ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED)
1.
VALUE CHAIN MANAGEMENT
We endeavour to provide safe, reliable and thoughtful services which closely align with our customers' needs. Besides attentively listening to our customers and rapidly responding to their feedback, we also engage with our suppliers and contractors regularly to ensure we share the same goal in delivering quality products and services.
a.
Supply Chain Management
To manage the environmental and social risks in Hong Kong Ferry Group's extensive network of suppliers and contractors, we work closely with our business partners to ensure the quality of the products and services provided through our diversified businesses of property development, and ferry and shipyard operations.
We engage our suppliers and contractors with the highest standards of ethical business practices, guided by our Code of Conduct. Our Company's procurement and tendering procedures ensure fairness and openness. Suppliers and contractors are selected based on the price, quality, need and environmental considerations. In addition, management controls are in place to prevent and detect bribery or other malpractices during the process.
As a long-standing company in Hong Kong, we maintain long-term relationships with our key suppliers and business partners. To effectively monitor and manage our suppliers, we update our database of approved suppliers on an annual or quarterly basis. Performance reviews were carried out periodically on our suppliers and through a Supplier Evaluation Report and a Supplier Performance Review. We also conduct comprehensive inspections on suppliers with substandard performance such as late deliveries. When issues are identified, we develop corrective actions with our suppliers promptly for remediation.
It is a requirement that our suppliers and contractors must comply with all local environmental, employment and safety related regulations. To ensure compliance and promote best practices, we have implemented various measures such as conducting monthly joint safety inspections with onsite contractors, and including a tender requirement for implementing a construction waste management plan during works.
To mitigate environmental impacts, and support industries and businesses in Hong Kong, we prioritise local procurement. Through procuring materials, goods and services locally, we can lower the carbon footprint of our supply chain and support the Hong Kong economy. During the reporting year, we achieved an overall local procurement rate of 89%.
Local procurement rate achieved by Harbour Cruise - Bauhinia in 2017
100%
Overall local procurement rate of the Group
100%
80%
60%
40%
20%
0%
2015
2016
2017
Hong Kong Ferry (Holdings) Company Limited
Annual Report 2017
63
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