ALL IN ALL CARE - ESG REPORT 2019/2020 - HKR International Ltd.

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ALL IN ALL CARE - ESG REPORT 2019/2020 - HKR International Ltd.
ALL IN
           ALL CARE

ESG REPORT 2019/2020
ALL IN ALL CARE - ESG REPORT 2019/2020 - HKR International Ltd.
CONTENTS
02   MESSAGE FROM MANAGEMENT
03   ABOUT THE REPORT
04   ABOUT HKRI
04   OUR SUSTAINABILITY APPROACH
10   MEMBERSHIPS AND AWARDS
12   CHERISHING OUR ENVIRONMENT
26   VALUING OUR PEOPLE
36   CARING FOR OUR COMMUNITY
44   OPERATING RESPONSIBLY
52   PERFORMANCE DATA SUMMARY
61   HKEX ESG REPORTING GUIDE
     CONTENT INDEX
ALL IN ALL CARE - ESG REPORT 2019/2020 - HKR International Ltd.
MESSAGE FROM MANAGEMENT                                                                                                              ABOUT THE REPORT

                                                                                                                                         Reporting Scope and Standard
    Together we can overcome every                                                                                                       This ESG Report (“Report”) is produced                  HKRI holds diversified business interests               businesses, joint ventures and subsidiaries
    challenge, becoming stronger and wiser                                                                                               by HKRI to communicate the Group’s
                                                                                                                                         (“HKRI and its subsidiaries”) sustainability
                                                                                                                                                                                                 across Hong Kong, mainland China and
                                                                                                                                                                                                 Asia. As an ongoing effort to enhance our
                                                                                                                                                                                                                                                         operated by HKRI in Hong Kong, mainland
                                                                                                                                                                                                                                                         China and Thailand as reported in last year.
    to do the right thing.                                                                                                               management approach and performance
                                                                                                                                         in four key areas: environment, human
                                                                                                                                                                                                 transparency and reflect our geographic
                                                                                                                                                                                                 footprint, this year we increased the
                                                                                                                                                                                                                                                         We decided to emphasise on our core
                                                                                                                                                                                                                                                         operations which have significant
                                                                                                                                         capital, community and value chain. The                 disclosures to include quantitative                     contribution to the Group in terms of
                                                                                                                                         Report covers the period from 1 April                   information of HKRI Taikoo Hui's                        asset size, profitability and staff strength.
                                                                                                                                         2019 to 31 March 2020 (the “year”).                     operations in Shanghai in addition to the               Reporting scope is listed in the chart below:

                                                                                                                                         This Report discloses the Group’s ESG performance, while
                                                                                                                                         details of our corporate governance and financial performance
                                                                                                                                         can be found in our Annual Report 2019/2020. To aid readers
                                                                                                                                         in navigating the Report content, a Content Index is
                                                                                                                                         available for reference on pages 61 to 62.

    2019/2020 was a bittersweet year             that we can support through our social     In early 2020, the outbreak of COVID-19      The Report has been prepared in accordance with the                                       Property                        Property Investment and
    for us. While celebrating the Group’s        and environmental initiatives. Keeping     sadly posed significant threats to           ESG Reporting Guide (“ESG Guide”), Appendix 27                                          Development a                          Management a
    30th listing anniversary on The Stock        up with the latest market trends and       mankind. Putting the health and safety       of the Rules Governing the Listing of Securities on
    Exchange of Hong Kong Limited                standards in relation to sustainability    of our employees, customers and every        The Stock Exchange of Hong Kong Limited issued
                                                                                                                                         by Hong Kong Exchanges and Clearing Limited
    (the “Stock Exchange”) with all our
    stakeholders, we were adversely
                                                 governance, we established the ESG
                                                 Committee on top of the existing
                                                                                            community member as top priority, we
                                                                                            immediately took all possible measures.      (“HKEx”). In response to the latest revisions                                                               Operations
    affected by the social event and the
    economic downturn followed by the
                                                 CSR task force, to further increase
                                                 the involvement of the Board and
                                                                                            Other than performing intensified cleaning
                                                                                            and disinfection works and keeping
                                                                                                                                         effective for financial year commencing on or
                                                                                                                                         after 1 July 2020, we have further enhanced our
                                                                                                                                                                                                                                                    of the Group
    spread of COVID-19 pandemic in the           senior management. Through the ESG         our customers updated on the latest          reporting framework to address most of the newly
                                                                                                                                                                                                                                                                                Discovery Bay
    second half of the year. These issues        Committee, the relevant risks and          situation, we also took extra measures       introduced reporting requirements and disclosed                                Healthcared                                          City Management &
    together posed challenges not only           opportunities are thoroughly evaluated     to help those who were subject to home       our full process in ESG governance and materiality
                                                                                                                                         assessment.                                                                                                                           Transportationb
    on our operations, but also on our           and integrated into our overall strategy   quarantine and offered rental concession
    Environmental, Social and Governance         in order to work towards a better          to help the tenants in need to overcome
    (“ESG”) performance.                         common future. Supplementary policies      difficulties. To keep our employees safe,    Your feedback is valuable to our continuous improvement.
                                                 are put in place to guide sustainable      proper protective gears were provided        Please email your queries, comments or suggestions to
    In 2019, HKR International Limited           development across our diverse business    and special work arrangements including      info@hkri.com.                                                                                                 Hospitality c
    (“we”, “HKRI” or the “Company”)              portfolio.                                 work from home and utilisation of online
    continued to strive for perfection and                                                  video conferencing tools have been
    create a harmonious and rewarding            We are pleased to see the remarkable       adopted since February 2020. We believe      Reporting Principles
    lifestyle in the communities we built.       progress we have made in building          that together we can overcome every
    Decades of commitment and excellence,        comfortable accommodation, vibrant         challenge, becoming stronger and wiser       The following principles have been adopted in the preparation of this Report:
    together with the long-standing              workplace and supportive communities.      to do the right thing.
    support from our stakeholders, helped        With the advancement of green
                                                                                                                                                 Materiality: information deemed ESG important is                                 Quantitative: quantitative information is provided with
    us succeed as a leading multinational        technology, we keep tabs on the            Looking forward, I would like to
                                                                                                                                                 covered in this Report. A materiality assessment exercise                        narrative and comparative figures where possible. The relevant
    corporation to embrace sustainable           concept of sustainable community,          thank all of our stakeholders who
                                                                                                                                                 was conducted for determination of material ESG issues                           standards, methodologies as well as assumptions used to prepare
    growth, which in return, has become          leveraging green construction              have stayed with and supported HKRI
                                                                                                                                                 with results approved by the ESG Committee.                                      the quantitative information are disclosed as appropriate.
    a key motivation for us to make              techniques and designs to combat           tremendously throughout the years. We
    continuous contributions back to the         climate change, as well as mitigating      hope the impacts we have made will
                                                                                                                                                 Consistency: ESG data are prepared and presented using                           Balance: information is presented without selections, omissions
    community.                                   our environmental impact. The              continuously influence society positively
                                                                                                                                                 consistent methodologies, unless otherwise specified, to                         or other forms of manipulation that may potentially affect the
                                                 harmonious balance between nature          and maintain over time. Joining hands
                                                                                                                                                 allow for meaningful comparison.                                                 objectiveness of the Report.
    As the pioneer in Asia in bringing           and built infrastructure as presented      with our valuable stakeholders, we are
    innovative and distinctive living concept    in our property development projects       committed to growing our business and
    for our customers to a new level,            further enhances the quality of living.    devoting ourselves for another 30 years      a
                                                                                                                                             The Report covers the Group’s property development and investment projects in Hong Kong, mainland China and Thailand, including the newly added quantitative
    we have responded to the global              Practised on a daily basis, our eco-       and more.                                        information of HKRI Taikoo Hui in Shanghai.
    call for sustainable development and         friendly initiatives in city management
                                                                                                                                         b
                                                                                                                                             Discovery Bay is based in Hong Kong.
                                                                                                                                         c
                                                                                                                                             The reporting scope covers operations based in Hong Kong, mainland China and Thailand.
    identified six areas in the United Nations   and hospitality operations are effective   CHA Mou Zing Victor                          d
                                                                                                                                             The reporting scope is confined to operations based in Hong Kong.
    Sustainable Development Goals (SDGs)         in driving positive changes.               Deputy Chairman & Managing Director

2                                                                                    HKR International Limited ESG Report 2019/2020      ESG Report 2019/2020 HKR International Limited                                                                                                                     3
ALL IN ALL CARE - ESG REPORT 2019/2020 - HKR International Ltd.
ABOUT HKRI                                                                                                                                                               ABOUT HKRI

