through which secondary school students challenge. can learn about how STEM knowledge is appliedo t solve societal problems, present Steadfast to the objective of helping our their vision for a sustainable and inclusive communities thrive, MTR’s mission is to build community and the winning teams will have resilient and adaptive infrastructure to serve the opportunity to visit MTR’s operations in for the long term which will enhance the Sweden. Through consistent engagement liveability of the places we operate. Planning programmes and open dialogue, we listen to for this time horizon requires that we actively our stakeholders from different backgrounds assess the physical and indirect climate risks to improve our performance, grow and It has been another exciting and delightful on our operations, and continue to invest in support our communities. year at MTR. I am proud to serve as Chairman smart technologies and innovate for emission in a company which has a central role to reduction. Customer centricity is also vital As MTR connects and builds homes, CHAIRMAN’S play in the lives of many communities. As ande w continuously roll out new digital commercial, retail and recreational spaces, MTR builds vibrant spaces and connects solutions such as mobile app functions and wee ensur that the cities where we operate MESSAGE people and places with an expanding railway e-payment options. MTR is committed to can grow and prosper, and that our operations network, the communities where we operate making continuous investment in the railway contribute to a positive life for all. Our efforts grow and transform. Through our operations, networko t better serve our customers and in this area have received international Professor Frederick Ma Si-hang weo aim t enhance the liveability of our cities the generations to come. recognition as we were the only Hong Kong as attractive places to live, work and thrive. company included in the 2017 FORTUNE Ase w expand our network in Hong Kong “Change the World” Top 50 companies list. In MTR is keenly aware of our wider corporate and overseas, we work closely with the addition, MTR won the inaugural “Hong Kong social responsibility given our wide footprint government, local communities and our Sustainability Award 2016/2017” organised in society, connecting people to where they partnerso t provide people-oriented services by the Hong Kong Management Association. work, study and play. In all of our processes and liveable spaces that will best serve In the coming year, as we are gearing up to in the course of constructing, operating and the interest of society. Transparency and commencing in September the operation of maintaining the railway network, we take our communication with our customers and the the Express Rail Link connecting Hong Kong environmental impacts into account to ensure community are central to MTR’s continued to the vast high speed rail network in the thate w build long-term low carbon and success. From the senior management team Mainland of China, I am excited to invite all resilient mobility and green infrastructure to our station assistants, we rely on each our stakeholders to embark on the journey that support sustainable development. employee to communicate with customers of creating a more sustainable and liveable Indeed, in an increasingly urbanised world, and members in society. environment. transport and infrastructure play a vital role in the sustainable development of our As a good corporate citizen, MTR also cities. According to a study published by the leverages on our skills, asset and resources United Nations, Department of Economic and to support different segments in the 3 SMART LINKS, LIVEABLE CITIES Sustainability Report 2017 Alongside our rail operations, we develop in 2017. Going forward, we will continue this new communities around the railway by effort when market conditions are suitable. building residential blocks, shopping centres and recreational space with convenient We consciously listen to communities that connections to the railway. Besides weeo serv t ensure that we meet their needs. transforming and energising the local We placed great efforts in enhancing barrier- communities, this “Railway plus Property” free access to our stations ensuring that all model ensures financial sustainability of the passengers are able to travel with ease. In Corporation which is crucial in enabling us to 2017,e w have created breastfeeding space in upgrade existing railway assets and to expand the staff rest rooms located at 20 interchange the railway network further to provide safe, stations and will continue to make suitable efficient and quality services, and at the same enhancement going forward. With the vision time keeping fares at affordable levels. of growing together with the communities we serve, under the Community Connect MTR’s focus has always been on connecting Our Corporate Responsibility Policy guides platform,e w extend our caring service to our and growing communities with caring service. our approach in addressing our impacts communities through outreach initiatives, Corporate responsibility is a vital factor in all on the environment and contribution to art and culture programmes and activities to CEO’S our activities in providing safe and efficient surrounding communities, as we continue promote green and healthy living. We have mobility and community-oriented retail toe enhanc and expand our business in and been actively engaging the next generation MESSAGE and residential developments. Keeping our outside of Hong Kong. In addition to the through specially tailored programmes aimed Corporate Responsibility Policy in mind, MTR’s environmental management and monitoring at empowering them with skills, motivation, colleagues worldwide work collectively to plans implemented throughout the life cycle of and opportunities as they enter the workforce. Lincoln Leong Kwok-kuen deliver our strategy and serve our customers our projects and operations, we are constantly in line with our Vision, Mission and Values. in search of opportunities to further improve Beyond our physical assets, our colleagues our emissions performance and our long-term arey trul our most important resource as Wee serv over 12 million passengers every resilience to the effects of climate change. they maintain and enhance the safe, efficient weekday; 5.76 million of them are in Hong For example, our train’s regenerative braking servicee w enjoy every day. Many of our Kong, our home city. We are proud of what we system allows us to turn kinetic energy from colleagues choose to stay with us for long have achieved and continue to be committed trains braking into electricity for use by nearby periods, a testament to our commitment to serving Hong Kong, working hard to realise trains, and at the South Island Line (East), an to building an open, inclusive, positive and the Rail Gen 2.0 initiatives to deliver greater extra electricity storage system allows surplus rewarding workplace. In recognition of our convenience for our customers. Leveraging electricityo t be stored for future use. We also efforts, MTR was named the most attractive the knowledge acquired in Hong Kong, MTR work with our business partners, suppliers employer in Hong Kong SAR at the Randstad has expanded globally and is now operating and relevant stakeholders to help us realise Employer Brand Awards 2017.