ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED)
7.
OUR RESPONSIBILITY IN THE VALUE CHAIN
To continually fulfil and exceed the high expectations placed on our products and services, our operations are closely monitored at every stage, including throughout our value chain. We maintain close communications with our different suppliers and contractors and implement various engagement practices to ensure that ethical conduct and high quality standards are upheld throughout the Group.
a.
Supply Chain Management
We have various practices and policies in place to handle our suppliers and contractors to ensure environmental and social impacts, which may arise from our diverse supply chain, are sufficiently mitigated and managed. All of our suppliers and contractors are strictly required to comply with all local environmental, employment and safety regulations.
A variety of monitoring initiatives have been implemented to ensure compliance and promote best practice, including monthly joint safety inspections with onsite contractors and tender requirements for the implementation of construction waste management plans during relevant works. Furthermore, suppliers are reviewed intermittently, and the results are issued in a Supplier Evaluation Report and Supplier Performance Review. Suppliers who fail to meet the Group's standards are subject to a comprehensive inspection. Areas of concern are identified and addressed through corrective actions subsequently developed by the Group in conjunction with the supplier for future improvement.
Our Code of Conduct outlines the policies that guide the Group's supplier engagement to ensure that we are operating under the highest standard of ethics and fair business practices to prevent incidents of misconduct such as bribery or other malpractice. When issuing contracts, the selection process considers suppliers' and contractors' environmental practices alongside the quality of products and services, Group needs and cost.
As a conglomerate with deep roots and a rich history in Hong Kong, we aim to support local industries and businesses whenever possible. In addition to the benefits to the local economy, the prioritisation of local procurement helps to lessen the environmental impact of our operations by reducing the fuel and energy required to procure our materials, goods, supplies and services. During the reporting year, we achieved an overall local procurement rate of 84%.
Overall local procurement rate of the Group
100%
90%
100%
80%
70%
60%
50%
40%
Local procurement rate achieved by Harbour Cruise - Bauhinia in 2018
30%
20%
10%
0%
2015
2016
2017
2018
Hong Kong Ferry (Holdings) Company Limited Annual Report 2018
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