                                                                                                                                                                                                                   P     Pioneer
        In 1977, the family of Dr CHA Chi-ming,
                                                                                                                                                                                                                         - Break new grounds
        the late founder and chairman of a
                                                                                                                                                                                                                   R
        group of companies whose holding
        entity later became known as HKRI,
                                                                               Vision                                                     Mission                                Values                                  Respect
                                                                                                                                                                                                                         - Value the individual and cherish our environment
        acquired the equity interest of Hong
                                                                                                                                                                                                                   I     Innovation
        Kong Resort Company Limited, the                                                                                                                                                                                                                                                                                     Contributed
        owner and developer of Discovery Bay                                                                                                                                                                             - Think outside the box                                                                      1,546 hours and
        on Lantau Island. Formed in 1989, HKRI                                                                                                                                                                     I     Integrity                                                                                        about
        became the holding company of the
                                                                           To be the pioneer of
                                                                          innovative living space
                                                                                                                                   We strive to create a healthy,
                                                                                                                                    stylish and distinctive living
                                                                                                                                                                                     PRI2DE                              - Uphold high ethical standards                                                              HK$ 4,340,000 to
        Group listed on the Stock Exchange.                                                                                                                                                                                                                                                                             the communities for
                                                                                                                                         experience through                                                        D     Devotion                                                                                        charitable purpose
                                                                                                                                    teamwork and passionate                                                              - Be committed and passionate
        Living up to the vision and aspirations of             to our business that benefits our
                                                                                                                                       pursuit of innovation
        the late Dr CHA, the Group has seized                  stakeholders and supports sustainable
                                                                                                                                           and excellence                                                          E     Excellence                                             Obtained
        opportunities to diversify its business                development in places where we
                                                                                                                                                                                                                         - Consistency in the pursuit                                6
        interests in real estate development and               operate. Guided by the Group’s vision,                                                                                                                                                                        green building
                                                                                                                                                                                                                           of our quality standards
        investment, property management,                       mission and values, we extend our                                                                                                                                                                              certification
        luxury hotels and serviced apartments,                 mission of creating a healthy, stylish and                                                                                                                                                                     recognitions
        healthcare services and other investments              distinctive lifestyle to other parts of the
        in Hong Kong, mainland China and                       region and expand our positive influence
        across Asia. Throughout the years, we                  to the wider community and beyond.
                                                                                                                                                                                                                            Earned a turnover of                                                                       The Board
                                                                                                                                                                                                                          HK$ 4,696.5 million                                                                   Maintains oversight
        have incorporated a holistic approach                                                                                                                                                                                    in 2019/2020
                                                                                                                                                                                                                                                                                                               of ESG issues, reviews
                                                                                                                                                                                 A professional                                                                                                                ESG risks, reviews and
                                                                                                                                                                                    team of                                                                                                                  approves strategic direction
                                                                                                                                                                                      2,410                                                                                                                      recommended by
                                                                                                                                                           Geographic               employees                                                                                                               ESG Committee and endorses
                                                                                                                            5                            presence across       as at 31 March 2020
                                                                                                                                                      Asia Pacific including                                                                                                                                        ESG Reports
   HKRI                                                                                                             major business                                                                                                         Handbook and Code of Conduct.
                                                                                                                  segments namely                    Hong Kong, Shanghai,
at-a-glance                                                                                                                                                                                                                                Vigorous monitoring and control
                                                                          A publicly listed                     property development                   Jiaxing, Hangzhou,
                                    Founded in                                                                                                                                                                                             mechanisms are in place to detect and
                                                                            company in                             and investment,                    Bangkok, Tokyo and
                                       1977                               Hong Kong with                                                                    Hokkaido                                                                       prevent bribery, fraud, or other forms of
                                                                                                                hospitality, healthcare
                               by Dr CHA Chi-ming                            stock code                                                                                          risk management steering group in
                                                                                                                     and services                                                                                                          malpractice. Our annual risk assessments
                                                                               00480                                  provided                                                   identifying, assessing and prioritising risks,                                                                                   ESG Committee
                                                                                                                                                                                                                                           covering all business units enable us to
                                                                                                                                                                                 as well as establishing risk mitigation                                                                                     Develops ESG policies and
                                                                                                                                                                                                                                           identify and mitigate potential risk of
                                                                                                                                                                                 plans and assigning risk owners to closely                                                                                    initiatives for business
                                                                                                                                                                                                                                           corruption. The Group has developed                             operations, evaluates ESG risks,
        OUR SUSTAINABILITY APPROACH                                                                                                                                              monitor identified risks and implement
                                                                                                                                                                                 mitigation plans. Independent review on
                                                                                                                                                                                                                                           a standard whistleblowing procedure
                                                                                                                                                                                                                                           for our employees to report suspected
                                                                                                                                                                                                                                                                                                             develops and recommends
                                                                                                                                                                                                                                                                                                                strategic direction for
                                                                                                                                                                                 these systems is performed regularly by                                                                                        the Board’s approval,
        Sustainability Governance                                                                                                                                                                                                          misconduct to our internal audit
                                                                                                                                                                                 the Internal Audit Department. On this                                                                                        proposes improvement
                                                                                                                                                                                                                                           supervisor. All cases are treated in strict
                                                                                                                                                                                 basis, we work to strategically address and                                                                                 recommendations, reports
        Building on the solid foundations of                  to bring new perspectives and lift                    line with the ESG risks and opportunities                                                                              confidence to protect the whistleblower.                          progress to the Board and
                                                                                                                                                                                 minimise the ESG risks in our operations
        corporate governance structure and                    organisation performance. We have                     identified during the year. It also provides                                                                                                                                                 reviews ESG Reports
                                                                                                                                                                                 and supply chains. Further information can
        practices, the Group has established                  four Executive Directors, and seven Non-              guidance to the CSR task force for the                                                                                 To refresh employees’ anti-corruption
                                                                                                                                                                                 be found in the Corporate Governance
        a formal ESG Committeee this year to                  executive Directors of whom four are                  execution of ESG related matters.                                                                                      knowledge, we have invited the
                                                                                                                                                                                 Report on pages 64 to 85 of the Group’s
        facilitate ESG management in building                 Independent Non-executive Directors,                                                                                                                                         Independent Commission Against
                                                                                                                                                                                 Annual Report 2019/2020.
        a sustainable and resilient business.                 constituting more than one-third of the               Furthermore, under the established                                                                                     Corruption (“ICAC”) to deliver training
        The chart on the next page shows our                  Board. The Board receives reports from                risk management framework and                                                                                          course to employees, including                                          CSR Task Force
        sustainability governance framework.                  the ESG Committee on progress made                    governmental structure, which consists
                                                                                                                                                                                 Anti-corruption                                           management, annually and circulated                                  Executes ESG strategies
                                                              against relevant strategies and goals,                of the Board, the Audit Committee, the                                                                                 relevant materials to board members.                               and policies, monitors ESG
                                                                                                                                                                                 We uphold the highest ethical standard                                                                                       performance and impacts
        The Board assumes the overall                         as well as appropriate improvement                    risk management steering group and
                                                                                                                                                                                 and strictly adhere to all anti-corruption                During the year, there were no cases of                             of ESG issues to business
        responsibilities to ensure HKRI creates               recommendations to further enhance the                business lines, the ESG risks are also                                                                                                                                                        operations, reports
                                                                                                                                                                                 related laws and regulations throughout                   non-compliance with relevant laws and
        long-term value to our stakeholders                   Group’s sustainability performance.                   incorporated into the Group’s enterprise                                                                                                                                                      progress to the ESG
                                                                                                                                                                                 our operation and value chain. All                        regulations relating to bribery, extortion,
        and maintains high standard of                                                                              risk management structure to ensure the                                                                                                                                                    Committee and prepares
                                                                                                                                                                                 employees must strictly observe all                       fraud and money laundering in our
        corporate governance at all levels. The               The ESG Committee comprises                           Group maintains a sound and robust risk                                                                                                                                                          ESG Reports
                                                                                                                                                                                 regulations related to conflict of interests              operationsf.
        Board comprises 11 Directors with a                   department heads of different functions               management and internal control system.
                                                                                                                                                                                 as stipulated in the Group’s Employee
        diverse mix of genders, professional                  and is responsible for determining the                Our Risk Management Policy guides the
        experiences, skills and knowledge                     Group’s ESG objectives and priorities in                                                                           f
                                                                                                                                                                                     The laws and regulations that are most relevant to the Group include, but not limited to, the Prevention of Bribery Ordinance (Cap.201), the Law of the People’s
        e
            The Terms of Reference to the ESG Committee can be found on our website (https://www.hkri.com/en/CSR/ESG-Committee).                                                     Republic of China for Countering Unfair Competition, the Law of the People’s Republic of China for Anti-Monopoly, and the Act Supplementing the Constitution
                                                                                                                                                                                     Relating to the Prevention and Suppression of Corruption in Thailand.

