Our code in practice
We need to purchase goods on competitive terms, but we must also take due account of labour standards, health and safety and the environment.
Swire Properties collects information from its suppliers about their social, environmental and governance practices and performance. New suppliers must complete self-assessment questionnaires to confirm that they have appropriate policies and systems in place to comply with the Code. Due diligence is performed to verify the responses and sites in Hong Kong and Mainland China may be visited. Independent certification in accordance with internationally recognised standards, and the submission of environmental and health and safety management plans, may be requested for internal review.
In 2019, Swire Properties refined its performance management system for technical services providers. Non-compliance or malpractice in the areas of health and safety, environment, procurement, quality and site management are required to be recorded and may result in disciplinary action. A risk assessment was carried out in 2019 on Swire Properties’ 25 key suppliers in Hong Kong, Mainland China and the USA, by highest procurement spending. None of them exhibited a high risk of non-compliance.
Swire Coca-Cola follows the supplier guiding principles of The Coca-Cola Company. These principles cover workplace policies, health and safety, human rights, environmental protection and business integrity. Swire Coca-Cola’s own major suppliers are audited. Knowledge is shared with other Coca-Cola bottlers in Mainland China in order to better manage procurement. This facilitates the identification and selection of suppliers who follow appropriate procurement principles.
Cathay Pacific requires all suppliers to declare that their products and services comply with the Code. It evaluates suppliers using a scorecard which measures performance in six different areas: cost, innovation, satisfaction, quality, assurance of supply and sustainability.
Cathay Pacific Catering Services has stringent procedures for supplier selection and ingredient procurement, conducting regular audits of its food suppliers’ food safety systems.