Supplier Monitoring and Engagement
GRI 308, 403, 414
HKEX Aspect B4, B5, KPI B4.1, B4.2, B5.2, B5.3
HKEX Aspect B4, B5, KPI B4.1, B4.2, B5.2, B5.3
We aim to build long-term, mutually beneficial relationships with our business partners. We believe that better sustainability performance enhances the overall resilience of our value chain, while helping our supply chain partners mitigate ESG-related risks, operate with greater resource efficiency, enhance their reputation, and capture new business opportunities.
Swire Properties seeks to empower our suppliers to understand, track and improve their sustainability performance. We also work to identify new collaboration opportunities with our partners to innovate sustainability practices. We do this through a multi-part process.
1. New Supplier Selection
Our e-Contractor List Management System is integrated with our technical-related vendor requisition process in Hong Kong and the Chinese Mainland. This automated platform facilitates supplier selection, management and performance analysis and allows for timely updates of supplier information. For new suppliers to be included on the list of approved contractors, they must first complete self-assessment questionnaires to confirm they have appropriate policies and systems in place to comply with our SCoC.
2. Existing Supplier Monitoring
We monitor the compliance status of suppliers on our approved contractors list on an ongoing basis. In addition to requesting regular self-assessments, we may also undertake supplier site visits, and request that our suppliers obtain independent certification in accordance with internationally recognised standards and/or submit environmental and health and safety management plans for our internal review. We may also arrange regular performance review meetings with selected significant suppliers to communicate emerging ESG issues and any follow-up actions required for continuous improvement.
We continuously refine the performance management system for our technical services providers. Any act of non-compliance or malpractice in the areas of health and safety, environment, procurement, quality and site management is recorded, and the technical provider will be subject to disciplinary action. In 2025, there were no incidents of human rights-related violations identified for our Tier 1 suppliers.
3. Understanding and Managing the ESG Risks of Significant Suppliers
In 2023, we became the first real estate company in Hong Kong and the Chinese Mainland to launch a supply chain sustainability engagement programme through EcoVadis’ proprietary ESG assessment platform. A pilot of the programme was rolled out to 60 of our top suppliers, 70% of which filled out a supply chain ESG assessment. These suppliers are based in Hong Kong, the Chinese Mainland and the U.S.A., and together they contributed to more than half of our procurement spend in 2024.
The assessed suppliers’ responses and findings were distilled, analysed and summarised into a scorecard. The suppliers also received detailed insights into their strengths and suggested improvement areas. Their results were benchmarked, helping to compare their ESG performance against other participating peers.
According to our findings, none of these suppliers were considered “high risk” under our Enterprise Risk Management System.
The pilot exercise provided useful insights to further finetuning our engagement approach and helped the formulation of a systematic process to identify and manage our supply chain ESG risks.
3a. Supplier ESG Risk Screening
Covering 100% of unique Tier 1 suppliers
Covering 100% of unique Tier 1 suppliers
In 2024, Swire Properties began to roll out EcoVadis IQ Plus to all our active suppliers – an AI powered, evidence-based ESG risk screening tool designed to provide a high-level evaluation of a supplier’s ESG performance – enabling us to make informed decisions about potential partnerships and procurement strategies. This initial assessment focuses on issues that are relevant to the supplier’s specific industry and operational context (factors include country, industry sector and the impact of the commodity). In 2025, we had 6,051 unique Tier-1 suppliers, all of whom underwent the screening.
Suppliers identified as high-risk under ESG risk screening tool and of significance to our business relevance (factors include suppliers' criticality, volume, spending and substitutability) are considered as unique significant suppliers. In 2025, suppliers were identified as unique significant Tier-1 suppliers. No significant suppliers were identified beyond Tier-1.
Unique significant suppliers will be invited to undergo the second-tier assessment to support deeper ESG due diligence. None of the assessed suppliers were associated with any substantial negative impact. Swire Properties has regularised the risk screening process, ensuring that our assessments respond to the evolving ESG landscape and that regulatory developments and emerging sustainability risks are reflected in our risk assessments.
3b. Supplier Self-Assessment Questionnaire
Unique significant suppliers indicated as high-risk suppliers identified under ESG risk screening 21
Unique significant suppliers indicated as high-risk suppliers identified under ESG risk screening 21
Where risks are indicated as high in our screening process, we invite our suppliers to fill in a self-assessment questionnaire, using the EcoVadis’ Vitals platform, to gain further insights into their governance, management practices and any specific actions that are in place to address these high ESG risk areas. In 2025, 44% unique significant suppliers in Tier-1 were assessed by the self-assessment questionnaire.
Suppliers’ ESG risk exposure levels will be adjusted based on their questionnaire responses. If they are identified as high risk, the supplier will then be invited to conduct a more detailed ESG assessment.
3c. Detailed and Validated ESG Assessment
Identified high-risk unique significant suppliers
Identified high-risk unique significant suppliers
Suppliers that continue to be identified as high risk via the Vitals platform are then required to participate in the EcoVadis ESG rating assessment tool. This tool follows a detailed process:
- Supplier onboarding webinar – These introduce suppliers to the programme, sharing the Company’s ambition and providing details about the assessment process, highlighting the importance of supply chain sustainability and ESG risk management in their operations.
- Customised questionnaire – Individual suppliers receive a customised questionnaire tailored to their industry, country of operation and company size. It captures information on their company’s management practices in relation to 21 sustainability criteria, encompassing environmental considerations, labour and human rights, ethics and sustainable procurement. It is structured in alignment with our SCoC and refers to international sustainability standards such as the Ten Principles of the UN Global Compact, the International Labour Organization conventions, the Global Reporting Initiative standards, the ISO 26000 standard, the CERES Roadmap, and the UN Guiding Principles on Business and Human Rights.
- Carbon disclosure – Suppliers provide relevant information including their carbon management systems, strategy and performance.
- News watch – The ESG assessment platform utilises a comprehensive news monitoring system that scans over 100,000 data sources, including NGOs, press outlets and trade unions. This process combines AI and human analysis to identify relevant sustainability practices of a company over the past five years, both positive and negative. It also incorporates data from the Global Regulatory Information Database.
3d. Continuous Supplier Engagement
Organise debriefing sessions to provide suppliers with information on ESG best practices, identify opportunities for improvement and recommend corrective actions, where necessary.
Organise debriefing sessions to provide suppliers with information on ESG best practices, identify opportunities for improvement and recommend corrective actions, where necessary.
Following the assessments, Swire Properties conducts continuous engagement with the suppliers. A debriefing review session provides them with information on the best ESG practices in their industry and gives them a priority list of improvement areas. These can help the suppliers implement corrective actions and make improvement plans. Suppliers who participate in the ESG assessment are also given access to EcoVadis’ online e-learning platform which contains courses on sustainability and ESG management practices. The course material covers policies, actions and reporting across a variety of sustainability themes as well as broader topics such as training on ESG topics (covering environment, labour and human rights, ethics and sustainable procurement), certification and risk management. This platform is a valuable resource, giving the suppliers knowledge and skills that will contribute to their overall sustainability performance and enhance their ability to meet the evolving expectations of stakeholders.
We provide regular training for the Company’s buyers and relevant internal stakeholders that is relevant to their roles in the programme. The programme is regularly reviewed by the Supplier Working Group and the progress is reported to and monitored by the ESGSC.
2025 Business Partner Sustainability Programme Engagement Webinars
2025 Business Partner Sustainability Programme Engagement Webinars
In July 2025, we hosted a Business Partner Sustainability Programme engagement webinar for our Hong Kong suppliers. Organised in collaboration with EcoVadis and other partners, the webinar attracted over 60 participants from 34 companies.
In the session, we introduced our Business Partner Sustainability Programme; EcoVadis introduced their self-assessment questionnaire; and EcoVadis’ strategic training partner helped suppliers understand what their assessment results mean and how to improve and benchmark their performance against peers in their industry by providing a breakdown of the ESG scorecards. The webinar also introduced a sustainable financing solution – a sustainability improvement loan offered by a major bank provides financial incentives that encourage companies and suppliers to improve their ESG performance, as measured by their EcoVadis ratings. Overall, the session significantly enhanced our Hong Kong suppliers’ understanding of our long-term ESG roadmap.
Later, in October, we held a similar webinar for our Chinese Mainland suppliers, sharing our sustainability vision and the evolving ESG demands facing our industry. As with the Hong Kong session, the webinar aimed to empower our suppliers by providing the guidance, tools and resources needed to implement effective ESG practices and drive continuous improvement – as well as helping them get the most out of the EcoVadis assessment tools and introduce sustainability-related financing options for participants. Over 40 people attended, representing 33 companies.
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