  4                                                                                                        HKR International Limited ESG Report 2019/2020                        ESG Report 2019/2020 HKR International Limited                                                                                                                         5
ALL IN ALL CARE - ESG REPORT 2019/2020 - HKR International Ltd.
OUR SUSTAINABILITY APPROACH                                                                                                                                                       OUR SUSTAINABILITY APPROACH

          Sustainability Policy                                                                                                                                                              Supporting the United Nations Sustainable Development Goals
          Sustainable development is fundamental                    The approaches and principles stipulated                     and monitor our performance to building                     The SDGs launched by the United Nations in 2015 is an action plan for the planet and people to thrive by 2030. It provides a
          to HKRI’s vision, mission and core values.                in the Sustainability Policy, relating to                    sustainable, liveable and socially                          framework for the users to track their progress towards the sustainable goals. As a corporate citizen, we are determined to
          The Sustainability Policy g has been                      environment protection, workplace,                           responsible communities that people                         support this initiative and set agenda to shift to a more sustainable path. We have identified six SDGs that are most relevant to
          established to formalise our longstanding                 value chain and community investment,                        are proud to be an integral part of.                        our business and we are committed to achieving them in the future:
          sustainability practices, ensuring that the               lay the foundation for achieving our
          management of related issues is carried                   sustainability aspirations. We will
          out consistently within the Group.                        continue to develop different measures

          Sustainability Strategies
          Reducing Environmental Impact                             Building a Sustainable and Caring                            Providing Quality and Reliable                               Good Health                  Affordable             Decent Work            Sustainable                Responsible               Climate
          • To mitigate our impact on the                           Community                                                    Services and Products                                           and                          and                     and                 Cities and               Consumption                Action
            environment by reducing our emissions                   • To build sustainable communities by                        • To deliver responsible and quality                          Well-being                 Clean Energy             Economic             Communities                    and
            and consumptions, streamlining waste                      offering care and support to the local                       services and products;                                                                                           Growth                                          Production
            management and maximising the use                         communities we operate;                                    • To respect and uphold data privacy
            of environmentally friendly materials;                  • To participate in volunteering and                           of all stakeholders                                       Looking ahead, we will establish targets on different ESG aspects to accelerate our sustainable development.
          • To raise stakeholders’ environmental                      community activities;
            awareness                                               • To support artistic and cultural
                                                                      development

          Maintaining a People-first Workplace                      Creating a Responsible Value Chain
          • To attract and retain the best talents;                 • To uphold high ethical standards;
          • To provide an equal, safe and healthy                   • To engage with and drive suppliers,
            workplace with adequate development                       customers and tenants in achieving
            opportunities;                                            sustainability visions                                                                                                                                                                                                                Customers
          • To promote open communication with                                                                                                                                                                                                                         Employees                            (including residents, tenants,
            various transparent channels                                                                                                                                                                                           Management Team                     •   i-Pri2de staff newsletters       passengers, customers of
                                                                                                                                                                                                                                                                       •   Websites and social media        healthcare services, hotel guests
                                                                                                                                                                                                                                   •   i-Pri2de staff newsletters
                                                                                                                                                                                             Investors                                                                 •   Intranet                         and club members)
                                                                                                                                                                                                                                   •   Websites and social media
                                                                                                                                                                                             • Press releases                                                          •   Annual / interim reports         • Customer satisfaction surveys
                                                                                                                                                                                                                                   •   Intranet
                                                                                                                                                                                             • Investor Relations page                                                 •   ESG reports                      • Customer service hotlines, emails
                                                                                                                                                                                                                                   •   Annual / interim reports
           Stakeholder Engagement                                                                                                                            Business Partners                 on website                          •   ESG reports                     •   Press releases                       and mobile phone applications
                                                                                                                                                                                                                                                                                                            • Websites and social media
           Methods :                                                                                                                                         •   Websites and social media   • Annual / interim reports            •   Press releases                  •   Interviews
                                                                                                                                                                                                                                                                                                            • Annual / interim reports
                                                                                                                                                             •   Annual / interim reports    • ESG reports                         •   Interviews                      •   Annual dinners
                                                                                                                                                                                             • Annual general meetings                                                 •   Meetings                         • Newsletters
                                                                                                                                                             •   ESG reports                                                       •   Annual dinners
                                                                                                                             Government and                                                  • Investor meetings and                                                   •   CSR activities                   • ESG reports
                                                                                                                                                             •   Meetings                                                          •   Meetings
                                                                                                                             Industry Associations                                             conference calls                                                        •   Employee engagement activities   • Recreation clubs
                                                                                                                                                             •   Industry forums                                                   •   CSR activities
                                                                                                                                                                                                                                                                                                            • CSR activities
                                                                                                                             •    Websites
                                                                                      Suppliers                              •    Annual / interim reports
                                                                                                                             •    ESG reports
                                                                                      •   Websites
                                                                                                                             •    Public consultations
                                                                                      •   Annual / interim reports
                                                                                                                             •    Industry forums
                                                                                      •   ESG reports
                                                                                      •   Audit and assessment
                                            Media                                     •   Meetings
                                                                                                                                                                                             Stakeholder Engagement
                                            •   Press releases
                                            •   Websites and social media                                                                                                                    We respect and value our stakeholders’             their expectations with regard to the           To supplement these communication
                                            •   Press conferences
                                                                                                                                                                                             views, with the belief that they are               economic, environmental and social              channels, we collected feedback
                                            •   Annual / interim reports
                                            •   ESG reports                                                                                                                                  valuable pieces of information that                matters related to our operations.              from some external and internal
                                                                                                                                                                                             cannot be neglected for the Group's                The stakeholder engagement process              stakeholders through an online survey
    Non-governmental
    Organisations                                                                                                                                                                            continued success. The ESG Committee               allows us to make informed decisions            during the year. These stakeholders
    • Websites and social media                                                                                                                                                              has identified nine core internal and              and enhance our operational as well as          included ESG Committee, directors
    • Corporate social responsibility                                                                                                                                                        external stakeholder groups that have              sustainability performance. The above           and senior management, employees,
      (“CSR”) activities                                                                                                                                                                     considerable dependency and influence              provides an outline of our stakeholder          contractors, tenants, non-governmental
    • Annual / interim reports
    • ESG reports                                                                                                                                                                            on us. We constantly engage with                   engagement methods.                             organisations (“NGO”) and members of
                                                                                                                                                                                             these stakeholders to understand                                                                   Discovery Bay community.

    		More information on the Sustainability Policy can be found on our website (https://www.hkri.com/en/csr/sustainability-policy).
    g

6                                                                                                                    HKR International Limited ESG Report 2019/2020                          ESG Report 2019/2020 HKR International Limited                                                                                                       7
ALL IN ALL CARE - ESG REPORT 2019/2020 - HKR International Ltd.
OUR SUSTAINABILITY APPROACH                                                                                                     OUR SUSTAINABILITY APPROACH

    Materiality Assessment                                                                                                          The results of materiality assessment conducted during the year are mapped into the materiality matrix below:

    The opinions and feedbacks collected from the
    stakeholder engagement exercise aforesaid
    were incorporated into a structured materiality                                                                                                                                                                       Materiality Matrix
    assessment to identify a list of key material
    ESG issues to be included in the Report. The                                                                                                                              Moderately Important                                 Important                                           Highly Important
    materiality assessment process is outlined below:

                                                                                                                                                                                                                                                                                            1
                                                                         Identification
                                                        Stage            Peer benchmarking: HKRI’s disclosures are
                                                                                                                                                                                                                                                                                                2

                                                                                                                                     Importance to External Stakeholders
                                                         1               benchmarked against the disclosures of suitable peer
                                                                         companies from the property development, investment                                                                                                                13                       10
                                                                                                                                                                                                                                                                               9
                                                                                                                                                                                                                                                                                            3
                                                                                                                                                                                                                                                                          5
                                                                         and management, as well as hospitality, healthcare and                                                                                               23       15              12                      4
                                                                                                                                                                                                                                                  14         19 18
                                                                         service provider industries to pinpoint material                                                                                                     24             22
                                                                         ESG issues.                                                                                                                                                              21 29 20
                                                                                                                                                                                                                        30    25                                          11
                                                                                                                                                                                                                                       17            6
                                                                                                                                                                                                                         8
                                                                         Stakeholder engagement: internal and external                                                                                                                                 16
                                                                                                                                                                                                                                       26
                                                                         stakeholders are invited to rank the importance of                                                                                      31                                          7
                                                                         each ESG issue and provide feedback regarding their
                                                                                                                                                                                                                27
                                                                         key concerns on the Group’s ESG issues during our
                                                                         stakeholder engagement exercise.                                                                                    28

                       Stage                     Prioritisation
                                                                                                                                                                                                                       Importance to Internal Stakeholders
                           2                     The results of the peer benchmarking exercise and our stakeholder
                                                 engagement exercise are consolidated. A list of potential material ESG issues
                                                                                                                                                                           Operate                          Value Our                                  Cherish Our                     Care for the
                                                 were brought forward for discussion in Stage 3: Validation.                                                               Responsibly                      People                                     Environment                     Community
                                                                                                                                        1                                  Anti-corruption and          9   Occupational health and               18 Use of energy                 29 Responsible
                                                                                                                                                                           money laundering                 safety                                19 Use of water                     investment
                                                                                                                                        2                                  Personal data and            10 Equal opportunity and                  20 Air emission                  30 Charity event and
                                                                                                                                                                           privacy                         anti-discrimination                                                        donation
                                                                                                                                                                                                                                                  21 Greenhouse gas
                                                                                                                                        3                                  Intellectual property        11 Training and development                  (“GHG”) emission              31 Volunteering and
                                                                                                                                                                           rights                       12 Promotion and                                                              social participation
                                                                                                                                                                                                                                                  22 Sewage
                                                                                                                                        4                                  Product quality and safety      compensation
                                                                                                                                                                                                                                                  23 Hazardous waste
                                                                                                                                        5                                  Customer satisfaction        13 Employee benefits and
                                                                                                                                                                                                           welfare                                24 Non-hazardous
                                                                                                                                        6                                  Green and ethical                                                         waste
     Stage                    Validation                                                                                                                                   procurement                  14 Recruitment and dismissal
                                                                                                                                                                                                                                                  25 Climate resilience

