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Caring for the Environment

Policy and Management

As a socially responsible company, care for the environment is integrated into how Kerry Properties Limited (“KPL”) do business. Our sustainability policy guides us not only to take environmental consequences into account, but also to commit to ecologically positive initiatives wherever possible.

Constant Progress in Sustainability Reporting

Our Sustainability Steering Committee was formed in 2016 to guide our company-wide corporate social responsibility (“CSR”) commitment.

The Sustainability Report 2016 charted the Group’s progress towards the environmental goals we have set as a business imperative. As the Group’s first public sustainability report, it was designed to inform stakeholders in an engaging way, highlighting not only measurable outcomes, but also real-life instances where our green actions have made a positive difference in communities. The report covered KPL’s operations in Hong Kong, as well as five mixed-use developments in Beijing, Shanghai, Hangzhou and Shenzhen. As the Group continually strives to improve its environmental, social and governance (“ESG”) performances, we aim to expand our reporting depth progressively.

The report was prepared in compliance with the Stock Exchange of Hong Kong’s ESG Reporting Guide (“ESG Guide”), and exceeded its requirements in certain areas. The report covered topics with reference to the Global Reporting Initiative G4 Sustainability Reporting Guidelines, and made special reference to its Construction and Real Estate Sector Disclosure.

Our sustainability reporting will continue to evolve, with the scope further expanded this year to include five more Mainland properties. We are also adopting GRI Sustainability Reporting Standards in the 2017 report.

In 2016, the Group formulated a five-year sustainability roadmap to monitor 11 aspects under the ESG Guide. This monitoring system was subsequently improved by establishing quarterly progress records and regular reviews of the various targets.

Stakeholder Engagement

To make sustainability a team effort, the steering committee is chaired by the Chief Executive Officer and formed by staff representatives from our Hong Kong head office and major properties in the Mainland. The committee oversees four sub-committees covering areas comprising Environment Initiatives, Sustainable Employee Engagement, CSR and Community, and Corporate Governance. Regular meetings are conducted to review performance and share updates.

On publication of the 2016 Sustainability Report, a sharing session was held in July 2017 in Hong Kong to enable colleagues to exchange their views on the Group’s sustainability policy and strategies, compliance, governance and the overall roadmap. A highlight video of the session was produced and shared with colleagues in the Mainland.

To engage external and internal stakeholders in the Mainland and Hong Kong, we carried out an extensive online questionnaire survey and collected over 600 responses. A series of workshops and focus groups were held between December 2017 and January 2018 to identify and determine those aspects of our business that have significant impact on our stakeholders. We were also able thereby to collect stakeholders’ feedback and ideas on the Group’s sustainability practices.

Environmental Policy and Management

The Group’s Environmental Policy for property development and management lays down clear environmental performance targets which have been formally adopted by top management as our organisational goals.

This policy is implemented and constantly enhanced through our Environmental Management System (“EMS”), which was established in 2009 and accredited under ISO 14001 in 2011. The EMS has been adopted by KPL as well as by various Group companies including Kerry Property Management Services Limited (“KPMSL”), MegaBox Management Services Limited (“MMSL”) and Kerry Properties Development Management (Shanghai) Co., Ltd. (“KPDMSL”). The EMS of KPL and all properties under its management in Hong Kong, together with five properties in the Mainland, namely Jing An Kerry Centre, Kerry Parkside, Enterprise Square and Central Residence II in Shanghai and Shenzhen Kerry Plaza have been certified to the latest version of ISO 14001:2015.

The EMS is led and managed by an EMS Committee formed by representatives from different teams. Meeting on a half-yearly basis the Committee ensures the successful implementation of the EMS at an operational level; establishes and reviews environmental objectives, targets and programmes; enhances internal communication and awareness; and reviews and discusses complaints, nonconformities, and corrective and preventive actions.

As at 31 December 2017, all annual objectives and targets set by the EMS Committee for our headquarters, all development projects, and properties managed by KPMSL and MMSL have been met and mostly exceeded. Specifically, we have set a long-term carbon reduction target for headquarters and all managed properties in Hong Kong. In view of some changes in our key managed residential portfolio, the drop in carbon intensity has been slowing down and a series of new initiatives were devised.

The Group has now gone one step further to establish an Energy Policy and an Energy Management System (“EnMS”) to systematically monitor and continually enhance the energy performances of our properties. The EnMS was certified under ISO 50001:2011 in January 2018 and was overseen by the EnMS Committee.

