MTR Corporation produces its annual sustainability report to support and supplement our yearly financial reporting exercise and other corporate reporting initiatives through the in-depth discussion of our performance in the social, economic and environmental stewardship of the Corporation. The purpose is to augment the business case, provide a snapshot of our sustainable development in action and to provide a comparison to peer companies when reporting on sustainability for our readers. Our purpose is to engender trust amongst stakeholders, especially those concerned with socially responsible business and investment practices, and to demonstrate our working commitment to the long-term sustainability of the Corporation.

This year, the decision was taken to continue to report under the Global Reporting Initiative (GRI) - 2002 Sustainability Reporting Guidelines, as 2007 marks the last year of reporting in operating as MTR Corporation pre merger. This allows the Corporation to present in 2008 a new set of full-year social and environmental data as the expanded organisation under the G3 Guidelines. We also continue to follow the World Economic Forum Framework for Corporate Citizenship Initiative.

We have included in this Report the five-year mapping exercise of performance based upon the principles of sustainable development under the BS8900:2006, issued by the BSI Group. The indicators captured under this series form a standardised basis for measuring and benchmarking the Corporation's performance over time, and allow for comparability in terms of industry and global corporate performance.

 

Reporting Scope

The scope of this Report covers the 2007 economic, social and environmental performance data of MTR Corporation in Hong Kong. Data presented for our activities outside Hong Kong is specified where applicable. The financial data captured in this Report includes audited data from the KCRC as of post-merger date 2 December 2007. The non-financial data captured includes data from the KCRC as of post-merger date 2 December 2007 and NP360 Cable Car, except the Selected Priority Business Risk table and where indicated.

 

Financial Data Reporting

The financial and economic contribution data covered in this Report includes the accounts of MTR Corporation and all its subsidiaries except Octopus Cards Limited, a non-controlled subsidiary of the Corporation. The data is prepared according to and aligns with the accounting policies of the Corporation's financial statements.

The environmental and social responsibility data is aggregated from the seven divisions within the Corporation, our business partners and where applicable, from independent bodies or organisations so as to provide readers with a relative comparison on performance. The external sources of data are specified accordingly throughout the Report where applicable and verifiable.

Although we are in principle confident in the integrity of the non-financial data used in the Report, we acknowledge that in the measurement, calculation and estimation of some of the environmental and social responsibility data, there are limitations that cause a degree of uncertainty in relation to the data reported. These include different interpretations of the reporting guidelines, such as those used for greenhouse gases; inaccuracies in data resulting from the calculation and analysis methods used; accuracy and sampling by environmental measuring equipment; and data sourced from external entities and/or business partners where the Corporation has no controlling interest in projects or contracts. Our practice is to keep within a 5% range in variance and to state within data tables where variance is applicable.

 

Target setting

In practice, corporate targets are set through discussions with senior executives and directors based on past performance and measured expectations. Divisional targets are set through discussions within individual divisions in consensus with the Executive Committee, and are based on the principle of continual improvement.