In the 2005 Sustainability Report we discuss the architecture and underlying systems and processes that drive our corporate safety mindset. Taken from the perspective of our primary stakeholder groups, we examine the employment practices, customer services, construction site practices and operations management that reflect a workplace and service environment that meets our stringent internal targets and the highest standards in health and safety internationally. We are recognised and benchmarked as one of the safest mass transit operators worldwide.
Expanding our safety footprint • Understanding that the risks in operating within new environments and businesses requires a more encompassing corporate safety management umbrella, substantial change is in progress that broadens the management scope and formalises the safety responsibilities and processes that will be required of all our businesses and operating centres in future.
In early 2006, under the recommendations of an independent study undertaken during the previous year, the Corporate Safety Governance programme was introduced. Within this framework, the Safety Policy has been updated, a new safety strategy formalised and the Corporate Safety Committee established. Combined, these new initiatives effectively bring a new culture and hierarchy in corporate health and safety that provides a consistent, clear and proactive framework for managing increased risk potential and strengthening our ongoing working systems and practices.
The updated Policy brings significant change by embracing all aspects of our businesses and by strengthening responsibilities at line management level. This promotes the enterprise-wide risk management approach and allocates accountability at all stages of implementation. The new strategy aligns with the dual goals of the Policy, which are, to maintain a climate of safety awareness and to employ management systems that promote continuous improvement in safety performance across the organisation. The strategy clearly articulates safety to include both occupational and public health and assures the consistent deployment of safety approaches to achieve the Safety Policy intent. It also establishes the framework for executive and senior management responsibilities and the new Safety Committee governance hierarchy and related responsibility specifics.
Governance • The Corporate Safety Committee is a supervisory working group comprising the existing Operations Safety Committee plus three new divisional safety committees (Property, China and International Business and Rail Projects Construction) to manage the safety risks in expanding our businesses and markets.
Under the supervision of the Corporate Safety Committee, an annual Safety Plan is formulated and enacted. Both qualitative and quantitative targets are established. Performance against targets and other relevant information are fed on a continuous basis directly to the Committee for analysis, action and reporting. Under the Safety Plan, 'fit for purpose' management systems, training programmes and accountability structures manage health and safety issues of our businesses disciplines and the corporate divisions that run them.
Business-specific safety management • Of significant advancement under the new governance structure are the ‘fit for purpose’ (business-specific) management systems and processes that will drive our activities in the mainland China and international markets where we anticipate and operate under different safety risk scenarios and do not control many of the key performance processes. This same business-specific approach applies to our local and international property development activities in which we jointly develop properties with independent commercial developers and to our Hong Kong rail construction projects in which our operating systems are currently under review in anticipation of the proposed rail merger. By identifying the specific areas within these disciplines that require more stringent performance management and supported by the clearly defined allocation of responsibility and ownership, we are able to respond, assess and manage safety issues in a timely and more effective manner.
The safety risks identified at the business and functional levels of the organisation form a constituent of the recently established Enterprise Risk Management strategy. Under this strategy, safety risk moves from division-managed to corporate-wide status with the reprioritisation of exposure, assessment and management. Under this change, it is expected that safety issues will in future take a more prominent position in our corporate business risk modelling and in our growth strategy.
