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ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED)
6. VALUE CHAIN MANAGEMENT
a.
Supply Chain Management
Hong Kong Ferry Group has a diverse range of businesses and requires services from a network of suppliers and contractors. Hong Kong Ferry and its subsidiaries are committed to extending their influence on suppliers and contractors to manage any potential environmental and social risks of the supply chain through regular engagement.
Hong Kong Ferry adheres to the highest standards of business ethics. These ethics underpin how we conduct business with our customers, suppliers and contractors. Suppliers are required to follow all environmental and safety related rules and regulations in Hong Kong. The Group's construction operations also convey the importance of occupational health and safety, and environmental protection to its contractors. For example, monthly joint safety inspections with in-house contractors are conducted at designated sites and workshops at the Shipyard. To manage the environmental risks arising from the construction work, contractors are required via tender specifications to implement a construction/demolition waste management plan during the works. At the floating restaurants of Harbour Cruise - Bauhinia, menu with less sugar, salt and oil has been introduced to customers.
The Company is also committed to cultivating a harmonious and collaborative working relationship with all stakeholders along its value chain. The Group maintains a list of approved suppliers and vendors, all of whom are registered in a database and assessed through a Supplier Evaluation Report and a Supplier Performance Review on an annual or quarterly basis. Inspections are conducted on suppliers guilty of late deliveries and other non- compliances to identify substandard suppliers to which corrective actions are then applied.
Local suppliers are preferred to non-local suppliers as locally sourced materials carry a lower carbon footprint. The majority of the Group's suppliers are local businesses in Hong Kong. Geographical distribution of suppliers of Harbour Cruise - Bauhinia and the Shipyard Operation is as follows:
Harbour Cruise - Bauhinia
The Shipyard Operation
10%
17%
100 %
Suppliers in Hong Kong
Suppliers in Hong Kong
Suppliers in Mainland China
Suppliers from other regions
Hong Kong Ferry (Holdings) Company Limited Annual Report 2015
73%