SD Governance Structure
Our SD governance framework builds on our strong foundations of good corporate governance and high ethical standards.
Our SD 2030 Strategy seeks to reinforce these foundations by integrating economic, social, and environmental considerations into all levels of our business decision making processes.
Our SD 2030 Strategy seeks to reinforce these foundations by integrating economic, social, and environmental considerations into all levels of our business decision making processes.
Sustainable Development Policy
GRI 102-11
Our Sustainable Development Policy (“SD Policy”) was first published in 2008 and has guided the Company’s operations for more than a decade. It reflects our belief that long-term value creation depends on the sustainable development of our business, our supply chain and the communities in which we operate. These factors are always considered during the inception, design, construction, occupation, and demolition phases of our development projects.
The SD Policy explicitly states that the Company will be a good steward of the natural resources and biodiversity within our influence and that we will ensure that all potentially adverse impacts of our operations are identified and managed appropriately.
With respect to the environment, our approach follows the precautionary principle2 which states, “Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation.”
We strive to operate in a manner that safeguards the health and safety of all of the people with whom we work. We also strive to be an employer of choice by providing a working environment in which all employees are treated fairly and with respect so that they can realise their full potential.
2 | The precautionary approach is referred to in Principle 15 of The Rio Declaration on Environment and Development. |
Swire Properties’ Policies
Our SD Policy is supported by the following related policies that focus on specific environmental and social impacts:
Integrating SD into our Business Operations
Employee Engagement
Support from our employees is vital to the success of our SD 2030 Strategy. In 2018, we modified our performance development review system to further engage our employees in our SD Strategy. As a result, our office employees now align their annual performance goals with each Pillar, further engaging them in our SD 2030 Strategy.
Support from our employees is vital to the success of our SD 2030 Strategy. In 2018, we modified our performance development review system to further engage our employees in our SD Strategy. As a result, our office employees now align their annual performance goals with each Pillar, further engaging them in our SD 2030 Strategy.
Business Integration and Budgeting
In 2020, we continued to implement SD initiatives in our day-to-day operations and decision-making at both the asset and functional levels of all our major business units in Hong Kong and the Chinese mainland.
All our major business units also incorporated SD considerations into their annual budgets and shared proposed budget allocations with the relevant SD working groups.
In 2020, we continued to implement SD initiatives in our day-to-day operations and decision-making at both the asset and functional levels of all our major business units in Hong Kong and the Chinese mainland.
All our major business units also incorporated SD considerations into their annual budgets and shared proposed budget allocations with the relevant SD working groups.
Corporate Risk Management
Our Corporate Risk Register (“CRR”) incorporates SD-related risks, such as climate-related risks, to ensure SD factors are considered when conducting our corporate risk analysis.
In 2020, to validate the findings of the top-down risk identification exercise we completed in 2019, we conducted a risk dimensioning workshop and two virtual risk identification workshops with business unit leaders and department heads in Hong Kong and the Chinese Mainland respectively. The major risks of the company were reviewed, validated and ranked during these workshops. A new dashboard format for the Corporate Risk Register was also adopted, facilitating a clearer and more precise presentation of our risk profile.
Our Corporate Risk Register (“CRR”) incorporates SD-related risks, such as climate-related risks, to ensure SD factors are considered when conducting our corporate risk analysis.
In 2020, to validate the findings of the top-down risk identification exercise we completed in 2019, we conducted a risk dimensioning workshop and two virtual risk identification workshops with business unit leaders and department heads in Hong Kong and the Chinese Mainland respectively. The major risks of the company were reviewed, validated and ranked during these workshops. A new dashboard format for the Corporate Risk Register was also adopted, facilitating a clearer and more precise presentation of our risk profile.
Green Financing
Swire Properties has launched various green financing mechanisms to fund our green building development and other projects. These include our first green bond, issued in January 2018 and our first sustainability-linked loan, which was obtained in July 2019, the interest rate of which is indexed against improvement in the Company’s year-on-year environmental, social and governance (“ESG”) performance.
In 2020, our commitment to green financing deepened further, with the issuance of four more green bonds totalling HK$1,934 million. We also converted two existing loans into sustainability-linked loans, secured a HK$1 billion sustainability-linked loan with DBS and our first green loan, a five-year HK$1 billion facility with OCBC Bank.
We also issued our Green Finance Report in 2020, which provides information on projects funded by the green bonds and their estimated quantitative environmental impacts, including energy and water savings, renewable energy generation and wastewater management impacts.
Swire Properties has launched various green financing mechanisms to fund our green building development and other projects. These include our first green bond, issued in January 2018 and our first sustainability-linked loan, which was obtained in July 2019, the interest rate of which is indexed against improvement in the Company’s year-on-year environmental, social and governance (“ESG”) performance.
In 2020, our commitment to green financing deepened further, with the issuance of four more green bonds totalling HK$1,934 million. We also converted two existing loans into sustainability-linked loans, secured a HK$1 billion sustainability-linked loan with DBS and our first green loan, a five-year HK$1 billion facility with OCBC Bank.
We also issued our Green Finance Report in 2020, which provides information on projects funded by the green bonds and their estimated quantitative environmental impacts, including energy and water savings, renewable energy generation and wastewater management impacts.