Annual Report 2020

2020 Annual Report Transport International Holdings Limited 45 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 the declaration of conflicts of interests by staff involved in the selection. Stakeholder Engagement and Materiality Assessment Stakeholder engagement exercises and materiality assessments provide a sound basis for us to develop our sustainability reports, as they help identify the sustainability topics that are most relevant to both our operations and the shared interests of our stakeholders. Our stakeholders include passengers, employees, suppliers, contractors, Legislative Councillors, District Councillors, transport advisory bodies, interest groups and the government. We have established several engagement programmes to gauge their views on our operations and services. Our dialogue with stakeholders is demonstrated through various channels, including the LiveChat enquiry channel on the KMB and LWB websites and App1933, the KMB Facebook page, the KMB Instagram account, the KMB YouTube channel and corporate publications such as KMB Today , as well as face-to-face meetings and media networking. In 2020, we once again engaged an external consultant to carry out a series of stakeholder engagement activities to define the scope of this Report and to identify the material economic, environmental and social topics to be reported, concerning the principles and requirements of the GRI Standards and the HKEX ESG Guide. We invited representatives from various stakeholder groups, including passengers, employees, FRIENDS OF KMB, suppliers, non-governmental organisations (e.g. social organisations and green groups) to participate in three stakeholder engagement activities involving surveys, focus group meetings and interviews. Based on the survey results and the materiality assessment conducted annually over the past few years, we have mapped the materiality of 12 issues. The most critical issues are listed at the top right quadrant of the matrix, while less important issues are found at the bottom left. Issues shown in the top right of the matrix are those we have identified as emerging in importance. The top ten issues were prioritised as material for TIH to address and report. The eleventh and twelve issues, namely energy and efficiency measures and community engagement, which have been reported in the previous years, are also included to make it consistent. The ESG Task Force further reviewed and validated the material topics to ensure a consistent and balanced representation of the Group’s significant sustainability performance and impacts. As a result, the following material topics have been prioritised for disclosure in the TIH 2020 Sustainability Report with the corresponding boundaries specified: