Supply chain management
Swire Properties requires service providers to perform well in the areas of health and safety, the environment, procurement, management and quality. New suppliers must complete self-assessment questionnaires to confirm that they have appropriate policies and systems in place to comply with the supplier code of conduct. Due diligence is performed to verify the responses and sites in Hong Kong and the Chinese Mainland 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 2021, Swire Properties assessed the compliance of over 300 Tier-1 suppliers (representing over half of its 2021 procurement expenditure) with the supplier code of conduct. None were considered high risk. No incidents of human rights violations were identified.
The compliance by Swire Coca-Cola’s suppliers of critical materials and ingredients for beverages, packaging and any items with TCCC’s logo with TCCC’s Supplier Guiding Principles is audited by third parties. Knowledge is shared with other Coca-Cola bottlers in the Chinese Mainland in order to manage procurement better. This facilitates the identification and selection of suppliers who follow appropriate procurement principles.
HAECO group identifies its critical suppliers based on volume and asks them to complete self-assessment surveys. It assesses their compliance with its requirements and engages with them on the basis of their responses. This is done every two years. Critical supplier audits are carried out periodically when necessary.
Swire Properties tracks consumption of office supplies, building services equipment and building materials which have been certified or accredited by independent third parties. The data is used to evaluate its sustainable procurement performance and to identify opportunities for sourcing more sustainable products. In 2021, HK$946 million of sustainable products were procured, representing 12% of its total 2021 procurement spend in Hong Kong and the Chinese Mainland.
Swire Properties specified low-carbon concrete, reinforcement bar (rebar) and structural steel in the contract for a new development in Hong Kong. It is working with Tsinghua University to explore the availability of low-carbon building materials in the Chinese Mainland. Swire Properties tracks the consumption and environmental impacts of specific construction materials such as timber, concrete and rebar, which enables benchmarking across its new developments. It aims to promote greater innovation and availability of low-carbon building materials by sharing its experience with primary contractors and building material suppliers through publications, presentations at conferences and other methods.
Swire Coca-Cola has committed that by 2025 key agricultural ingredients (sugar and corn) will come from sources verified by third parties to be sustainable. It estimates the carbon emissions associated with its packaging. A tracking system, introduced in 2020, helps identify improvement areas and communicate its decarbonisation strategy to suppliers.
HAECO is developing sourcing policies for key materials to provide procurement and buying teams with guidance to make more responsible choices. Its sourcing policy for plastics was updated in 2021.
For more information on our operating companies’ approaches to sustainable procurement, please refer to their 2021 sustainability reports.