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Sustainability Report 2010

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Sustainability Report 2010 Sustainability Report 2010 Project Management and Editorial: Streeter Strategic Ltd Design: CoDesign Ltd Photography: Leong Ka Tai Contents About this Report 01 Vision Misson Values (VMV) Vision From the 02 Chief Executive Officer We aim to be a globally recognised leader that connects and grows communities with caring service Global Organisation 04 Mission • Enhance customers’ quality of life and anticipate their needs Risk 06 • Actively engage in communities we serve • Foster a company culture that staff can learn, grow and take pride in • Provide sustainable returns to investors Engagement 14 • Set ourselves new standards through innovation and continuous improvement • Grow in Hong Kong, Mainland of China and capture opportunities in Europe by extending our core competencies Low Carbon Future 25 Values Performance Metrics 31 + Performance against Excellent Service Mutual Respect Value Creation Enterprising Spirit Quantitative Safety Targets 2010 We are committed to We work in an open We create profits We have the courage + Maturity Matrix of BS 8900:2006 proactively provide team environment through efficient to question the Guidance for Managing safe, efficient and based on trust, joint execution, continuous status quo to seek Sustainable Development caring service valued commitment and improvement improvement, by customers. respect. and innovation in proactively taking + Financial Performance delivering products initiatives and having We listen and respect and services valued the resourcefulness to + Economic Contribution the views of the by customers. overcome obstacles community and other + Independent Assurance Report and reach new stakeholders. horizons. + Responding to Stakeholder Expectations + CoMET Benchmarking Results 2009 + Definitions + Hong Kong Operating Network with Future Extensions Report Cover Story The West Island Line is a shared vision between company and community. The active dialogue on understanding and respecting expectations has shaped how this and our other future rail projects will serve and grow with local communities. Collaboration is the operative word behind our dialogue. It reflects awareness of aspirations and genuine response to issues. It requires listening and visibility of action. It is not just in the regular town hall meetings, but in the on-site presence and daily interaction with residents that assures the vision is alive and well. Community walkway outside construction works for West Island Line About this Report About this Report In this 2010 report, we present While the many well-established In structuring this report, we have applied our sustainability journey governance and management systems the AA1000 AccountAbility Principles of in the context of the social continue to provide a solid foundation materiality, inclusivity and responsiveness and public policy changes for organisational development and as articulated through our Sustainable business intelligence to manage change, Competitive Advantage model. The in our business environment From the Chief Executive Officer Global Organisation discussion of current actions in terms processes within this model give rise to and the critical challenges of risk management and stakeholder the systematic identification, prioritisation these present. We find it most engagement demonstrates the inherent and management of both corporate relevant to focus on how we resilience of systems and our ability to take risks and stakeholders expectations and are anticipating, responding timely and appropriate action. perceptions. Refer to our website to and communicating with (www.mtr.com.hk/sustainability) for a stakeholders in the wake of To this end, we share our management more detailed discussion of the model’s the sharp rise in social and thinking and give insight into the many architecture and its processes that environmental expectations in decisions and initiatives we are taking demonstrate how these principles are Hong Kong. We also explore that determine our future as a successful incorporated. the changing risk profile of the commercial enterprise, while maintaining our social contract and license to operate. This report covers the priority organisation and the challenges The performance metrics cited throughout organisational and business-unit we face in managing them. this document are our report card on challenges recognised during the year. how well we have progressed on the We give insight to why they are material Risk sustainability journey. to our sustainable development and how we are responding to and managing Engagement This report is published to inform our the impacts. We illustrate our response industry colleagues, our constituent and resilience at the workplace or at stakeholders and the many professional stakeholder interface with the inclusion groups and NGOs that we engage with of several frontline stories throughout the on sustainability. We view discussion report. The Priority Sustainability Business Low Carbon Future Performance Metrics as a starting point for the sustainability Risks and Performance 2010 table on page dialogue and the continued sharing of best 13 captures our broader organisational practices. This year, discussion widened to sustainability risks, while discussion across cover a broader community inclusion and the report identifies the material risks the long-term impact we are creating as within business units. The sustainability we expand our operational footprint, both website gives further in-depth discussion in Hong Kong and external markets. of these and other significant issues and our efforts to manage them. Scope of Report PricewaterhouseCoopers (PwC) has been Discussion within this report principally commissioned to provide an independent covers activities in Hong Kong, our major assurance report on selected quantitative business centre. Information concerning data that confirms progress of key our global and mainland China operations performance indicators. Their report is on is presented where stated. Reporting page 35 of this report. performance and achievements is limited in these external markets due to the Under the Global Reporting Initiative (GRI) early operational phases of projects, in framework, we apply the self-assessed A+ particular in mainland China, and to the level. The 2010 G3 Content Index is located management autonomy allocated to our on our sustainability website to facilitate subsidiaries or concessions. access of more extensive and relevant documents from within the company. We value your feedback and comments about our sustainability report and overall sustainability journey. Questions or comments can be addressed directly to our Sustainability Development Manager, [email protected] or through our sustainability website. 01 From the Chief Executive Officer We marked 2010 as a year of strong most projects, we are on the whole performance in our rail and property making good progress and leveraging businesses, confirming our resilience as a competencies appropriately. social asset and commercial entity. Positive economic momentum in both Hong Success, however, does not come without Kong and mainland China has supported uncertainties. In Hong Kong, we have gains and our growth in these markets. In faced a year of shifting public policy and, Europe and Australia, our expertise and more importantly, highly vocal assertion competencies in rail operations continue of societal aspirations. These events to improve concession performance. As weigh significantly on our social contract, well, steady progress has been made with prompting close scrutiny on how we our five new rail projects in Hong Kong, engage and manage our business. Our with construction under way in two, while challenge is to respond to these changing three are in advanced stages of planning circumstances and to be seen doing so. and approval. This report tables the most significant Our mainland China and international impacts and risks that these events and business is moving forward. With longer- other important challenges bring to term concessions and substantial upfront our sustainable development journey. financial commitments required in We share with you how, when assessing China, careful consideration is given to and responding to the challenges, we investment, partner organisations and frame them not as opposing forces, but industry risks. While it is early days with more as defining influences to achieving sustainable competitive advantage. “Success, however, does not come without uncertainties. In Hong Kong, we have faced a year of shifting public policy and, more importantly, highly vocal assertion of societal aspirations... Our challenge is to respond to these changing circumstances and to be seen doing so.” About this Report Amongst the most important are the the community liaison groups actively increasingly complex risks related to engage concern groups on issues and delivering five new rail projects in Hong share progress on work related to the new Kong over the next decade. To this end, rail projects. Several positive initiatives we are maturing our relationships with have come from engagement, such as the From the Chief Executive Officer supply chain partners, the communities preservation of local heritage sites, strong affected and the public to cope with the environmental protection and innovative scale and pace of the delivery programme. site practices to keep noise, dust and traffic We believe that partnerships foster disruption to a minimum. more successful solutions. We have also
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