Our Green Procurement Manual was first compiled in 2015 by a task force of representatives from different departments and included a list of product requirements specifying the environmental credentials of 50 items of products and services commonly used in property management and throughout our offices. In 2017, we added 16 commonly purchased items for property development into our green procurement practice. This manual applies to all properties under the Group’s management in Hong Kong, and mandates strict compliance by all departments. The product specifications enable selection and purchase of green products based on such qualities as durability, recyclability, toxicity, energy consumption, use of clean technology, and emission levels. To facilitate understanding towards our Green Procurement Policy, KPMSL launched a hotline service managed by designated staff in 2017 to handle enquiries from contractors.

In the Mainland, the Group has adopted and announced a Green Procurement Policy which was fully implemented by KPDMSL in 2018. Green Procurement Guidelines under the policy also list environmental credentials of 50 property management related procurement items. Contractors and suppliers are required to sign an environmental protection guideline. All future procurements in the Mainland will be governed by this policy.

Stakeholder Engagement in Green Activities

“Environmental Movement” to Engage Occupants

The “Environmental Movement” was introduced in 2016 to engage the occupants of all our managed residential properties in Hong Kong in our sustainability drive. All occupants were offered incentives to participate in environmentally friendly activities at their respective properties.

New initiatives have been added to the “Environmental Movement”, including the “Green Home Tips” programme. Residents could register for an arranged visit to get advice on energy efficiency tips and resource utilisation at home. A Green Home Tips booklet was also published to enhance the effectiveness of the site visits by offering residents practical green tips. In parallel, occupants were invited to suggest inspirational or practical ideas to advocate green living through the “Green Idea” programme.

Other relevant initiatives, including the recycling of used clothes and hangers, books, CDs, glass bottles, fluorescent lamps, tubes or bulbs, old toys, old electrical appliances, toners and ink cartridges, continued to be hosted at our properties. Some of these activities were held in conjunction with Government, environmental or other social agencies. Displays of clean recycling information at clubhouses and visits to recycling plants have also been arranged.

Traditional celebrations can sometimes be a source of waste. Our properties have therefore introduced workshops to upcycle used red packets, arranged for the sharing of Lunar New Year gifts and the recycling of festive plants.

Waste reduction at source is a key theme of the “Environmental Movement”. All estates managed by KPMSL have participated in the “No Plastic Bottle Day 2017”.

“Green at Work Contest” to Extend Reach to Commercial Tenants

With an aim to raise environmental awareness and encourage sustainable practices by motivating tenants and their staff at their own workplace, the Group devised a “Green at Work Contest” during the year. The contest collected some 700 smart tips coming under the 4Rs (reduce, reuse, recycle and replace) submitted by staff of over 100 companies across the Group’s retail and commercial properties in Kowloon East. Selected smart green ideas were featured in the Group’s 2018 corporate calendar for sharing with a wider audience.

Green Construction Site Award to Involve Site Contractors

The Group continues to encourage and commend green and healthy construction practices at all our development sites by means of the in-house “Green Construction Site Award”. Contractors and respective project management teams of our construction sites form groups to participate in this commendation programme.

Mobile Communication Platform to Share Green Information

Mobile communication platforms were set up in the Mainland and Hong Kong during the year to enable the sharing of green and CSR messages between residents. These platforms include a WeChat community for the Mainland, and mobile apps for Dragons Range and Bayview in Hong Kong.

Green in Everyday Operations

“Green Every Day” Programme

Our property management teams in the Mainland and Hong Kong all support a collective programme to encourage recycling and better waste management. Activities during the year included the recycling of batteries, red packets and expired publications. Waste separation at source for plastic is also facilitated at all managed properties in Hong Kong. Enterprise Square Five goes one step further by separately collecting food waste for recycling into organic fertilisers for the gardens at MegaBox and Mid-Levels properties. MMSL also supported a barter market activity held at MegaBox.

Meanwhile, the “Green Every Day” programme continues to be rolled out in all our Mainland and Hong Kong operations. Through the provision of easily accessible waste separation facilities, encouraging reuse and recycling, smart use of resources and procurement of energy-saving appliances, green practices are being made easy for daily operations.

An electronic Green Office Tips was compiled to help our property management teams communicate more effectively with tenants. During the year, several visits to tenants’ offices were conducted resulting in fruitful sharing of energy-saving and recycling measures for the workplace. The guide was prepared with reference to the Green Tenancy Driver Training Toolkit of The Hong Kong Green Building Council (“HKGBC”), and included some of the winning ideas from the “Green at Work Contest”.

