Swire Properties Sustainable Development
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SUSTAINABLE DEVELOPMENT REPORT 2017 TABLE OF CONTENTS 03 05 06 08 Chief Executive’s About Profile of SD 2030 Message this Report Swire Properties Limited Strategy 15 17 24 SD Materiality SUSTAINABLE Governance DEVELOPMENT IN ACTION: TaiKoo Hui 33 48 68 81 109 PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) 121 124 126 GRI and HKEX ESG Reporting External Charters and Awards and Memberships Certifications 132 140 142 Performance Data Summary Assurance Report Global Reporting Initiative Content Index We welcome your feedback on our sustainable development 150 performance and reporting. You can contact us by email at HKEX ESG Reporting [email protected] or fill in the Guide Index PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE MENU (ENVIRONMENT) (ECONOMIC) CHIEF EXECUTIVE’S MESSAGE 2017 was the first full calendar year of implementing our Sustainable Development (“SD”) strategy – what we call our SD 2030 Strategy – and the focus has been on ‘getting things done’. This strategy is aimed at ensuring that SD is integrated into every facet of our business, so it is vital that everyone at Swire Properties not only understands what our strategy is about, but also feels empowered to contribute to what we are trying to achieve. Our employees are critical to the implementation of the strategy and it has been heartening to see them getting involved at every level. I am particularly proud of the progress we are making to integrate SD throughout our business by breaking down geographic and functional silos. We have incorporated SD focus areas directly into our annual budget-planning processes and, most importantly, we are putting SD key performance indicators into action. Our SD 2030 Working Groups are already delivering tangible outcomes with respect to the interim goals we have set for 2020, including the issuance of our first green bond in January 2018. This not only reaffirms our commitment to designing and developing green projects, but also supports the emergence of Hong Kong’s green capital market. Another area in which we aspire to provide leadership is diversity and inclusion, which means fostering a working environment that provides equality of opportunity and employment without bias. To affirm our commitment to these principles, we have created a Diversity and Inclusion Committee with responsibility for developing and implementing our agenda for diversity and inclusion throughout the Company. At the heart of our SD 2030 Strategy is the realisation that the greatest impacts we have on society are in the places we create and maintain over time. We opened our first development in Shanghai – HKRI Taikoo Hui – in 2017. Underpinned by our successful mixed-use model, this project is already realising its potential to become a hotspot for lifestyle offerings and family-friendly events, helping to create a vibrant new community in this iconic city. In Hong Kong, the redevelopment of Taikoo Place continues to make steady progress, reinforcing its status as a major commercial district and hub for innovation in the city. In September, we received approval to incorporate vibrant new elements into the redevelopment project, such as more recreational amenities and public spaces. In Miami, U.S.A., Brickell City Centre is adding value to its growing community too, having been named Project of the Year at the Urban Land Institute’s 2017 Vision Awards. This is a fantastic accolade considering that the award recognises both exceptional architectural design and social impact on the local community – two areas in which we strive to excel. 3 SUSTAINABLE DEVELOPMENT REPORT 2017 PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE MENU (ENVIRONMENT) (ECONOMIC) CHIEF EXECUTIVE’S MESSAGE To ensure the continued optimisation of existing building system operations, we have commenced energy audits and a monitoring-based commissioning programme for the heating, ventilating, and air conditioning systems in Pacific Place, Hong Kong. This will help us to identify opportunities for further energy and carbon reductions. More broadly, Swire Properties’ long-term commitment to SD continues to receive recognition. In 2017, our first-time listing in the Global Real Estate Sustainability Benchmarks (“GRESB”) resulted in a 5-star rating and the highest score among all participants in the Other – Mixed Use Development category. We were also proud to be the only company in Hong Kong and Mainland China to be included in the Dow Jones Sustainability World Index 2017. Even though this recognition indicates that we are moving in the right direction to achieve our SD vision, we acknowledge that we have much more work to do. I would like to thank all those, both within Swire Properties and among our extended network of stakeholders, who continue to support our SD 2030 Strategy. Moving into 2018, we are continuing to focus on ‘getting things done’. It’s an exciting challenge and I look forward to seeing what we can accomplish next. Guy Bradley Chief Executive 4 SUSTAINABLE DEVELOPMENT REPORT 2017 PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE