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Sustainability Development Report 2011

Contents

Introduction ...................................................................................................... 3

Vision, Mission and Value ................................................................................ 4

Environment ..................................................................................................... 6

Environmental Policy ....................................................................................... 6

Environmental Achievements 2011 .................................................................. 6

Environmental Plan for 2012 .......................................................................... 10

Occupational Health and Safety..................................................................... 13

Occupational Health and Safety Policy .......................................................... 13

OH&S Initiatives in 2011 ................................................................................ 13

OH&S Plan for 2012 ...................................................................................... 17

Organizational Development .......................................................................... 20

WE Project Initatives in 2011 ......................................................................... 20

WE Project for 2012 ....................................................................................... 22

Corporate Social Responsibility ..................................................................... 24

CSR Initiatives in 2011 ................................................................................... 24

CSR Plan for 2012 ......................................................................................... 27

Sustainable Purchase & Supply Chain Engagement ..................................... 28

Sustainable Purchase & Supply Chain Engagement Action Plan 2012 ......... 29

Attachment 1 .................................................................................................. 31

Clean Air Charter – Commitment of CPCS ......................................................................... 31

Attachment 2 .................................................................................................. 33

Occupational Health and Safety Policy ............................................................................... 33

Attachment 3 .................................................................................................. 35

Business Partnerships Policy .............................................................................................. 35

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Introduction

At Cathay Pacific Catering Services (H.K.) Ltd. (CPCS) we are strongly

committed to minimising the environmental impact and protecting the health

and safety of all our stakeholders. In 2011, CPCS launched the Organisation

Development project to enhance organizational and communication

effectiveness across the departments.

In this report, we would like share our 2011 Sustainable Development

achievements, objectives and plans for 2012.

Key facts about CPCS

CPCS is a 100% subsidiary of Cathay

Pacific Airways and one of the largest flight

kitchens in the world.

Total Floor Area - 50,400 sq.m.

Serving over 36 airlines

Daily Production Capacity: 80,000 meals

No. of employees: 1700

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Vision, Mission and Value

Vision

To be the most valued catering services partner in Asia; we focus on quality

and creativity to support our customers in achieving their ultimate goals.

Mission

Strive for the highest quality and safety standards throughout the supply chain

Research and develop innovative solutions for mutual benefits of all business

partners

Simplify our systems and processes to make it easy for our customers

Pursue sustainable business growth to maximize returns on investment

Engage and develop our people to excel

Develop environmental and corporate social responsibility leadership

Values

Caring

Respect

Excellence

Adaptability

Teamwork

Ethics

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Environment

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Environment

Environmental Policy

CPCS is environmentally responsible by minimising the impact on the

environment whilst conducting its business.

Environmental Achievements 2011

One of the environmental priorities at CPCS is to encourage the creation of a

‘Green’ work-place. We proactively look for ways to reduce energy

consumptions, carbon footprints and encourage our staff to take part in

environmental activities. Summarised below is a review of the highlights of

actions achieved in 2011.

1. Replacement of Air Cooled Condensers

The air cooled condensers in the blast chillers were replaced by more energy

efficient water cool condensers, saving approximately 670,000 kWh of

electricity per year.

2. Reducing Food Waste

Reducing food waste is one of the biggest

challenges for an in-flight catering facility.

Apart from donating leftovers and end

cuts to a local pig farm, selling end cuts of

fruits to suppliers in previous years. In

2011, we have joined

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a recycling program with Airport Authority to extend our food waste donation of

our canteen leftovers and fruit peels to a local recycler to further process the

waste to fish feed.

3. Recycling of Glass Bottles

Other than aluminium cans, plastic cups and bottles, returned empty wine

bottles are also collected for the purpose of recycling. All wine bottles are

recycled into environmental bricks.

4. Ecological Tour

A farming visit was organized for staff

and families to visit Fanling Produce

Green. It was a great day out for staff

to experience a simple farming

lifestyle, a chance for staff to make

some paper from unused newspaper

and baked organic bread.

