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Corporate Governance

Our Stakeholders

Our stakeholders include any entity or individual who is significantly affected by our principal activities in Hong Kong and/or whose actions are expected to significantly affect the ability of the Company to achieve its objectives. By this definition, we have millions of stakeholders from all parts of our city, of all ages, all socio-economic groups, and all types of employment.

Stakeholder engagement is a dynamic and evolving process that provides essential input into our business. Please refer to Safety, Environment, Staff, Community, Customers and Value Chain to learn about our approach to engaging with stakeholders on all of these topics.

Despite the enormous diversity of views and opinions that are represented, we want all of our stakeholders to feel heard and understood. For the purposes of our materiality assessment, we have created nine categories of stakeholders. Definitions for each stakeholder group can be found in our interactive Materiality Matrix.

Materiality Matrix

Sustainability reporting is one way that we engage with our stakeholders on an annual basis. The infographic below presents an overview of our approach to stakeholder engagement and reflects outcomes from our stakeholder engagement process that were relevant to our sustainability reporting in 2014.

Materiality Outcomes Arranged by Topic

Please click on each Topic to see a list of relevant sustainability issues and their position in the Materiality Matrix. Where appropriate, the list contains links to more information about the sustainability issues on this report website.

Materiality Level Location of More Information
1 Organisational governance structure & process High Corporate Governance Introduction
2 Fair operating practices (including ethical dealings with other organisations) High Fair and Ethical Business
3 Anti-corruption High Anti-Corruption and Whistle-Blowing
4 Responsible political involvement High Stakeholder Engagement and Materiality
5 Fair competition High Fair and Ethical Business
Materiality Level Website location
6 Fair marketing (including factual and unbiased information) Medium Not reported
7 Customer education High Safety Management Approach
Fares for Hong Kong Transport Operations
8 Customers' health & safety High Customer Safety
9 Sustainable products & services Medium Evaluation of Materiality Assessment Results
10 Customer service, support, & complaint handling High Customers Introduction
11 Customer data protection & privacy Medium Evaluation of Materiality Assessment Results
12 Access to essential services (including avoidance of service disruption) High Train Service Performance
Materiality Level Website location
13 Human rights risks assessment Low Not reported
14 Human rights risk issues Low Not reported
15 Human rights grievances mechanism Low Anti-Corruption and Whistle-Blowing
16 Diversity and equal opportunity Medium Corporate Governance Introduction
Staff Introduction
17 Fundamental principles & rights at work (based on Internal Labour Organisation standards) Low Not reported
18 Protection of civil & political rights of staff Low Not reported
19 Employment practices Medium Staff Introduction
20 Conditions of work & social protection Medium Staff Management Approach
21 Staff consultation & engagement (including freedom of association & collective bargaining) Medium Staff Management Approach
22 Employee and contractor health & safety High Staff and Contractor Safety
23 Employee development & training Medium Training Programmes
Materiality Level Website location
24 Prevention of pollution (including air, water & waste) High Environmental Protection
25 Sustainable resource use (including resource efficiency & water use) High Sustainable Resource Use
26 Climate change Medium Climate Change
27 Biodiversity Medium Ecology
Materiality Level Website location
28 Supply chain human rights risk Low Supply Chain Management
29 Promoting social responsibility in the value chain Medium Value Chain Introduction
Materiality Level Website location
30 Payment from government / tax payment Medium Rail plus Property Model
31 Community involvement & development (including stakeholder engagement) High Community Engagement
32 Education and culture Low Case study: Island Line Extension to Western District
Community Investment
33 Employment creation & skills development Medium Our People
Recruitment in Hong Kong
34 Technology development & access Low Not reported
35 Wealth & income creation Low Not reported
36 Community health Low Not reported
37 Community investment (including staff volunteering) Low Staff Volunteering
Community Investment

Materiality Outcomes for Stakeholder Groups

Please select any stakeholder group to see a definition, and to learn about engagement channels and sustainability issues of interest to each type of stakeholder. Where appropriate, there are links to more information about MTR’s response to stakeholders’ interests on this report website.

