We introduce the key elements of our approach to procurement and working with suppliers in this section. It also contains links to more information on our corporate website.
The Company has a transparent and independent procurement process based on principles of good governance. The key objectives of this process are to serve the interests of our shareholders and other stakeholders by promoting competition, providing value for money to the Company, and ensuring compliance with our policies on corporate responsibility and sustainability.
Supply Chain Risk Management
Risks in our supply chain are subject to regular assessment by our Enterprise Risk Committee. For example, we anticipate that flooding and other extreme weather events associated with climate change could have major impacts on our supply chain, including delays to production and delivery of goods, and higher insurance premiums for our infrastructure and property assets. To address these issues, we have put in place risk mitigation measures such as keeping safe levels of stock for critical spares and investigating ways to develop alternative sources of supply for a range of goods and services.
The Supplier Code of Practice (SCoP) was launched in 2008. It provides a basic, compulsory behavioural framework for ethical standards, human and labour rights, and supply chain management. Full compliance with the SCoP is a requirement of all procurement contracts entered into by the Company, with any violation considered to be a material breach of contract. Suppliers are also responsible for ensuring that their own suppliers comply with the SCoP.
Our Green Procurement Policy encourages our procurement teams to promote sustainability in our supply chain. We are a founding member of the Hong Kong Green Purchasing Charter and apply green specifications for procurement of a range of items, such as Forest Stewardship Council (FSC) certified products for stationery supplies. We encourage our suppliers to adopt eco-labelling and are currently working with some suppliers to explore the feasibility of introducing locally produced biodiesel into our supply chain.
KEY PRINCIPLES AND PROCESSES
We survey our suppliers periodically to collect information about the status of their policies, initiatives and monitoring systems relating to
- ethical standards
- human and labour rights
- environmental protection (including carbon emissions, energy, water, waste and noise)
- consumer protection
- supply chain management
- conflicts of interest
We use this information to understand how our suppliers are aligning with the Supplier Code of Practice and to identify areas for improvement and collaboration.
We invite suppliers to participate in regular forums, seminars and site visits to evaluate performance and share best practices, and our procurement teams participate in regular visits to suppliers’ facilities. Overall, we aim to foster a culture of cooperation and mutual support in our supply chain by working with suppliers to promote corporate responsibility beyond contractual compliance. Focusing on worker safety and health, human rights, labour practices and community engagement, our Operations, Projects and Property Divisions have identified specific parts of the supply chain in which to deliver strategic engagement on these issues.
Please refer to supply chain assessment and collaboration with contractors.
We publicise information about contracts and tenders on our corporate website in the interests of total transparency.