ALL-IN ALL FOR LOVE ESG REPORT 2020/2021 CONTENTS
02 MESSAGE FROM MANAGEMENT 03 ABOUT THE REPORT 04 ABOUT HKRI 06 OUR SUSTAINABILITY APPROACH 14 MEMBERSHIPS AND AWARDS 16 ALL IN FOR OUR ENVIRONMENT 30 ALL IN FOR OUR PEOPLE 38 ALL IN FOR RESPONSIBLE OPERATION 44 ALL IN FOR OUR COMMUNITY 52 PERFORMANCE DATA SUMMARY 66 HKEX ESG REPORTING GUIDE CONTENT INDEX MESSAGE FROM MANAGEMENT ABOUT THE REPORT
while providing regular reminders on healthy living. We also enhanced Reporting Scope and Standard our occupational safety and health practices by launching a corporate level This ESG Report (“Report”) is produced by HKR International Limited (“HKRI“ or “the Company”) to communicate the sustainability Occupational Safety and Health (“OSH”) management approach and performance of HKRI and its subsidiaries (“the Group”) in four key areas: environment, human capital, Policy and renewing the Discovery community and value chain. The Report covers the period from 1 April 2020 to 31 March 2021 (“the year”). Bay operation manual with a series of supplementary guidelines to provide HKRI holds diversified business interests in Hong Kong, mainland China and Asia. Our reporting scope covers the businesses, joint more in-depth OSH guidance for our ventures and subsidiaries operated by HKRI in Hong Kong, mainland China and Thailand as reported during the year. We emphasised various business units. our core operations, which make a significant contribution to the Group in terms of asset size, profitability and staff strength. The reporting scope is as follows: Customer safety is equally important. I would like to express my heartfelt thanks to our teams, who continuously enhanced This Report discloses the Group’s ESG our anti-epidemic efforts to provide a performance. Details of our corporate OPERATIONS OF THE GROUP safe environment and reliable services to governance and financial performance can our customers. It is encouraging that our be found in our Annual Report 2020/2021. efforts were recognised. Our investment To aid readers in navigating the contents of The year under review was a very Therefore, we stepped up our efforts to properties in Hong Kong qualified under the Report, a Content Index is available for challenging one for everyone. The promote effective waste management. the “Anti-Epidemic Hygiene Measures reference on pages 66 to 67. Property global COVID-19 pandemic continued Our hospitality operations launched The Certification Scheme“ by the Hong Kong Developmenta to affect every part of our lives. Sustainability Programme, which can Quality Assurance Agency and the Hong This Report was prepared in accordance with HKR International Limited’s business help reduce our annual consumption Kong Tourism Board, and The Sukhothai the ESG Reporting Guide ( “the ESG Guide”), operations and sustainability initiatives of plastic by nearly 2,800 kg, and our Shanghai was Sharecare Health Security Appendix 27 of the Rules Governing the Listing were inevitably impacted. But thanks “All-Clean“ Beverage Carton Clean Property Investment VERIFIEDTM by Forbes Travel Guide. of Securities on The Stock Exchange of Hong a Recycling programme launched in our and Management to our fundamental strength, our Kong Limited, issued by Hong Kong Exchanges dedication to shouldering corporate corporate offices and CDW Building Amid the epidemic, our dedication to and Clearing Limited (“HKEx”). In response social responsibility, and the hard work in Hong Kong collected and recycled giving back to society never stopped. to the latest revisions effective for financial Discovery Bay of my team, we remained resilient and over 600 kg of Tetra Pak cartons during We continued to explore different ways year commencing on or after 1 July 2020, we City Management never stopped striving for perfection, and the year. The “go green“ concept no to support the needy, such as donations enhanced our reporting framework to address and Transportationb creating a harmonious and rewarding doubt also extended to our property and shifting community events to online newly introduced reporting requirements and lifestyle in the communities we built. development projects. Our aim is platforms. We put the same emphasis disclosed our full process of ESG governance Following our move to support the to reduce construction waste and on our mainland communities, reaching and materiality assessment. c United Nations’ Sustainable Development maximise the use of recyclable and Hospitality out to more schools in need under our Goals last year, we established our 2030 reusable materials, while pursuing HKRI Love & Design CSR programme Your feedback is valuable for our continuous sustainability targets for emissions, higher green building standards by to support education development in improvement. Please email your queries, energy