5. Cycling at Nam San Wai

An eco-cycling at Nam San Wai was oragnised

in autumn 2011. It was a great opportunity for

staff to enjoy birds’ wildlife while cycling. It

was also a great workout day for staff!

A photography competition was also held for

this event, so staff used this occasion to photo

shoot the wildlife and the great outdoors of this

untouched area of Yuen Long.

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6. Environmental Awards and Participation

CPCS is committed to the 4Rs of waste management - Reduction, Re-use,

Recycling, Replace evidenced by our achievement of the Class of Good

Wastewi$e Label.

CPCS devotes considerable effort to adopt best practices for protecting the

environment. With continuous participation in environmental practices such as:

Clean Air Charter – Certification 2009. Organised by Hong

Kong General Chamber of Commerce

Earth Hour – organized by WWF

WasteWi$e Label 2010 / 2011 (Class of Good) - organised

by Hong Kong Awards for Environmental Excellence.

14001 accreditation since 1996 – certified by DNV.

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CPCS has joined the Hong Kong Airport Authority Carbon

Reduction Pledge to reduce airport-wide carbon

emissions by 15% per workload unit by 2015 from 2008

levels.

Indoor Air Quality Scheme – Class of Good

Hong Kong Award Environmental Excellence

2011, Manufacturing Sector – Certificate of

Merit

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Environmental Plan for 2012

1. Air quality

CPCS will continue to commit to Clear Air Charter actions such as:

The purchase of high-loaders equipped with Euro 4 or higher emission

control standards

Conduct cleaning of the entire air ventilation system in the company on

a regular basis and assess the air quality of offices on a yearly basis in

accordance with the Indoor Air Quality requirements.

2. Installation of Plastic Curtain

Outbound cold rooms will be installed with plastic curtain to 1,000 square

meters to reduce energy consumption by 1 C.

3. Replacement of halogen lamps

CPCS will continue to replace traditional halogen lamps with LED lighting in

2012.

4. Collection of Recycling Materials

CPCS study the feasibility of donating return inbound food items to food bank.

5. Environmental Awareness

To raise staff awareness on environmental issues, visits to organic farms and

eco-tours will be arranged in Autumn/Winter. ‘Green Living Tips’ on saving

natural resources will also be posted on to notice boards and computer

wallpaper.

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To enhance departmental communication on environmental issues, an

Environmental Team is set up across various departments in December 2011.

The purpose is to cascade environmental initiatives CPCS SD Committee has

planned for the upcoming months/year and to inform the team what has been

done in terms of waste management and recycling program. Based on the

4Rs concept, the team is also to brainstorm ideas to reduce overall wastes

generated by their departments.

6. Magazine Packing Material

Bio-degradable plastic film will be introduced for CX magazine pouch.

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Occupational Health

and Safety

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Occupational Health and Safety

OH&S Policy

All operations in CPCS will be carried out in a manner that safeguards the

health and safety of all our stakeholders where it is reasonably practicable.

OH&S Initiatives in 2011

Target Setting and Injury Rate

Each year CPCS analyses all industrial accidents to understand and

implement corrective actions in order to set continuous improvement targets.

Performance against these targets is then monitored and reported in the

monthly performance with detailed explanation and follow-up actions at the

monthly Senior Management governance meetings. In 2011, the number of

industrial incidents have increased due to business growth but shortage of

staff.

Safety Observation Program

Safety Observation Program was

conducted with the Airport Authority and 4

of our operation colleagues have been

awarded with their outstanding safety

performance.

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Risk Assessment on Hot Working Environment in Ramp

Due to constant extreme hot weather in summer,

risk assessment on working environment was

conducted for Ramp area in 2011. It was noted

that the risk level was acceptable because water

bottles was provided to all outdoor staff to

minimize the risk of heat stroke. In addition, all

air-conditioning catering trucks and mini-bus are

in good condition.

