Sustainability at CK Hutchison
Group Key Sustainability Mission:
"The Group is committed to adhering to strategic development that will create sustainable long-term value for all stakeholders and communities."

4.1. Sustainability Governance
The Group’s sustainability governance structure provides a solid foundation for developing and delivering its commitment to sustainability, which is embedded at all levels of the Group, including the Board, the Sustainability Committee, Audit Committee, the Working Groups and all core businesses. It guides businesses to implement sustainability strategy, manage goals and target setting and reporting processes, strengthen relations with internal and external stakeholders, and also ensure overall accountability.

The Group’s Sustainability Governance




A suite of foundational policies, including the Group-wide “Corporate Social Responsibility (“CSR”) Policy”, serve as the ultimate guiding principles for sustainability practices within the Group, putting its values into action across the businesses and detailing the Group’s commitments to business integrity, people, environment and communities the Group operates in.

The Group’s sustainability governance is further bolstered by the adoption of the bi-annual self-assessment process across the businesses. Together with the internal and external audit assurance, this serves as an important tool for the Group to manage its enterprise and process risks and ensure statutory and regulatory compliances including sustainability-related reporting in order to provide reasonable assurance to the Board, via the Sustainability and Audit Committees, on an ongoing basis.  For more information, please refer to Section 4.2. Approach to Sustainability.

4.1.1. The Board
The Board has ultimate accountability for the Group’s sustainability strategy, management, performance and reporting through the support of the Sustainability Committee and the Audit Committee.

The Board examines and approves the Group’s sustainability objectives, strategies, priorities, initiatives and goals, as well as the related significant policies and frameworks that support their achievement.

The Sustainability Committee and the Audit Committee report to the Board on sustainability risks and opportunities, which the Board examines and reviews with the committees periodically, then impact on business strategy, including new investments.

4.1.1.1. Sustainability Committee
This year, alongside the Group’s enhanced efforts to further strengthen sustainability reporting by expanding and prioritising Group-wide efforts and activities on sustainability was the elevation of the Sustainability Committee to the Board level.

Formed in 2010 and formerly known as the ESG/CSR Committee, the Sustainability Committee was formally established as a Board committee, comprising three Board members and chaired by Mr Frank Sixt, Group Finance Director and Deputy Managing Director, to oversee the management and advise the Board on the development and implementation of the sustainability and CSR initiatives of the Group, including reviewing the related policies and practices, and assessing and making recommendations on matters concerning the Group’s sustainability governance, strategy, planning and risks. The Committee meets at least twice a year.




Key responsibilities of the Sustainability Committee include:

  • Proposing and recommending to the Board on the Group’s sustainability objectives, strategies, priorities, initiatives and goals
  • Overseeing, reviewing and evaluating actions taken by the Group in furtherance of the sustainability priorities and goals, including coordinating with the core businesses and ensuring that the operations and practices adhere to the relevant priorities and goals
  • Reviewing and reporting to the Board on sustainability risks and opportunities
  • Monitoring and reviewing emerging sustainability issues and trends that could impact the business operations and performance of the Group
  • Overseeing and reviewing the Group’s sustainability related policies, practices, frameworks and management approach, so as to recommend improvements
  • Overseeing the impact of the Group’s sustainability initiatives on its stakeholders, including employees, shareholders, local communities
  • and the environment
  • Reviewing and advising the Board on the Company’s public communications, disclosures and publications (including the Sustainability Report) as regards to its sustainability performance
  • Performing such further functions related or incidental to the foregoing which the Committee deems appropriate.

For more information, please refer to the Terms of Reference of the Sustainability Committee.
 

  Sustainability Related Expertise of the Sustainability Committee members:
  Mr Frank Sixt
  • has almost four decades of legal, global finance and risk management experience
  • possesses deep expertise in overseeing financial reporting system, risk management and internal control systems as well as sustainability issues and related risks
  • plays a lead role in orchestrating concerted efforts across the Group’s worldwide operations to integrate sustainability considerations into the risk assessment and investment decisions of the Group
  • spearheads the Group’s broadened mandate in further strengthening sustainability reporting by expanding and prioritising Group-wide efforts and activities on sustainability
  • a director of Li Ka Shing Foundation (“LKSF”) which has invested over HK$27 billion to develop education and healthcare initiatives, with over 80% of the projects benefiting the Greater China region
  • with LKSF, has been involved in numerous early stage investments in health and wellness innovation, food chain, carbon and other sustainability technology start-ups
  Ms Edith Shih
  • has over three decades of experience in the legal, regulatory, corporate finance, compliance and corporate governance fields
  • holds key roles in numerous committees and panels of public, regulatory and professional bodies which focus on governance, compliance and sustainability
  • International President and Executive Committee Chairman of The Chartered Governance Institute and a past President of The Hong Kong Institute of Chartered Secretaries
  • Chairman of the Governance Committee of the Hong Kong Institute of Certified Public Accountants
  • a member of the Process Review Panel for the Financial Reporting Council
  • a member of the Council and Executive Committee, and Chairman of the General Management Committee of The Hong Kong Management Association
  • a member of the Council and Human Resources Committee of the Hong Kong University of Science and Technology and a trustee of Teachers College, Columbia University
  • a member of the Executive Committee and Honorary Legal Advisor of Helping Hand (charity for the elderly)
  Dr Wong Yick-ming, Rosanna, DBE, JP
  • has over four decades of experience in the non-profit arena and in public service
  • Chairman of Asia International Schools Limited
  • Senior Advisor to The Hong Kong Federation of Youth Groups
  • a member of the 13th National Committee of the Chinese People's Political Consultative Conference
  • a steward of The Hong Kong Jockey Club
  • Honorary Chairman of World Vision Hong Kong
  • a member of the Board of Governors of Our Hong Kong Foundation
  • a former member of Executive and Legislative Councils of Hong Kong Government

For details of their respective biographies, please refer to pages 77, 78 and 81 of the Company’s 2019 Annual Report.

