36 HAECO Sustainable Development Report 2017

2017 At a Glance Table of Contents EMPLOYEES Message from the CEO

Company Profile Our professional and dedicated employees are

About this Report fundamental to achieving our goals of driving sustainability as the best-in-class MRO service Corporate Governance and provider. Therefore we nurture and enable our staff Sustainability Management to realise their full potential by providing abundant training opportunities and a harmonious and equal Environment opportunity working environment. Health and Safety We aim to be an employer of choice by providing an Employees environment in which all staff are treated fairly and

Business Partners with respect.

Community

Performance Data

Standard Disclosures & Performance Indicators

Verification Statement Contact Us Over 740,000 Training Hours 37 HAECO Sustainable Development Report 2017

2017 At a Glance Our Human Resources HAECO Group aims to act ethically and Recruitment and Employee Relations with integrity at all times. We have a GRI [401-1, 402-1] Table of Contents Management Approach Corporate Code of Conduct (the Code), HAECO prides itself on being a long-term Message HAECO Group aims to offer competitive which is posted on our website. It is an from the CEO employer and is committed to developing remuneration and benefit packages to our obligation of HAECO employees to follow a harmonious working environment for our Company Profile staff in the form of salary, incentive pay and the Code and employees are encouraged staff to advance their careers. Our Human allowances, healthcare benefits, paid leave (and instructed as to how) to report control About this Report Resources Departments in respective for various purposes and education and deficiencies or suspicions of impropriety Corporate companies will provide support to our training in order to attract and retain talent to those who are in a position to take Governance and employees and strive to improve their Sustainability of a suitable calibre. necessary actions. Management overall well-being.

Environment We believe in equal opportunities for all We will continue to provide high standards Training GRI [404-1] Health and Safety our employees. We recognise that our of training to enhance staff capabilities We will continue to provide high standards businesses benefit from the diversity of and promote a learning culture. Different Employees of staff training to enhance our staff’s our workforce and our management. So development programmes are available for Business Partners technical capabilities as well as their own it follows naturally that we encourage staff to progressively realise their career path. personal development. Community diversity and its concomitant, equal opportunities. The Board has a broad Performance Data Anti-Corruption GRI [205-3] diversity policy, aiming to achieve a Our Most Material Topics Standard diverse business environment in the best HAECO Group is committed to developing Disclosures & Performance interests of its shareholders. The policy In the materiality assessment, our and maintaining high professional and Indicators is available on our group’s website and stakeholders have identified the following ethical standards as well as complying with Verification is published in the corporate governance employee related topics as material to the all laws and regulations related to anti- Statement reports in the group’s annual reports. We development of HAECO Group. corruption and bribery. Contact Us also intend to cooperate fully with the Equal Opportunities And Diversity Council of John Swire & Sons (H. K.) Limited in the achievement of these objectives. 38 HAECO Sustainable Development Report 2017

2017 At a Glance Diversity, Equal Opportunity and Our Employee Profile Recruitment and Talent Non-discrimination GRI [405-1,406-1] GRI [401-1] Table of Contents Retention We recognise that there are business Message HAECO employed approximately 14,500 The Group engages in job fairs, forums, from the CEO benefits from the diversity of our workforce recruitment events and exhibitions, with and our management. We respect the staff globally in our key group companies, Company Profile a view to enabling potential recruits to human rights of staff and the people who similar to the number of staff at the end of understand the Group and the employment About this Report work with us, we encourage diversity and 2016. Most of our staff are based in Hong Kong and Mainland China. opportunities within its businesses. Corporate equal opportunities. Governance and Sustainability We review remuneration packages, Management 2017 career development plans and our “staff Environment 7 38 management culture”. Our Group has Health and Safety 2,298 developed a guideline for inter-company job rotation to ensure all cases are handled in Employees 6,350 a transparent, consistent and considerate Business Partners 5,242 75 563 manner. We monitor our turnover rate to

Community identify and manage issues as they arise. In 2017 our turnover rate and new hire rate Performance Data Permanent Employees - Full time Permanent Employees - Part time Fixed Term and Temporary was 15.2% and 12.9% respectively. Contract Employees Standard Disclosures & Hong Kong Mainland USA Performance Indicators Employee Profile by Location Verification Statement 2017 Male Female Contact Us Permanent Employees* 11,336 (77.8%) 2,636 (18.1%)