consumption, waste, water and adopting the latest green technology. mainland China, and nurturing young comments or suggestions to [email protected]. d green building certification during the Furthermore, we implemented strict Healthcare design talent through the PRI2DE Creative year to set a clear agenda to a more environmentally friendly practices to Camp 2.0 Design Competition. sustainable path. Against the backdrop achieve green operations and reduce of the COVID-19 pandemic, we adopted our environmental impact. We also The COVID-19 pandemic is a hefty a “go flexible, go green” approach to enacted a green policy for the newly Reporting Principles wake-up call for the importance of overcome the subsequent challenges opened Lantau Yacht Club (”LYC“), sustainability. To play our part, we will The following principles were adopted in the preparation of this Report: and continue our sustainability initiatives. and a more comprehensive policy for the further embody the spirit of sustainable We believe that our collective efforts can Group is currently under development. development in our governance and Materiality: All information deemed ESG important is Quantitative: Quantitative information is provided with make a difference, so we launched a new Both of them promote waste and operations, identify further suitable covered in this Report. A materiality assessment exercise narrative and comparative figures, where possible. The relevant environmental, social and governance pollution reduction, recycling, and initiatives for green operations, and was conducted to determine material ESG issues with standards, methodologies and assumptions used to prepare the (“ESG”) theme, HKRI All-In, during the avoiding single-use plastic. promote environmental awareness in results approved by the ESG Committee. quantitative information are disclosed, as appropriate. year to call for support from all our our workplace. Working hand in hand colleagues and stakeholders to protect Along with caring for the environment, with our business partners, customers, Consistency: The ESG data are prepared and presented Balance: The information is presented without selections, our planet and promote sustainable social we focused on our employees, our investors and other stakeholders, we using consistent methodologies, unless otherwise omissions or other forms of manipulation that could potentially development. greatest asset, at this difficult time. We are confident that we can tackle the aim to create a healthy and safe working specified, to allow for meaningful comparisons. affect the objectiveness of the Report. Among the various ESG issues, the challenges ahead, adhere to sustainable environment for all of them. To safeguard environment was particularly badly hit development and create a brighter our colleagues’ health and safety during by the pandemic. Consumers changed future. a the pandemic, we adopted flexible work The Report covers the Group’s property development and investment projects in Hong Kong, mainland China and Thailand. their behaviour, leading to the extensive b Discovery Bay is based in Hong Kong. arrangements and implemented periodic CHA Mou Zing Victor c use of plastics and packaging materials. The reporting scope covers our operations in Hong Kong, mainland China and Thailand. intensive disinfection in the workplace, Executive Chairman d The operation is based in Hong Kong.
2 HKR International Limited ESG Report 2020/2021 ESG Report 2020/2021 HKR International Limited 3 ABOUT HKRI ABOUT HKRI
Living up to the vision and aspirations of the late Dr CHA approach to our business, which supports sustainable “HKRI All-in” reflects our longstanding approach and Chi-ming, the founder and chairman of the Group, the development in the places in which we operate. These Group seized opportunities to diversify its business interests actions underline the creative mindset, original thinking attitude towards community investment, giving the most in real estate development and investment, property and long-term approach that enables our employees to and the best we have to society. Given the success of the management, luxury hotels and serviced apartments reach beyond the conventional and seek new perspectives. All-in strategy in 2019, we evolved the HKRI All-in theme, investment and management, healthcare services, and We strive to create vibrant destinations and services, and making it a Group-level ESG theme, calling for collective other investments in Hong Kong, mainland China and stimulate continued growth to produce sustainable value across Asia. Throughout the years, we have taken a holistic for our shareholders, our business partners, and the people efforts to go extra mile to preserve our planet and with whom we work. promote sustainable social development.
