SUN HUNG KAI & CO. LIMITED Stock Code: 0086
2023 ESG REPORT
01
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
About This Report
Sun Hung Kai & Co. Limited (stock code: 86), commonly referred to as SHK & Co., along with its subsidiaries (collectively known as the Group), is delighted to present its Environmental, Social, and Governance (ESG) Report for the year 2023. This Report sets out the Group's sustainability approach, policies, initiatives, and performance, focusing on the period from 1 January 2023, to 31 December 2023 (referred to as the Reporting Period).
This Report is prepared noting the latest Environmental, Social, and Governance Reporting Guide (ESG Guide) outlined in Appendix C2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the Stock Exchange), as well as the Global Reporting Initiative (GRI) Standards 2021.
SHK & Co.'s activities in credit (formerly known as financing), investment management, and funds management businesses in Hong Kong and Mainland China are covered by this Report, other than those without physical operations or joint venture companies in which the Group has no operational control. Unless stated otherwise, the Report encompasses the offices and branches of the following units and their subsidiaries in Hong Kong and Mainland China:
- Sun Hung Kai & Co. Limited (SHK & Co.)
- United Asia Finance Limited (UAF)
- Sun Hung Kai Credit Limited (SHK Credit)
The information provided in this Report has been carefully compiled using data and information gathered within the Group. The Group maintains internal control and review processes to check the accuracy and reliability of all information presented. The Board of Directors (the Board) has reviewed and approved this Report. Throughout its preparation, we have adhered to the reporting principles of "materiality," "quantitative," "balance," and "consistency."
Materiality | This Report is structured based on the results |
of a comprehensive materiality assessment | |
raised through stakeholder engagement. | |
The materiality of issues was reviewed | |
and confirmed by the Board and senior | |
management of the Group. | |
Quantitative | This Report discloses material environmental |
and social key performance indicators ("KPIs") | |
of the offices and branches from SHK & Co., | |
UAF and SHK Credit. | |
Balance | This Report presents SHK & Co.'s overview |
of the Group's ESG performance with both | |
achievements and areas of improvements | |
disclosed. | |
Consistency | This Report adopts methodologies for the |
calculation of KPIs that are consistent with | |
previous years, to allow for meaningful | |
comparison of ESG data over time. There | |
was no significant change with the reporting | |
scope of this Report from last year. For further | |
details of the quantification methodologies, | |
please refer to the "Our Environment" section. |
For further information about our economic impact and corporate governance measures, please review our Annual Report and Corporate Governance Report.
Opinion and Feedback
We value your comments and suggestions on our sustainability performance shared in this Report. Please get in touch or share your views at:
Sun Hung Kai & Co. Limited 40/F., Lee Garden One
33 Hysan Avenue Causeway Bay Hong Kong
Tel: (852) 3748 2823
Email: investor.relations@shkco.com
Sun Hung Kai & Co. Limited
Environmental, Social and Governance Report 2023
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Awards and Recognitions
SHK & Co. | |
Award Name | Awarding Institution |
Listed Company Awards of Excellence (2018-2023) | Hong Kong Economic Journal |
Listed Enterprises of the Year (2018-2023) | Bloomberg Businessweek/Chinese Edition |
Listed Enterprises - Best Corporate Governance | Bloomberg Businessweek/Chinese Edition |
Asian Excellence Awards - Asia's Best CFO | Corporate Governance Asia |
Asian Excellence Awards - Best Investor Relations Company | Corporate Governance Asia |
Asian Excellence Awards - Best Corporate Communications | Corporate Governance Asia |
Asia's Top 15 In-House Teams | Asian Legal Business |
Gold Award of Corporate ESG Awards | The Asset |
(2013-2018, 2020, 2022-2023) | |
Titanium Award of Corporate ESG Awards (2019, 2021) | |
Green Office Awards Labelling Scheme | World Green Organisation |
- Green Office and Eco-Healthy Workplace (2021-2023) | |
Good MPF Employer (2014-2023) | Mandatory Provident Fund Schemes Authority |
Caring Company (2016-2023) | The Hong Kong Council of Social Service |
Happy Company Award (2021-2023) | Happy Index Foundation and Hong Kong Productivity Council |
