2018 Sustainability Report

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Governance

Esse quam videri

The Swire motto is to be, rather than seem (to be). We value integrity, endeavour, excellence, humility, teamwork and continuity.

We believe our motto and values are central to the long-term success of our businesses. We believe operating our businesses in a socially and environmentally responsible way is fully consistent with them and with our plans for long-term value creation.

Our governance approach

Sound corporate governance is essential to long-term success. Our Board is responsible for establishing and maintaining our governance practices. The following links demonstrate our approach to corporate governance:

Corporate Governance Code

Memorandum and Articles of Association

Board Diversity Policy

We are subject to the Corporate Governance Code in Appendix 14 to The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. Our governance practices are described in the Corporate Governance Report section of our 2018 Annual Report.

The governance of sustainability matters is an important element of our corporate governance. Our aim is to identify and benefit from sustainability opportunities and to manage sustainability risks, through appropriate policies, standards, and systems.

Code of conduct and legal compliance

Our Corporate Code of Conduct requires employees to maintain the highest standards of business ethics and to deal appropriately with each other, with those with whom we do business, and with the communities in which we operate. The Code of Conduct includes provisions dealing with business ethics, conflicts of interest, bribery, procurement, record keeping, whistleblowing, health and safety, the environment, equal opportunities, diversity and respect in the workforce, and privacy.

All employees receive training on our Code of Conduct as part of their induction programme. The induction programme includes anti-bribery training. Our conditions of employment require compliance with the Code of Conduct.

It is our policy to comply in full, with all applicable laws and regulations, including those governing the environment, employment (including laws prohibiting child or forced labour), health and safety, products (including their advertising and labelling), bribery, privacy, and discrimination.

It is not considered that there are any laws or regulations in respect of the following aspects which have a significant impact on Swire Pacific.

  • Air and greenhouse gas emissions, discharges into water and land, and generation of hazardous and non-hazardous waste
  • Compensation and dismissal, recruitment and promotion, working hours, rest periods, equal opportunity, diversity, anti-discrimination and other benefits and welfare
  • Providing a safe working environment and protecting employees from occupational hazards
  • Preventing child and forced labour
  • Health and safety, advertising, labelling and privacy matters relating to products and services provided and methods of redress
  • Bribery, extortion, fraud and money laundering

Notwithstanding the above consideration, it is the policy of Swire Pacific to comply with the laws and regulations applicable to it in respect of the above aspects. For descriptions, where relevant, of the ways in which such policy is implemented, please refer to the sections of this report headed: Our environment and Our people and communities.

Our corporate policies and sustainable development

Our sustainable development policy aims to be consistent with the 1987 Brundtland Commission’s definition of sustainable development as meeting “the needs of the present without compromising the ability of future generations to meet their own needs.”

Through the sustainable development policy, we aim to:

  • Reduce our carbon footprint by adopting industry best practices to improve energy efficiency, and by increasing the use of renewable energy
  • Turn today’s waste into a resource for tomorrow, contributing to the creation of a circular economy, where waste materials are no longer simply thrown away, but are retained and reused as a future resource
  • Use water responsibly and sustainably, and protect its watersheds
  • Be a good steward of the natural resources and biodiversity under our influence, and identify and manage appropriately the potential adverse impact of our operations on the environment
  • Safeguard the health and safety of our employees and others with whom we interact, with the ultimate aim of causing zero harm
  • Source materials responsibly and sustainably, including ensuring that our suppliers meet, and preferably exceed, the sustainability standards in our supplier guiding principles
  • Bring value to the communities in which we operate and respect their culture and heritage
  • Encourage our staff to engage actively in sustainable development matters at work and in the community
  • Monitor the company’s performance and report regularly

Our policies on climate change, biodiversity, sustainable supply chains, green buildings, and health and safety are covered in the appropriate sections of this report. These can be found in the Sustainable Development section of the Swire Pacific website.

Our sustainable development governance structure

Swire Pacific’s highest governance body is its Board, led by an Executive Chairman. Our corporate governance (including the operations of the Board and its committees, audit and communication with shareholders and investors) is addressed in the Corporate Governance Report in our 2018 annual report.

Our Board is ultimately accountable for sustainability matters. Information on sustainability risks and performance is reported to the Board via the Group Risk Management Committee (GRMC), which has eight members and is chaired by the Finance Director. The GRMC is advised by the Swire Group Sustainability Committee and by six working groups covering each of the six focus areas of SwireTHRIVE. The working groups meet three times a year to exchange information and best practices with a view to developing specific policy recommendations, improving efficiency, reducing costs and engaging staff in sustainable development.

To provide additional oversight and direction, division heads meet twice a year on sustainability matters under the Chairman of the Board.