Definition
Shareholders, including our majority shareholder the Hong Kong Government, other providers of capital and financial analysts.
Engagement Channels Key Interests Materiality Level How MTR Responds
  • Annual and interim reporting
  • Annual General Meeting
  • Special announcements
  • Investor road shows
  • MTR Hotline
  • Socially Responsible Investment Indices
  • Organizational governance structure and Process
High Corporate Governance Introduction
  • Fair operating practices
High Fair and Ethical Business
  • Anti-corruption
High Anti-Corruption and Whistle-Blowing
  • Responsible political involvement
High Stakeholder Engagement and Materiality
  • Fair competition
High Fair and Ethical Business
  • Fair marketing
Medium Not reported
  • Customer education
High Safety Management Approach
Fares for Hong Kong Transport Operations
  • Customers' health & safety
High Customer Safety
  • Sustainable products & services
Medium Evaluation of Materiality Assessment Results
  • Customer service, support, and complaint handling
High Customers Introduction
  • Access to essential services
High Train Service Performance
Definition
All employees of the Company and its subsidiaries.
Engagement Channels Key Interests Materiality Level How MTR Responds
  • Management Communication Meetings
  • Divisional Communication Meetings
  • Staff Attitude Survey
  • Meetings with staff unions
  • Joint Consultation Committee (JCC)
  • Staff Consultation Committee (SCC) meetings
  • Various internal communication channels
  • "We are MTR" - MTR Retiree Network
  • Customers' health & safety
High Customer Safety
  • Customer service, support, and complaint handling
High Customers Introduction
  • Access to essential services
High Train Service Performance
  • Protection of civil & political rights of staff
Low Not reported
  • Employment practices
Medium Staff Introduction
  • Conditions of work & social protection
Medium Staff Management Approach
  • Staff consultation and engagement
Medium Staff Management Approach
  • Employee and contractor health & safety
High Staff and Contractor Safety
  • Employee development & training
Medium Training Programmes
Definition
Combines stakeholders from a variety of backgrounds, including NGOs, academic institutions and industry bodies, who have expressed interest in the environmental impacts of our activities and/or particular environmental issues.
Engagement Channels Key Interests Materiality Level How MTR Responds
  • Environmental Impac Assessment Consultation
  • Environmental Impact Assessment Expert Review
  • Ecologists' advisory services
  • CDP Disclosure
  • Meetings with green groups Wetland Special Advisory Committee
  • Prevention of pollution
High Environmental Protection
  • Sustainable resource use
High Sustainable Resource Use
  • Climate change
Medium Climate Change
  • Biodiversity
Medium Ecology
  • Community involvement and development
High Community Engagement
Definition
Our largest stakeholder category in terms of both the number of people and the range of interests represented. It includes members of local communities who are directly impacted by our activities due to their close proximity to our railway operations, property developments or network expansion projects. It also includes community groups representing sections of the wider Hong Kong society, for example youth and the elderly, as well as less advantaged members of our society such as the disabled and those living on low incomes.
Engagement Channels Key Interests Materiality Level How MTR Responds
  • MTR facebook
  • Public announcements, press releases
  • Bi-weekly meeting of CEO and senior mangement with the press
  • Community liaison group meeting
  • Society Link
  • Staff volunteering
  • "art in MTR"
  • Partnering programmes with NGOs
  • Customer education
High Safety Management Approach
Fares for Hong Kong Transport Operations
  • Customers' health & safety
High Customer Safety
  • Sustainable products & services
Medium Evaluation of Materiality Assessment Results
  • Customer service, support, and complaint handling
High Customers Introduction
  • Customer data protection & privacy
Medium Evaluation of Materiality Assessment Results
  • Access to essential services
High Train Service Performance
  • Prevention of pollution
High Environmental Protection
  • Community involvement and development
High Community Engagement
  • Employment creation and skills development
Medium Our People
Recruitment in Hong Kong
  • Technology development and access
Low Not reported
  • Community investment
Low Staff Volunteering
Community Investment
Definition
All organisations and persons who provide products and services used in our supply chain.
