We work closely with our suppliers to collect accurate and up-to-date information about their environmental, social and governance practices and performance.
Our e-Contractor List Management System is integrated with our vendor requisition process in Hong Kong and the Chinese Mainland. This automated platform facilitates supplier selection, management and performance analysis and allows for timely updates of supplier information.
In order for new suppliers to be included on the list of approved contractors, they must first complete self-assessment questionnaires to confirm they have appropriate policies and systems in place to comply with our SCoC. We monitor the compliance status of suppliers on our approved contractors list on an ongoing basis. In addition to requesting regular self-assessments, we may also undertake supplier site visits, request that our suppliers obtain independent certification in accordance with internationally recognised standards and submit environmental and health and safety management plans for our internal review.
Since 2019, we have continuously refined our performance management system for technical services providers. Any act of non-compliance or malpractice in the areas of health and safety, environment, procurement, quality and site management is recorded, and the technical provider will be subject to disciplinary action.
In 2021, we conducted a risk assessment of over 300 Tier-1 suppliers, identified as either critical suppliers, high-volume suppliers, high-spending suppliers, or non-substitutable suppliers, to confirm their compliance with our SCoC, and there was no violation of human rights issues. These suppliers are based in Hong Kong, the Chinese Mainland and the U.S.A., and together they contributed to more than half of our procurement spend in 2021. There were also no incidents of human rights violations identified across our operations in 2021.
According to our findings, none of these suppliers were considered “high risk” under our Enterprise Risk Management System (“ERM System”).
Since 2021, our technical services and sustainable development department has conducted on-site inspections for selected technical contractors in Hong Kong. These inspections are essential to fulfilling our ISO 14001 environmental management system requirements. No non-compliance or malpractice incidents were recorded in 2021. Through these inspections, several opportunities for continual improvement were identified and we are communicating with the responsible parties to initiate follow-up actions.