Wheelock CSR Report Contents 1
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Wheelock CSR Report Contents 1 CONTENTS About This Report 2 Message from the Chairman 3 Wheelock's CSR Performance at a Glance 4 This Report presents Wheelock’s sustainability efforts in 2016 Corporate Overview 6 Solid Foundation 8 Building Green 12 Building Teams 20 Building Communities 25 Building Partnerships 33 Appendices 38 • Membership & Awards 38 • List of Material Issues and Their Boundaries 41 • 2016 GRI Content Index 42 • 2016 HKEx ESG Guide 47 • Data Tables 50 • Verification Statement 57 2 Wheelock CSR Report Message from the Chairman 3 ABOUT MESSAGE FROM THIS REPORT THE CHAIRMAN This Report describes the Corporate Social Responsibility (“CSR”) initiatives of Wheelock and Company Limited (“WAC”) and its two wholly-owned subsidiaries, Wheelock Properties (Hong Kong) Limited (“WPL”) and Harriman Property Management Limited (“HPML”). This is the second annual CSR Report covering all three companies (jointly referred to as “Wheelock” in this Report). Disclosures in this Report cover 20 material issues, which were identified through stakeholder engagement. The Report is divided into five chapters: Solid Foundation, We are pleased to share our 2016 progress in this CSR Report, Employees are our most valuable asset and we continue to invest which provides an opportunity to reflect on the successes and in activities that build team spirit and allow each individual to Building Green, Building Teams, Building Communities, and Building Partnerships. challenges of the previous year, and progress plan for the future. grow personally and professionally. In 2016, we invested in 2,140 hours of training, or an average of 5.12 hours per employee. At Wheelock we believe that successful and sustainable Our staff retention rate is reasonably high for the industry and businesses must be built on solid foundation. CSR is part of our we are committed to further reducing staff turnover, which was Scope strategy for the business; it is a continuous journey that sees us 17% in 2016. This Report covers the Hong Kong operations of the following companies: building relationships with stakeholders, based on a culture of Wheelock and Company Limited, a listed investment holding company headquartered in Hong Kong. integrity and community support, and endeavoring to minimise We partner with suppliers and contractors to deliver superior Wheelock Properties (Hong Kong) Limited, a wholly-owned subsidiary of WAC that undertakes property our impact on the environment. quality products and services to customers. Where possible, we development, sales and marketing and asset management of Wheelock and Wharf Group properties. strive to support local suppliers; in 2016, the majority of our Harriman Property Management Limited, a wholly-owned subsidiary of WAC that focuses on management of In terms of community support, in 2016 we saw expansion suppliers were Hong Kong-based. Customers have rewarded our residential, commercial, retail and industrial properties in Hong Kong. of our two main Business-in-Community programmes: Project efforts with their continued patronage and referrals that help to WeCan, which expanded by seven supporting partners, one build our trusted brand. WAC’s key subsidiaries, Wheelock Properties (Singapore) Limited and The Wharf (Holdings) Limited (“Wharf”), are not school and an additional 1,000 student beneficiaries; and the included in the scope of this Report. Wharf produces its own CSR Report. Community Chest Wheelock Swim for Millions, which saw Buildings form the physical urban landscape, but people are the a 27% increase in participating teams and raised over HK$4 life of a city. Looking ahead, our CSR journey will continue to million for youth services. support the local and global sustainable development agenda. Reporting Period This starts with imbedding a focus on building better in every In terms of environmentally concious development, the process aspect of our operations. We will also explore ways to better Unless otherwise stated, all information and data disclosed in this Report covers the period from 1 January to involves many stakeholders. As a responsible developer we capture environmental and social data, which can improve the 31 December 2016. Historical data is also included for comparison where applicable. collaborate with different parties to minimise the environmental overall management of our material impacts. We commit to footprint. Since 2012, we have enhanced the tracking of key playing our part to build a more sustainable Hong Kong for this environmental metrics on construction sites and have required and future generations. Reporting Standard our contractors to follow the BEAM Plus Gold standard in the This Report is prepared in accordance with the Core option of the Global Reporting Initiative (GRI) G4 Sustainability construction of all new buildings. We also aim to achieve LEED® Reporting Guidelines, the Construction and Real