Sustainable development is a strategic objective for Swire Pacific. Using natural resources responsibly, minimising waste and pollution, and investing in our people and communities are fundamental to our ability to create long-term value for shareholders.
To promote sustainability in our businesses and management practices, we have a sustainable development strategy (SwireTHRIVE) and environmental, social, and governance (ESG) policies.
A Group level strategy facilitates best practice sharing and consistent implementation of sustainability. It also allows us to better communicate the impact we are having as a Group. SwireTHRIVE addresses five areas and is supported by policies and targets. All operating companies are expected to make progress in the five areas.
Our Sustainable Development Policy aims to ensure our businesses act in a manner consistent with the 1987 Brundtland Commission’s definition of sustainable development: meeting the needs of the present without compromising the ability of future generations to meet their own needs.
Our ESG policies include the five SwireTHRIVE pillars and go beyond them, covering, for example, human rights, biodiversity, and sustainable procurement.
We regularly review our policies relating to sustainability. Where we identify policy gaps, we create new policies to guide the Group’s approach. Policies are developed at the working group level, before review by the Swire Group Environmental Committee (SGEC) and approval by the Swire Group Sustainability Committee (SGSC) and Group Risk Management Committee (GRMC). The Board reviews and approves policies on a case by case basis.
All policies related to sustainable development can be downloaded from our corporate website.
As a growing and diversified business, tracking sustainability performance and setting targets can be challenging. To address this, we have a reporting methodology which deals with the scope, boundaries, and calculations of the relevant data. We have established internal controls around our ESG data and processes in line with the COSO ICSR Framework, and have data collection protocols for carbon, waste, and water, that standardises our data calculation methodology, and includes variance checks and procedures for dealing with abnormal data.
We seek third party assurance on key sustainability performance data points. We are also working with a third party to validate the robustness of additional data with a view to expanding the scope of our assured data in future reporting cycles.
Our sustainable development fund (SD Fund) offers financial support to operating companies for projects which can provide long-term environmental benefits but cannot be justified by reference to our cost of capital targets. Up to HK$100 million is available annually to support projects that reduce the carbon, water, and waste footprints of our operating companies, in line with our targets.
The fund has been supporting our operating companies since 2016 through a capex bridge mechanism. In 2019, a new funding stream was created to support trials of innovative green technology solutions. Operating companies invite companies and start-ups to pitch solutions to identified sustainability problems for which we have not yet found a solution. Successful applicants receive funding to pilot their solution in our operations. This approach allows us to test new technologies quickly and at relatively low cost, to determine the solutions most suited to our operations and quantify their actual environmental benefits before implementation at scale. If the pilots are successful, they are scaled up for wider use in the operating company and, if relevant, across the Group.
The SD Fund has helped accelerate SD projects across the Group, including innovative new technologies such as Direct Current Microgrids at Taikoo Li Sanlitun shopping centre in Beijing. In 2024, the fund allocated approximately HK$90.9 million to 9 projects at various operating companies. At the start of 2025, another stream was created for smart metering and artificial intelligence to further support our operating companies by providing accurate data and insights, enabling better decision-making and enhancing operational efficiency.
Linking ESG performance metrics to our financing and green use of proceeds financing demonstrates that we are serious about being a sustainable business. Swire Pacific has sustainability linked loans where the interest payable is reducible by reference to indicators of our ESG performance. Sustainable finance represented more than 55% of total financing across the Group at the end of 2024.
Swire Properties’ commitment to green financing began in 2018 with its inaugural green bond. It has targeted achieving a minimum of 50% of bond and loan facilities from green financing by 2025, and 80% by 2030. As of 31st December 2024, approximately 70% of its financing came from green bonds, sustainability-linked loans, and green loans. The proceeds of its green financing, including green loans, have been allocated to projects including green buildings, energy efficiency, renewable energy, and sustainable water and wastewater management.
New Life Plastics Limited, a non-wholly owned Swire Coca-Cola subsidiary, has also obtained a sustainability-linked loan.
Our Board, led by its Chairman, is actively engaged in overseeing the formulation and implementation of SwireTHRIVE, and is ultimately accountable for sustainability matters including progress against our 2030 key performance indicators. The Board provides oversight of our risk management framework and our sustainability risks, including climate-related risks. Swire Pacific also conducts regular risk identification, analysis, and reviews management processes throughout the year through the board-level Audit Committee and our Enterprise Risk Management (ERM) system, including our Corporate Risk Register (see ESG risk management). The Audit Committee's Terms of Reference include oversight of our financial reporting system, risk management, internal control systems, and ESG matters.