4.1.1.2. Audit Committee
The Audit Committee maintains oversight of the effectiveness of the Group’s financial reporting, risk management and internal control systems, and is responsible for reviewing the policies and practices of the Group on corporate governance including compliance with legal and regulatory requirements. For more information, please refer to the Terms of Reference of the Audit Committee and the Company’s 2019 Corporate Governance Report.

4.1.1.3. Sustainability Working Group
The Sustainability Working Group comprises the core of the sustainability management and senior executives from business units linked to the sustainability topics which are deemed material to Head Office and the Group. This broad-based involvement ensures that the wider interests of the Group in the development of sustainability strategies are adequately represented.

The Sustainability Working Group assists the Sustainability Committee in discharging its responsibilities, including but not limited to:

  • Coordinating and directing the execution of the Group’s sustainability objectives, strategies, priorities, initiatives and goals
  • Establishing the Group’s sustainability-related policies, maintaining their relevance in line with the Group’s mandates and regulatory requirements, and monitoring their Group-wide implementation
  • Communicating the Group-wide sustainability initiatives and facilitating cross-business sharing of good sustainability practices
  • Engaging key external stakeholders on emerging sustainability issues and trends that could impact the Group’s businesses and performance
  • Reviewing material sustainability risks and opportunities of core businesses and assessing if they are appropriately managed (including goal and target setting) in line with the Group’s relevant priorities
  • Monitoring core businesses’ sustainability performance data against defined goals and targets
  • Reporting to the Sustainability Committee on the Group’s material sustainability issues, risks and opportunities, and performance progress
  • Ensuring the sustainability disclosure and publications are fair, consistent, accurate and meaningful.

 


 

To further enhance overall coordination and execution of sustainability initiatives among core businesses and the Sustainability Working Group as well as reporting to the Sustainability Committee, the Company has created  a new position, the Sustainability Manager, at the Head Office level.

4.1.1.4. Governance Working Group
To assist the Audit Committee and Sustainability Committee, the Governance Working Group, chaired by the Executive Director and Company Secretary and comprising representatives from the functional departments of the Company, provides timely reviews and updates, identifies emerging matters of compliance, and establishes appropriate compliance policies and procedures for Group-wide adoption.

On a quarterly basis, the Governance Working Group presents to the Audit Committee an overall corporate governance compliance review providing updates on key continuous compliance matters during the review period, including a report on the compliance status with respect to the Corporate Governance Code under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”), a report on regulatory compliance and legal matters, continuous professional development training undertaken by directors as well as any update on governance policies and procedures.
 

4.1.1.5. Cyber Security Working Group
The Cyber Security Working Group, chaired by the Group Finance Director and Deputy Managing Director, comprises relevant technical specialists from the Telecommunications division, internal audit function and Group Information Services Department.  It oversees the Group’s cyber security defences to ensure that the Group’s efforts in this area is effective, coherent, and well-coordinated.

Key responsibilities include:

  • Monitoring cyber threat landscape to gain insights into emerging and existing attack activities and their implications
  • Setting out the Group’s cyber defence strategies, priorities and plans
  • Overseeing the Group’s cybersecurity risks to ensure that they are appropriately managed in line with the Group’s strategies and priorities
  • Establishing relevant policies, procedures and guidelines for Group-wide adoption
  • Defining key performance metrics for ongoing monitoring and improvement.
 

4.1.1.6. Core Businesses (Group Divisions)
The everyday implementation of the Group’s sustainability approach relies on each core business supported by its own sustainability working group taskforce.



Key responsibilities include:

  • Implementing locally-tailored policies and programmes in support of the Group’s sustainability objectives, strategies, priorities, initiatives and goals
  • Integrating sustainability considerations into business and investment decision-making processes
  • Carrying out sustainability risk and control management activities, where material issues or risks are identified, assessed and mitigated
  • Setting sector and country-specific goals and targets
  • Measuring actual performance data against defined goals and targets, and continuously improving sustainability performance by applying additional measures (e.g. new technology)
  • Escalating promptly on material sustainability issues
  • Reporting sustainability target performance and self-assessment results on the effectiveness of risk management and internal control systems in place to the Head Office.


4.1.1.7. Internal Audit (Group Management Services)
The internal audit function, reporting directly to the Audit Committee and administratively to the Group Finance Director and Deputy Managing Director, provides independent assurance as to the effectiveness of the risk management activities and controls in the Group’s business operations worldwide.

Key responsibilities include:

  • Performing independent reviews of the Group’s reporting and self-assessment on sustainability risks and controls;
  • Conducting regular audits (including sustainability and corporate governance-related topics) and providing recommendations for continuous improvement;
  • Following up and investigating material breaches of the Group’s Code of Conduct (fraud related); and
  • Reporting to the Audit Committee and Sustainability Committee regarding the effectiveness of the Group’s risk management and internal control systems.

For more duties of the internal audit function, please efer to the Company’s 2019 Corporate Governance Report.