Engagement Channels Key Interests Materiality Level How MTR Responds
  • Supplier survey on Corporate Responsibility
  • Supplier audit
  • Industry conferences and road shows
  • Partnering programmes, site visits and seminars
  • Fair competition
High Fair and Ethical Business
Definition
A sub-set within our supply chain made up of contractors (and employees of our contractors) working on behalf of the Company on network expansion and property development and investment projects. These business partners have been singled out from other suppliers because of their close collaborative relationship with the organisation.
Engagement Channels Key Interests Materiality Level How MTR Responds
  • Industry meetings, conferences, job fairs, road shows
  • Partnering programmes, contract and site meetings, seminars
  • Fair operating practices
High Fair and Ethical Business
  • Fair competition
High Fair and Ethical Business
  • Employee and contractor health & safety
High Staff and Contractor Safety
Definition
Bodies concerned with enforcement of laws, regulations and other standards that affect our day-to-day operations and business development, including Government departments and the Hong Kong Stock Exchange.
Engagement Channels Key Interests Materiality Level How MTR Responds
  • Regulatory compliance reports
  • Legislative Council meetings
  • Advisory panels on transport and urban planning
  • Meetings with District Councillors
  • Meetings with Legistlative Councillors
  • Fair operating practices
High Fair and Ethical Business
  • Anti-corruption
High Anti-Corruption and Whistle-Blowing
  • Customer education
High Safety Management Approach
Fares for Hong Kong Transport Operations
  • Customers' health & safety
High Customer Safety
  • Sustainable products & services
Medium Evaluation of Materiality Assessment Results
  • Customer service, support, and complaint handling
High Customers Introduction
  • Customer data protection & privacy
Medium Evaluation of Materiality Assessment Results
  • Access to essential services
High Train Service Performance
  • Diversity and equal opportunity
Medium Corporate Governance Introduction
Staff Introduction
  • Prevention of pollution
High Environmental Protection
  • Sustainable resource use
High Sustainable Resource Use
  • Climate change
Medium Climate Change
  • Community involvement and development
High Community Engagement
  • Education and culture
Low Case study: Island Line Extension to Western District
Community Investment
  • Community health
Low Not reported
  • Community health
Low Not reported
  • Community investment
Low Staff Volunteering
Community Investment
Definition
In the context of our rail business, “customers” and “passengers” refer to persons travelling on types of services provided by our Hong Kong transport operations. In the context of our Property business, this category also refers to residential and commercial tenants of our managed properties, and patrons of all MTR Malls.
Engagement Channels Key Interests Materiality Level How MTR Responds
  • Customer satisfaction surveys
  • MTR Mobile app
  • MTR Club
  • MTR website and facebook page
  • MTR hotline
  • Fair marketing
Medium Not reported
  • Customers' health & safety
High Customer Safety
  • Sustainable products & services
Medium Evaluation of Materiality Assessment Results
  • Customer service, support, and complaint handling
High Customers Introduction
  • Customer data protection & privacy
Medium Evaluation of Materiality Assessment Results
  • Access to essential services
High Train Service Performance
Definition
Representatives of Hong Kong’s political institutions, including District Councillors and members of the Legislative Council whom we need to update and report to on a regular basis on matters related to our operating agreement or the construction of our new railway lines.
Engagement Channels Key Interests Materiality Level How MTR Responds
  • Customer satisfaction surveys
  • MTR Mobile app
  • MTR Club
  • MTR website and facebook page
  • MTR hotline
  • Fair operating practices
High Fair and Ethical Business
  • Anti-corruption
High Anti-Corruption and Whistle-Blowing
  • Responsible political involvement
High Stakeholder Engagement and Materiality
  • Fair marketing
Medium Not reported
  • Customer service, support, and complaint handling
High Customers Introduction
  • Access to essential services
High Train Service Performance
  • Employment practices
Medium Staff Introduction
  • Staff consultation and engagement
Medium Staff Management Approach
  • Payment from government / tax payment
Medium Rail plus Property Model
  • Community involvement and development
High Community Engagement

