2020 Progress

This year, our Performance (Economic) Working Group, made up of 12 representatives from different functions within the Company, worked to achieve our 2020 KPIs in the focus areas under this Pillar: Financial Performance, Green Financing, Corporate Governance, Risk Management, Disclosure and Reporting, and Investor Relations.

In 2020, we achieved all of our 2020 KPIs. We plan to augment our SD-related economic policies, particularly those relating to green financing, as we work towards our 2025 and 2030 KPIs. Our progress this year is summarised in the table below.

Financial Performance

Underlying Profit | Dividends | Gearing Ratio and Credit Rating

2020 KPI

Green Financing

Green Bonds

2020 KPI
  • Review, develop and issue Swire Properties’ first green bond
Progress Updates in 2020
  • As at the end of 2020, approximately 30% of our current bond and loan facilities came from green financing. Our first green bond was issued in January 2018 and raised US$500 million for green projects. We launched four more green bonds in 2020. Our Green Finance Report was published in December 2020.
  • In 2020, we converted two existing loans into sustainability-linked loans and secured another HK$1 billion sustainability-linked loan. These loans have interest rates indexed against improvements in the Company’s year-on-year ESG performance.
  • In August 2020, we secured a five-year HK$1 billion green loan facility which will fund ongoing green building developments and allow us to adopt technologies that will save energy and water and reduce waste.

Internal Fund

2020 KPI
  • Participate in the Swire Pacific SD Fund
Progress Updates in 2020
  • Two innovative pilot projects related to waste management and energy efficiency have received funding approval and are currently being implemented.

Corporate Governance

Whistleblowing Policy

2020 KPI
  • Follow best practice whistleblowing policy
Progress Updates in 2020

Anti-bribery and Anti-corruption

2020 KPI
  • Annual bribery and corruption risk review by the Executive Committee (“EXCOM”)
Progress Updates in 2020
  • An anti-bribery questionnaire covering the 2020 reporting period has been submitted to EXCOM for review.

Responsible Investment

2020 KPI
  • Incorporate SD criteria into our investment assessment process
Progress Updates in 2020
  • In Hong Kong, we developed and adopted a new due diligence checklist with SD criteria to underpin more structured and systematic processes for responsible investment.

Executive Compensation

2020 KPI
  • Continually review executive compensation through the Remuneration Committee
Progress Updates in 2020
  • The Remuneration Committee continually reviews executive compensation.
  • We have established corporate SD performance metrics that are linked to the Chief Executive's variable compensation for 2021. The metrics include performance targets for health and safety, and energy management.

Risk Management

ERM System

2020 KPI
  • Review ERM System, including corporate risk identification, review and mitigation processes
Progress Updates in 2020
  • We completed the update of our Corporate Risk Register to incorporate additional SD-related risks and integrate SD factors into our corporate risk analysis.
2020 KPI
  • Integrate SD factors into corporate risk analysis
Progress Updates in 2020
  • Any SD-related risks identified in future materiality assessments will be considered and integrated into our Corporate Risk Register, if deemed appropriate.

Business Recovery Plan (“BRP”)

2020 KPI
  • Conduct a BRP drill exercise once every two years or on an as-needed basis
Progress Updates in 2020
  • A BRP drill was conducted in 2019 and a business recovery team training workshop for alternate team members was conducted in 2020.
2020 KPI
  • Ensure all portfolios have local crisis response plans in place
Progress Updates in 2020
  • A cyber incident simulation exercise was conducted for members of our incident response team.
  • Local crisis response plans are in place for all portfolios.

Disclosure and Reporting

Disclosure Benchmarks and SD Indices

2020 KPI
  • Disclose SD information in accordance with requirements of relevant major global sustainability benchmarks
Progress Updates in 2020

Investor Relations

Direct

2020 KPI
  • Meet regularly with investors specialising in Environmental, Social and Governance (“ESG”) investments
Progress Updates in 2020
  • With in-person events being cancelled for much of 2020, we instead arranged a webinar in June 2020 for more than 60 investors and analysts. Senior management provided updates on SD 2030 and sustainability-related achievements.

Indirect

2020 KPI
  • Actively participate in investor-led ESG platforms
Progress Updates in 2020
  • We continued to participate in investor-led platforms, such as GRESB, from which we received a five-star rating.

See More In

Climate-related Financial Disclosures

We publish climate-related financial disclosures in four categories: Governance, Strategy, Risk Management, and Metrics and Targets.

Risk Management and Internal Controls

Our Board and management identify and analyse the risks underlying the achievement of business objectives and determining how such risks should be managed and mitigated.

Green Financing

We are committed to integrating sustainability considerations into our financing mechanisms.

Climate-related Financial Disclosures

We publish climate-related financial disclosures in four categories: Governance, Strategy, Risk Management, and Metrics and Targets.

Risk Management and Internal Controls

Our Board and management identify and analyse the risks underlying the achievement of business objectives and determining how such risks should be managed and mitigated.

Green Financing

We are committed to integrating sustainability considerations into our financing mechanisms.