The Board is kept informed of sustainability risks and performance by the Group Risk Management Committee (GRMC) and Swire Group Sustainability Committee (SGSC), both of which report to the Board via the Audit Committee. The Board monitors performance through monthly reports on health and safety, and quarterly reports on other ESG matters. It also reviews internal and external audit reports and feedback from external stakeholders. The Group Head of Sustainability briefs the Board and Division Heads twice a year on sustainability matters, reports periodically to the Audit Committee, the Terms of Reference for which include oversight of ESG, and attends the meetings of the Swire Pacific Risk Management Committee and ESG Risk Forum. The Board ultimately reviews and approves the Group’s sustainable development related targets.
The Board currently comprises four Executive Directors, two Non-Executive Directors and six Independent Non-Executive Directors. Members are selected based on their qualifications, skills and experience, knowledge of our businesses, and how they impact Board- level diversity. All Board members have relevant industry experience in either Real Estate, Aviation, Food and Beverage, or Trading and Industrial sectors. All of our Executive Directors have had executive or board experience with one or more of our subsidiaries. Having the right blend of skills and experience ensures the Board can effectively deal with current and emerging risks and opportunities. The Board receives training materials or direct training annually. In 2024, the Board received training on ESG including risk and ESG disclosure. Further information on our board diversity, processes, and training is available in the Corporate Governance section of the Swire Pacific Annual Report 2024.
1. Of the Board of 12 Directors
The Swire Group Sustainability Committee (SGSC) was established in 2024 to oversee the management of sustainability matters relating to the Swire Pacific Group, implement SwireTHRIVE, and advise operating companies. The Committee consists of the Finance Director of Swire Pacific who acts as chairman, the Group Head of Sustainability and Chief Risk Officer (CRO) of Swire Pacific, and the Head of Sustainability and the Chief Financial Officer (CFO) of each core operating company.
The Committee meets at least three times a year. It is tasked with:
Ensuring the Group operates sustainably with a consistent, transparent, and coordinated approach
Achieving sustainable growth by maintaining & enhancing the Group’s economic, environmental, human, technological, and social capital in the long-term
Identifying and effectively managing the Group’s sustainability-related risks and related governance
Adopting sustainability-related industry best practice across the Swire Pacific Group
Responsibility for achieving sustainability objectives and implementing SwireTHRIVE and our ESG policies on a day-to-day basis is delegated to division heads, with oversight from specialist Group departments.
The management of risks and the implementation of ESG policies are subject to scrutiny by our internal audit department, with support from specialist external consultants where necessary.
Swire Pacific has established a three lines of defence risk governance model. The GRMC is supported by four risk forums and a separate Swire Pacific Risk Management Committee, which identifies risks that have a group dimension.
The Sustainable Development Office (SDO), the Group Risk Management and Diversity, Equity and Inclusion departments, and the Group Head of Philanthropy are jointly responsible for SwireTHRIVE. Each operating company has adopted an appropriate organisational structure to manage its most material sustainability issues and to monitor and report on its performance. Operating companies are required to submit to SDO planned sustainable development capital expenditure budgets that are intended to drive progress towards SwireTHRIVE targets. In turn, the SDO provides the Board of Directors with quarterly reports on performance against sustainability targets and key initiatives being implemented by the operating companies.
Group departments convene committees and working groups comprising subject matter experts from our operating companies to exchange information on best practices, with a view to developing specific policy recommendations, improving efficiency, tracking progress against targets, and managing risks.
Formal committees relevant to SwireTHRIVE include the Swire Group Environment Committee (SGEC) and the Health and Safety Committee (both of which are overseen by the GRMC and SGSC), and the Diversity & Inclusion Steering Committee and Philanthropy Council (which report directly to the Chairman).
The SDO, led by the Group Head of Sustainability, reports monthly to the Group’s Finance Director, who is an Executive Director of the Company. The SDO advises the Group's strategic leaders and the Board of key developments and emerging risks related to sustainable development. It is responsible for setting Group environmental policies and targets, monitoring the implementation of SwireTHRIVE and our ESG policies, and internal and external reporting on ESG matters.