        3                     Findings from the first two stages are presented to the ESG Committee, who
                              subsequently confirms a list of key material ESG issues, and the respective aspects
                                                                                                                                        7                                  Advertising and
                                                                                                                                                                           labelling
                                                                                                                                                                                                        15 Anti-child and forced
                                                                                                                                                                                                           labour                                 26 Food waste
                                                                                                                                                                                                                                                  27 Packaging materials
                                                                                                                                        8                                  Supply chain                 16 Working hours and holiday
                              and KPIs stipulated in the ESG Guide for disclosure.                                                                                         sustainability                                                         28 Biodiversity
                                                                                                                                                                                                        17 Diversity

                                                                                                                                    A total of 31 ESG issues were identified through the materiality assessment. Seven issues are classified as highly important, 21 issues
                                                                                                                                    are classified as important, and the remaining three issues are classified as moderately important.

8                                                                                  HKR International Limited ESG Report 2019/2020   ESG Report 2019/2020 HKR International Limited                                                                                                                           9
ALL IN ALL CARE - ESG REPORT 2019/2020 - HKR International Ltd.
MEMBERSHIPS AND AWARDS                                                                                                                  MEMBERSHIPS AND AWARDS

                                                                                                            HKRI                             Auberge Discovery Bay                          The Sukhothai Shanghai                           MICHELIN Guide Shanghai 2020
                                                                                                                                                                                                                                             - The Sukhothai Shanghai and
                                                                                                            Taikoo Hui                       Hong Kong                                      Business Traveller China Awards 2019               La Scala
                                                                                                            The Must-go Shopping Mall        Say Yes to Breastfeeding 2020/2021             - Best Design Hotel in China                     Organiser
                                                                                                            2019                             - Gold Label of Breastfeeding Friendly         Organiser                                        Michelin
                                                                                                            Organiser                          Premises                                     Business Traveller
                                                                                                            dianping.com                     - Breastmilk Storage Service Label                                                              Time Out Hospitality Awards
                                                                                                                                                                                            The Best BANG Awards 2019
       HKR International Limited                                                                            Grade Evaluation For China
                                                                                                                                             Organiser                                                                                       - Boutique Hotel of the Year
                                                                                                                                                                                                                                             - Hotel Brunch of the Year
                                                                                                                                             UNICEF Hong Kong                               - Best Guest Experience Hotel
       “15 Years Plus Caring Company” Logo            Asia Property Awards                                  Shopping Center                                                                                                                    - La Scala
                                                                                                                                                                                            Organiser
       Organiser                                      - Best Developer (Hong Kong)                          - Five Star Shopping Center      Traveller Review Awards                        Shanghai BANG                                    Organiser
       The Hong Kong Council of Social Service                                                              Organiser                                                                                                                        TimeOut Shanghai magazine
                                                      Organiser                                                                              Organiser
                                                      PropertyGuru                                          Commercial Cultural Tourism      Booking.com                                    The Best Business Hotel Award 2019
             th
       The 10 Hong Kong Outstanding Corporate                                                               Committee of China Real Estate                                                                                                   2019 TOP 50 Hotels in China
                                                                                                                                                                                            Organiser
       Citizenship Awards                             2019 China Real Estate Fashion Awards                 Association                      Ctrip Awards 2019                                                                               - 1 Diamond
                                                                                                                                                                                            City Traveler
       - Corporate Citizenship Logo - Enterprise      - Influential Leader of the Year - Mr Victor                                           - Best Resort Hotel                                                                             Organiser
         Category                                       Cha                                                 2019 Lifestyle Awards            Organiser                                                                                       Voyage magazine
                                                                                                                                                                                            The Gold List 2019
       Organiser                                      Organiser                                             - Shopping Destination of        Ctrip.com
                                                                                                                                                                                            - China Top 10 Hotels
       The Hong Kong Productivity Council             Boao Real Estate Forum 2019                             The Year                                                                                                                       The 10 Best New Hotels in the World
                                                                                                                                             Loved by Guests Award Winner 2019              Organiser
                                                                                                            Organiser                                                                                                                        Organiser
                                                                                                                                                                                            Condé Nast Traveler China magazine
       Hong Kong Green Awards 2019                    Beijing Evening News Industrial Economy               that’s magazine                  Organiser                                                                                       Make It Better Media Group
       - Corporate Green Governance Award -           Annual Report                                                                          Hotels.com
         Stakeholder Engagement                       - Contribution Figure of the Year
                                                        - Mr Victor Cha                                                                      Top 30 Hotels for Honeymoon
       Organiser
       Green Council                                  Organiser
                                                                                                                                             Top 5 4-Star Hotels                            The Sukhothai Bangkok                            Best of Bangkok Award
                                                                                                                                             Top 5 Hotels with Infinity Pool                                                                 Organiser
                                                      Beijing Evening News                                                                                                                  Star Award Winners
                                                                                                                                             Organiser                                                                                       TripExpert
       Eco-brand Awards 2019                                                                                                                                                                - 4 Star Rated Hotels
                                                           th                                                                                Travelmyth
       Organiser                                      The 9 China Charity Festival                                                                                                          - 4 Star Rated Spas - Spa Botanica
       East Week magazine                             - 2019 Social Responsibility Business                                                                                                                                                  Guest Review Award 2019
                                                                                                                                             2019 Partner Employer Award                    Organiser
                                                        Leader of the Year - Mr Victor Cha                                                   - Outstanding Corporate                        Forbes Travel Guide                              Organiser
       Silver Award for Volunteer Service             - 2019 Public Welfare Communication of                Discovery                        Organiser
                                                                                                                                                                                                                                             Booking.com
                                                        the Year
       Organiser
                                                      Organiser
                                                                                                            Bay Services                     The Hong Kong General Chamber of Small         Top Italian Restaurants Special
                                                                                                                                                                                                                                             Readers’ Choice Awards 2019
       Social Welfare Department                                                                                                             and Medium Business                            Awards 2020
                                                      China Charity Festival Committee                      Management Limited                                                              - Three Forks Awards - La Scala                  - Top 10 Hotels in Bangkok
       Green Office and Eco-Healthy Awards                                                                  2018 Hong Kong Awards for                                                       Organiser                                        Organiser
       Labelling Scheme                               Good MPF Employer 2018-19                                                                                                                                                              Condé Nast Traveler magazine
                                                                                                            Environmental Excellence                                                        Gambero Rosso
       - Green Office and Eco-Healthy Workplace       - Good MPF Employer 5 Years
                                                                                                            - Bronze Award - Property
         Labels                                       - E-Contribution Award
                                                                                                              Management (Residential)
                                                      - MPF Support Award
       Organiser
                                                      Organiser
                                                                                                            Organiser                        Discovery Bay
       World Green Organisation                                                                                                                                                        Corporate Member
                                                      Mandatory Provident Fund Schemes Authority
                                                                                                            Environmental Campaign           Recreation Club
                                                                                                            Committee                                                                  Name of Organisation                                                     Type of Membership
       China Finance Summit 2019                                                                                                             “5 Years Plus Caring Company” Logo
                                                      Employer of Choice Award 2019                                                                                                    The Real Estate Developers Association of Hong Kong                        Corporate Member
       - Business Leader in New Era - Mr Victor Cha                                                         CLP Smart Energy Award 2019      Organiser
                                                      - Next Generation Development Award                                                                                              The Hong Kong General Chamber of Commerce                                  Corporate Member
       - CSR Model                                                                                          - Joint Energy Saving Award      The Hong Kong Council of Social Service
                                                      Organiser                                                                                                                        Employers’ Federation of Hong Kong                                         Corporate Member
       Organiser                                                                                            Organiser
       Organising Committee of China Finance          JobMarket                                                                                                                        Hong Kong Institute of Human Resource Management                           Corporate Member
                                                                                                            CLP Power
       Summit                                                                                                                                                                          The Chartered Institute of Logistics and Transportation in Hong Kong    Organisation Member
                                                      Mental Health Workplace Charter
                                                                                                            7th Best Property Safety                                                   The Hong Kong Association of Property Management Companies                           Member
       Hong Kong Business Management                  - Mental Health Friendly Organisation                 Management Award                                                           Hong Kong Hotels Association                                                         Member
       Excellence Awards 2019
                                                      Organiser                                             - Merit
                                                                                                                                             China Residential Projects
       - Executive of the Year Award for                                                                                                                                               The Federation of Hong Kong Hotel Owners                                             Member
                                                      Department of Health and Advisory Committee
         Real Estate - Mr Victor Cha                                                                        Organiser                                                                  The Thai Hotel Association                                                           Member
                                                      on Mental Health                                                                       Sohu Focus (Jiaxing)
                                                                                                            Occupational Safety & Health
       Organiser                                                                                            Council                                                                    American Chamber of Commerce (Thailand)                                              Member
                                                                                                                                             - Habitat of Honour of the Year
       Hong Kong Business                             2019/20 Mercury Excellence Awards                                                                                                Thailand Incentive and Convention Association                                        Member
                                                                                                                                               - Creekside One
                                                      - Websites/ Mobile Media: Redesign/                                                    - The Most Valuable Project of the Year   Association of Thai Travel Agents                                                    Member
                                                        Relaunch - Silver Award                                                                - Mansion One
                                                      Organiser                                                                              Organiser                                 Charter
                                                      MerComm, Inc.                                                                          Sohu Focus                                Name of Organisation                                                          Type of Charter
                                                                                                                                                                                       HKSAR Environment Bureau                                                Energy Saving Charter
                                                                                                                                                                                       Food Grace                                                                 Food Saving Pledge