Fixed Term and Temporary Contract 567 (3.9%) 34 (0.2%) Employees

Employee Profile by Gender * Permanent employees included full time and part time staff. 39 HAECO Sustainable Development Report 2017

GRI [402-1] 2017 At a Glance HAECO Xiamen and HAECO Hong Kong Highlight Story Employee Relations carried out progression and promotion Table of Contents HAECO Americas is a military friendly reviews to provide a clear career path Our employees have the freedom of employer for veterans. In 2017, HAECO Message requirement for staff which matches association to join organisations of their from the CEO Americas established the Voices for Vets operational needs and achieves alignment choice. We respect and comply fully with team to provide support to transitioning Company Profile amongst different departments within veterans. The team is heavily involved in all all legal requirements in regards to union About this Report respective companies. Staff alignment to veteran activities within the company and in membership and collective bargaining in the the new structure and a review of salary the wider community. countries where we operate. Corporate Governance and ranges was conducted during the exercise. Sustainability Management Though there is no legal framework for collective bargaining in Hong Kong, we Environment Highlight Story value the opinion of our staff. Different

Health and Safety HAESL has introduced a buddy scheme to employee associations have been help new staff assimilate into the Company. established. An elected employee Employees The buddies have worked in HAESL for representative and the Company appointed many years and know the company’s Business Partners management representative will meet on a culture and environment very well. Community regular basis to discuss matters affecting Through playing the role of “Big Brother”, their interests. The staff association can also Performance Data the buddies will help new staff tackle make suggestions to the management on challenges encountered at work helping Standard matters relating to its members. them feel cared for and supported. Disclosures & HAECO Americas supports veterans Performance Indicators Our Xiamen companies have an agreement Verification with the official trade union on minimum Statement salary levels. Contact Us

Buddy Scheme at HAESL 40 HAECO Sustainable Development Report 2017

2017 At a Glance Highlight Story

Table of Contents HAECO Americas has rolled out The ground. The 14 Champions are well- HAECO cares for the health of employees. Brand Champion Programme to improve respected employees, who had a strong HAECO Hong Kong and HAESL arrange Message from the CEO communication throughout HAECO understanding of their sites and embodied Health Management Programmes and Americas. The Brand Champions are the attributes our leadership would like to health talks with the goal of improving the Company Profile HAECO Americas’ eyes and ears on the promote within HAECO Americas’ culture. care and management of our employees About this Report They act as a bridge of communication overall health. We encourage our staff to between the company and staff. enjoy a healthy work-life balance. This is Corporate Governance and important in terms of the overall health Sustainability and well-being of the individual employee Management and also has positive outcomes for the Environment business. Our work-life balance programme encourages stronger bonds between Health and Safety staff, more accountability and higher Employees commitment. Respective group companies have organised annual dinners, Christmas Business Partners parties and various sports activities to Community support this initiative. Leisure activities are held at different time periods so that Performance Data employees on various shift patterns can be Standard accommodated. Furthermore, the HAECO Disclosures & Performance Veteran Club cares for retired employees Indicators of HAECO Hong Kong and HAESL. Verification Members are welcome to utilise the sports Statement Brand Champions Team and recreational activities in the Club and

Contact Us participate in various activities subsidised and organised by the Club. 41 HAECO Sustainable Development Report 2017

2017 At a Glance Highlight Story Highlight Story Highlight Story

Table of Contents HAESL celebrated its 20th anniversary The Group is investing in continuous HAECO Xiamen has established a reading improvement projects for staff amenities. room in their technical training centre to Message with a series of activities including an Open from the CEO Day, theme park family night and “Poon HAECO Hong Kong supports a provide a quiet and relaxing environment for “Breastfeeding Friendly Workplace” and staff to study. The reading room also serves Company Profile Choi” lunch. The “family elements” in the events aligned with HAESL’s core value – has extended the service of Mother’s as a mini-library with a collection of books About this Report Teamwork – helping to further promote team Rooms from the Tseung Kwan O Facility to ranging from leisure reading to self-learning the Chek Lap Kok Worksite, providing an materials. Corporate spirit within the HAESL family. Governance and appropriate and friendly environment for our Sustainability Management breastfeeding employees.