Our Sustainable Development Office, which reports directly to a member of the Board, is responsible for setting policy, monitoring the implementation of policy and for implementing our Group sustainability strategy, SwireTHRIVE. Policies are intended to reflect key sustainability trends and address major risks and opportunities in sustainability. The Sustainable Development Office co-ordinates the sustainable development committees and working groups. These committees and groups enable operating companies to exchange information and best practices with a view to developing specific policy recommendations, improving efficiency, reducing costs and engaging with staff.

We work together with our operating companies and with those with whom we do business with a view to maintaining an appropriate level of oversight and control over sustainability matters. The management of each operating company is responsible for its own sustainability matters. Each operating company is responsible for:

  • Assessing the sustainability issues faced by the company
  • Formulating strategy based on this assessment
  • Implementing this strategy through an appropriate organisational structure
  • Monitoring compliance (to confirm that appropriate action has been taken) and reporting on performance

Sustainable Development governance structure

Governance structure

Public Policy and political contributions

Swire, as a normal business activity, will lobby government entities either directly or through trade associations to promote policies that encourage business and achieve workable legislation. All our public policy work must meet the ethical standards set out in our Code of Conduct and (where relevant) reflect our public sustainability commitments.

Membership of trade associations

Some of our public policy work is conducted via trade associations and industry groups, which can help to increase the impact of our policy messages. We work with these groups because they represent our industries and the wider business community in debates led by governments and others, and because they help the industries reach consensus on policy issues. We are members of numerous industry and trade groups.

For a list of industry and trade groups of which we and our operating companies are members please see below. The top Trade Associations based on the amount of fees paid by Swire, are highlighted in gold.

  • Property
  • Aviation
  • Beverages
  • Marine Services
  • Trading & Industrial

Property

  • 1st – The Hong Kong Management Association – Charter Member
  • 2nd – The Real Estate Developers Association of Hong Kong – Director and Corporate Member
  • BEAM Society – Founding Member
  • Business Environment Council – Board of Director and Council Member
  • China Green Building Council – Member
  • Green Cross - Occupational Safety & Health Council – Group Member
  • Green Earth – Soil Companion
  • Harbour Business Forum – Patron Member (through the Swire Group)
  • Hong Kong General Chamber of Commerce – Member
  • Hong Kong Green Building Council – Platinum Patron Member
  • The Lighthouse Club Hong Kong – Corporate Member
  • Urban Land Institute – Regional Corporate Sustaining Member
  • WWF Hong Kong – Pearl Member

Aviation

Cathay Pacific

  • Association of Asia Pacific Airlines (AAPA) – Environmental Working Group Member
  • Sustainable Aviation Fuel User Group – Member
  • Roundtable on Sustainable Biomaterials – Member
  • Commercial Aviation Alternative Fuels Initiative – Member
  • ICAO Global Market-Based Measure Technical Task Force – Member
  • oneworld global alliance – Founding member
  • World Wildlife Fund – Hong Kong – Corporate member (Pearl)

HAECO Hong Kong

  • Business Environment Council – Member
  • International Airline Technical Pool – Member

HAECO Xiamen

  • 2nd – Asian Business Aviation Association – Member
  • 3rd – Civil Aviation Maintenance Association of China – Member
  • International Airline Technical Pool – Member
  • ACJ network Center – Member
  • Boeing Supply Chain Platform Membership – Member
  • 廈門市外商投資企業協會 – Member
  • 廈門市環境保護產業協會 – Member
  • 廈門市安全生產管理協會 – Member
  • 廈門市節能協會 – Member
  • 廈門企業和企業家聯合會 – Member

HAECO America

  • The Aeronautical Repair Station Association of America – Member

CPSL

  • Hong Kong Association for Customer Service Excellence – Corporate Member
  • Hong Kong Association of Freight Forwarding and Logistics Ltd – Member
  • Carrier Liaison Group – Member

Vogue

  • The Laundry Association of HK Limited – General Member
  • A member of HK Association for Customer Service Excellence – General Member

HAS

  • 1st – International Air Transport Association (IATA) – IATA Ground Handling Partnership Membership