10                                                                                        HKR International Limited ESG Report 2019/2020     ESG Report 2019/2020 HKR International Limited                                                                                            11
ALL IN ALL CARE - ESG REPORT 2019/2020 - HKR International Ltd.
CHERISHING
OUR ENVIRONMENT
 10 times
        Total Amount of
        Non-hazardous Wastes Recycled
        Compared to 2018/2019
ALL IN ALL CARE - ESG REPORT 2019/2020 - HKR International Ltd.
CHERISHING OUR ENVIRONMENT

              Quick Answers
             to Your Concerns

     Q   How does HKRI approach
         Green Building?
     A   HKRI has adopted green
         building design and nurtured
         green community for years.                                                                                                                                               Discovery Bay Plaza Extension             compliance with BEAM Plus, a series
         Our commitments are well                                                                                                                                                                                           of green measures with respect to
         demonstrated in Discovery Bay.                                                                                                                                           Discovery Bay was our first property      waste management, pollution control,
         HKRI works to obtain more                                                                                                                                                development project in Hong Kong.         GHG emissions, energy use, water
         green building certifications                                                                                                                                            With more than two-thirds of its areas    and indoor air quality have been
         including Leadership in Energy                                                                                                                                           being landscaped as green zones, the      put in place during construction and
                                                HKRI fully acknowledges the importance of                                                                                                                                   operation. Examples of the green
         and Environmental Design (LEED)                                                                                                                                          massing, height profile, building and
                                                protecting and conserving the environment. As                                                                                                                               measures include:
         and Chinese Green Building                                                                                                                                               street orientation of the unique “Eco-
                                                a pioneer in the industry, we strive to be a role
         Label, with a strategic focus on                                                                                                                                         friendly Town” have been carefully
                                                model and create healthy, stylish and sustainable
         technological innovation. We                                                                                                                                             designed to promote sustainable living          Achieve more than 30%
                                                living experiences in a responsible manner. We closely
         will continue to be the pioneer                                                                                                                                          and weave nature into the community.            recycling rate with on-site
                                                monitor the potential adverse environmental
         in green building design to                                                                                                                                              Discovery Bay has won the “Urban                wastes sorting and recycling;
                                                impacts that may arise from operations; and
         facilitate industry advancement                                                                                                                                          Design & Master Planning Award”
                                                continuously develop innovative solutions,
         and generate sustainable values to                                                                                                                                       and the “Green Development Award”               Save up to 20% of water
                                                such as designing green buildings, to
         customers, visitors, tenants and the                                                                                                                                     at the “CAPITAL The Outstanding                 annually by using devices with
                                                minimise those impacts. Through promoting
         environment.                                                                                                                                                             Developer Awards” organised by                  of grade 1 water efficiency
                                                green workplace and endorsing green
                                                                                                                                                                                  CAPITAL Magazine and CAPITAL                    label;
                                                production processes, we aspire to build a
                                                                                                                                                                                  WEEKLY for six consecutive years since
                                                more sustainable future for our employees,
     Q   What does Climate                      customers and the wider community. After
                                                                                                                                                                                  2012, recognising the community’s
                                                                                                                                                                                  exceptional planning and sustainability
                                                                                                                                                                                                                                  Use of non-chlorofluorocarbon
                                                                                                                                                                                                                                  (“non-CFC”) refrigerants;
         Change mean to HKRI?                   years of dedication, satisfactory results and
                                                remarkable improvement in our sustainability
                                                                                                                                                                                  excellence.
                                                                                                                                                                                                                                  Carry out laboratory analysis
     A   It is a global issue that affects      performance have been seen.
                                                                                                                                                                                  Ever since we started developing                and inspections to ensure good
         every corner and everyone in the
                                                                                                                                                                                  Discovery Bay, we have been                     water and air quality.
         world. In September 2019, the          Sustainable Building                                                                                                              committed to making Discovery
         United Nations called the Climate
                                                                                                                                                                                  Bay a better place to live. The new       Besides, the new plaza extension features
         Action Summit and urged for            Sophisticated and prudent planning is the core of
                                                                                                                                                                                  Discover Bay Plaza extension, equipped    various green building design elements,
         concrete and realistic plans toward    our business development. We understand that good design is
                                                                                                                                                                                  with more leisure and shopping            such as a vertical green wall, glass façade
         the goal of net zero emission by       necessary for the success of a property development project, both financially
                                                                                                                                                                                  choices, and added greeneries to the      and an over-15,000-square-feet roof
         2050. As a responsible corporate,      and environmentally. Our internal Project Management Guideline encourages
                                                                                                                                                                                  community, is scheduled to complete       garden. Landscaped area is also increased
         HKRI shares the responsibilities to    the incorporation of green building design features in every stage of property
                                                                                                                                                                                  in 2020. Alleviation of environmental     to more than 40,000 square feet. These
         reduce emissions and relieve the       development and pursuance of the Hong Kong Building Environmental Assessment
                                                                                                                                                                                  impact was carefully considered           elements will provide better leisure space
         impact from climate change. At         Method (“BEAM”) Plus certification, as well as meeting LEED standard for our
                                                                                                                                                                                  during the planning stage, and, in        for residents and at the same time help
         the same time, HKRI recognises         properties. Green technologies and materials such as diatomite are widely adopted
                                                                                                                                                                                                                            create a greener environment.
         and is prepared to mitigate the        to make buildings more resource-efficient.
         risks presented by climate change
         in natural and human system.           In addition, we also closely monitor the level of dust, fumes, odour, waste,
                                                noise, vibration, lighting, emissions and other sources of pollution generated
                                                from construction, operation and maintenance of our buildings. Environmental
                                                assessments, record tracking and independent audits are regularly performed to
                                                ensure our green building principles are thoroughly applied to create a safe, healthy
                                                and eco-friendly living environment.

14                                                                                  HKR International Limited ESG Report 2019/2020      ESG Report 2019/2020 HKR International Limited                                                                                    15
ALL IN ALL CARE - ESG REPORT 2019/2020 - HKR International Ltd.
CHERISHING OUR ENVIRONMENT

                                                                                                                                                                                                                                        Rainwater

                                                                                                                                                                                                            Roof           Concave-down           Permeable            Greenland
                                                                                            IL PICCO                                                                                                                        green spaces            roads

                                                                                         In line with our Sustainability Policy, IL PICCO,
                                                                                       the latest residential project in Discovery Bay,
                                                                                     has incorporated a range of eco-friendly designs.
                                                                                   For instance, double glazed windows with better
                                                                                 heat insulation are used to reduce the need for air
                                                                               conditioning and subsequent electricity consumption.
                                                                                                                                              Benefits of Using Thermally-broken
                                                                            Glass façade is adopted to maximise daylight ultilisation.        Aluminium Window
                                                                        Flow controllers with grade 1 water efficiency label are
                                                                     installed on water faucets for water conservation. In addition,
                                                                 cut and fill excavation method has been used throughout the
                                                             construction to preserve appearance and biodiversity on land surface
                                                         while the excavation soil is reused for constructing roads and parks. Trees
                                                    along the pavement and green roof on the plant room also bring additional                                                                                                        Pipes and wells
                                              environmental benefits.                                                                             Greater heat                                                                                                 Replenishment
                                                                                                                                                    retention                                                                            Recycled
                                                                                                                                                                                                                       River                                      Irrigation
                                                                                                                                                   (In winter)
                                                                                                                                                                                                                                                                   Washing
                                                                                                                              Greater heat
                                                                                                                             gain reduction
                                                                                                                              (In summer)                                                            In view of the increasing risks of severe flooding resulted from climate change,
                                                                                                                                                                                                     the “Sponge City” concept was deployed in Riviera One to integrate flood
                                                                                                                                                                                                     control into overall planning. Over 60% of the underlying surfaces are made
                                                                                         Greater water                                                                                               with water-permeable materials to prevent surface runoff and soak rainwater
     RIVIERA ONE                                                                          penetration                                                                                                for various uses. This approach reduces flooding and allows evaporation for
                                                                                           resistance                                                                                                temperature moderation. The design of “Sponge City” has been adopted in
     Incorporating a range of green elements, including LED                                                                                                                                          other upcoming residential projects at Jiaxing city.
     lighting, thermally-broken aluminium window with
     low-emissivity and insulating glass, and air-to-water
     heat pump system, Riviera One in Jiaxing city has
     attained 2 Star rating in the Chinese Green Building
     Label.                                                 Reducing noise
                                                            transmission

