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.

Board Of Directors

Our Board of Directors (“the Board”) is actively engaged in formulating and implementing our SD 2030 Strategy. The Board oversees SD issues, with material SD issues and the progress of the 2020 key performance indicators (“KPIs”) reported to it by the Sustainable Development Steering Committee (“SD Steering Committee”) and discussed at our quarterly board meetings.

The Board provides oversight of our risk management framework and our SD risks, including climate-related risks. Material SD issues are reported and discussed at quarterly board meetings. We also conduct regular risk identification, analysis and review management processes throughout the year through the Audit Committee and our Enterprise Risk Management (“ERM”) System, including our Corporate Risk Register.

SD Steering Committee

Our SD Steering Committee is chaired by the Chief Executive. Other members are the Finance Director and five members of our senior management from the development and valuations, human resources and administration, portfolio management, and technical services and sustainable development departments.

The Chairman of the SD Steering Committee reports relevant SD matters to the Board, as appropriate.

In accordance with its terms of reference, the SD Steering Committee is responsible for reviewing the Company’s SD 2030 Strategy and ensuring that the Company’s operations and practices are carried out in line with the strategy.

The SD Steering Committee reviews the Company’s performance in terms of KPIs and SD initiatives that have been recommended by the SD working groups which report to the SD Steering Committee on a regular basis.

SD Working Groups

Each Pillar is supported by a working group. In 2020, these SD working groups delivered on KPIs for 2020 (“2020 KPIs”) for each Pillar and set KPIs for 2025 and 2030. Read more about our 2025 and 2030 KPIs here.

The members of each SD working group are carefully selected to ensure that employees with different backgrounds, types of expertise and varying levels of seniority and work experience are included.

Communication and Engagement Committee

Our SD Communication and Engagement Committee identifies, prioritises and oversees the implementation of communication and engagement plans for initiatives that support our SD 2030 Strategy. It is chaired by our Director, Marketing, Communications and Digital. This Committee also includes representatives from different functions within the Company. Read more about what this Committee accomplished in 2020 here.

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.

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.

See More In

Supporting the UN Sustainable Development Goals

We support the United Nations Sustainable Development Goals, which aim to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030.

Corporate Governance

We are committed to conducting our affairs in accordance with high ethical standards, acting with probity, transparency and accountability.

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.

Supporting the UN Sustainable Development Goals

We support the United Nations Sustainable Development Goals, which aim to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030.

Corporate Governance

We are committed to conducting our affairs in accordance with high ethical standards, acting with probity, transparency and accountability.

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.