Annual Report 2019

043 Transport International Holdings Limited 2019 Annual Report Sustainability Report climate change related-risks, to ensure that risk exposure remains within an acceptable level. A Risk Key Performance Indicator Report (“Risk KPI Report”) summarising the Group’s major risks as identified by management, are submitted to the Audit and Risk Management Committee every six months. The Risk KPI Report provides a comprehensive profile of the major risks and the mechanism established by management for monitoring these risks. For details of our corporate governance, please refer to pages 094 to 111 of our Annual Report 2019. Legal and Regulatory Compliance The Group is committed to conduct its business activities in a proper and lawful manner in compliance with the laws of the HKSAR. All Directors and staff of the Group are subject to a written Code of Conduct, available on the staff website, that provides guidance on matters relating to personal conduct, relations with suppliers and contractors, responsibilities to shareholders and community, relations with customers, and employment practices, as well as procedures for monitoring compliance and means of enforcement. The Code of Conduct promotes ethical values in business activities which Directors and employees are required to adhere to when discharging their delegated duties. The Code of Conduct is reviewed and updated periodically to reflect the latest regulatory changes. Our Group also reviews its employment practices on a regular basis, including strictly following the Employment Ordinance of Hong Kong to prohibit hiring of child labour and any form of forced labour practices. We do not use forced labour in any form of child labour (persons below the local minimum age or below the age of 16). The Group has a whistleblowing policy to encourage employees and related third parties who deal with the Group to raise concerns in confidence about misconduct, malpractice, bribery, money laundering, any forms of forced, coerced or bonded labour and irregularities in any matters related to the Group. Employees and/or related third parties may make a report to the Company Secretary or the Chairman of the Board’s Audit & Risk Management Committee. Appropriate follow- up action, including disciplinary action, will be taken by the Group in respect of substantiated and partially substantiated cases. In the event of an employee committing any offence of corruption under the Prevention of Bribery Ordinance (Chapter 201, Laws of Hong Kong), we would make a report to the Hong Kong Independent Commission Against Corruption. We have not committed any offence of corruption under this Ordinance. We also invited the Hong Kong Independent Commission Against Corruption to provide training to directors and employees to enhance their awareness of anti-corruption. During the reporting year, we had zero concluded legal cases regarding corruption cases. Working with Suppliers We believe in upstream integrated supply chain management with an emphasis on quality and logistics control. We work closely with our business partners to develop new buses and services that are adapted to the local climatic and operational environment while taking a high level of energy efficiency and the latest emission standards into consideration. We encourage fair and open competition with the aim of developing long-term relationships with suppliers based on mutual trust. Our supply chain activities are guided by policies and procedures that are geared to ensuring the ethical procurement of supplies and services, as well as high-quality end products in which our customers can be confident. In 2019, KMB and LWB worked with 384 local and 46 non-local suppliers, of which 44 suppliers are newly added. To ensure compliance by suppliers with our social and environmental requirements, we require them to declare their compliance with our guidelines upon supplier registration: Environmental care; Health and Safety; The prohibition of forced and child labour; and Anti-corruption. Procurement and Tendering Procedures The criteria for the procurement and tendering of services or goods are based on price, quality, requirement and other relevant factors. Our procurement and tendering measures have been established according to the following principles: Impartial selection of capable and responsible suppliers; Fair competition; Selection of appropriate contract types according to requirement; Compliance with laws, relevant regulations and contractual obligations; and Adoption of an effective monitoring system, management controls and practices: • to prevent bribery, fraud or other malpractices; and • to ensure declaration of conflicts of interests by staff involved in the selection.