sustainabilityreport2003.pdf

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Case Study Corporate Evolution Towards Sustainability In last year’s report, we revisited the rugby ball as a visual representation of corporate sustainability. We consider that MTR’s achievements during 2003 have led to a slight expansion of the football in the social and environmental directions, as well as slight expansion in the economic direction. Environmental Economic 2001 Social Environmental 4.7 SUSTAINABILITY ACCOUNTING Economic 2002 Social Environmental Economic During 2003 and early 2004, MTR undertook a Sustainability Accounting study to estimate the costs of managing priority social responsibility and environmental business risks for the operating railway and MTR’s support divisions (1) for calendar year 2003. It is MTR’s intent to estimate these costs and benefits on an annual basis to provide a broad indication of how these costs change as the Corporation evolves into new business areas and geographic locations and invests in new railways. At an early stage, it was agreed internally that the study would not be sufficiently accurate to allow its results to be used for management purposes. As such, the study was primarily intended to reinforce MTR’s commitment to transparency and openness to its stakeholders. In addition, many organisations, especially Hong Kong corporates and urban rail operators world wide, regard MTR as a role model and are keen to understand the financial costs of incorporating sustainability as a means of enhancing long-term shareholder value. The study was undertaken by an ad hoc MTR Working Group with discussions with senior management. The framework for the study was based on MTR’s priority business risks and on the Corporate Sustainability Assessment questionnaire developed by Sustainable Asset Management (2) . MTR’s Activity Based Costing (ABC) System was used to provide cost data, comprising staff costs and departmental operating expenses, for the study and already incorporates some costs that are inherent in the activities reported below. Cost data from the ABC system does not include capitalised activities (eg: capital works, projects work and extension works). The majority of costs incurred by the Project and Property Divisions are capitalised costs and as such, these Divisions were not included in the study. ( 1) Legal & Procurement, Headquarters, Finance and Human Resources & Administration. ( 2) SAM is the research provider for the Dow Jones Sustainability Index. MTR CORPORATION SUSTAINABILITY REPORT 2003 20 2003 Social
Summary results of the study are presented in Table 4.2. The cost of managing priority social responsibility and environmental business risks for the specified Divisions is HK$292m, equivalent to 18% of total costs of HK$1,643m (Figure 4.2.). Table 4.2 Costs of Managing Priority Social Responsibility and Environmental Business Risks Cost of Managing Priority Business Risks HK$ Ensuring Passenger Safety HK$42m Maintaining Passenger Numbers* HK$76m Developing and Retaining Motivated and Skilled Staff HK$161m Ensuring Environmental Compliance and Improvement HK$13m TOTAL Hk$292m** *This is an indicative sum representing activities related to the maintenance of the Customer Pledge and is currently under review. ** This figure is estimated to be accurate to 5%. Figure 4.2 Costs of Managing Priority Social Responsibility and Environmental Business Risks Priority Risk: Ensuring Passenger Safety Priority Risk: Maintaining Passenger Numbers Priority Risk: Developing and Retaining Motivated and Skilled Staff Priority Risk: Ensuring Environmental Compliance and Improvement Operational Activities: eg: Rail and Station Maintenance 4.8 CORPORATE SUSTAINABILITY COORDINATING COMMITTEE (CSCC) The Corporate Sustainability Coordinating Committee (CSCC) is chaired by the Managing Director for Operations and Business Development. The CSCC’s overall function is to ensure the implementation of the Corporate MTR CORPORATION SUSTAINABILITY REPORT 2003 21
Page 1 and 2: 1 CHIEF EXECUTIVE OFFICER’S MESSA
Page 3 and 4: 3 ABOUT MTR This section describes
Page 5 and 6: Figure 3.3 Percentage Passenger Jou
Page 7 and 8: Box 3.2 M8 and R4 Rail Lines in Sha
Page 9 and 10: At each AGM, one third of the Board
Page 11 and 12: Figure 3.4 THE BOARD CHAIRMAN, CEO
Page 13 and 14: together with road transport, shops
Page 15 and 16: Table 4.1 Selected Priority Busines
Page 17 and 18: Monitor & Report Monitor implementa
Page 19: Box 4.2 Impacts of Reporting with A
Page 23 and 24: 5 SOCIAL RESPONSIBILITY MTR in prio
Page 25 and 26: Figure 5.2 Monthly Passenger Number
Page 27 and 28: 5.3 DEVELOPING AND RETAINING MOTIVA
Page 29 and 30: 5.3.1 Training and Development We a
Page 31 and 32: Figure 5.6 MTR Staff Consultation M
Page 33 and 34: Achieved Achieved Organise activiti
Page 35 and 36: “Be Safe and Considerate, Never F
Page 37 and 38: Figure 5.11� Contractor Safety on
Page 39 and 40: Figure 5.15 Number of Man-days lost
Page 41 and 42: Ensuring the Health and Safety of P
Page 43 and 44: Case Study: Public Consultation dur
Page 45 and 46: 6 ENVIRONMENT 6.1 INTRODUCTION MTR
Page 47 and 48: Table 6.1 Key Environment Data 2001
Page 49 and 50: In addition, MTR has maintained Mil
Page 51 and 52: Breaches of Statutory Environmental
Page 53 and 54: an agreement between the Hong Kong
Page 55 and 56: Management of Assets - Progress aga
Page 57 and 58: Table 7.2 �Summary of MTR’s Tot
Page 59 and 60: 7.6 MEASURES OF MTR’S ECONOMIC CO
Page 61 and 62: 8.3 OPERATIONS DIVISION (ISO14001 T
Page 63 and 64: 8.5 PROPERTY MANAGEMENT DIVISION (I
Page 65 and 66: Issue Targets Regulator Compliance
Page 67 and 68: 8.8 LEGAL AND PROCUREMENT DIVISION
Page 69 and 70: 9 ENVIRONMENTAL LEGISLATION • •
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emerging best practice and the unde
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ANNEX A GRI CHECKLIST MTR CORPORATI
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GRI Reporting Elements Links to Rep
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CONTENTS 1 CHIEF EXECUTIVE OFFICER
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