Introduction Our business SwireTHRIVE About our report Other ESG disclosures Appendices Overview Governance SupSupppllyy chai chainn Talent management Customers Biodiversity We monitor and assess compliance Our actions Sustainable materials with the code and other sustainability Supply chain management Swire Properties tracks consumption performance criteria. Where gaps are Swire Properties requires service of o昀케ce supplies, building services identi昀椀ed, we may require suppliers to equipment and building materials that undergo audits and to develop and adopt providers to perform well in the areas of health and safety, the environment, meet speci昀椀c environmental criteria, such appropriate corrective action plans to procurement, management and quality. It as certi昀椀cations and accreditations by ensure compliance, with a focus on those reputable, independent third parties. The deemed high risk. has set a target for 100% implementation data is used to evaluate its sustainable of its Supplier Code of Conduct (SCoC) in procurement performance and to Human Rights Policy all portfolios. Our Human Rights Policy is informed by identify opportunities for sourcing more the International Bill of Human Rights and It is standard practice to require that sustainable products. An assessment all suppliers in Hong Kong, Chinese in 2021 showed HK$946 million of by the International Labour Organization’s Mainland and Miami, U.S.A. comply with sustainable products were procured, Declaration on Fundamental Principles and Rights at Work. We comply with the SCoC. New suppliers must complete representing 12% of its total 2021 self-assessment questionnaires to con昀椀rm procurement spend in Hong Kong and the national laws where they con昀氀ict with that they have appropriate policies and Chinese Mainland. human rights standards but still do systems in place to comply with the SCoC. our best to respect the latter. We seek Due diligence is performed to verify Swire Properties speci昀椀ed low-carbon to include, in our agreements with the responses and sites may be visited. concrete, reinforcement bar (rebar) suppliers and contractors, provisions and structural steel in its contract for which encourage them to adhere to the Independent certi昀椀cation in accordance a new development in Hong Kong. It principles in our policy. with internationally recognised standards, is working with Tsinghua University to and the submission of environmental and explore the availability of low-carbon Our Sustainable Supply Chain Working health and safety management plans, may building materials in the Chinese Group convenes senior procurement be requested for internal review. Mainland. Swire Properties tracks the managers from our operating companies In 2022, it conducted a review of its consumption and environmental impacts to share best practices and develops SCoC to ensure alignment with global sustainability policies and guidelines for of speci昀椀c construction materials such suppliers. best practices and completed its annual as timber, concrete, and rebar, which compliance assessment of over 300 Tier-1 enables benchmarking across its new suppliers with its code. developments. It aims to promote Further reading The compliance by Swire Coca-Cola’s greater innovation and availability of suppliers of critical materials and low-carbon building materials by sharing Supplier Code of Conduct ingredients for beverages, packaging and its experience with primary contractors any items with TCCC’s logo with TCCC’s and building material suppliers through Sustainable Procurement Policy Supplier Guiding Principles is audited by publications, presentations at conferences Human Rights Policy third parties. Knowledge is shared with and other methods. other Coca-Cola bottlers in the Chinese Swire Coca-Cola has committed that Mainland to manage procurement by 2025 key agricultural ingredients better. This facilitates the identi昀椀cation (sugar and corn) will come from sources and selection of suppliers who follow veri昀椀ed by third parties to be sustainable. appropriate procurement principles. It estimates the carbon emissions HAECO identi昀椀es its critical suppliers associated with its packaging. A tracking based on volume and asks them to system, introduced in 2020, helps identify complete self-assessment surveys. improvement areas and communicate its It assesses their compliance with its decarbonisation strategy to suppliers. requirements and engages with them HAECO is developing sourcing policies based on their responses. This is done for key materials such as plastic, fuel and every two years. Critical supplier gas to provide procurement and buying audits are conducted periodically when teams with guidance to make more necessary. responsible choices. For more information on our operating companies’ approaches to sustainable procurement, please refer to their 2022 sustainability reports. SWIRE PACIFIC — SUSTAINABLE DEVELOPMENT REPORT 2022 — 80