WEBSITE MENU Introduction The City Unlimited: Sustainabilty Report 2016 About this report Scope of this report About MTR corporation Value chain, materiality and stakeholder engagement Chairman’s Message CEO Letter Safety Customers Community Environment Staff Supply Chain Financial and Economic Performance Corporate Governance Building Our Future Mainland of China and International Business Performance Metrics 1 WEBSITE MENU CONTENT Introduction 1 Building Our Future 129 Introduction Environment 65 The City Unlimited: 2 Introduction 66 Introduction 130 Chairman’s Message Sustainabilty Report 2016 Sustainable Resource Use 69 2017 and Beyond 132 About this report 3 CEO Letter Climate Change 74 MTR Academy – Nurturing Future 137 Safety Scope of this report 4 Environmental Protection 78 Railway Professionals About MTR corporation 9 Preparing for a Changing World 138 Customers Value chain, materiality and 18 Staff 82 stakeholder engagement Community Introduction 83 Mainland of China and 140 International Business Environment Recruitment in Hong Kong 88 Chairman's Message 5 Introduction 141 Staff Training and Development 90 Nurturing our Corporate Culture 91 MTR in the Mainland of China 144 Supply Chain CEO Letter 7 MTR in Europe 150 Financial and Economic Supply Chain 94 MTR in Australia 161 Safety 25 Performance Introduction 95 Introduction 26 Performance Metrics 169 Corporate Governance Supply Chain Assessment 98 Customer Safety 33 Engagement and Collaboration 101 Introduction 170 Staff and Contractor Safety 37 Building Our Future with Suppliers Independent Assurance Report 172 Mainland of China and Performance Data Tables 175 Customers 41 Financial and Economic 103 International Business CoMET Benchmarking Results 194 Introduction 42 Performance Performance Metrics 2015 Train Service Performance 46 Introduction 104 Appendices 198 Responding to Challenges 47 Fares for Hong Kong Transport 107 Operations Customer Services in our 51 Properties Rail Plus Property Model 112 Customer Service in Station 52 Green Bond 115 Retail Shops Corporate Governance 121 Community 53 Introduction 122 Introduction 54 Fair and Ethical Business 127 Community Engagement 55 Risk Management 128 Community Railway 58 Invest in Our Communities 60 2 WEBSITE MENU Introduction The City Unlimited: Sustainabilty Report 2016 About this report Scope of this report About MTR corporation Value chain, materiality and stakeholder engagement INTRODUCTION Chairman’s Message Our vision is to be a leading multinational CEO Letter company that connects and grows communities with caring service. We do Safety more than just transporting people. As a Customers corporate citizen, we leverage our assets, skills, and resources to connect, grow and Community support communities to help them thrive. Environment Staff Supply Chain Financial and Economic Performance Corporate Governance Building Our Future Mainland of China and 230.9 km 1979 Total Route length The year when International Business in Hong Kong. the first MTR Performance Metrics line opened in Hong Kong. 1 WEBSITE MENU THE CITY UNLIMITED: SUSTAINABILITY REPORT 2016 Our cities are full of possibilities. Introduction Possibilities of unexpected meetings The City Unlimited: that turn into life-long friendships, social Sustainabilty Report 2016 meetings that strengthen our communities, About this report educational opportunities that lead to Scope of this report successful careers. About MTR corporation But the possibilities our cities have to offer Value chain, materiality and Emily’s Journey NORTH only matter if people are connected to to Tsing Yi Hayes’s Journey stakeholder engagement to Shek Kip Mei them. For the first time, MTR is connecting Read the story all of Hong Kong’s 18 districts. We enable Read the story our customers to seize the city’s unlimited TAI PO Chairman’s Message possibilities and unleash their potential, one YUEN LONG CEO Letter smooth ride at a time. TUEN MUN SHA TIN Safety In this year’s report, we explore what it TSUEN WAN takes to connect the entire city to all the Customers KWAI TSING WONG possibilities it has to offer. TAI SIN SHAM SAI KUNG SHUI PO KOWLOON Community CITY YAU TSIM KWUN TONG Stories from subsidiaries outside of Hong Kong MONG Environment Isaac’s Journey to HKU EASTERN CENTRAL & WESTERN Staff Read the story WAN CHAI LANTAU SOUTHERN Supply Chain Melbourne Stockholm Shenzhen London Financial and Economic Performance Annie’s Journey to Jordan Corporate Governance Read the story Building Our Future Mainland of China and Keith’s Journey to Lei Tung International Business Lonetta’s Journey to Read the story Performance Metrics Whampoa Read the story 2 WEBSITE MENU ABOUT THIS REPORT Introduction How to Read This Report External Review Panel This year we continue to report