Our success in creating quality working communities is strongly rooted in our Partnering Programme. It is a process of collaboration between ourselves and our contractors and suppliers through which we conduct on-site training, share information, build trust and engender the culture of continual improvement. The objective is to build mutual advantage based upon responsible social and environmental principles in the planning and delivery of our projects.

Supply Chain

With the adoption of the Climate Change Policy and membership to the Clean Air Charter and Hong Kong CSR Charter, more stringent environmental and social targets are under development for our supply chain. As a working example, after a recent procurement review with suppliers, a new questionnaire is under development with consideration to human rights based upon ILO policy in preparedness for our expanded emerging markets operations. A separate mainland China workshop and questionnaire is also under consideration to address issues that are specific to this market and the growing international enquiry on the up and downstream impacts of our operations there. Our goal is to encourage suppliers and contractors to adopt as far as practicable the Corporation's own standards for labour, social and environmental stewardship, and ethics as expressed in the Code of Conduct.

A substantial step forward has focused on wages. At tendering stage all potential suppliers and contractors are required to stipulate wage levels and payment programme. Adherence is strictly monitored with proof of payment a contractual obligation. Breach of these conditions will bar offenders from future bidding. In 2006, no breach in wage payments was incurred by our supply chain partners.

Safety

We take a leadership role in creating quality working environments for our business partners, contractors and suppliers. Safety on site ranks as a key priority in this and is strictly monitored and controlled. We set our own targets based on the business risk management strategy as well as structure contractual obligations that demand more than compliance to local regulations. Site safety is monitored on a regular basis through inspections, contractor meetings and timely accident reporting and follow up procedures. In January 2006, regrettably, for the first time in five years, one contractor fatality occurred on the NP360 cable car project. In accordance to procedures required, an investigation as to cause was conducted and necessary corrective measures were taken with the contractors.