Partner Employer Award (2022-2023) | Hong Kong General Chamber of Small and Medium Businesses |
The Racial Diversity and Inclusion Charter for Employers | Equal Opportunities Commission |
(since 2022) | |
Supporter of Task Force on Climate-related Financial Disclosures | The Financial Stability Board |
(TCFD) (2022-2023) | |
Sun Hung Kai & Co. Limited
Environmental, Social and Governance Report 2023
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
UAF | |
Award Name | Awarding Institution |
Caring Company (2005-2023) | The Hong Kong Council of Social Service |
Manpower Developer (2012-2028) | The Employees Retraining Board |
Social Capital Builder Awards (2016-2024) | Community Investment and Inclusion Fund |
Happy Company Award (2017-2023) | Happy Index Foundation and Hong Kong Productivity Council |
Good MPF Employer 2023 | Mandatory Provident Fund Schemes Authority |
The Racial Diversity and Inclusion Charter for Employers | Equal Opportunities Commission |
(since 2020) | |
Privacy-Friendly Awards (Gold Award) (2023) | Office of the Privacy Commissioner for Personal Data (PCPD) |
"New Mastercard Product Launch" & "New Mastercard Member | Mastercard |
Onboarded" Prestigious Recognition (2023) | |
The Asset Triple A Awards: Best payments and Collections Solution | The Asset |
Hong Kong (2023) | |
Best SME's Partner Award (2022-2023) | The Hong Kong General Chamber of Small and Medium |
Business | |
Kam Fan Awards (Bronze Award) (2022) | The Association of Accredited Advertising Agencies of Hong Kong |
DigiZ Awards: Best Effective Search Campaign (2022-2023) | Marketing-Interactive |
DigiZ Award: Best Use of Real-Time Marketing (2023) | Marketing-Interactive |
PR Awards: Best Use of Content (2023) | Marketing-Interactive |
Yahoo Asia Big Idea Chair Awards: Best Acquisition Campaign | Yahoo Asia |
(2022-2023) | |
HGC Digital Technology Excellence Award (2023) | HGC Global Communications Limited |
HGC FinTech and Innovation Award (2023) | HGC Global Communications Limited |
Sun Hung Kai & Co. Limited | |
Environmental, Social and Governance Report 2023 |
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
SHK Credit | |
Award Name | Awarding Institution |
The Most Popular Mortgage Company on Internet (2017-2023) | iChoice Award |
Excellence Award for Mortgage Service (2021-2023)
Sky Post Banking & Finance Awards supported by Hong Kong Economic Times Holdings Limited
Headline No. 1 Awards 2023"No.1 in Loans and Financing Services" Sing Tao Limited
Our Sustainability Commitment
At SHK & Co., we recognise the vital role sustainability plays in driving the long-term growth of our businesses. With this understanding, we remain dedicated to supporting the United Nations Sustainable Development Goals (UNSDGs) and integrating these objectives into our operations. In 2020, we introduced our Sustainability Policy, which serves as a guiding framework outlining a set of principles that we adhere to across all aspects of our business activities. We believe that by integrating ESG factors into our decision-making process, such as adopting UNSDGs into our existing Private Assets Portfolio Management System to track our sustainable investment alignment, we can contribute to a sustainable future.
To ensure our ongoing resilience in an ever-changing market, we maintain a proactive approach by regularly reviewing and updating our Sustainability Policy. We remain vigilant and prepared to address future risks, adapting our strategies to align with emerging sustainability challenges and opportunities.
Creating Sustained Value for all our Stakeholders
Over the years, our primary aim is to Create Sustained Value for all our stakeholders. This commitment is strengthened by our unwavering adherence to core sustainability values that align with the UNSDGs, serving as the guiding force behind our business strategies. We recognise the interconnectedness of various core aspects and understand that simultaneous efforts in these areas are essential for achieving sustainable growth.
Sun Hung Kai & Co. Limited
Environmental, Social and Governance Report 2023
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
In pursuit of our goals, we proactively align our strategies with global trends and initiatives. We have established targets for each ESG category and annually assessed our progress to ensure that we are consistently Creating Sustained Value for our colleagues, partners, communities and the planet. By embracing this holistic approach, we strive to make a positive and lasting impact on our stakeholders, society and environment.
