Sustainability | Swire Pacific Limited

Sustainability

Swire Pacific recognises that its business success is dependent on its people, the communities in which it operates and the natural environment

Sustainability at Swire Pacific

Swire Pacific has a longstanding commitment to sustainable development. We invest in sustainable development because it is the right thing to do and because it is fundamental to our ability to create long-term value for shareholders. Our success in doing so is dependent on our people, the communities in which we operate and the natural environment.

“We believe that when the world in which we operate thrives, so do we.”

“We believe that when the world in which we operate thrives, so do we.”

SwireTHRIVE

Sustainable development is a strategic objective for Swire Pacific. To promote sustainability in our business and management practices, we have a sustainable development strategy, SwireTHRIVE, and environmental, social and governance (ESG) policies. SwireTHRIVE aims to mitigate operational risk and build long-term resilience by driving improved standards, enhanced efficiency and increased innovation in five key areas: Climate, Waste, Water, People and Communities.

SwireTHRIVE - People

2024 target

30%

Women on the Board and in senior leadership roles

Health and safety goal

Zero harm

SwireTHRIVE - People

2024 target

30%

Women on the Board and in senior leadership roles

Health and safety goal

Zero harm

SwireTHRIVE - Water

2030 target

↓30%

Water withdrawal compared to 2018 frozen efficiency baseline

2050 target

Water neutrality

SwireTHRIVE - Water

2030 target

↓30%

Water withdrawal compared to 2018 frozen efficiency baseline

2050 target

Water neutrality

SwireTHRIVE - Communities

>1,200,000 people

Benefitted in 2022

HK$55 million

Distributed by Swire Trust in 2022 to support education, marine conservation, the arts and COVID-19 relief

SwireTHRIVE - Communities

>1,200,000 people

benefitted

HK$55 million

distributed by Swire Trust to support education, marine conservation, the arts and COVID-19 relief

SwireTHRIVE - Waste

2030 target

65%

Waste diverted from landfill

2050 target

Zero waste to landfill

SwireTHRIVE - Waste

2030 target

65%

Waste diverted from landfill

2050 target

Zero waste to landfill

SwireTHRIVE - Climate

2030 target

↓50%

Scope 1 and 2 emissions compared with 2018 baseline

2050 target

Net zero emissions

SwireTHRIVE - Climate

2030 target

↓50%

Scope 1 and 2 emissions compared with 2018 baseline

2050 target

Net zero emissions

Governance

While every Swire Pacific business unit is required to address its own sustainability issues, the principles governing the way in which this is done are formulated at Group level. Through its Sustainable Development Office, Swire Pacific sets policy and monitors its implementation by individual business units. The Sustainable Development Office also assists business units with planning, risk management and with the measurement of results. Policy is set in the light of global sustainability trends and after consideration of the risks and opportunities for the Group as a whole.

We have established a three-line of defence risk governance model.
1. The Group Risk Management Committee (“GRMC”) is supported by four risk forums and a separate Swire Pacific Risk Management Committee, which identifies risks that have a Group dimension.
2. Our Environmental, Social and Governance Risk Forum provides updates to the GRMC and the Audit Committee.
3. Group level strategic committees address key sustainability issues, such as Human Resources, Health & Safety, Data & Technology, and the Environment. We also have a Group level Diversity and Inclusion Steering Committee.

Through our Enterprise Risk Management system, we identify the principal risks that need to be managed. We engage with our business partners and other third parties, and benchmark our sustainability performance against our industry peers. We regularly review our own performance and report on it annually to investors and our stakeholders.

Environmental, Social and Governance (ESG) Policies

Swire has a Sustainable Development Policy that commits the Group to working on the environmental, health and safety, employment, supply chain and community issues that our operations affect, and to working with other parties to promote sustainable development in the industries in which we operate.

We maintain a Group level ESG policy framework that goes beyond the five pillars of SwireTHRIVE, covering topics that reflect our values, and which are important to regulators, investors and other key stakeholders.

Reporting

2023 Sustainability Report

Reporting methodology

Independent Practitioner’s Limited Assurance Report

Past reports and Swire Pacific group companies Sustainable Development reports

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Testing without button

Past report

Swire Pacific's sustainability reporting sets out our approach to sustainability, ethics and good governance. Our approach is integral to fulfilling our commitment to an open and honest dialogue with our stakeholders. We believe our approach builds resilience and creates value for all our stakeholders.

We released our first Swire Pacific annual sustainability report in 2007. Our latest report has been prepared as an interactive website and is available in English and Traditional Chinese. It has been prepared with reference to the Global Reporting Initiative ("GRI") Standards and the comply or explain provisions and recommended disclosures in the Environmental, Social and Governance ("ESG") Reporting Guide of The Stock Exchange of Hong Kong Limited ("HKEX").

Sustainable Development Fund

Our Sustainable Development Fund offers financial support to operating companies for projects which can provide long-term environmental benefits but cannot be justified by reference to our cost of capital. Up to HK$100 million is available annually to support projects that reduce the carbon, water and waste footprints of our operating companies, in line with our Group sustainability targets. Two funding streams are made available to support innovative pilot projects and the roll-out of proven high-impact solutions. Seventeen projects have been approved to date.

Sustainability Ratings and Indices

We respond to enquiries from investors and provide information to the CDP (formerly the Carbon Disclosure Project), the Dow Jones Sustainability Index (DJSI), FTSE4Good, MSCI and organisations which assess the economic, environmental and social performance of companies. They help us to identify the specific issues most relevant to the industries in which we operate.

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Swire Pacific is committed to ensuring that its affairs are conducted in accordance with its corporate and governance culture and values of integrity, originality, excellence, humility, teamwork, continuity and high ethical standards, which form a coherent set of principles that are relevant across the Company’s business and underpin everything it does.