2017 Sustainability Report

Statements

Merlin Swire
We will be judged on our actions and not on our words. In terms of sustainable development, that means making things happen.

Merlin Swire, Chairman Swire Pacific Limited

Chairman’s statement

Sustainable development at Swire Pacific is not viewed simply as a cost or a set of good intentions. It is a strategic imperative for our businesses and part of our overall approach to building long-term value for our shareholders. For Swire Pacific, sustainable development is about doing the right thing. We know that, in the long run, this approach will make us more competitive and better business operators.

We will be judged on our actions and not on our words. In terms of sustainable development, that means making things happen. Despite economic uncertainties and challenging market conditions, we made good progress in our sustainable development efforts in 2017. I am very proud of the work that we have done together with our staff, our customers and others with whom we interact. There is, of course, much more to do.

We believe that sustainable development should be integrated within, rather than distinct or separate from, our overall business. Sustainable development must be a key part of our strategy and our approach to management. This means having clear strategic objectives and setting goals and targets, with the aim of continuous improvement. This is difficult, but we will not make progress without clear objectives. Our team then must understand those objectives and what they have to do for them to be achieved.

Thinking sustainably requires us to look beyond short term challenges. We need to build the resilience of our businesses to shocks and be ready to take advantage of new opportunities. Sustainable development must be integral to what we do if we are to create long-term value for our shareholders.

We greatly appreciate your interest in Swire Pacific, as we continue our efforts to build a future where we all can thrive.

Merlin Swire
Chairman

Dr. Mark Watson
In 2017, we continued to implement SwireTHRIVE, our environmental sustainability strategy introduced in 2016. SwireTHRIVE is designed to mitigate operational risk and to build long-term resilience through environmental best practice and innovation.

Dr. Mark Watson, Head of Sustainable Development

Head of Sustainable Development’s statement

In 2017, we continued to implement SwireTHRIVE, our environmental sustainability strategy introduced in 2016. SwireTHRIVE is designed to mitigate operational risk and to build long-term resilience through environmental best practice and innovation. It addresses existing (carbon, water and waste) and new (biodiversity and climate resilience) issues. In 2017, we set quantitative carbon and water targets for 2020. We will set quantitative carbon and water targets for 2030 and near term waste targets. We have established biodiversity and climate resilience working groups.

We provided guidance and supporting tools to those responsible for sustainability matters in our businesses, thus enabling them to apply SwireTHRIVE to their businesses and to do so with those responsible for finance, risk management and human resources.

We introduced the Swire Pacific sustainable development fund. Up to HK$100 million was available to support innovative projects which could not otherwise meet our cost of capital targets. Swire Properties received support for projects at its Pacific Place development in Hong Kong.

In November 2017, our annual sustainable development forum was attended by over 250 Swire group staff. Separate panels covered climate risk and resilience, the importance of partnerships and the growing importance of environment, social and governance analysis to investors.

Swire Pacific remained a constituent of the Dow Jones Sustainability Asia Pacific Index, the Hang Seng Corporate Sustainability Indices and the MSCI World ESG and MSCI Global SRI Indices. Swire Properties became the only company listed in Mainland China and Hong Kong to be included in the 2017 DJSI World Index. Swire Properties issued the group’s first green bond.

We must look for radical solutions to our sustainability challenges, particularly in the environmental area and particularly to those challenges created by the need to move to a low carbon economy. Our businesses must collaborate more with each other and with those who share our values. As a conglomerate, we are well placed to share technology and expertise among our businesses.

We have built a solid foundation and have, in SwireTHRIVE, a sound sustainability strategy. We are determined to progress. We have taken due note of the UN Sustainable Development Goals. We will provide more detailed reports in future years.

For Swire Pacific to succeed and for our businesses to meet the challenges of sustainable development, each of us has a role to play. By working together, we can thrive together.

Dr. Mark Watson
Head of Sustainable Development