In order to drive long-term business and nancial development of the Group, we strive to operate under the highest standards of integrity through a robust governance structure, while managing social and environmental risks.
Our investors and customers are our utmost priority. We actively work to safeguard against potential risks, whilst nurturing our relationships and fostering continuous improvement in our services.
As a leader in nancial services, our business has a unique position and inuence potential to support and protect the environment through its investment decisions and green practices, with the ultimate goal to support the global transition towards a low-carbon economy.
Business | Investors |
and | |
Customers |
Creating
Sustained
Environment Value Employees
Community
As a nancial services company, our employees are at the heart of our operations. Hence, we invest in their professionalism and competency to responsibly deliver world-class expertise, and strive to create an open and inclusive corporate culture that contributes to the wellbeing of all.
We invest in causes and initiatives that foster a strong and sustainable society, while engaging, supporting and nurturing the future leaders of tomorrow.
Sun Hung Kai & Co. Limited
Environmental, Social and Governance Report 2023
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
In this year's ESG report, we are pleased to present our renewed and expanded targets, reflecting our ongoing commitment to sustainability. Building upon the progress made last year, we have reviewed and renewed our targets. We will actively seek out innovative solutions and implement environmentally responsible strategies throughout our operations to further reduce our environmental resource footprint. Recognising the interconnectedness between sustainability, business resiliency and growth, we aim to create a greater impact by setting and delivering on more ambitious targets.
Environmental Aspect | Targets | Progress in 2023 | |
General & Greenhouse Gases | • | Maintain at least 50% of the Group's investment portfolio with | In Progress |
alignment to UNSDGs annually. | |||
• | Participate in an ESG/sustainability-related activity in financial industry | Achieved | |
annually. | |||
• | Organise an environmental initiative that reduces or offsets | Achieved | |
environmental impact annually. | |||
Waste | • | Ensure that 90% of office paper is certified FSC or PEFC paper annually. | Achieved |
• | By 2023, set up a paper waste monitoring system, to track | Achieved | |
consumption, usage and recycling data. | |||
• | By 2025, reduce absolute paper usage by 35%, compared to FY19 | In Progress | |
baseline. | |||
• | By 2025, maintain use of paper cheques issued for customer funding | In Progress | |
to be 10% or below at UAF. | |||
• | By 2024, reduce individual desk bin by 25% and increase recycling | In Progress | |
points at SHK & Co. | |||
• | By 2024, eliminate the use of single-use tableware in office. | In Progress | |
• | By 2024, deliver a 1-hour training session to staff on waste generation | In Progress | |
and management. | |||
Electricity | • | By 2023, provide at least 1 hour energy and resource saving training | Achieved |
for employees. | |||
• | By 2025, reduce absolute electricity usage by 25% compared to FY19 | In Progress | |
baseline. | |||
• | Maintain energy-efficient and smart office facilities installation | In Progress | |
strategically. | |||
Water | • | By 2023, provide at least 1 hour energy and resource saving training | Achieved |
for employees. | |||
• | Minimise the consumption of bottled/barrel water. | Achieved | |
Sun Hung Kai & Co. Limited
Environmental, Social and Governance Report 2023
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Stakeholder Engagement
SHK & Co. actively engages its stakeholders to gain a comprehensive understanding of our stakeholders' satisfaction towards our business and expectations. This process is important for our continuous improvement and development in our operations. With a better understanding of our stakeholders' views, we can identify and focus on the ESG topics that our stakeholders consider most important, and align our business practices and decisions accordingly. The following table summarises the major communication channels that were used when engaging both internal and external stakeholders in the previous year.
Key Stakeholder Groups | Engagement Channels | |
Shareholders/Investors | • | General meetings |
• | Press releases | |
• | Annual/interim reports | |
• | ESG reports | |
• | Circulars and announcements | |
• | Investor meetings, roadshows and correspondences | |
• | Stakeholder survey | |
Employees
Customers
- Business meetings
- Conferences
- Performance appraisal meetings
- Departmental meetings and briefings
- Global Townhall
- Circulars through internal information sharing platform
- Surveys and comment boxes
- Training and orientation programmes
- Newsletters
- Informal employee events
- Personal contact
- Social media
- Satisfaction survey
- Meetings and correspondences
- Circulars and internal memorandum
Suppliers | • | Site visits |
• | Meetings and correspondences | |
• | Stakeholder survey | |
Community Groups | • | Charity activities |
• | Volunteering opportunities | |
• | Sponsored events and projects | |
• | Stakeholder survey | |
Media | • | Interviews |
• | Press releases | |
• | Meetings and correspondences | |
• | Stakeholder survey | |
Government Bodies | • | Site visits |
• | Meetings and correspondences | |
Banks | • | Annual/interim reports |
• | Meetings and correspondences | |
• | Compliance reports | |
Sun Hung Kai & Co. Limited | ||
Environmental, Social and Governance Report 2023 |
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Materiality Assessment
The Group values the views of both its internal and external stakeholders.
