Scope 1 Emissions
2022 Communication on Progress
New World Development Company Limited
Published date
June 30, 2022
No. of questions
70
Supplemental files
Group_Sustainability_Policy_EN_TC.pdfAnti-Fraud_Policy_EN.pdfClimate_Change_Policy_EN.pdfConflict_of_Interest_Policy_EN_CN.pdfGreen_Office_Policy_EN__TC.pdfHealth_and_Safety_Policy_EN.pdfHuman_Rights_Policy_EN.pdfWaste_Management_Policy_EN.pdfWater_Policy_EN.pdfWhistleblowing_Policy_EN.pdfRacialDiversity_Signatory List_Full_20220331.pdfNWD-Corporate-Sustainability-Report-Verification-Statement-FY2021.pdfHealth_and_Safety_Policy_EN.pdfHuman_Rights_Policy_EN.pdfCEO Statement
Signed
Governance
Policies and Responsibilities
1. Does the Board / highest governance body or most senior executive of the company:
2. Does the company have a publicly stated commitment regarding the following sustainability topics?
3. Does the company have in place a code of conduct regarding each of the following sustainability topics?
4. Has the company appointed an individual or group responsible for each of the following sustainability topics?
5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?
Prevention
6. Does the company have a process or processes to assess risk?
6.1. During the assessment of risk, which business relationships are reviewed?
7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?
7.1. During the due diligence process, which business relationships are reviewed?
Concerns and grievance mechanisms
8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?
8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.
9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?
Lessons
10. How does the company capture lessons regarding each of the following sustainability topics?
Executive Pay
11. Is executive pay linked to performance on one or more of the following sustainability topics?
Board Composition
12. Percentage of individuals within the company’s Board / highest governance body by:
13. Do you produce sustainability reporting according to:
Data Assurance
14. Is the information disclosed in this questionnaire assured by a third-party?
Human Rights
Materiality / Saliency
1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?
Commitment
2. Does the company have a policy commitment in relation to the following human rights issues?
Optional commenthttps://sustainability.nwd.com.hk/wp-content/uploads/2021/09/Supplier_Code_of_Conduct_EN.pdf2.1. For each human rights policy, is it:
Prevention
3. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following human rights issues?
4. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this human rights issue?
5. Who receives training for the following human rights issues?
6. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following human rights issues?
Response
7. During the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to adverse impact associated with the following human rights issue(s)?
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
Our Group Sustainability Policy, Sustainable Procurement Policy and Supplier Code of Conduct are the overarching policies to standardise our practices. The Company is committed to treating all our stakeholders with dignity, fairness and respect. All NWD companies follow our Human Rights Policy, which references the principles embodied in the Universal Declaration of Human Rights, the International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work, the United Nations Global Compact’s principles on Human Rights, the United Nations Guiding Principles of Business and Human Rights and the UN SDGs, and commits to complying with all applicable laws and standards. Our Supplier Code of Conduct is aligned with our Human Rights Policy and applies to our corporate supply chain partners such as suppliers, contractors, subcontractors, vendors and service providers. It states that all employees of suppliers should be treated with respect and dignity, and not be subject to discrimination in hiring, compensation or discipline on the basis of gender, age, religion, race, sexual orientation, disability, disease, marital status, pregnancy or political affiliation. NWCON and Hip Hing ask for certificates, including OHSAS 18001/ISO 45001 (occupational health and safety management) when registering new suppliers. In addition, NWCL is adopting ISO 45001, imposing relevant health and safety (“H&S”) requirements on its suppliers. NWD is the first real estate holding and development company in Hong Kong to endorse the UN Women’s Empowerment Principles. We aim to achieve a higher level of gender diversity on our board, while also promoting diversity in terms of age, family status, background and expertise in our workforce. NWD is the signatory of The Racial Diversity & Inclusion Charter for Employers, governed by Equal Opportunities Commission, Hong Kong supporting the principle of racial diversity. In FY2021, we launched a new Employee Assistance Programme, offering a counselling service provided by the Hong Kong Family Welfare Society to all employees, accessible through face-to-face meetings, hotlines and email. The service covers all aspects of mental well-being, from family relationships to financial management, parental stress, and more. Additionally, we launched our “WeCare Health Talks” series to disseminate wellness tips on improving sleep quality, managing stress, stretching and meditation. We also ensure contractors have access to similar services. For instance, NWCON has assigned Caring Ambassadors to each project, providing counselling to employees and contractors to reduce stress, with a hotline for ongoing support. Moreover, over 20 learning videos about wellness, safety and the environment have been added to an internal smart office mobile application accessible to contractors. We adhere strictly to relevant legislation relating to responsible marketing, advertising and sales, and take data privacy and cybersecurity very seriously. Over 1,000 employees have attended training for responsible marketing. To protect our customers and communities, cybersecurity training is mandatory for all our employees. The training builds awareness of common cyber risks, increases familiarity with NWD’s data protection tools and resources, and offers security tips, from recognising phishing emails, to ensuring secure access to all online activities including email, virtual meetings and file sharing.Labour
