In addition to our own efforts, we also push our suppliers and contractors to move towards sustainable development. In line with our Towngas Purchasing Policy, we are committed to achieving reliable, competent and long-term business relationships with our suppliers and contractors through fair and ethical purchasing practices. Major principles adopted under our Purchasing Policy include:

• Offering equal opportunities to suppliers and contractors
• Treating all suppliers and contractors fairly and ethically
• Promoting good buyer-seller relationships
• Encouraging supplier and contractor participation and continuous improvement
• Supporting green procurement practices

We are committed to ensuring open, fair, consistent and non-discriminatory treatment for suppliers and contractors without prejudice to their geographical location. We also adopt competitive tendering process wherever applicable.

We have established and implemented a robust vendor selection mechanism which includes vendor registration and vendor selection procedures with pre-defined selection criteria. Areas of concern include company background, quality assurance, price, delivery, technical services and environmental performance.

Further enhancing the management of our supply chain, we maintain close communications with our suppliers and contractors to ensure that critical information is clearly conveyed to them and that relevant issues are addressed properly in a timely manner. We also keep track of supplier and contractor performance through regular meetings and audits.

In addition to ensuring a fair and competitive ethos in our procurement process, we also encourage our employees to employ environmentally friendly products and services, to conserve natural resources and to promote recycling of materials, where practicable and economically viable. Accordingly, employees are required to observe our Environmental Purchasing Policy whenever products and services are purchased.

Our pioneering work in this direction is both appreciated and recognised by the community. In 2007, we signed the Hong Kong Green Purchasing Charter (HKGPC) as a Founding Member and were invited to be one of its Supervisory and Guidance Committee Members to provide strategic guidance, direction and support for the development and implementation of the Charter. The HKGPC is awarded to businesses in recognition of their commitment to environmental management through Green Purchasing practices. Under the HKGPC, businesses must agree to comply with its “Statement of Commitments” which outlines the intentions of key business leaders to reduce impact on the environment through Green Procurement.