In 2023, we again commissioned an independent sustainability consultant to solicit and gather feedback from our stakeholders as to the Group's ESG performance and to identify the sustainability issues that our stakeholders consider most material. With these results, we are better equipped to align our business practices, efficiently utilise resources and refine our strategies to address the top priorities. Our key stakeholders were identified as Directors and Management, Employees, Fund and Business Partners, Shareholders and Investors, Financial Counterparts and Suppliers, Investees/Portfolio Companies, Community Partners and Non-governmental Organisations (NGOs) and the Media.
We adopted a three-step approach to assess the materiality of ESG issues:
1. | Identification | Based on last year's materiality assessment, a total of 20 |
material issues were identified. The set of material issues was | ||
determined through peer benchmarking, a discussion with | ||
senior management, consideration of the Group's corporate | ||
values and reference to Global Reporting Initiative Standards | ||
("GRI Standards")1. | ||
2. | Prioritisation | We collected feedback from material stakeholders via online |
survey, ranking material ESG issues by their perceived | ||
importance. 11 members of the Board and management were | ||
invited to rank the importance of material issues for the Group's | ||
sustainable development, whilst 732 other stakeholders, | ||
including shareholders/investors, employees, fund/business | ||
partners, financial counterparts/suppliers, investees/portfolio | ||
Companies, community partners/NGOs, and the media were | ||
surveyed to rank based on their preferences and perceptions. | ||
3. | Validation | The list of material topics and materiality assessment results |
were presented to senior management for input and validation | ||
and then for consideration by the ESG Committee and the | ||
Board of SHK & Co., with a view to advancing our sustainability | ||
performance and meeting stakeholder expectations. | ||
1 Compared to 2022, we have deleted 1 material issue (Market Presence) due to its lack of relevance to SHK & Co.'s sustainable development.
Sun Hung Kai & Co. Limited
Environmental, Social and Governance Report 2023
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
The following materiality matrix presents the relative importance of the material issues to our stakeholders and to the sustainable development of the Group. The material issues are subsequently grouped under three tiers of importance in the table below.
Most Important
Importance to Stakeholders
2
1
4
3
6
11
5
13
16
9
10
14
18
17
20
12
1915
8
7
Most Important
Importance to Sustainable Development at SHK & Co.
Governance | Social | ||
Most Material Issues | Moderate Material Issues | ||
(Tier 1) | (Tier 2) | ||
Employee Development | |||
1 | Business Integrity and Ethics | 9 | |
and Training | |||
Environmental
Less Material Issues
(Tier 3)
Community Investment (e.g.
7 | investment in community |
projects) | |
Community Partnership |
- Compliance with Laws and Regulations
- Corporate Governance
- Data Privacy and Cyber Security
- Financial Performance
10 Diversity and Equal Opportunities
- Product and Service Quality
- Responsible Marketing
Greenhouse Gas Emissions
17 & Climate Change (e.g. extreme weather)
8 | and Engagement (e.g. |
sponsorship, donation, | |
volunteering) |
12 Investor/Customer Engagement and Relations
15 Supplier Management & Procurement Practices
Investment in Green
19 Finance /Issue Related Products (e.g. green bond / green loan)
6 | Risk Management | 18 | Energy and Resource Use |
11 | Employee Health and | 20 | Waste Management & |
Well-being | Paperless Operations | ||
16 Talent Recruitment and Retention
Sun Hung Kai & Co. Limited
Environmental, Social and Governance Report 2023
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Sun Hung Kai & Co. Limited published this content on 11 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 April 2024 11:57:10 UTC.