                                Anti-frost and
                                  anti-fog

16                                                                                     HKR International Limited ESG Report 2019/2020               ESG Report 2019/2020 HKR International Limited                                                                                      17
CHERISHING OUR ENVIRONMENT                                                                                                                  CHERISHING OUR ENVIRONMENT

        Conserving Our Resources

        Energy Saving and Emission
        Reduction

        As an ongoing effort to relieve global            During the year, HKRI Taikoo Hui
        warming and fulfil the responsibility of a        implemented cloud-based smart energy
        good corporate citizen, HKRI is committed         management platform to track and
        to reducing GHG emissions throughout its          optimise energy consumption, as well
        operations. We are particularly concerned         as improving the operation of cooling
        with the impacts resulted from energy             and heating systems, lighting and
        consumption at our investment properties          other electronic appliances, resulting in
        and hotels, and fuel consumption by our           approximately 250,000 m3 reduction in
        transport operations, while also being            the use of natural gas and 4,300,000 kWh
        alert of our other business operations            drop in electricity consumption.
        that generate GHG emissions. We take a                                                                                                              Energy-efficient appliances
        holistic approach to energy conservation
                                                                                                                                                            such as those specified by labels under
        and emission reduction. A diverse range of
        measures are adopted in our operations,
                                                                                                                                                            the Mandatory Energy Efficiency Labelling
        with achievement of considerable results.                                                                                                           Scheme of the Electrical and Mechanical
        Meanwhile, we closely monitor monthly                                                                                                               Services Department to replace obsolete and
        energy consumption data to identify                                                                                                                 low energy performance appliances; replacing
        potential improvement areas. As a result,
                                                                                                                                                            existing tubes with LED lighting system.
        compared to 2018/2019, this year we have
        reduced our electricity consumption in
        Hong Kong by around 9.6%.
                                                                                                                                                                                                           Renewable energy
                                                                                                              Eye-catching                                                                                 such as solar energy to power electrical
                                                                                                              reminders and                                                                                appliances including fans at bus stops,
        Electricity Consumption                                                                               notices                                                                                      lighting and hot water systems, sensor lights
        in Hong Kong                                                                                                                                                                                       along walking paths and insect control
                                                                                                              to remind staff and customers of
                                                                                                                                                                                                           systems at Discovery Bay; high-speed
                                                                                                              their environmental responsibility.

                                                      -20.5%
                                                                                                                                                                                                           elevators powered by renewable energy at
                                                                                                                                                                                                           HKRI Taikoo Hui.
     ’000 kWh
                                        electricity usage in Hong Kong
                                               comparing to 2015/2016
       32,000

                             -4.5%
                                                                                                                                                                   ENERGY SAVING
       29,500

                                          -2.8%
                                                                                            Policies
                                                                                                                                                                     INITIATIVES                                 Smart systems and devices
       27,000
                                                       -5.3%
                                                                                            to switch off idle electrical appliances and                                                                         with computing capabilities, motion sensors

                                                                                                                                                                    IN 2019/2020
                                                                                            set air-conditioning temperature within                                                                              and automation technologies to optimise
       24,500                                                       -9.6%                   the range from 24 to 26 degree Celsius;                                                                              energy efficiency of lighting, heating,
                                                                                            suspend usage of lifts after midnight;                                                                               ventilation and air-conditioning and to suit
       22,000                                                                               and perform regular cleaning and                                                                                     seasonal changes; wall insulation was also
                                                                                            maintenance of fan coils, compressors,                                                                               deployed to reduce heat loss.
                                                                                            chillers and condenser tubes.

                2015/2016   2016/2017     2017/2018   2018/2019   2019/2020

18                                                                                         HKR International Limited ESG Report 2019/2020               ESG Report 2019/2020 HKR International Limited                                                          19
CHERISHING OUR ENVIRONMENT                                                                                                    CHERISHING OUR ENVIRONMENT

     Apart from energy saving, we are proactive in minimising air
     emissions. We adopt different emission reduction initiatives
     in our operations, especially our transportation services, and
     monitor the emission data regularly to further explore ways
     for reducing air emissions and improving air quality. All of
     our goods vehicles at Discovery Bay are using Euro V diesel,
     and we are on track to replace ageing buses with new
     models that align with the Euro VI standard. Meanwhile, we
     also use marine light diesel with a sulphur content less than
     0.05% for all ferries to further reduce emissions.

     Additional Emissions Reduction Initiatives

     Moving ahead, we plan to reinforce our commitment to
     reducing emissions in the coming years. To achieve this, we
     shall utilise more green technologies and improve current
     process to make them more emission friendly. We will
     continue to uncover ways and innovative green measures to
     make our operation more sustainable.

                                                                                                                                   Property Development
                                                                                                                                   and Investment
                                                                                                                                   • Adopt automated parking system in
                                                                       Corporate Office
                                                                                                                                     some of our commercial properties
                                                                       • Install various energy-saving devices such as
                                                                                                                                     to reduce car emissions from driving
                                                                         automatic switch-off timers and motion sensors
                                                                                                                                     around to find parking lot
                                                                       • Adopt open-office design to facilitate air ventilation
                                                                                                                                   • Develop eco-friendly buildings to
                                                                       • Set out green office guidelines regarding the use
                                                                                                                                     increase energy and resource efficiency
                                                                         of paper, energy and water, as well as handling of
                                                                                                                                   • Uphold green construction principles
                                                                         waste
                                                                                                                                     to reduce, reuse and recycle used              Transportation
                                                                       • Encourage employees to utilise video conference
                                                                                                                                     materials and utilities whenever               • Replace aging auxiliary engines in vessels
                                                                         systems and online applications to reduce travelling
                                                                                                                                     possible and feasible                          • Upgrade air conditioning systems of
                                                                       • Advocate use of public transport for commuting
                                                                                                                                                                                      ferries and use environment-friendly
                                                                         purpose
                                                                                                                                                                                      refrigerants
                                                                                                                                                                                    • Lower water resistance of ferries by
                                                                                                                                                                                      applying “antifouling system” bottom
                                                                                                                                                                                      paint to reduce fuel consumption
                                                                                                                                                                                    • Limit the “stand-by” time of buses
                                                        Hospitality                                                                                                                   by turning on bus engines only three
                                                        • Reuse collected steam from laundry and hot water generator in                                                               minutes before departure
                                                          boiler to reduce consumption of electricity and liquefied petroleum                                                       • Continue with trial runs of electric bus
                                                          gas (“LPG”)
                                                        • Replace refrigerants with non-CFC type in Thailand operation
                                                        • Use diesel exhaust fluid and emission friendly fuels, such as Euro V
                                                          diesel, to reduce emissions
                                                        • Switch off idle decorative, promotional, or advertisement lighting at
                                                          certain time

20                                                                                HKR International Limited ESG Report 2019/2020   ESG Report 2019/2020 HKR International Limited                                                  21
CHERISHING OUR ENVIRONMENT                                                                                                                    CHERISHING OUR ENVIRONMENT

          Water
                  In view of the scarcity of fresh water worldwide, we have strengthened our efforts in preserving water resources                 Food waste is another major focus                                                                                  Climate Resilience
                        and increasing water usage efficiency. In Discovery Bay, we reduce the use of municipal water through                      of our waste management. As the
                           sourcing water from our own reservoir for flushing and irrigation; meanwhile, a water leakage detection                 Group’s most significant source of                                                                                 Designing for Climate Resilience
                                system and five additional water leakage monitoring devices are in place to track water flow and                   food waste, our hospitality operation
                                    minimise water wastage. Our new projects in Discovery Bay have adopted devices with grade 1                    has taken various actions in this                                                                                      Climate change is becoming one
                                      water efficiency label to reduce up to 20% of water consumption.                                             regard. Besides recycling food                                                                                           of the greatest issues confronting
                                                                                                                                                   waste, we apply close monitoring                                                                                         humanity today. Understanding
                                         Extra attention was given to our hospitality operation, as it accounts for the majority of                and tight controls over the use                                                                                           our corporate role in addressing
                                           the Group’s water consumption. On top of making use of the reservoir water, hospitality                 of raw ingredients to minimise                                                                                            climate change threats, we
                                             operation in Discovery Bay has adopted additional initiatives. For instance, Discovery                possible wastage due to                                                                                                   adopted a proactive and forward-
                                               Bay Golf Club stores rainwater at golf course ponds for irrigation and has installed                improper handling, while portion                                                                                         thinking approach to assess our
                                                 a smart irrigation system to determine the optimal irrigation frequency and                       sizes are carefully managed to                                                                                          vulnerability to climate risks and
                                                   water usage based on soil type, grass type, and weather information such as                     avoid food spoilage. On the other                                                                                     integrate such considerations into our
                                                    humidity, temperature and rainfall collected from an on-site weather station.                  hand, we foster food waste recycling                                                                                mid- to long-term strategic planning.
                                                     Our hospitality operation in Thailand and property projects in mainland China                 through the Environmental Protection                                                                               Different business units have set up their
                                                      and Thailand make effort in recycling water and reuse it for gardening.                      Department’s “Waste Cooking Oils”                                                                                  own policies and procedures to better
                                                       Office towers of HKRI Taikoo Hui have grey water recycling system                           Recycling Administrative Registration                                                                              prepare for operating under extreme
                                                        in place to optimise water use. Other water conservation                                   Scheme to convert waste cooking                                                                                    weather, such as typhoon and rainstorm.
                                                         measures adopted in our managed properties include the                                    oil into biodiesel. During the year,                            Our green approaches                               The idea of climate resilience is