Commitment
1. Does the company have a policy commitment in relation to the following labour rights principles?
1.1. For each labour rights policy, is it:
Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?
3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?
4. Who receives training for the following labour rights issues?
5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?
Performance
6. What is the percentage of employees covered under collective bargaining agreements?
Optional commentRelevant policy is stated in Employee Handbook but no agreement signed.7. What is the percentage of employees in a trade union or other workers' organization?
8. In the course of the reporting period, what was the percentage of women in:
Optional commentOur board-level female leadership are all executive directors.9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?
10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?
Optional comment0.0000018111. In the course of the reporting period, what was the company’s incident rate?
Response and Reporting
12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?
13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
In this reporting year, we have organised training programmes to all major BUs in Hong Kong and the Mainland including all employees, and also to the Board and senior management of NWD, NWSH and NWDS. These trainings covered the Board’s roles and accountability, ESG risks, precautionary measures and flagging mechanisms, sustainability policies, bribery and corruption, and best practice case studies in ESG integration. NWCON conducts performance appraisals on its contractors annually. Appraisals cover six parameters for satisfactory performance, such as Quality, Health and Safety Performance, Environmental and so on. If the performance of a contractor is unsatisfactory, a review meeting will be held by the Senior Management Committee (“SMC”) and Project Department. Further actions include suspending tender invitation for a period as decided by SMC and removing the contractor from the approved contractors list. NWCON and Hip Hing ask for certificates, including OHSAS 18001/ISO 45001 (occupational health and safety management) when registering new suppliers. In addition, NWCL is adopting the ISO 14001 and ISO 45001, imposing relevant environmental and health and safety (“H&S”) requirements on its suppliers. The ERM system we are finalising will factor in supply chain risks and help us monitor external audits and due diligence for suppliers. To support the enforcement of this policy, registered safety officers conduct H&S training regularly to our employees and contractors at all construction sites and issue safety inspection reports. Hazard identification and risk assessment are conducted based on standardised procedures covering hazard identification, mitigation measures, hazardous materials assessment and audit to safeguard employees’ health.Environment
Commitment
1. Does the company have a formal policy on the following environmental topics?
1.1. For each environmental policy, is it:
Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?
3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?
4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?
5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?
Climate Action
6. What were the company’s gross global greenhouse gas emissions for the reporting period?
Scope 2 Emissions
Scope 3 Emissions
7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?
8. Has the organization acted to support climate change adaptation and resilience?
Energy / Resource Use
9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.
Technology
10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?
Sector-specific Questions
11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.
Sector-specific: Water
12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.
Water withdrawal (volume of water in megaliters):
Water consumption (volume of water in megaliters):
13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.
Sector-specific: Forest, biodiversity, and land use
14. Please report the number and area (in hectares) of sites owned, leased, or managed by the company in or adjacent to protected areas and/or key biodiversity areas (KBA).
15. What area (in hectares) of natural ecosystems was converted during the reporting period in areas owned, leased, or managed by the company?
16. Is the company supporting or implementing project(s) focused on ecosystem restoration and protection?
Optional commentWe strive to minimise any potential adverse impact of operations on biodiversity through adopting more sustainable use of natural resources certified by recognised standard (e.g. FSC and PEFC) and where practicable, promoting ecosystem restoration. We also aim to continue our effort in minimising habitat disturbance, degradation and indirect effects of operations; enhancing sustainable site selection process and identification of no-go situations; and promoting the awareness of biodiversity among our stakeholders such as employees and the community.Sector-specific: Waste
18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.
