Our governance approach

Corporate governance is the process by which the Board directs and supervises the Group’s management in conducting its affairs, while promoting operational success. Our approach to corporate governance can be found in the Corporate Governance Code, Memorandum and Articles of Association, Board Diversity Policy, Corporate Governance Code in Appendix 14 and the 2019 Swire Pacific Annual Report.

We are subject to the Corporate Governance Code in Appendix 14 to The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. Our governance practices are described in the Corporate Governance Report section of our 2019 Annual Report.

The governance of sustainability matters is an important element of our corporate governance. Our aim is to identify and benefit from sustainability opportunities and to manage sustainability risks, through appropriate policies, standards and systems.

Our corporate policies and sustainable development

Our Sustainable Development Policy aims to be consistent with the 1987 Brundtland Commission’s definition of sustainable development as meeting “the needs of the present without compromising the ability of future generations to meet their own needs”.

Through the Sustainable Development Policy, we aim to:

• Reduce our carbon footprint by adopting industry best practices to improve energy efficiency and through increased use of renewable energy
• Turn today’s waste into a resource for tomorrow, contributing to the creation of a circular economy where waste materials are no longer simply thrown away, but retained and reused as a future resource
• Use water responsibly and sustainably and protect its watersheds
• Be a good steward of the natural resources and biodiversity under our influence and to identify and manage appropriately the potential adverse impact of our operations on the environment
• Safeguard the health and safety of our employees and others with whom we interact, with the ultimate aim of causing zero harm
• Source materials responsibly and sustainably, including ensuring that our suppliers meet, and preferably exceed, the sustainability standards in our supplier code of conduct
• Bring value to the communities in which we operate and respect their culture and heritage
• Encourage our staff to engage actively in sustainable development matters at work and in the community
• Monitor the company’s performance and report regularly

Our policies on climate change, biodiversity, sustainable supply chains, green buildings and health and safety are covered in the appropriate sections of this report. These can also be found in the Sustainable Development section of the Swire Pacific website.

Board oversight

Swire Pacific’s highest governance body is its Board, led by an Executive Chairman. Our corporate governance (including the operations of the Board and its committees, audit and communication with shareholders and investors) is addressed in the Corporate Governance Report in our 2019 annual report.

Our Board is ultimately accountable for sustainability matters. Information on sustainability risks and performance is reported to the Board via the Group Risk Management Committee (GRMC), which has eight members and is chaired by the Finance Director. The GRMC is advised by the Swire Group Sustainability Committee and by six working groups covering each of the six focus areas of SwireTHRIVE. The Swire Group Sustainability Committee meet three times a year to exchange information and best practices, with a view to developing specific policy recommendations, improving efficiency, reducing costs and engaging staff in sustainable development.

To provide additional oversight and direction, the Head of Sustainable Development reports annually to the Board on the Group’s sustainability performance. Division heads meet twice a year on sustainability matters under the Chairman of the Board. In 2019, division heads discussed the findings of a materiality assessment, the Group’s sustainability performance, revisions to the HKEx listing rules relevant to ESG matters and approaches to carbon target setting.

Personal data

In 2019, we introduced a Group Personal Data Policy. Our policy is to comply with applicable legal requirements relating to the handling of personal data (including its collection, holding, processing, disclosure and use) and to respect the privacy of others and the confidentiality of information received in the course of business.

In 2018, Cathay Pacific discovered unauthorised access to some Cathay Pacific and Cathay Dragon passenger data. Immediate action was taken to contain the event and commence a thorough investigation. There was no evidence that any personal information was misused. The information systems affected were separate from flight operations systems. There was no impact on flight safety.

In 2019, the Hong Kong Privacy Commissioner for Personal Data found that this incident contravened the Personal Data (Privacy) Ordinance and required Cathay Pacific to implement certain measures. Cathay Pacific has provided evidence of compliance with the requirement.

External initiatives and ESG related charters

Membership of trade associations

Some of our public policy work is conducted via trade associations and industry groups, which can help to increase the impact of our policy messages. We work with these groups because they represent our industries and the wider business community in debates led by governments, and others, and because they help the industries reach consensus on policy issues. We are members of numerous industry and trade groups.

For a list of industry and trade groups of which we and our operating companies are members please see below. The top trade associations and industry groups (on the basis of fees paid by the Group) are highlighted in bold.