Environment

Health and Safety

Employees

Business Partners

Community

Performance Data

Standard Disclosures & Performance HAESL Open Day HAECO Hong Kong Supports The Reading Room at HAECO Xiamen Indicators “Breastfeeding Friendly Workplace”

Verification Statement

Contact Us 42 HAECO Sustainable Development Report 2017 Staff Development and HAECO Hong Kong and HAECO Americas Non-compliance with the Code results in 2017 At a Glance Technical Training GRI [404-1] provide a tuition reimbursement programme disciplinary action. In cases of suspected to support employees in gaining knowledge corruption or other criminal offences, a report Table of Contents The Group intends to provide training and skills. HAECO Hong Kong revamped will be made to the appropriate authorities. Message the existing Maintenance Authorisation from the CEO for employees to have the opportunity to In 2017, we did not receive any reports of Allowance Model to motivate and develop to their full potential. All training breaches of the Code. Company Profile encourage employees to acquire aircraft required by law is provided, including all maintenance licences. About this Report relevant training required by the aviation and safety regulations. The Group continues to operate trainee Diversity, Corporate Governance and schemes designed to equip new recruits Equal Opportunity Sustainability Management In 2017, we offered over 740,000 with the knowledge and experience needed and Non-discrimination GRI [405-1,406-1] hours of training, which is equivalent to to become skilled professionals in the Environment approximately 50.81 hours of training per aircraft maintenance industry. Graduate The Group is committed to providing a Health and Safety trainees are rotated around the Group’s employee. businesses. diverse working environment free from Employees discrimination. We instil this behaviour in GRI [205-3] all employees by setting an example at Business Partners Average hours Employee Category Anti-Corruption of training the highest levels. All staff members must Community Our Corporate Code of Conduct (the Code) observe the relevant requirements, ensuring Performance Data Top/Senior Management 16.17 sets out expected standards of behaviour for full compliance with applicable laws and must not tolerate unlawful discrimination or Standard Middle/Junior Management our employees and anti-bribery compliance Disclosures & 52.85 other breaches of the law. In 2017, we did Performance & Supervisory procedures. All employees of the company Indicators are expected to fully adhere to the principles not receive any reports of discrimination Customer Facing Staff 33.92 Verification contained within the Code which has been equal opportunity and diversity. Statement Non-customer Facing 58.52 aligned across HAECO Group and is set out We operate in a business which is Operational/Technical Staff Contact Us in full on our website. Employees have the traditionally male dominated. We will Others 54.19 right to raise their concerns / complaints via continue to emphasise diversity and improve established procedures. All material concerns female participation in the workforce. Average Hours Of Training Undertaken will be reported to the Company’s Audit By Different Employee Category Committee, which consists of three Non-Executive Directors. 43 HAECO Sustainable Development Report 2017 Total Permanent Employee Category

Executive Non-executive 2017 At a Glance Middle/Junior Non-Customer Top/Senior Customer Table of Contents Management & Facing Operational/ Others Management Facing Staff Supervisory Technical Staff Message from the CEO By Age Group

Company Profile - Under 30 years old 0% 5.8% 13.1% 29.2% 37.7% About this Report - 30 to 50 years old 53.8% 66.5% 55.8% 52.3% 57.6% Corporate Governance and Sustainability - Over 50 years old 46.3% 27.7% 31.1% 18.5% 4.7% Management By Gender Environment - Male 82.5% 82.9% - - 64.5% Health and Safety - Female 17.5% 17.1% - - 35.5% Employees

Business Partners Diversity of Employees

Community No. of individuals as at 31 Dec 2017 Recognition and Awards Performance Data Governance Bodies Standard HAECO Hong Kong has continued to Disclosures & HAECO Board of Directors Performance receive The Caring Company Scheme Indicators By Age Group Award for 10 consecutive years. HAESL

Verification - Under 30 years old - has been recognised as a Manpower Statement - 30 to 50 years old 36.4% Developer since 2013.