Optional comment1,055,639 tonnes, equivalent to approximately 89% of total waste generated was diverted from landfill.19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.
20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.
Overall Environment
21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.
Corporate Sustainability Chapter FY2021 (https://sustainability.nwd.com.hk/wp-content/uploads/2021/10/NWD-AR21-ESG_EN.pdf) We have established Climate Resilience Design Guidelines to integrate various climate mitigation and adaptation measures into new developments, major refurbishment and construction activities, covering the full property lifecycle, from acquisition and redevelopment, to design and construction, facility management and the engagement of building users under Shared Socioeconomic Pathways (“SSPs”) as suggested by the IPCC. The guidelines, currently being finalised, will cover climate risks that are pertinent to our major business locations, such as flooding, water stress, extreme temperatures and extreme wind, and suggest resilience improvement measures. We have updated our internal Climate Change Policy in FY2021 to reflect our “no coal” commitment, i.e. to avoid future company investments and operation of coal-fired power plants or coal mines and commit to selling the remaining minority stake in a coal-fired power plant. We will actively monitor and respond to regulatory changes and industry standards related to our business locations. In FY2021, we launched a RE Roadmap to support the transition to a low-carbon economy through Scope 2 carbon emissions reduction, charting a path towards adopting 100% renewable energy in our GBA rental properties by end of FY2025/26 and expanding the renewable energy portfolio to the rest of Greater China rental properties by end of FY2030/31. The Roadmap sets out our intentions to incorporate onsite renewable energy installations into new and existing buildings wherever possible, procure offsite renewable energy by securing long-term Power Purchase Agreements and purchase renewable energy certificates to support the wider renewable energy market development. NWCL recently implemented a number of energy management and efficiency measures, including Heating, Ventilating and Air Conditioning system upgrades, adoption of water pumps with variable speed drive, mobile app friendly smart landscape lighting control and renewable energy. For waste management, we also closely monitor waste management-related regulations and trends at our wider business locations, including HKSAR’s Municipal Solid Waste Charging Scheme and circular economy principles, while supporting waste reduction collaborations across our business ecosystem. Project/site level: All NWCON construction sites have installed the newly invented Differential Pressure Pump Systems to reduce energy consumption related to water supply and use. Whereas traditional water pump systems have a fixed speed for supplying pressurised water, this system responds to demand, such that the pump is only in operation when water is required. This has been shown to reduce the energy consumption by 40% and operation costs by 30%, compared with traditional systems. Additionally, NWCON has deployed Enertainer, an energy storage system, as a pilot to reduce the use of site-level biodiesel generators and Scope 1 emissions. One of our projects, 11 SKIES, not only provides a unique hub to connect families and communities in GBA but also takes the lead in its care for the wellness of people and environment, aligning with our SV2030 pillar of Wellness. In addition to its state-of-the-art building management system, including indoor air quality monitoring system, microclimate monitoring system and grey water drainage system to minimise cross-contamination, 11 SKIES is one of Asia’s largest projects to adopt electrochromic glass that tints automatically in its roof canopy design. By dynamically changing tint in response to the sun, the roof canopy could reduce solar heat gain by up to 75%, while enhancing occupant comfort by enabling occupants to enjoy natural light and maintain a connection to the outdoor environment. Office Towers will be launched first, and the Towers have attained the highest standards of pre-certified platinum levels by BEAM Plus, LEED and WELL. Launched by K11 in FY2019, the Sustainable Tenancy Pledge (the “Pledge”) was Hong Kong’s first voluntary programme to empower office and retail tenants to reduce environmental impact and promote adoption of sustainable practices. At K11 ATELIER King’s Road, our Grade A office building in Hong Kong, 80% of leased floors have joined the Pledge. In FY2021, we extended our offerings to tenants at Guangzhou K11 ATELIER and have plans to further expand to other parts of Greater China. In FY2021, pledged tenants accumulated approximately HK$150,000 in modelled electricity bill savings from lower energy usage. NWCL has installed and improved rainwater and freshwater recycling systems at selected sites in the Southern China region, including rooftop rainwater