Sustainability Report 2016

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Sustainability Report 2016 30
5.3 Supply Chain Management
At Towngas, we are committed to safeguarding the
open, fair and consistent treatment of our suppliers
and contractors, regardless of where, geographically,
they operate. There are five main principles that
guide our approach to supply chain management:
offering equal opportunities to all suppliers; treating
suppliers ethically and fairly; promoting strong
buyer-seller relationships; encouraging suppliers
to contribute to continuous improvement and
supporting green procurement practices.
Our sustainability values reach all parts of our
supply chain and we have introduced a number
of measures. These will also help us share best
practice information with the public at large. We
now urge our suppliers to embrace sustainable
procurement practices themselves, and to adopt
green specifications to facilitate the purchase of
green products.
To ensure our suppliers and contractors adhere
to our own standards, we request they follow
our CSR Code of Practice for Suppliers and the
Towngas Environmental Purchasing Policy. The
CSR Code of Practice is a framework which our
suppliers can use as a guide to promote CSR
activities with regard to their own business
ethics, workplace operations, marketplace
activities, community contact and environmental
undertakings.
Another key arm of our approach to supply chain
management is our Environmental Purchasing
Policy. As a founding member of the Hong Kong
Green Purchasing Charter, we established green
specifications for each item we have to procure,
such as energy efficient equipment like LED
lighting, or products that have been certified by
the Forest Stewardship Council (FSC). To raise
staff awareness about environmental purchasing
Our Approach to Supply Chain Management
Sustainable Procurement
When selecting vendors in Hong Kong and mainland
China, a wide range of criteria has to be taken
into account: company background, quality, price,
delivery, services and environmental protection
performance. We also conduct a factual quality
audit on potential suppliers using a standardised
checklist, and inspect ISO certificates and other
documents pertaining to quality.
Furthermore, it is important to consider if
prospective suppliers implement their own
environmental protection policies and waste
reduction programmes, and to assess whether
or not a supplier has been involved with any
volunteering activities or community engagement
efforts. Towngas prioritises suppliers who offer
green products and give preference to local
suppliers who conduct their business in a socially
and environmentally responsible way.
and protection, we organised a Green Office Day in
2016. More information about the scope of our CSR
Code of Practice for Suppliers and the Towngas
Environmental Purchasing Policy can be found
At present, approximately 87% of our suppliers
were local for our operations in Hong Kong.
Through this arrangement, Towngas contributes
directly to local economies and maintains healthy
relations with our communities. Furthermore, we
monitor the performance of our suppliers
and contractors through regular meetings and
audits to ensure environmental standards are
being met. We also launched an e-commerce
system for all kinds of tendering processes
and purchasing transactions between our
JVs and suppliers in order to maintain a high
level of information security and contribute to
environmental protection by reducing paper
usage.