Estate Sector Supplement, and satisfies the requirements of the certification for all new commercial buildings. Building green Environmental, Social and Governance (ESG) Reporting Guide issued by The Stock Exchange of Hong Kong Limited. also includes our offices, and our headquarters have reduced energy consumption by 1% and carbon emissions by 12.8% year-on-year. We have also taken steps towards the COP21 Assurance targets by setting a target to reduce the overall GHG emissions from construction sites by 3% by 2020. Hong Kong Quality Assurance Agency (HKQAA) has provided third party verification for this Report. Please find the Douglas C K Woo Chairman assurance statement on page 57. Hong Kong, July 2017 Contact Your feedback is valuable to our continuous improvement. Please email your queries or comments to [email protected] (for WAC and HPML) or [email protected] (for WPL). 4 Wheelock CSR Report Wheelock's CSR Performance at a Glance 5 WHEELOCK'S CSR PERFORMANCE AT A GLANCE Milestones Achieved in 2016 Targets Yet to be Achieved Wheelock became one of the HPML reduced carbon emissions by Electricity consumption down by To reduce To reduce overall GHG emissions To reduce energy consumption Top 5 912 tonnes 1% at HQ construction waste by from our construction sites by from HQ by developers for residential property in managed properties year-on-year Waste intensity down by 1% 3% by 2020 7-10% by 2020 sales in Hong Kong 9.1% at HQ Previous Achievements Energy Savings Water Savings Waste Recycling Employee turnover rate of One HarbourGate & One Bay East Over 2,100 volunteer hours Swim for Millions 17% was lower than kwh saved dedicated to 81 activities HK$16 million raised for 14,812,697 One HarbourGate & One Bay East Set up construction industry average youth services in the last 4 years per year 3 118,447m waste database HK$17 million saved per year for better waste management savings in energy bills Small but Important Steps for a Low Carbon Office Lights Off Plastics Reduction Achieved 8 Bay East achieved GHG emission reduced by ® LEED certification for precertification in 12.8% at HQ ® all new commercial buildings LEED Paper use decreased by Platinum 14.2% at HQ HQ lights off by zoning / during No plastic bin liners at HQ non-working hours 70,000 plastic bags saved Electricity consumption per year LEED® stands for Leadership in Energy & Environmental Design, which is an internationally recognised green building standard established by the United States Green Building 10% per year Council. Official website: http://www.usgbc.org/leed 6 Wheelock CSR Report Corporate Overview 7 CORPORATE OVERVIEW 2016 Property Development, Sales and Marketing Highlights • Land bank under management stood at 8.2 million square feet • One HarbourGate East Office Tower and East Retail Villa sold Founded in 1857, WAC is a property and investment holding company listed on The Stock Exchange of Hong Kong (HKSE: 00020) and headquartered in Hong Kong. WAC operates in Hong Kong, • One new residential site acquired in Kwun Tong Mainland China and Singapore. As of 31 December 2016, total assets of the Company reached • Achieved record contracted sales with a year-on-year increase of 71%, making Wheelock one of the top five HK$520.4 billion. developers for residential property sales in Hong Kong, with 9% market share in 2016 • 92% average sell-through rate achieved from a variety of products WAC’s Financial Performance in 20161 8.2Msf 97% 75% 92% land bank in city centre on harbourfront close to MTR 2015 2016 HK$ Million HK$ Million 16 Change Revenue 57,431 60,579 +5% 2 1 3 4 1 • ONE HOMANTIN 7 8 2 • Kai Tak Residential Project 5 9 Operating profit 20,053 21,135 +5% 6 3 • Kowloon Godown 10 4 • 8 Bay East 15 12 11 13 5 • Kwun Tong Residential Project 14 Net debt 78,927 50,977 -35% 6 • Yau Tong Bay 7 • CAPRI 8 • SAVANNAH Total equity 340,859 349,520 +3% 9 • MONTEREY 10 • LOHAS Park Phase 5 11 • LOHAS Park Phase 7 Net debt to total equity 23.2% 14.6% 12 • LOHAS Park Phase 9 -8.6%pt 13 • ISLAND RESIDENCE 14 • MOUNT NICHOLSON 15 • KENSINGTON HILL 16 • NAPA 1 Financial data covers all WAC subsidiaries, including those outside the scope of this Report. More information is available in the 2016 Annual Report (http://www.wheelockcompany.com/investors/2016/WAC_AR_2016_E.pdf). 8 Wheelock CSR Report Solid Foundation 9 SOLID FOUNDATION Wheelock’s approach to CSR is built on a solid foundation Anti-corruption of integrity, strong governance and accountability to our To run our business responsibly, we have zero tolerance for corruption and bribery in any form. Our Code of Conduct stakeholders. Combined with extensive engagement clearly outlines what could be construed as unacceptable behaviour and the applicable laws, regulations and industry with stakeholders, this approach enables us to maintain standards that must be adhered to. All employees are given a copy of the Code of Conduct to accept and sign during accountability. With a high proportion of independent their induction.