All-in to preserve: Mobilising all resources and giving our very best to practise green living, we work together to protect our planet and cherish the environment.
All-inclusive: Everyone can participate. The activities we organise are intended for all to join, regardless of gender, age or physical fitness level.
All-in-one: Each activity serves multiple objectives: for Vision Mission Values instance, promoting environmental awareness and helping underprivileged children in the same event.
We strive to create a healthy, stylish and To be the pioneer of distinctive living experience through 2 innovative living space teamwork and the passionate pursuit of PRI DE innovation and excellence.
HKRI at-a-glance Sustainability at HKRI P Pioneer - Break new grounds
Saved up to R Respect about 3 million kWh 5 of electricity and - Value the individual and A publicly listed major business Cumulatively obtained cherish our environment Founded in about 24,000 tonnes company in segments: property 8 1977 development, property of municipal water Hong Kong green building I Innovation by Dr CHA Chi-ming investment, hospitality, supply, and reduced ( stock code 00480 ) certificates healthcare, and other carbon emissions by - Think outside the box
services about 12,000 CO2e tonnes year-on-year I Integrity - Uphold high ethical standards
Geographic presence D Devotion across Asia Pacific, A professional Contributed about - Be committed and passionate including Hong Kong, team of Earnings of HK$3.4 million Shanghai, Jiaxing, 2,247 HK$ 3,942 million to the community for Hangzhou, Tianjin, employees during the year charitable purposes Bangkok, Tokyo and as at 31 March 2021 E Excellence Hokkaido - Consistency in the pursuit of our quality standards
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Sustainability Governance Board of Directors Risk Management and Internal Controls To refresh employees’ anti-corruption knowledge, we invite the Independent Commission Against Corruption Sound governance is important to a corporate, especially Anchored by strong leadership, high standards of corporate As stipulated in the Risk Management Policy, our risk (“ICAC”) to deliver an annual training course to employees, amid the COVID-19 pandemic. With our solid governance governance, and accountability to stakeholders, the Board management framework consists of the Board, the Audit including management, and circulate relevant materials to framework, the Board of Directors (“the Board”) provides assumes the overall responsibility of leading HKRI with a Committee, the risk management steering group, and business board members. In addition, online training is offered for oversight of the sustainability performance of HKRI and steers responsible business mindset and ensure we deliver long- lines to proactively identify emerging risks, align our risk management. In 2020/2021, approximately 452 hours of anti- our governance structure and practices, setting the tone from term sustainable value for our stakeholders and the wider exposure to organisational priorities, drive informed business corruption-related training were conducted for employees and the top. Our ESG Committeee reflects our resolve to build a community. The Board comprises 12 Directors with a diverse decisions, and implement mitigation plans. The Board provides management across the Company. sustainable enterprise and coordinates ESG management across mix of gender, professional experience, skills and knowledge oversight through the Audit Committee to ensure the adequacy the Group. The following diagram shows our sustainability to bring new perspectives and enhance organisational and effectiveness of our risk management and internal control During the year, there were no cases of non-compliance with governance framework. performance. We have four Executive Directors, and eight system. An independent review of these systems is performed the relevant laws and regulations relating to bribery, extortion, f Non-executive Directors, five of whom are Independent Non- regularly by the Internal Audit Department. On this basis, fraud and money laundering in our operations . executive Directors, constituting more than one-third of the we work to strategically integrate ESG risks into our risk Board. The Board reviews and endorses report submitted by management system to address and minimise the potential Sustainability Policy the ESG Committee against the Company’s related strategies environmental and social risks in our operations and supply and goals, and recommends improvements, as appropriate, to chains. Further information can be found in our Corporate Sustainable development is fundamental to HKRI’s vision, Board of Directors