ESG REPORT 2018/2019 Green Footprint ACROSS THE REGION CONTENTS THAILAND 04 Message from Management 05 About the Report 06 About HKRI 07 Our Sustainability Approach 10 Memberships and Awards 12 Cherishing Our Environment MAINLAND CHINA 22 Respecting Our People 32 Caring for Our Community 42 Managing Our Value Chain 48 Performance Data Summary 52 HKEX ESG Reporting Guide Content Index HONG KONG MESSAGE FROM MANAGEMENT ABOUT THE REPORT Reporting Scope and Standard This Report is produced by HKRI to communicate the Group’s sustainability management As part of the community, approach and performance in four key areas: environment, human capital, community and value chain. The Report covers the period from 1 April 2018 to 31 March 2019. HKRI holds diversified we are prepared to shoulder business interests across Hong Kong, mainland China and Asia. This year, to further enhance our transparency and reflect our geographic footprint, we have expanded the reporting scope our responsibilities to to include operations in Thailand in addition to the businesses, joint ventures and subsidiaries operated by HKRI in Hong Kong and mainland China. Operations listed in the diagram below protect our home and create constitute the scope of the Report: a better living environment for everyone. Property Discovery Bay: Developmenta City Management & 2018 was another fruitful year for the region. An exemplary demonstration people to build a talent pool for future Operations of Transportationd HKR International Limited (“HKRI” of this pioneering spirit is HKRI Taikoo business development. Meanwhile, or the “Company”). We shared the Hui, which was constructed using we maintain comprehensive training the Group joy of 40 years of achievement with revolutionary and innovative green programmes to ensure that our current different stakeholders and celebrated building designs and garnered the LEED® staff members are properly equipped to the completion of our flagship project Certifications and China Green Building adapt to changing trends. in mainland China, HKRI Taikoo Hui, Design Label for its office towers and Property with the opening of Cha House and The shopping mall. We also stepped up As a company with a rich history, we Investment and Healthcarec Sukhothai Shanghai. We are humbled green efforts in our city management respect heritage and wish to preserve Management a by the faith and trust our customers and hospitality operations through the and share the journey of development place in us, and we intend to fulfil our introduction of numerous measures, with the wider community. During responsibility to serve them with passion as described in this Report. Our newly- the development of HKRI Taikoo Hui, and dedication. Forging ahead to our next opened hotel in mainland China, The the historical Dazhongli’s architectural 40 years, we remain committed to serving Sukhothai Shanghai, which also earned characteristics were incorporated into the the interests of our stakeholders, which LEED® Certification, has incorporated master plan and extensive efforts were Hospitalityb includes enhancing our performance in a series of sustainable practices in taken to preserve trees and a century- environmental, social and governance architectural design and material selection old building. I was overjoyed to see the (“ESG”) aspects and keeping them to reduce negative environmental impact. building’s re-birth after years of careful updated in a thorough and transparent With the combined efforts of the different planning and meticulous restoration. Now manner with our fourth ESG Report operations, our carbon emissions and re-named “Cha House”, the preserved (the “Report”). This year, we further electricity consumption in Hong Kong and building symbolises our utmost respect extended the scope of our Report to cover mainland China have been reduced by and admiration for HKRI’s founder, my hospitality and property development approximately 3% and 5%, respectively late father, The Honourable Dr CHA operations in Thailand to increase our as compared to 2017/2018. Chi-ming. The opening exhibition was transparency. well received by those in attendance, This Report discloses the Group’s ESG performance, while details of our corporate governance and financial performance can be found We believe that respecting and caring marking the building’s transformation into in our Annual Report 2018/2019. To aid readers in navigating the Report content, a Content Index is available for reference on pages Climate change and severe adverse for employees is crucial to the long- a destination for local and tourists alike. 52 to 53. weather conditions have already posed term success of a company. Cultivating a imminent issues to our society. As part desirable company culture and providing We hope that by staying devoted and The Report has been prepared in accordance with the ESG Reporting Guide (“ESG Guide”), Appendix 27 to the Rules Governing the of the community, we are prepared to opportunities for professional and committed to our core values, we can Listing of Securities on The Stock Exchange of Hong Kong Limited issued by Hong Kong Exchanges and Clearing Limited (“HKEx”). shoulder our responsibilities to protect personal development have always been continue to grow, not only our own our home and create a better living our main objectives. HKRI continues to business, but also the communities we Your feedback is valuable to our continuous improvement. Please email your queries, comments or suggestions to [email protected]. environment for everyone. Starting maintain and promote work-life balance serve and our valuable stakeholders. from our home base in Hong Kong, we for our employees through staff benefits, a operate according to the Group’s (HKRI initiatives and activities. Recognising the CHA Mou Zing Victor The reporting scope has been expanded to include the Group’s property development projects in Thailand. The Report excludes quantitative disclosures related to HKRI Taikoo Hui, a joint-venture with Swire Properties Limited opened by stage since November 2017 in Shanghai. and its subsidiaries) Sustainability Policy importance of succession planning, we Deputy Chairman & Managing Director b The reporting scope covers operations based in Hong Kong and Thailand and includes qualitative report from operations in mainland China. and spread our green footprint across have also focused on attracting the right c The reporting scope is confined to operations based in Hong Kong. d Discovery Bay is based in Hong Kong. 4 HKR International Limited ESG Report 2018/2019 ESG Report 2018/2019 HKR International Limited 5 ABOUT HKRI OUR SUSTAINABILITY APPROACH To be the pioneer of innovative living space Vision: In 1977, the family of Dr CHA Chi-ming, the late Corporate Governance provides guidance for the development the Group has a sound risk management founder and chairman of a group of companies whose and implementation of the Group’s framework and governance structure, holding entity later became known as HKRI, acquired The Group is devoted to adopting sustainability strategies. A cross- which consists of the Board, the Audit the equity interest of Hong Kong Resort Company best practices in corporate governance departmental sustainability task force is Committee, risk management steering Limited, the owner and developer of Discovery Bay and safeguarding the interests of our also in place to effectively carry out the group and business lines. Guided by on Lantau Island. Formed in 1989, HKRI became the shareholders and stakeholders. The Board sustainable policies and practices decided our Risk Management Policy, the risk We strive to create a healthy, stylish and holding company of the Group listed on The Stock of Directors has the overall responsibility by the Board. management steering group identifies, Exchange of Hong Kong Limited. distinctive living experience through assesses and prioritises risks, establishes teamwork and passionate pursuit of for ensuring effective corporate Mission: innovation and excellence governance across the Group as well Under the Board’s oversight, key risk mitigation plans and assigns risk Living up to the vision and aspirations of the late Dr as providing strategic direction and procedures have been developed owners to closely monitor identified risks CHA, the Group has seized opportunities to diversify guidance to management on operations, and implemented to ensure there and implement mitigation plans. Through its business interests in real estate development and sustainability strategy and reporting. are appropriate and effective risk this established procedure, we work to investment, property management, luxury hotels and The Board comprises 11 Directors: four management and internal control systems. strategically address and minimise the ESG serviced apartments, healthcare services and other Executive Directors and seven Non- These are independently reviewed by the risks in our operations and supply chains. investments in Hong Kong, mainland China and across executive Directors of whom four are Internal Audit Department which regularly Further information can be found in the Asia. Throughout the years, we have incorporated Independent Non-executive Directors, presents audit findings to the Audit Corporate Governance Report on pages a holistic approach to our business that benefits our with the latter constituting more than Committee and the Board. To ensure risk 63 to 82 of the Group’s Annual Report stakeholders and supports sustainable development Values: