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Caring Committed Connected Contents Sustainability and CSR Report 2017 Caring Committed Connected Contents 03 ABOUT THIS REPORT 06 MESSAGE FROM MANAGEMENT 08 ABOUT OUR GROUP 12 CORPORATE GOVERNANCE 14 OUR ENVIRONMENT 24 OUR PEOPLE 28 OUR CUSTOMERS AND VALUE CHAIN 32 OUR COMMUNITY 44 KEY FACTS AND STATISTICS 53 STAKEHOLDER ENGAGEMENT 54 MATERIAL TOPICS AND BOUNDARY SETTING 56 GRI AND HKEX ESG CONTENT INDEX 62 PHOTO ALBUM - COMMUNITY INVESTMENT AND ENGAGEMENT OF OUR GROUP Henderson Land Development Company Limited 72-76/F, Two International Finance Centre, 8 Finance Street, Central, Hong Kong 2017 Highlights To date, we have achieved cumulatively 11 LEED, 18 BEAM, 26 BEAM Plus, 4 China Green Building Design Label and 2 WELL project accreditations Averaged 15 Middle Road project achieved 97.8% WELL Gold overall customer satisfaction Pre-certification from International WELL Building Institute (IWBI) Supported over 100 community programmes, benefitting over 24,000 underprivileged and young people Over 160,000 training hours for employees Five of our Volunteer Teams contributed over 100,000 Planted service hours 3,000 native tree seedlings in Set target to reduce energy Plantation Enrichment Project consumption in the common areas of 14 commercial properties by 10% by 2025 (2015 as baseline) Henderson Land Development Company Limited 2 Sustainability and CSR Report 2017 About This Report Scope of the Report issues for Henderson Land. Regular engagement with our stakeholders ensures that we continue to This is the fourth annual standalone Sustainability meet their expectations and that our approach to and CSR Report (“the Report”) of Henderson Corporate Social Responsibility (“CSR”) remains Land Development Company Limited (“Henderson relevant and consistent across our operations. Land” or “the Group”) for the year ended During our last materiality assessment, we 31 December 2017. The Report provides an reviewed our corporate priorities, which helped us overview of the environmental, social and better understand stakeholder views on key topics governance (“ESG”) progress of the Group, and identify emerging risks and opportunities. covering our operations in Hong Kong, namely Further details can be found in the sections of our headquarters located at Two International Stakeholder Engagement and Material Topics and Finance Centre and AIA Tower, and our wholly- Boundary Setting. owned subsidiaries, namely E Man Construction Company Limited (“E Man”), which operates The Report sets out our approach to sustainability, and manages the Group’s construction sites; which is guided by our mission to add value for Goodwill Management Limited (“Goodwill”), all our stakeholders through a commitment to which manages the Group’s investment product and service excellence while continuously properties; Well Born Real Estate Management balancing our ESG impacts. The Report highlights Limited (“Well Born”) and Hang Yick Properties our historic performance, including some Management Limited (“Hang Yick”), which illustrative case studies from 2017, and describes manage approximately 77,000 residential and our plans and targets. industrial/commercial units in total. We manage the ESG impacts of our operations How We Report as effectively and thoughtfully as possible. We work collaboratively with our stakeholders and The Report is prepared in accordance with the consultants on new projects, incorporating the “Core” option of the internationally recognised latest technology and innovative design features Global Reporting Initiative’s (“GRI”) Standards to improve the environmental performance of our reporting guidelines, together with GRI’s sector property portfolio. guidance on the Construction and Real Estate Sector, and the Environmental, Social and Our social and environmental efforts are founded Governance Reporting Guide set out in Appendix on sound corporate governance practices 27 of the Rules Governing the Listing of Securities and procedures, in accordance with all rules, on The Stock Exchange of Hong Kong Limited. regulations and codes and standards applicable in Hong Kong. We strive to achieve a balance In preparing the Report, an independently between the needs and requirements of our managed stakeholder engagement exercise and various stakeholders in the communities in which benchmarking assessment were conducted to we operate. identify, prioritise and validate the evolving ESG Henderson Land Development Company Limited Sustainability and CSR Report 2017 3 About This Report Our Vision for Sustainability As one of Hong Kong’s leading property developers, we are committed to building a more prosperous and sustainable society. The Group strives to align its commercial objectives with sustainable growth, social prosperity and the well-being of our