Materiality Methodology

The principle of materiality states that our sustainability report should address topics that reflect the Company’s significant economic, environmental and social impacts, and/or that substantively influence the assessments and decisions of our stakeholders. During 2014, we reviewed and revised our method of materiality assessment with the objective of making this sustainability report more relevant, and user-friendly. The updated methodology involves four basic steps as summarised in the following graphic.

 

Did you know?

 

In financial reporting, materiality is commonly thought of as a threshold for influencing the economic decisions of investors. The concept of a threshold is also applicable to sustainability reporting but materiality in this context refers to the shared concerns of the Company and all stakeholders, not just investors.

 
 

Steps to Determine Materiality

Step 1. Identification of Sustainability Reporting Issues

We refer to the ISO 26000 Guidance on Social Responsibility to identify the set of all possible issues that are relevant to sustainability reporting for our organisation. For the sake of convenience, we organise the issues into six categories:

  1. Fair Operating Practices
  2. Consumer Issues
  3. Human Rights and Labour Practices
  4. The Environment
  5. Supply Chain
  6. Community Involvement and Development

Step 2. Importance to the Company based on Enterprise Risk Management

The issues are positioned along the horizontal axis from left to right in order of increasing risk.

Our sustainability team assessed the relationship among all of the 37 issues that were identified in the ISO 26000 standard and the top 30 enterprise risks from our enterprise risk register in order to evaluate the relative importance of each of the issues to the Company. The outcome of this assessment, which was reviewed and endorsed by the Enterprise Risk Committee during 2014, is reflected in the position of each of the 37 issues along the horizontal axis of the Materiality Matrix.

Step 3. Interest to Stakeholders based on Stakeholder Engagement

The issues are positioned along the vertical axis from bottom to top in order of increasing stakeholder interest.

Our sustainability team synthesised the outcomes of engagement with all categories of stakeholders during the year in order to determine the relative importance of each of the 37 issues for them. Please note that the position of each issue moving towards the top of the horizontal axis reflects the level of interest (for example, intense interest expressed by some stakeholders) and/or breadth of interest (for example, large number of stakeholders expressing some interest).

Step 4. Endorsement by the Corporate Responsibility Steering Committee

The overall position of each issue moving from the bottom left to the top right of the matrix determines its level of materiality. We have assigned low, medium and high materiality to each issue depending on its position in the matrix. The materiality assessment of all 37 issues was reviewed and approved by the CoRSC during 2014.

 
 

Learn more...

 

ISO 26000 is an internationally recognised standard for clarifying what corporate responsibility is and translating its principles into best practices.

 

Evaluation of Results

Since it is not feasible for us to report extensively on every issue, we have applied the principle of materiality to help us determine what information to disclose in this report.

As a result of our assessment in 2014, three topics have been identified as non-material outliers. This means that one party, either the Company or the collective assessment of our stakeholder groups, showed high interest in the topic but the other party considered it to be of relatively low importance.

  • Responsible political involvement (issue #4) relates to restricting behaviour that could undermine the public political process. Although our stakeholders did not appear to place importance on this topic, it is important for the Company, and our Code of Conduct addresses it directly with clear guidelines on political involvement, donations and conflicts of interest.
  • Sustainable products and services (issue #9) relates to reducing unsustainable patterns of production and consumption. Since our core business does not give rise to any physical products, we do not consider this to be an important topic for the Company. However, we recognise that there are indirect impacts on our business of importance for some stakeholders, so we are working to promote sustainable patterns of production and consumption in our Value Chain.
  • Even though customer data protection and privacy (issue #11) has not been identified as a material issue for discussion in this report, we have in place a number of initiatives to address this topic that go beyond Hong Kong regulatory requirements.