further enhance the Group’s sustainability performance. Governance Report on pages 60 to 82 of the Group’s Annual mission and core values. Established in 2018, the Sustainability Report 2020/2021. Policy g formalises our longstanding sustainability practices, ESG Committee ensuring that the management of related issues is carried out Anti-corruption and Money Laundering consistently throughout the Group’s operations. This reflects The ESG Committee comprises department heads with our belief that long-term value creation depends on the various functions and is responsible for setting the Group’s We uphold the highest ethical standards and strictly adhere sustainable development of our business, our supply chain, and ESG objectives and priorities in line with the ESG risks and to all anti-corruption-related laws and regulations throughout the communities in which we operate. opportunities identified during the year. The Committee is our operations and value chain. We have a strict policy of responsible for developing ESG policies and initiatives for compliance with anti-corruption laws in every applicable For us, this means being a good steward of natural resources ESG Committee business operations. It also evaluates ESG risks, develops jurisdiction. As stated clearly in our Employee Handbook and and biodiversity within our influence, and ensuring that all and recommends the strategic direction for the Board’s Code of Conduct, our employees are not permitted to offer potentially adverse impacts of our operations are identified approval, recommends improvements, reports the Group’s or accept advantages for the purpose of influencing business and managed appropriately. This means pursuing sustainable ESG development to the Board, reviews the ESG Reports decisions, to make any form of payment to officials, or to grant, development and investment opportunities that prioritise and provides guidance to the CSR Task Force on the guarantee or accept loans from any person or organisation with resilience and mitigate risk, and it means building an effective execution of ESG-related matters. whom we have business dealings. Our employees must strictly work environment that fosters wellness, equality and respect, in observe all regulations related to conflict of interest. order to realise the full potential of our employees and supply CSR Task Force chain partners. CSR Task Force The Group has developed a standard whistleblowing procedure The CSR Task Force executes the Group’s ESG strategies for our employees to report suspected misconduct to our We regularly revise our policy statement. To properly address and policies, monitors ESG performance and the impact of internal audit supervisor, as well as external anti-corruption specific ESG issues, we developed some group-wide policies ESG issues on business operations, reports on the Group’s reporting channels, including our official email and phone in specific areas, including our Occupational Safety and Health progress to the ESG Committee, and prepares ESG Reports. line, so that they can reflect and report illegal or fraudulent Policy and our Supplier Code of Conduct. We are also in the The members of the sustainability working groups are from behaviour of the Group's employees in their work and process of reviewing our Procurement Policy. Concurrently, a diverse mix of departments to ensure the concerns of operations in a timely manner. in view of the increased climate threats, we are developing each business sector are considered. environmental and climate change Policies, which are expected Business Units/ We are committed to the fair treatment of any person who to be launched in 2021. Working Committee makes a genuine and appropriate report. In addition to making every effort to keep the identity of whistleblowers confidential, all reported information is treated in confidence, except when the Group is required by law or regulation to disclose it for legal or audit purposes, or if the Group refers the matter to the relevant regulators or law enforcement authorities.
f The laws and regulations that are most relevant to the Group include, but are not limited to, the Prevention of Bribery Ordinance (Cap.201), the Law of the People’s Republic of China for Countering Unfair Competition, the Law of the People’s Republic of China for Anti-Monopoly, and the Act Supplementing the Constitution Relating to the Prevention and Suppression of Corruption in Thailand. e The Terms of Reference for the ESG Committee can be found on our website: https://www.hkri.com/en/CSR/ESG-Committee. g More information on the Sustainability Policy can be found on our website: https://www.hkri.com/en/csr/sustainability-policy.