The SDO coordinates the SGEC and six working groups responsible for defining our climate, waste, water, and sustainable supply chain approaches, our response to climate-related financial disclosure requirements and emerging disclosure requirements such as the IFRS Sustainability Disclosure Standards. A nature-related working group was established in 2024.
The Swire Group Environmental Committee (SGEC) advises the SGSC on matters required to enable effective oversight and decision making related to its responsibilities. It focuses on sustainability strategy and policy, and oversees the work of the SwireTHRIVE and sustainability-related working groups. The Committee, which meets at least three times each year, is chaired by the Swire Pacific Finance Director, who is responsible for the Group SD strategy, co-ordinated by the Group Head of Sustainability, and comprises the Head of Sustainability of each core operating company, while being observed by Group Risk Management Department and Corporate Finance.
The Diversity and Inclusion Steering Committee (DISC) is responsible to the Chairman of Swire Pacific. It is jointly chaired by the Group People Director and the CEO of the SE Asia, Hong Kong, and Taiwan operations of Swire Coca-Cola. The other members of DISC are the HR Directors of our operating companies, the Group Head of Diversity, Equity and Inclusion, and the Group Head of Sustainability.
DISC has general responsibility:
to provide guidelines about diversity and inclusion to the group of companies comprising Swire Pacific and its subsidiaries, associates, and joint venture companies, and
to formulate policies designed to promote a diverse workforce and an inclusive working environment for all Swire Pacific Group employees, with a view to ensuring that companies in the Swire Pacific Group are regarded as employers of choice.
The Health & Safety Committee oversees the processes required to ensure that all operations are carried out in a manner reflecting our priority to safeguard the health and safety of our people.
It reports three times per year to the Group Risk Management Committee (GRMC) on health and safety performance across the Group. It is responsible for the development of Group Health and Safety policies and processes, monitoring performance and sharing divisional best practices. It builds internal capability by promoting Health & Safety education, directing projects, and promoting wellbeing in the workplace.
The Swire Group Charitable Trust Philanthropy Council represents the interests of the Swire Trust and oversees its strategic direction and management. Members are strategic leaders within the Swire Group. They are appointed by the Philanthropy Council Chair based on their knowledge of the supported social causes, interest in public service, and representation of different operating companies and key functions across the Group. The Group Head of Philanthropy serves as the Secretary to the Philanthropy Council. Its duties include reviewing and approving the annual budget for the Swire Trust, considering and approving proposals for major new projects in accordance with the Trust’s core areas, ensuring that donations are spent consistent with the vision and mission of the Trust, and reviewing compliance with relevant laws.
Swire Pacific responds to ESG questionnaires from investors, rating agencies, and sustainable stock indices. This enables us to assess our ESG performance having regard to the concerns of sustainability focused investors, and to identify emerging sustainability risks and opportunities.
 | Dow Jones Best-in-Class Asia Pacific IndexIn 2024, Swire Pacific was included in the Dow Jones Best-in-Class Asia Pacific Index (formerly the Dow Jones Sustainability Asia Pacific Index). Swire Pacific has been included on these indices since 2001. |
  | S&P Global Sustainability YearbookSwire Pacific was included in the S&P Global Sustainability Yearbook 2025, which recognises top performers in corporate sustainability based on assessments of over 7,600 companies. Companies must be within the top 15% of their industry to be included. Swire Pacific has been included in the S&P Global Sustainability Yearbook (China) since 2023. |
 | Hang Seng Corporate Sustainability Index SeriesIn 2024, Swire Pacific received an AA+ rating from the Hang Seng Corporate Sustainability Index. Swire Pacific is included in the Hang Seng Corporate Sustainability Benchmark and Hang Seng ESG 50 indices. |
 | MSCI ESG ResearchIn 2024, Swire Pacific received an AA rating from MSCI ESG Research. We are listed on the following indices: MSCI ACWI SELECTION Index; MSCI ACWI SRI Index; MSCI ACWI UNIVERSAL Index; MSCI HONG KONG SELECTION Index. |
 | CDPIn 2024, Swire Pacific achieved a score of A- for CDP Climate Change. |
 | Bloomberg Gender-Equality IndexSwire Pacific was included in 2023 Bloomberg Gender-Equality Index. |
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