harvesting and the collection of wastewater generated during drinking water purification processes for the purpose of basic cleaning and irrigation. Ningbo New World in Mainland China will feature a bio-retention pond, a rainwater garden, permeable pavements and an ecological rooftop. Collectively, these features would contribute a water retention capacity of approximately 1,800 m3, while helping delay the peak discharge during flooding by 10-15 minutes. Various waste reduction measures were implemented during FY2021 that involved both internal and external stakeholders, including: - A plastic waste collection and upcycling campaign with K11 MUSEA tenants, where approximately 150kg of plastic waste was collected, processed and upcycled to produce umbrellas. - Recycling incentive programme at D.Park with reverse vending machines were installed to recover beverage containers from customers for sorting and recycling. During FY2021, approximately 650kg of recyclables were collected. - Wood waste upcycling and re-use by Hip Hing Construction of NWSH where 2,250kg of wood waste was collected from a project site to a startup for processing and upcycling into construction materials and products. Hip Hing also rented upcycled wooden hoardings from the same startup for use at a construction site. After the rental period, the startup collected the hoardings to adapt and re-use in their future hoarding projects, thereby avoiding the usual practice of single-use hoardings. - Minimise single-use plastics at Mainland Department Stores where customers were only provided with plastic bags or single-use plastic items upon request. Certain stores also offered biodegradable or paper bags in lieu of traditional plastic ones, advancing our efforts to reduce the amount of waste produced and conveying our commitment to sustainability. - Smart recycling at Mainland Residential Projects where several smart recycling machines were deployed at three NWCL residential properties in Southern China region, enabling convenient drop-off of recyclables, including plastics, metals, textiles and paper, for residents and the neighbouring community. Its automatic weighing function and interconnected mobile application allowed users to record their recycling history and immediately be rewarded with mobile payment for their sustainable habits. The weight of recyclables collected totalled nearly 45,000 kg. To echo with our Biodiversity Policy, we have implemented relevant measure in FY2021, including the following: - Since 2020, all temporary wood used by NWCON and Hip Hing are certified by the Forest Stewardship Council (“FSC”) and the Program for the Endorsement of Forest Certification schemes (“PEFC”). - In FY2021, NDP at K11 MUSEA and the School of Biological Sciences of The University of Hong Kong co-developed the online Eco-leadership Programme, which aims to introduce the ecological importance of biodiversity. Participants have the opportunity to learn about the direct resources insects provide to humans, as well as the influence these species have in science and the art world. - In FY2021, NDP also launched the “Little Nature Ambassador Programme” in partnership with The Jane Goodall Institute Hong Kong to nurture a new generation of sustainability changemakers. Through a multi-sensory learning kit, the programme highlights the uniqueness of biodiversity in Hong Kong, offers practical tips to protect the environment in everyday life and cultivates empathy and confidence in children through lessons taught using sign language and tactile learning. The programme has been adapted to several summer camp series, which were held at NDP in July and August 2021.Anti-corruption
Commitment
1. Does the company have an anti-corruption compliance programme?
2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?
Optional comment2021 https://sustainability.nwd.com.hk/wp-content/uploads/2021/09/Conflict_of_Interest_Policy_EN_CN.pdfPrevention
3. Who receives training on anti-corruption and integrity?
3.1. How often is such training provided?
4. Does the company monitor its anti-corruption compliance programme?
Response and Reporting
5. Please report the company's total number and nature of incidents of corruption during the reporting year.
6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?
7. Does your company engage in Collective Action against corruption?
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.
In this reporting year, we have worked to raise awareness of ESG opportunities through training programmes to all major BUs in Hong Kong and the Mainland. Trainings are provided to all employees, and also to the Board and senior management of NWD, NWSH and NWDS. These trainings covered the Board’s roles and accountability, ESG risks, precautionary measures and flagging mechanisms, sustainability policies, bribery and corruption, as well as the latest ESG and sustainable finance trends, and best practice case studies in ESG integration. Nearly 4,000 hours of bribery and corruption training was provided to employees in FY2021.