Management and Reporting Systems

While we have rooted best practice in management strategy and instituted numerous systems and procedures to implement strategy, through sustainability reporting we voluntarily solicit outside opinion to benchmark our performance. To this end we have engaged PricewaterhouseCoopers (PwC) in a four-year programme which is aimed at improving independent assurance. The 2004 year has again focused on the priority business risks identified in 2003 and are charted here.

Sustainability Progress

The sustainable targets for 2004 have been largely accomplished. Most noteworthy are the introduction of a new core value and the revision and dissemination of the Code of Conduct and accompanying guidebook for employees. We have incorporated the Sustainability Advisory Board (SAB) model developed for the Tung Chung cable-car project into the proposals for developing the West and South Island lines. These endeavours create substantial headway in formalising our stakeholder engagement strategy. Other achieved targets include our continued membership of and commitment to global initiatives mentored by the DJSI, FSTE4Good Indices and WEF programmes, participation in AccountAbility impact reporting projects, and our contributions to international organisations sponsoring sustainable rail transport projects and programmes.

We are on a steep learning curve on a number of fronts, with expanding international and regional activities, in particular in mainland China. In undertaking sustainable practices in the planning, building and operating of worldclass rail systems in PRC cities, we have adopted and subscribe to international standards and conventions for environmental impact, human rights and labour practices. However, in view of widespread international opinion on weak local sustainability practices, we accept that further investigative and assessment work is needed in terms of our own management and overall project delivery practices. By taking initial steps to assess the risks and examining current proactive measures undertaken by other multinationals, the MTRC will commence the learning dialogue via a series of workshops in 2005 to
discuss and learn how to address these issues.

Further afield, we recently established an office in London to oversee European market opportunities that stem mainly from the Public Private Partnerships emerging with the deregulation of the transport industry. Because the European Union functions under a more developed framework for sustainability practice, our base in London serves as the frontline in assisting the company in local sustainability practices and in taking an active role in stakeholder engagement for our projects.