in two different but complementary ways to We convened our third External Review Panel to provide both independent The City Unlimited: provide information to our stakeholders: advice on our plans for sustainability reporting and also feedback on a Sustainabilty Report 2016 draft of this report and our 2016 materiality matrix. The panel members, 1. Our printed pamphlet features journeys of our customers to their About this report all based in Hong Kong, were chosen for their extensive experience favourite places – places that they are connected to by the MTR. There across different aspects of sustainability reporting. We are grateful for the Scope of this report are highlights from behind-the-scenes to show how we make these comments received, all of which have been carefully considered during the About MTR corporation connections possible. To us, this is our mission to connect and grow preparation of the final report. Value chain, materiality and communities with caring services, in a responsible and sustainable manner. stakeholder engagement This year’s panel are: 2. The dedicated report microsite and interactive PDF provide full details regarding our management approaches, programmes and Shirlee Algire Mike Kilburn Chairman’s Message key performance indicators (KPIs) across a wide range of issues. You Executive Manager – Acting General Manager, Sustainability, Hong Sustainability, Hong Kong can also find additional topics, such as information about our future CEO Letter Kong Jockey Club Airport Authority plans. While the report website mainly focuses on our businesses in Safety Hong Kong, information on our overseas subsidiaries can be found in the Mainland of China and International Business section. Customers Jane Lau Jessica Robinson CEO, Senior Advisor at Principles Community UNICEF Hong Kong for Responsible Investment (UN PRI) Environment Staff Robert Gibson Calvin Lee Kwan Fellow, Civic Exchange General Manager, Supply Chain and Adjunct Professor, Sustainability, Link REIT Hong Kong University of Financial and Economic Science and Technology Performance Simon Ng Agnes Tai Corporate Governance Independent Consultant Director, Great Glory Building Our Future Investment Corporation Mainland of China and International Business SK Wu Performance Metrics Risk Manager, Alliance Construction Materials Limited 3 WEBSITE MENU Sustainability Reporting Guidelines SCOPE OF THIS REPORT Since we started our sustainability reporting journey in 2001, our report has made reference to the recognised reporting guideline. The current report This report covers material issues arising from the Company’s principal Introduction has been prepared in accordance with the Global Reporting Initiative G4 activities in Hong Kong during 2016 (1 January to 31 December) with Sustainability Reporting Guidelines (GRI-G4) Core option. We have provided reference to our Materiality Matrix and with particular focus on impacts The City Unlimited: a GRI Content Index, which includes cross-references to the International arising from our railway operations, which are the core of our business and Sustainabilty Report 2016 Association of Public Transport (UITP) Sustainability Charter Reporting account for the major share of our revenues. About this report Guide 1.0 and ISO26000 Guidance on Social Responsibility. Please click Scope of this report here for a list of Identified Material Aspects and Boundaries. About MTR corporation About Our Subsidiaries We have also provided a HKEx ESG Content Index in order to demonstrate Value chain, materiality and our current level of compliance with the 2015 Revision of the Hong Kong We refer to subsidiaries as wholly or majority owned entities over which the stakeholder engagement Stock Exchange Environmental, Social and Governance Reporting Guide Company has management control, and associates as entities over which (HKEx ESG Guide). the Company has significant influence but not control or joint control. Discussion of their sustainability management and achievements are Chairman’s Message included in the Mainland of China and International Business section, and CEO Letter Independent Assurance quantitative KPIs are included in the Performance Metrics section. Safety Deloitte Touche Tohmatsu has provided an independent assurance report In general, other chapters in this report do not address sustainability for selected quantitative data. impacts arising from activities of our subsidiaries and associates outside Customers of Hong Kong. The exception is when there is direct relevance for our Community businesses or stakeholders in Hong Kong. We are committed to working with our subsidiaries to promote disclosure of environmental, social and Environment governance impacts. Staff We are also including KPIs from material