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Sustainability Commitment and Policy
For over 30 years, we have adopted, advocated and adhered to Responding to the urgent call for action by the United Nations, Strategic pillars Sustainable Our Commitments Sustainability Policy a philosophy of responsible development. We are committed we support the Sustainable Development Goals (“SDGs”) to Development Goals to operating in an environmentally, socially and economically end poverty, protect the planet, and ensure that all people enjoy Building a Sustainable Promoting Through employee volunteering • We actively engage with responsible manner across all aspects of our business. Our peace and prosperity by 2030. We believe that six specific SDGs and Caring Community sustainable and community philanthropy stakeholders from our local sustainability strategy has five pillars: Environment, People, connect most closely with our sustainability policy, as follows: economic activities, we are committed to communities to identify issues Community, Value Chain and Product Responsibility. growth, enhancing the communities in that need to be addressed. employment which we operate, helping those in • We strive to promote good and decent need, and enriching people’s lives, citizenship to our employees work for all while retaining the character of the and customers through communities: volunteering and various Strategic pillars Sustainable Our Commitments Sustainability Policy Making • Community investment by other community activities, Development Goals cities and offering care and support in the encouraging everyone to Reducing our Ensuring As a leading property developer • We pledge to improve our other human local communities in which we contribute to society. Environmental Impact healthy lives and with a diverse business portfolio environmental performance, settlements operate • We invest in artistic and cultural promoting well- across Asia, we are committed to especially by reducing emissions inclusive, safe, • Participating in voluntary work development, encourage being operating sustainably and make and streamlining waste resilient and and community activities young talent, and provide a unique contribution to the management, to minimise our sustainable valuable support to charitable • Supporting artistic and cultural Using affordable prosperity of the current and future impact on the environment. activities and groups. development and clean generations: • We actively promote the use energy • Climate change of environmentally friendly Creating a Responsible Ensuring We aim to remain a trustworthy • We uphold high ethical • Energy materials and integrate Value Chain sustainable brand and an industry leader with and corporate governance Taking urgent energy-efficient resources and consumption high ethics and integrity, and standards and protect the • Waste managment action to technology into our businesses. and production realise sustainable development in privacy of all our customers’ combat climate • Water • We encourage our staff, patterns cooperation with our suppliers and data. change and its • Biodiversity customers and suppliers to vendors to deliver value at every • We are fully compliant with impact • Green investments be proactive in sustainable step of the supply chain: all statutory requirements. We development matters to • Upholding high ethical aim to exceed the minimum positively impact procedures at standards standards and integrate industry best practices into all work and inspire resourceful • Ensuring occupational health of our operations and services. and responsible action in the and safety community. • We embed the concept of • Promoting decarbonisation sustainability into our business programmes to influence our Maintaining a Promoting The contributions of our employees • We maintain a safe, suppliers and share our vision People-first Workplace sustainable are critical to our success. We aim comfortable and rewarding for sustainable growth. economic to create a workplace in which our working environment, in which growth, employees are healthy, happy and employees are treated fairly, Providing Quality and Ensuring We are dedicated to being the • We integrate innovative and employment productive, and we are committed equally and respectfully. This Reliable Services and healthy lives and first choice for our customers and digital initiatives into our and decent to investing in our employees to enables everyone to realise Products promoting well- committed to providing excellent projects to meet our customers’ work for all develop a competitive, industry- their full potential regardless of being products and services and applying rising expectations. leading team by focusing on the gender, disability, family status, due care and diligence in our • We operate in a professional following: race, age or sexual orientation. Making cities operations to eliminate potential and responsible manner and • Talent attraction and retention • We aim to attract and retain and human hazards: strive to consistently improve • Workplace safety, health and the best talent possible and settlements • Delivering responsible and our quality standards. well-being provide training opportunities inclusive, safe, quality services and products • We engage with our customers to foster our employees’ resilient and to understand their changing • Adequate development • Ensuring customer satisfaction professional growth. sustainable needs to provide valued input opportunities and well-being • We encourage open in the development of our • Diversity and inclusion • Respecting and upholding the communication and fully products and services. data privacy of all stakeholders • Open communication with engage with our employees various transparent channels through a variety of transparent channels that allow them to express their concerns without negative repercussions.
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In addition to regular engagement, we collected feedback from some external and internal stakeholders through an online survey and focus group interviews during the year. These stakeholders included ESG Committee members, directors, senior management, employees, contractors, tenants, NGOs, and members of the Discovery Bay community. These stakeholders provided constructive feedback about issues As a responsible corporate citizen, we are determined to support these initiatives and set our agenda to shift to a more sustainable that they consider important to our business. path. Employee Welfare Green Construction