communities. CSR Policy Our CSR Policy serves as a mandate that ensures we adhere to our sustainability commitments and targets. By going beyond minimum regulatory requirements in areas such as workplace quality, environmental protection, operating practices and community involvement, we ensure that our commercial and sustainability objectives are closely aligned. The CSR Policy also affirms our commitments to maintaining open and transparent dialogue with our stakeholders and ultimately maximising the economic, social and environmental benefits that we deliver to the community. The CSR Policy obliges the Group to: • meet all applicable legal and regulatory requirements on CSR matters • pursue good CSR practices in our operations • implement policies relating to workplace quality, environmental protection, operating practices and community involvement • minimise potential environmental impacts • provide a safe and healthy working environment to all employees and site staff in compliance with applicable legal requirements • support meaningful community-oriented activities in partnership with our employees, community bodies, society and Government • provide training and encourage our staff to be proactive in CSR • promote CSR awareness among consultants and contractors • engage our stakeholders about the CSR process • monitor and improve our CSR performance Please visit the Corporate Social Responsibility page on our website to learn more: http://www.hld.com/en/csr/csrlanding.shtml Henderson Land Development Company Limited 4 Sustainability and CSR Report 2017 Linking Material Topics Topics that are considered material to our business are important beyond the scope of our value chain and our operation geographically. To align our CSR efforts with those of the greater sustainable development community, we have mapped our material topics to the Sustainable Development Goals (SDGs) of the United Nations. Launched in 2015, the 17 Goals are a universal call to action to tackle the biggest challenges our world is currently facing. Source: United Nations’ SDGs (http://www.un.org/sustainabledevelopment/sustainable-development-goals) The Group considers these challenges of today to be opportunities for tomorrow. By aligning our operations with the SDGs, we can make a valuable contribution to these important and collective goals. Looking ahead, we aim to match our targets and actions with several of the SDGs in the coming years. SDGs Henderson Land’s Actions Affordable and • In compliance with BEAM Plus standard for new and existing buildings, where practicable Clean Energy • Energy-efficient installations including air conditioning, lighting, pumping and lifts • Incorporation of energy efficient features such as solar responsive façades and waste energy recovery systems Decent Work • Screening of new subcontractors based on labour standards criteria and Economic • Joint management-worker health and safety committees to monitor and advise on occupational health and safety Growth • Public disclosure of the number and nature of health and safety incidents on construction sites Sustainable • Green space in developments and green features on buildings, e.g. landscape and rooftop gardens, green walls Cities and • Integration of ”common areas“ that facilitate social interaction Communities Responsible • Develop and implement improved processes to reduce, reuse and recycle water, raw materials, Consumption non-renewable materials, other inputs, by-products and waste and Production • Source materials with lower embedded energy • Implement sustainable procurement policies and action plans Life on Land • Partnerships for the planning and implementation of biodiversity offsetting • Protect, restore, enhance and safeguard ecological value and resources by adopting a “design out” approach that minimises potential adverse impacts • Managing and maintaining ecological and environmental mitigation measures through environmental impact assessment and planning processes Henderson Land Development Company Limited Sustainability and CSR Report 2017 5 Message From Management As a leading property developer, the principles of corporate social responsibility are highly important to us and we prioritise sustainability and community well-being in every aspect of our business strategy, decision making process and governance. It is my pleasure to introduce our fourth 15 Middle Road achieving WELL Gold Spearheaded by the Hong Kong standalone Sustainability and CSR Pre-certification from the respected Council of Social Service, it provides Report, which provides an overview International WELL Building Institute. affordable transitional accommodation of Henderson Land’s sustainability This is the second consecutive year to inadequately housed low-income objectives and our
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