MENU (ENVIRONMENT) (ECONOMIC) ABOUT THIS REPORT GRI 102-6,102-49, 102-50, 102-52 This report is the 10th sustainable development (“SD”) report of Swire Properties Limited (“Swire Properties”, “SPL” or “Company”) covering the period from 1st January 2017 to 31st December 2017. It focuses on Swire Properties’ businesses, joint ventures and subsidiaries in property investment, property trading and hotel investment, where the Company has management control. The report includes details of our SD vision and progress on implementation of our SD strategy (“SD 2030 Strategy”) in the past year. Within the scope of this report, our portfolio in Hong Kong comprises primarily Grade-A office, retail, hotel and residential properties located at Pacific Place, Cityplaza, Taikoo Place, and Citygate Outlets in Hong Kong, and our portfolio in Mainland China comprises four major commercial mixed-use developments in prime locations in Beijing, Guangzhou and Chengdu. Hotel operations refer to hotels that we own and manage through Swire Hotels, a wholly-owned subsidiary, including The House Collective in Hong Kong, Beijing and Chengdu, and EAST in Hong Kong and Beijing. We also discuss SD impacts and initiatives in our new developments at Brickell City Centre in Miami, U.S.A. (opened in 2016) and HKRI Taikoo Hui, Shanghai (opened in 2017), as well as our other residential properties in Hong Kong. 5 SUSTAINABLE DEVELOPMENT REPORT 2017 PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE MENU (ENVIRONMENT) (ECONOMIC) PROFILE OF SWIRE PROPERTIES LIMITED GRI 102-2, 102-3, 102-4, 102-5, 102-6, 102-7 Year of Ownership and legal form establishment Public company listed on the Main Board of the Stock Exchange of Hong Kong (Stock Code: 1972) - Swire Pacific Limited is the immediate holding 1972 company and major shareholder Core businesses Property Investment Property Trading Hotel Investment Aggregate GFA attributable to the group* Underlying profit/(loss) by segment ~29.2 million square feet 8,000 7,834 7,112 7,000 1,154 Number of employees* 1,200 6,000 Property 5,000+ 5,000 trading 4,000 Property 6,723 6,029 investment HK$M 3,000 Hotels 2,000 Underlying profit attributable to 1,000 shareholders in 2017 0 (43) (117) HK$7,834 million -1,000 2017 2016 * Data is valid as at 31st December 2017 and has been reproduced from the Swire Properties Annual Report 2017. About Us Headquartered in Hong Kong, we are a leading developer, owner and operator of mixed-use, principally commercial, properties in Hong Kong and Mainland China, with a significant presence in Miami, U.S.A. We also have an established office in Singapore. Creative Transformation captures what we do and how we do it. It underlines the creative mindset and long-term approach that enables us to seek out new perspectives and original thinking that goes beyond the conventional. It also helps us unlock the potential of places and create vibrant destinations that can engender further growth and create sustainable value for our shareholders, our business partners and the people with whom we work. For further details of our key business strategies, operations and financial performance, please refer to the Swire Properties Annual Report 2017. 6 SUSTAINABLE DEVELOPMENT REPORT 2017 PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE MENU (ENVIRONMENT) (ECONOMIC) PROFILE OF SWIRE PROPERTIES LIMITED Inclusion in Sustainability Benchmarks and Indices Swire Properties’ long-term commitment to SD continues to receive recognition in various sustainability benchmarks and indices. 2015 * Member of Dow Jones Sustainability World Index 2016 Sole constituent from Hong Kong and Mainland China 2017* 2017 Top 15% of real estate companies globally 2018 1 of 3 Hong Kong developers listed 2016 1 of 3 Hong Kong developers listed 2017 2015 * Top 3 sustainability performers 2016 Highest ranked constituent in the properties and 2017* construction industry 5-star rating 2017 Global Sector Leader: Other – Mixed Use Development category 2014 1 2015 2016 2017 Active Participation in Investor-led Sustainability Platforms Swire Properties is committed to active participation in investor-led sustainability platforms. In 2017, we prepared and submitted our first application for inclusion in Global Real Estate Sustainability Benchmarks (“GRESB”), which is an investor driven organisation that assesses the sustainability performance of real asset sector portfolios worldwide. GRESB 77,000 850 62 6 Assessment 2017 assets entities countries continents Swire Properties’ GRESB 5-star rating represents the highest level of GRESB’s sustainability performance, indicating that the Company is ranked among the top 20% of real estate industry participants worldwide. GRESB also named Swire Properties the Global Sector Leader in the Other – Mixed Use Development category. 1 Disclaimer: www.swireproperties.com/sd/awards/mscidisclaimer.html 7 SUSTAINABLE DEVELOPMENT REPORT 2017 SD 2030 STRATEGY PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE MENU (ENVIRONMENT) (ECONOMIC) SD 2030 STRATEGY For over forty years, we have consistently advocated and adopted a philosophy of responsible development.