Beverages

Swire Coca-Cola

  • 1st – The Hong Kong Beverages Association – President
  • 2nd – China Beverage Industry Association – Director
  • 3rd – Taiwan Beverage Industry Association – Director
  • 4th – American Beverage Association – Member
  • 5th – Coca-Cola Bottling Association – Member
  • Green Cross Group – Member
  • The Single-Use Beverage Packaging – Working Group Member
  • Hong Kong Food, Drink & Grocery Association – Member
  • GS1 – The Global Language of Business – Board of Director
  • Efficient Consumer Response – Chairman
  • The Goods Vehicle Fleet Owners Association Limited – Executive Committee
  • Jiangxi Fire Protection Association – Board of director
  • Zhanjiang Foreign Investment Association – Board of director
  • Zhejiang Foreign Investment Enterprise Association – Member
  • Zhejiang Beverage Association – Vice president
  • Hangzhou Food Industry Assocation – Member
  • Guangdong Quality Inspection Association – Member
  • Guangdong Food Safety Society – Member
  • Guangdong British Chamber of Commerce – Member
  • American Chamber of Commerce of South China – Member
  • Guangdong Food Industry Association – Member
  • Henan Association for Foreign Investment – Vice president
  • Henan Enterprise Association – Vice president
  • Zhengzhou Enterprise Association – Vice president
  • Zhengzhou Food Industry Association – Vice president
  • Zhengzhou Consumer Association – Member
  • Xiamen People Foreign Friendly Association – Director
  • Xiamen Quality Control Association – Member
  • Anhui Foreign Investment Enterprise Association – Member
  • Shanghai Beverage Industry Association – Vice president
  • Shanghai Food Association – Vice president
  • Shanghai Foreign Investment Enterprise Association – Member
  • Shanghai Pudong Foreign Investment Enterprise Association – Member
  • Shanghai Jinqiao Economic and Technology Development Zone Enterprise Association – Director
  • Shanghai Industrial Economic Union – Member
  • Pudong JinQiao CSR Council – Director
  • Hubei China Beverage Industry – Director and Corporate Member
  • Wuhan Waishang Investment Enterprise Association – Director
  • Wuhan Beverage Industry Association – Director
  • Hefei China Beverage Industry Association – Director
  • Anhui Foreign Investment Enterprise Association – Member
  • Jiangsu Beverage Association – Vice President
  • Jiangsu Foreign Investment Association – Vice President
  • Hainan Entrepreneurs Association – Member
  • Hainan Food and Beverage Association – Member
  • Yunnan Foreign Investment Enterprise Association – Vice president
  • Yunnan Industrial Enterprise Association – Member
  • Yunnan Consumer Association – Member
  • Taiwan Food Industry Development Association – Executive Director
  • Taipei Nurses Association – Member
  • European Chamber of Commerce Taiwan – Member
  • State Beverage Association – Member
  • Bonneville Environmental Foundation – Partner
  • Utah Open Lands – Partner
  • Trout Unlimited – Partner
  • The River Network – Partner
  • Colorado Water Trust – Partner
  • Utah Clean Air Partnership – Partner
  • Business for Water Stewardship – Partner
  • Change the Course – Member

Marine Services

Swire Pacific Offshore

  • 1st – Singapore Shipping Association – Member
  • WISTA Singapore – Member
  • World Ocean Council – Member
  • British Chamber of Commerce (Singapore) – Member

HUD

  • Occupational Safety & Health Council – Chairman, Manufacturing Industry Safety & Health Committee
  • Marine Department of the Hong Kong government – Member, Pilotage Advisory Committee
  • Vocational Training Council – Member, Maritime Services Training Board

Trading & Industrial

Swire Waste Management Limited

  • 1st – Hong Kong Waste Management Association – Organisational Member

Taikoo Motor Group – Taikoo Commercial Vehicles Limited

  • 2nd – European Chamber Of Commerce Taiwan and Taipei Automobile Distributors Association – Member

Taikoo Motor Group – Beldare Motors Limited

  • European Chamber Of Commerce Taiwan – Member

Taikoo Motor Group – Liberty Motors Limited

  • European Chamber Of Commerce Taiwan – Member

Taikoo Motor Group – Taikoo Motors Limited

  • European Chamber Of Commerce Taiwan and British Chamber of Commerce in Taipei – Member

Taikoo Motor Group – Taikoo Motorcycle Limited

  • American Chamber of Commerce in Taipei (AmCham) – Member

Taikoo Motor Group – Tuntung Motors Limited

  • Taipei Automobile Distributors Association – Member

Taikoo Sugar Limited – Taikoo Sugar (China) Limited

  • 3rd – China Sugar Association – Member
  • 廣東省食品安全學會 – Member
  • 廣州市黃埔區食品安全協會 – Member

Taikoo Sugar Limited – Chengdo Plant

  • 成都市食品商會 – Member

Taikoo Sugar Limited – Shanghai Plant

  • Shanghai Association for Food and Cosmetics Quality Safety Management – Member

Swire Resources Limited

  • 4th – Hong Kong Retail Management Association – Corporate member
  • Hong Kong Institute of Human Resource Management – Corporate member
  • WWF – Silver Member
  • The Hong Kong Management Association – Corporate member
  • Hong Kong General Chamber of Commerce – Corporate member