                                                                                                                              25.6%
                                                         use of dual-flush systems, automatic faucets as well as                                   hospitality operation had recycled                              in hospitality operation:                          embedded in our property development
                                                          flow restrictors. In future, we will upgrade our bus                                     about 260,000 kg of food waste                                                                                     projects to mitigate physical risks
                                                          washing machines with water recycling function to                                        and about 15,000 kg of cooking oil,                          • Deploy biodegradable                                posed by extreme weather situations.
                                                           further enhance water usage efficiency.                                drop of water    accounting for 98% of total food                               materials for packaging of                          The “Sponge City” design concept
                                                                                                                                  consumption      waste of the operation.                                        hotel room amenities                                adopted in our projects in Jiaxing city
                                                                                                                              intensity compared                                                                                                                      demonstrates their resilience to heavy
                                                          Waste                                                                     to last year   Other initiatives such as responsible                        • Replace plastic cutleries with                      precipitation and flooding issues.
                                                                                                                                                   procurement, reducing excessive                                wooden utensils, and plastic                        Besides, the building standards in our
                                                         Our Sustainability Strategy and internal policies                                         purchase, recycling of different                                                                                   Thailand project exceed minimum
                                                                                                                                                                                                                  bottled water with water
                                                         provide guidelines on waste management. We strive                                         materials are also adopted as                                                                                      requirements to combat natural hazards.
                                                                                                                                                                                                                  stations or glass bottles
                                                        to reduce waste generation at the source, especially                                       appropriate across our operations                                                                                  Our infrastructures show high resistance
                                                       non-hazardous waste, which accounts for a majority of our                                   to reduce other types of waste. City                                                                               to heat stress, excessive rainfall and
                                                      total waste production and encourage reuse and recycling. We are                             management operation at Discovery                            • Use recyclable takeaway                             earthquake. The ground floor and
                                                     determined to reduce our impacts to the environment through adopting                          Bay has particularly installed a wood                          boxes, drinking straws, soup                        basement levels are raised above the
                                                    this holistic approach in waste management.                                                    chipper to facilitate wood recycling or                        cups, shopping bags, coffee                         highest flood level to ensure better
                                                                                                                                                   upcycling.                                                     and tea cups                                        protection against flooding.
                                                   Paper is a major source of our non-hazardous waste. As such, we have
                                                 adopted various measures to reduce the paper usage. At our offices, we                            Despite that hazardous waste only                                                                                  Promoting Environmental
                                               encourage the use of double-sided printing, paperless communication such as                         accounts for a relatively small portion                                                                            Awareness
                                             email and e-approval system, as well as soft copies whenever possible. Electronic                     of our total waste production, we
                                          health record has been implemented at our healthcare operation to reduce use of                          handle such waste seriously and apply                     During the year, there were no                           Along the process to build climate
                                        paper. To facilitate recycling of paper as well as other administrative wastes including                   all necessary precautions in compliance                   non-compliance cases with relevant laws                  resilience, we are keen to minimise
                                     plastic, ink and toner cartridges, we place collection boxes at different locations.                          with laws and regulations. Clinical                       and regulations relating to air and GHG                  our carbon footprint and reduce waste
                                  Furthermore, recognising that a large amount of paper may be used during the design and                          wastes produced by our healthcare                         emissions, discharges into water and                     production across our value chains. We
                               tendering process of property development projects, we have established the policy of issuing                       operation are segregated from                             land, and generation of hazardous and                    also strive to inspire our employees,
                           soft copies of tender drawings and other documentation. Option is provided to shareholders to                           other wastes, labelled and packaged                                                                                customers, partners and residents to
                                                                                                                                                                                                             non-hazardous waste h.
                       receive electronic financial reports and other communication materials to reduce paper consumption.                         properly. For transportation operation,                                                                            embrace a sense of environmental
                                                                                                                                                   the used engine oil is collected and                                                                               responsibility through various events and
                                                                                                                                                   processed by qualified external                                                                                    facilities.
                                                                                                                                                   collectors while wastewater is properly
                                                                                                                                                   channelled to a treatment plant before
                                                                                                                                                   discharge.

                                                                                                                                                   h
                                                                                                                                                       The laws and regulations that are most relevant to the Group include, but not limited to, the Water Pollution Control Ordinance (Cap.358), The Environmental Impact
                                                                                                                                                       Assessment Law of the People’s Republic of China, and the Enhancement and Conservation of National Environmental Quality Act in Thailand.

22                                                                                HKR International Limited ESG Report 2019/2020                   ESG Report 2019/2020 HKR International Limited                                                                                                                            23
CHERISHING OUR ENVIRONMENT                                                                                                                               CHERISHING OUR ENVIRONMENT

     We provide convenience to encourage            Pledge and donated about 150 pieces of                respectively. Residents and passengers can          Hike Around Discovery Bay
     low-carbon lifestyle. For example, recycle     mooncakes to the needy since 2018. We                 also choose to support the glass recycling
     bins are provided in public areas of our       also encouraged colleagues to send festive            campaign co-organised by city management            Boasting a number of scenic trails and beaches,
     properties. Facilities for charging electric   wishes using e-cards to promote food                  and transportation operations, and our              Discovery Bay is one of the best hiking spots in
     vehicles are also installed to promote the     saving.                                               cleaning contractor Baguio Cleaning Services        Hong Kong. Starting from Discovery Bay, there
     use of green transportation.Within our                                                               Company Limited. Idle toys, used bicycles           are hiking trails to Mui Wo, Lo Fu Tau, Finger
     offices across the Group, we regularly         We also use our best endeavour to raise               and books are collected in Discovery Bay            Hill and Peng Chau. We have thus published
     put up posters and notices which serve         environmental awareness amongst                       to help underprivileged groups. Different           the Discovery Bay Hiking Guide and uploaded
     as mini-tools of education to promote          residents in Discovery Bay and tenants in             environmental awareness building activities         the routes on visitdiscoverybay.com to illustrate
     sustainable practices. Memos are also          our managed properties. In Discovery Bay,             are also being regularly organised, such as         these four popular trails. Last year, an online
     circulated to remind employees of green        food waste composters and a glass grinding            DIY glass bottle lamp workshop, family farm,        hiking challenge was launched to promote
     behaviours. To supplement these unilateral     machine have been installed to encourage              flea market, plant market and recycling day.        our natural resources and enhance public
     communications, we often organise              tenants and residents to recycle food waste           We also arrange visits to the DB Nursery and        awareness for the conservation of biodiversity
     different activities and campaigns, so as      and glasses. A total of 23,600 kg of food             Green.Icon@DB, our eco exhibition centre            in Hong Kong.
     to deepen knowledge and nurture their          waste and 106,500 kg of bottles were                  that showcases up-to-date information on                                                                                                               Declutter
     awareness on environmental protection.         recycled during the year. The compost                 green initiatives. We believe these activities                                                                                                         With Love
     We have signed the Food Grace’s                and glass sand generated were used for                can successfully deliver the message of                                                                                                                Recycling
     Green Mid-Autumn Festival Food Saving          gardening purpose and repair works                    environmental conservation and sustainable                                                                                                              Month
                                                                                                          development.                                                                                                       Adidas Run
                                                                                                                                                                                                                              For the
                                                                                                                                                                                                                               Ocean

         10 timesi                                                                                                                                                                      Six-month
                                                                                                                                                                                          Sesame
               total amount of
                non-hazardous
                                                                                                                                                                                          Eat Pilot
               wastes recycled                                                                                                                                                          Programme
                 compared to
                  2018/2019