Contact Us - Over 50 years old 63.6% By Gender - Male 90.9%

- Female 9.1%

Diversity of the HAECO Board of Directors 44 HAECO Sustainable Development Report 2017 2017 Progress Update

2017 At a Glance Objective Progress Remarks / Comments

Table of Contents All HAECO Group companies adopt an online system to manage The succession planning module has been deployed succession planning and talent development. A performance management since 2016 while the performance management is Message Completed from the CEO module will be launched in late 2017 in order to holistically evaluate staff progressively being adopted by most of the HAECO performance among HAECO Group managerial staff Group Companies since late 2017 Company Profile Health Week was successfully held in September About this Report HAECO Hong Kong launches a Health Week, with a focus on Completed 2017 with healthy diet and smoking cessation as the musculoskeletal problems and smoking cessation main focus Corporate Governance and Sustainability HAECO Hong Kong continues to study options to offer more flexibility for Management Ongoing Will continue to carry out further studies staff on work schedules to suit their lifestyles

Environment HAECO Hong Kong continues to study the feasibility of introducing A trial of an additional dedicated clinic facility for Health and Safety additional company clinic facilities for staff working in the HKIA terminal Ongoing HAECO staff at the airport terminal will commence in area Q2 2018 Employees Enhanced the Hong Kong Careers Website to make it Business Partners HAECO Hong Kong revamps the Careers Website to provide the wider more user friendly and included a video about “A day community information about our various job opportunities and to inform Completed in the life of an Engineer” and “Introduction of various Community young people about the MRO industry job positions” to make it more interactive

Performance Data Personal growth talks were organised and the promotional booth was set up during Health Week Standard HAECO Hong Kong launches personal growth and learning activities (e.g. Disclosures & Ongoing in September 2017. Smart tips on personal growth talks / workshops) for the well-being of the staff Performance were shared via various HAECO internal staff Indicators communication channels

Verification Statement HAECO Hong Kong to introduce a structured development programme Launched the “Licence Engineer Development for our existing non-licensed mechanics to assist them in acquiring the Ongoing Programme” (LEDP) to assist non-licensed mechanics Contact Us HKCAD basic licence through self-study to acquire HKCAD basic licence

HAESL holds celebration activities as well as team bonding activities, “Poon Choi” lunch & theme park family night, such as a “Poon Choi” lunch, a theme park family night, an open day 20th Anniversary and Phase VI Building Completion Completed and more, to celebrate HAESL’s 20th Anniversary and enhance our Ceremony and HAESL Open Day were organised employees’ sense of belonging in 2017 45 HAECO Sustainable Development Report 2017

2017 At a Glance 2018 Action Plans

Table of Contents Key Action Plans Message from the CEO • HAECO Hong Kong will continue to promote their Employer Brand through various projects to raise public awareness of our industry Company Profile

About this Report • HAECO Hong Kong will develop an electronic Helpdesk and self-service platform to allow our employees to have more autonomy and control when checking and managing their personal information online anytime and anywhere Corporate Governance and • HAECO Hong Kong will continue to run hangar open days for staff’s family members and friends to help them Sustainability Management understand our industry, day to day job and working environment

Environment • HAECO Hong Kong will develop a structured programme to facilitate special technical skills and knowledge transfer

Health and Safety • HAECO Hong Kong will continue to review long term manpower requirements for critical positions Employees • HAECO Hong Kong will roll out a new Performance Management Module to staff for manager level or above Business Partners

Community • HAECO Hong Kong will launch a “Middle Management Alignment Programme” training scheme, which aims to have alignment among middle management on the HAECO way of managing staff and to strengthen the Performance Data management competencies of middle managerial staff to adapt to the competitive business environment

Standard Disclosures & • HAECO Americas will expand deployment of the comprehensive talent management system, with talent career path Performance development plans and offerings aligned with HAECO’s competency model Indicators

Verification • HAECO Americas will develop a new programme to address the future skill gaps Statement • HAECO Xiamen and HAESL will develop structured Skill Development Programmes to encourage multi-skill Contact Us development of their staff

• HAESL will roll out the High Performance Culture programme for the purpose of reinforcing their core values