ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED)
6. VALUE CHAIN MANAGEMENT
a. Supply Chain Management
With our property development, ferry and shipyard operations, the Company's supply chain spans a variety of industry sectors. To manage environmental and social risks in our supply chain, we engage and collaborate with our suppliers and
contractors.
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At the Hong Kong Ferry Group, our engagement with suppliers and contractors conforms to the highest standards of ethical business practice. The Group's Code of Conduct clearly underscores the value of fair and open competition during all procurement and tendering procedures. The contracting of services and the purchase of goods is based solely upon price, quality and need. The Hong Kong Ferry Group has adopted management controls to detect and prevent bribery and other forms of malpractice, to ensure the impartial selection of capable and responsible suppliers and contractors.
The Hong Kong Ferry Group also strives to develop long-term relationships with our key suppliers. A database of approved suppliers and vendors is updated on an annual or quarterly basis. The suppliers and vendors are reviewed through a Supplier Evaluation Report and a Supplier Performance Review. Comprehensive inspections are carried out on suppliers prone to substandard performance, such as late deliveries, and we develop corrective action plans with our suppliers to address issues promptly.
Suppliers and contractors are required to adhere to all Hong Kong environmental and safety related regulations. Stringent measures are carried out to ensure compliance, such as monthly joint safety inspections with in-house contractors, as well as tender specifications to implement a construction waste management plan during works.
In terms of mitigating environmental impacts, the Hong Kong Ferry Group prioritises local procurement. Local suppliers using locally-sourced materials carry lower carbon footprint. Harbour Cruise Bauhinia has achieved a 100% local procurement rate, while the overall local procurement rate is 85% for the Hong Kong Ferry Group - a 10% increase from the previous reporting period.
100%
Local procurement rate achieved
by Harbour Cruise - Bauhinia in 2016
85%
75%
Hong Kong Ferry (Holdings) Company Limited Annual Report 2016
2015
2016
Overall local procurement rate of the group
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