                                                                                                                                                                                                                                                                         Drop-off stations were
                                                           Love.Together@DB Discovery Bay Family Farm                                                                                                                                                                    set up at HKRI Taikoo
                                                                                                                                                                                                                                                                         Hui to invite tenants
                                                           Since 2014, Discovery Bay Family Farm has been providing valuable opportunity                                                                                                                                 to donate their old
                                                           for residents to cultivate crop and practise green living. The 1 x 3 metre plots                 Sea you                                                                                                      clothes and electronic
                                                           are allocated to families for planting their own organic vegetables. Individuals                Tomorrow                                                                                                      appliances to NGOs
                                                           without planting experience would learn to prepare the soil and control the use                                                                                                                               for the underprivileged.
                                                                                                                                                                                                                                     Around 100 HKRI Taikoo
                                                           of fertiliser. It is a fun, fulfilling and rewarding process to promote a balanced
                                                                                                                                                                                                                                     Hui colleagues and family
                                                           diet and environmental sustainability.                                                                                                  Sesame Eat is a sustainable
                                                                                                                                                                                                                                     members joined the Run
                                                                                                                                                                                                   packaging programme
                                                                                                                                                                                                                                     For the Ocean fundraising
                                                           The initiative has been well received by residents and                                                                                  that advocates reusable
                                                                                                                                                                                                                                     running day to support
                                                           competitions are organised every year to encourage                                                                                      packaging. The
                                                                                                                                                                                                                                     Parley Oceans School
                                                           photo sharing and attract more participants.                                                                                            programme was launched
                                                                                                                                                                                                                                     programme in solving
                                                                                                                                                                                                   in HKRI Centres 1 & 2
                                                                                                                                        Our other                                                  for tenants to order food
                                                                                                                                                                                                                                     marine plastic pollution.
                                                                                                                                                                                                   delivery services via
                                                                                                                                         GREEN                                                     WeChat application. The
                                                                                                                                      PROGRAMMES                                                   meals came in reusable
                                                                                                                                                                                                   food containers which
                                                                                                                                        outside of                                                 were collected, washed

                                                                                                                                       Hong Kong                  A team formed by
                                                                                                                                                                  colleagues of The
                                                                                                                                                                                                   and returned to restaurants
                                                                                                                                                                                                   for reuse.
                                                                                                                                                                  Sukhothai Residences
                                                                                                                                                                  joined this mini
                                                                                                                                                                  marathon to raise fund
                                                                                                                                                                  for a sea turtle hospital.

                                                             i
                                                                 The increase was contributed by the growth of recycling amount and
24                                                               the inclusion of HKRI Taikoo Hui.                                                            ESG Report 2019/2020 HKR International Limited                                                                                        25
VALUING
OUR PEOPLE
+49% Total Training Hours
     Compared to 2018/2019
VALUING OUR PEOPLE
                                                                                                                                                         O
                                                                                                                                                    case of
                                                                                                                                                                                    For transportation operation, the safety
                                                                                                                                                                                    and health of our bus drivers and ferry
                                                                                                                                                                                    crew members are especially important
                                                                                                                                                                                    to the Group and the passengers.
                                                                                                                                                                                                                                  We maintain the same attitudes in the
                                                                                                                                                                                                                                  provision of safe and healthy office
                                                                                                                                                                                                                                  space. Periodic inspections are performed
                                                                                                                                                                                                                                  to ensure our office equipment meets
                                                                                                                                                  work-related                      OSH messages are delivered to staff in        the latest health and safety standards. In
                                                    We value our employees and fully recognise their contribution to the continued
               Quick Answers                        success of HKRI. We are committed to creating a dynamic, cohesive and open                      fatality
                                                                                                                                                                                    regular assembly. In addition, the OSH
                                                                                                                                                                                    Committee performs yearly review of the
                                                                                                                                                                                                                                  our mainland China office, in addition to
                                                                                                                                                                                                                                  using MERV 13 filters in air-conditioning
                                                    working environment where staff members are able to realise their potentials and
              to Your Concerns                      develop innovative solutions to improve our business processes. With the PRI2DE
                                                                                                                                                                                    safety performance of our ferry and bus       system, qualified specialists are engaged
                                                                                                                                                                                    operations to identify improvement areas      to monitor indoor air quality and plants
                                                    values deeply integrated into our daily operations, our staff are empowered and
                                                                                                                                                                                    on training, emergency preparedness and       are placed to further purify the air.
                                                    motivated to deliver quality services in a professional and responsible manner.
                                                                                                                                       The safety-first culture also prevails in    response, vehicle and vessel maintenance      At The Sukhothai Bangkok, on top of
     Q   How does HKRI respond                                                                                                         our Discovery Bay operations, where          checks and inspection. Above all, the         conducting regular inspections at certain
                                                    Employee Health and Safety
         to the growing demand                                                                                                         a cross-departmental OSH Committee           work schedules of our bus drivers and         areas including laundry and kitchen, the
                                                                                                                                       offers guidance and advice on mitigation     crew members are carefully planned to         Safety Committee reviews staff accidents
         of work-life balance,                      We are dedicated to providing a safe working environment.
                                                                                                                                       of safety risks. Refresher meetings and      avoid performance being affected by           during monthly meetings to identify
                                                    To strengthen employees’ awareness of occupational safety
         especially from the                        and health (“OSH”), we have formulated a group-level
                                                                                                                                       specific safety trainings are organised
                                                                                                                                       on a regular basis. Together with
                                                                                                                                                                                    fatigue. We also make sure that all traffic
                                                                                                                                                                                    signs, road markings and navigation
                                                                                                                                                                                                                                  potential drawbacks and address them
                                                                                                                                                                                                                                  accordingly.
         younger generations?                       OSH Policy. Our business units have maintained their own
                                                    OSH management committees that are responsible for
                                                                                                                                       other audits, drills and safety-related      facilities are functioning properly such
                                                                                                                                       materials, we cultivate an environment       that clear traffic directions are provided    During the year, there were no cases
     A   HKRI advocates work-life balance.          addressing specific OSH concerns for respective operations
                                                    and tailoring training courses. We provide necessary
                                                                                                                                       for nurturing and reinforcing safety         at all times.                                 of non-compliance relating to the
         In pursuit of sustainable business                                                                                            awareness. City management operation                                                       provision of a safe working environment
         growth, continuous contribution            safety equipment and protective gears, such as safety
                                                                                                                                       goes further to review and investigate       For healthcare operation, extra               and the protection of employees from
         from employees is crucial. This            helmets, belts, gloves, goggles and safety shoes.
                                                                                                                                       the root causes of safety-related            attention is paid towards employees           occupational hazards.
         could not be achieved if employees         Besides, we also arrange medical insurance and
                                                                                                                                       incidents, and share findings and offer      who are exposing to higher safety
         lack physical and mental strength,         physical check-ups for our employees.
                                                                                                                                       suggestions to employees as an effort        risk. For instance, every employee who
         and this is where work-life balance                                                                                           to avoid recurrence. In addition, a safety   comes into contact with radiation, is
         plays an important role. As such,          Although majority of construction site
                                                                                                                                       management system in accordance              required to comply with the Radiation
         we constantly organise various             workers are not our employees, we equally
                                                                                                                                       with the ISO 45001 has been set up for       Ordinance (Cap. 303) and to wear a
         recreational activities to relieve their   take care of their health conditions as
                                                                                                                                       ten business units in Discovery Bay to       radiation dosimeter at all times and
         work pressure.                             a responsible corporate citizen. We                                                                                                                                               Safety Trainings Held
                                                                                                                                       facilitate safety management work. City      undertake annual medical examinations
                                                    require all contractors of our property                                                                                                                                           in the Year
                                                                                                                                       management operation’s remarkable            in Occupational Health Clinics. Monthly
                                                    development projects to follow
                                                                                                                                       safety performance had won recognition       check of the radiation doses of each
                                                    a set of OSH requirements that
         How does a desirable                       are in compliance with relevant
                                                                                                                                       in the 7th Best Safety Management            concerned employee is also conducted           • Health and safety briefings
     Q   workplace look like to                     regulations. Meanwhile, a
                                                                                                                                       Property Award.                              through the monitoring services provided
                                                                                                                                                                                                                                     to new hires
                                                                                                                                                                                    by the Radiation Health Division of the        • Emergency response team
                                                    designated safety inspection
         HKRI?                                      officer is appointed to submit bi-
                                                                                                                                                                                    Department of Health.                            training
                                                    weekly safety reports and we                                                                                                                                                   • First Aid, CPR & AED
         Open and connected. Workplace
     A   is more than a place where
                                                    conduct regular site check to
                                                    ensure proper implementation
                                                                                                                                                                                                                                     certificate courses
         individuals work, it is a platform
                                                    of all safety precautions.                                                                                                                                                     • Safety drill exercises
         where a group of people sharing
                                                    For all of our property
         the same values strive towards                                                                                                                                                                                            • Health and safety related talks
                                                    development projects, the
         a common goal. A desirable
                                                    Group provides Contractors
         workplace should facilitate
                                                    All Risks Insurance and Third
         open discussion and promote
                                                    Party Liabilities Insurance
         collaboration and connection
                                                    and incorporate safety-
         among employees. Towards this
                                                    related contractual terms
         end, our renovated offices in Hong
                                                    to ensure business partners
         Kong and Shanghai have adopted
                                                    have taken reasonable
         the “open-office” design.
                                                    and practicable steps to
                                                    guarantee workplace
                                                    safety.

                                                                                                                                                                                                                                               Safety talk event
                                                                                                                                                                                                                                         held in The Sukhothai Bangkok

28                                                                                    HKR International Limited ESG Report 2019/2020   ESG Report 2019/2020 HKR International Limited                                                                                          29
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