Green in the Corporate Workplace

The Head Office in Hong Kong has been using recycled paper for printing since March 2017. EMS workshops and tours with a focus on eating green and healthy, as well as organic farming, have been arranged in Hong Kong to better engage staff members in environmental awareness.

In Shanghai, staff teams at Kerry Parkside took part in decorating their office with green plants, while colleagues at Kerry Everbright City solicited the support of landlords and tenants from the neighbourhood to ‘adopt’ plants, and organised regular harvesting of vegetables from the podium field. Our staff and their families in Shenzhen joined hands with the tenants of Shenzhen Kerry Plaza and planted 50 trees in a wetland park. All members of the Beijing Kerry Centre team also took part in an annual tree planting activity.

Green Fun and Eating

Sustainability was promoted during the year to our tenants and residents in the Mainland and Hong Kong through a variety of fun activities, such as stamp collection by children for donating recycled materials, trail walks and outings. To make upcycling fun, workshops have shown occupants how to make daily-use or artistic objects from surplus or leftover materials, such as DIY workshops on soap and candles making from coffee grounds and lip balm making from organic materials.

In support of the “Green Monday” campaign, our clubhouse restaurant at Dragons Range, Foo Ka Chinese Restaurant and Congee & Noodle Shop at Kerry Centre in Hong Kong have participated as partners by offering vegetarian menus on Mondays and Wednesdays. The campaign aims to tackle climate change and global food insecurity by making low-carbon and sustainable living simple, viral and actionable.

Working with Green Groups

Support of Green Organisations

During the year, we continued to support the green initiatives of the Government and green organisations.

Our managed properties in Hong Kong achieved remarkable results in the “Energy Saving Championship Scheme 2016”, organised by the Environment Bureau and Electrical and Mechanical Services Department. They also took part in the “Power Smart Energy Saving Contest 2016”. Households were encouraged to participate in the contest with incentives for achieving an overall 50% saving in electricity consumption.

The Group showed its support for the “CLP Eco Power” and “Eco Awards Program” by offering incentives to occupants who registered with the scheme and produced individual household power consumption reports. The programme uses an online platform to monitor and forecast electricity consumption, with the aim of promoting energy saving by households.

Kerry Parkside, Jing An Kerry Centre, Shenzhen Kerry Plaza, Shenzhen Kerry Centre, Beijing Kerry Centre and Shenyang Arcadia Court in the Mainland, as well as MegaBox in Hong Kong, continued to support “Earth Hour”, organised in March 2017 by the World Wide Fund for Nature. Our property management teams have also encouraged residents to participate by turning off non-essential lights for one hour.

Kerry Centre supported the “Hong Kong No Air Con Night 2017” organised by Green Sense. Our management teams of residential properties also echoed the call by encouraging occupants to turn off air-conditioning during two evenings. Meanwhile, the Group sponsored Foo Ka Chinese Restaurant and Congee & Noodle Shop at Kerry Centre in Hong Kong to purchase biodegradable food containers and eating utensils for takeaways in support of the “BottLESS” programme to reduce disposable plastic consumption.

Pledges

Most properties managed by KPMSL and Head Office in Hong Kong have pledged their support for the Hong Kong Government’s “Energy Saving Charter” and “4Ts Charter” schemes. The “Energy Saving Charter” aims to encourage business and community organisations to reduce electricity consumption and thus carbon emissions, while the “4Ts Charter” engages stakeholders in the built environment to set targets and timelines, maintain transparency by sharing information, and to work together to achieve the targets.

The Group and MMSL have both pledged support for HKGBC’s “Hong Kong Green Shop Alliance”. As a long-term alliance member, our MegaBox has pledged to be environmentally responsible and incorporate sustainable practices into daily operations.

The Group has also joined the “Fostering Sustainable Consumption for Hong Kong Business and the Community Programme” as a Sustainable Consumption Enterprise. The scheme is hosted by the Business Environment Council (“BEC”), and aims to encourage enterprises to consider the environmental and social impacts of the products and services they purchase.

Participation through Membership

HKGBC is the leading body driving the standards and development of sustainable buildings in Hong Kong. The Group has been a Gold Patron Member of HKGBC since 2013. Patron membership is a prestigious class of institutional membership, and the Group is delighted to support HKGBC’s work in green building as a Patron.

The Group has also been a Council Member of BEC since 2013. An independent charitable organisation established by the business sector in Hong Kong, BEC has been at the forefront of promoting environmental excellence and contributing to the city’s transition to a low-carbon economy.

OverviewCaring for the Community