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Sourcing Sustainably
We promote supply chain sustainability by choosing local suppliers, where possible,
to minimize our carbon footprint and support the local economy. We also support local
entrepreneurship by involving small, medium or social enterprises in our supply chain. Over
95% of our purchases were sourced locally – out of the total of HK$32.8 billion – for the
reporting period.
In line with the requirements of ISO 14001 Environmental Management System, our
procurement policies give priority to eco-friendly contractors and suppliers. Our supplier
contracts include commitments to observing our environmental standards, which cover the
areas of waste management, pollution prevention, materials sourcing and materials use.
Managing Sustainable Supply Chain
We strive to make a positive impact on our supply chain by setting a set of expectations on
environmental, social and ethical standards. Guidance is provided in invitations to tender
and supplier contracts. Training courses are provided to suppliers to help them gain a better
understanding of our quality standards and core values.
We are committed to operating in accordance with local laws and regulations. Similarly, we
expect our suppliers to operate with integrity, treat their people fairly and adhere to a code
of conduct, with reference to our Environmental, Occupational Health and Safety policies, as
well as strict standards on corporate governance.
Supplier compliance is evaluated and monitored on a regular basis. For example, our
construction and property management businesses assess contractors and suppliers
biannually on their sustainability performance. We identify opportunities for best practice
sharing and encourage honest and accurate disclosure. Performance is logged in our tender
management system and is taken into consideration in future supplier selection processes.
Any violation of the law or serious misconducts can result in exclusion from invitation to
future tendering opportunities.
Similarly, for food sourcing at hotels, we carry out strict supplier audits annually at all points
along the supply chain. We particularly focus on high risk food items such as oysters and
other ready-to-eat food. The audit covers personal hygiene, food processing and storage
temperature, pest control management, equipment cleaning, waste management and
chemical storage management. During 2014/15, over 95% of our suppliers achieved
satisfactory results during our assessments; those who failed were immediately suspended
from our list of approved suppliers.
Utilities
Facilities
(Maintenance, renovation works,
security, cleaning, catering, etc.)
20%
13%
30%
17%
2%
6%
54%
<1%
18%
1%
81%
14%
8%
7%
7%
23%
Office supplies
(Stationery, toner,
cartridges, copy
machine rental,
metre charges
and papers,
etc.)
Consultants
(Building surveying)
Suppliers
(Building
materials,
equipment,
etc.)
IT/Telecoms
(Computer hardware,
software, maintenance,
telephone headsets, etc.)
Suppliers
(Uniform,
maintenance
materials, etc.)
Facilities
(Maintenance, renovation
works, security, cleaning, etc.)
Subcontractors
(Fabrication, installation
works, construction workers, etc.)
IT / Telecoms
(Computer
hardware,
software,
maintenance,
telephone,
etc.)
Utilities
(Electricity,
water, etc.)
Facilities
(Maintenance,
renovation works,
security, cleaning,
etc.)
Facilities
(design,
construction,
maintenance,
security,
cleaning, etc.)
General supplies
(Non-food & beverage items,
transportation service, operating
equipment, maintenance materials)
Other
Other
Food &
beverages
Utilities
(Electricity,
water, etc.)
Utilities
(Electricity,
water,
etc.)
IT
(computer
hardware, software,
maintenance, etc.)
Facilities
(design,
construction,
maintenance, security,
cleaning, etc.)
Utilities
(Electricity,
water, etc.)
Others
22%
28%
1%
56%
83%
17%
92%
Head Office
Construction
Property
Management
Hotel
Telecom-
munications
IT
Infrastructure
Procurement Breakdown by Operation and Type
Value Created for Supply Chain
30
Sun Hung Kai Properties Limited Sustainability Report 2014/15