New Safety Shoe

To further enhance safety performance, different

brands of safety shoes were tested by staff and

new safety shoes will replace old ones in 2012.

Health and Safety Campaign

To promote the importance of healthy work life balance and safety workplace

culture, a well-being campaign has been introduced for all staff since 2011 and

this will continue in 2012.

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Pocket calendar as souvenir with some Do’s and Don’ts sentences to remind

staff of some safety guidelines.

Safety Refresher Course

Refresher safety training is conducted every year to ensure:

Designated first aid staff maintain and renew their qualification.

General staff awareness

Colleagues are also encouraged to do some stretching exercise to avoid injury

caused by manual handling. In addition, safety articles are published on a

quarterly basis in Intercom, the internal CPCS staff magazine, to raise staff

awareness on industrial safety.

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Monitoring and Compliance

Annual external safety audits are conducted to ensure CPCS compliance with

Labour Department Regulations. Additionally CPCS conducts its own internal

safety audits monthly with the findings reported to Line Management.

Improvement training sessions are implemented as necessary.

Awards

Participation of 2010/2011 Airport Staff

Safety Recognition Award held by AA.

In 2011, two operations staff were

awarded the Airport Staff Safety

Recognition for their outstanding

performances.

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Occupational Health & Safety Plan for 2012

In addition to the above initiatives, the Safety Team will collaborate with

relevant departments to arrange the following activities in 2012:

Internal Ramp Safety Observation Program

To enhance staff awareness on Ramp Safety, Health and Safety Manager will

work with various departments to observe staff safety practices and will

present souvenir to staff who demonstrates good practices at work.

In-house Stretching Exercise

To encourage staff to stretch prior to heavy lifting, Safety team will design a set

of exercise and train the trainers, so each section leader will lead the team to

do some stretching prior to work.

Safety Message Broadcasting System

Regular broadcast of safety reminders will be announced in Production every

hour.

Safety Performance Improvement Bonus

To study the feasibility to further motivates staff to raise safety awareness by

providing an incentive bonus to staff. Injury cost and data of 2010 and 2011

will be collected for further calculation. This will be presented to top

management afterwards for approval.

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Health and Safety Campaign

To promote the importance of healthy work life balance and safety workplace

culture, a well-being campaign will be introduced for all staff in 2012.

Promotion booths as well as certificates presentation to safety ambassadors

will be held during the campaign.

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Organizational

Development

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Organizational Development

WE Project Initiatives in 2010 & 2011

In order to prepare people and rejuvenate the company culture to face

accelerating internal and external challenges, CPCS launched the

Organisation Development (OD) Project in 2010 and named it as “We Excel

Project”. The programme was implemented across the entire organisation in a

systematic approach designed to improve organisational effectiveness. The

programme features the CPCS vision, mission and values (VMV) that drive

organisation behaviour, sets clear business direction, guides leadership &

strategy and prescribes our culture & identity. Below is a brief summary of the

OD initiatives launched in 2010 & 2011:

(1) Communication

(2) CPCS’ Values Promotion

(3) Performance Management & Development.

1. Communication / Team Building

Team Building workshop

“Teamwork” is one of the core values of CPCS and also the prime

focus of people and organization development. A companywide team

building workshop was officially kicked off in end 2011 preparing our

focus for the following year on “teamwork”. The management team

attended a 1.5 day workshop learning the application of Sun Tzu’s Art

of War to build the team and formulated the company Teamwork

Vision, i.e. “We work as a winning team with trust, respect, empathy

and an open mind towards our common goals.” Workshops for middle

management, supervisory and general staff will be launched in the

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following year.

Focus Groups

Three Focus Group sessions were conducted to collect feedback from

staff on three respective themes: “adaptability to the new joiners”,

“cross-departmental communication” and “occupational health and

safety.”

2. CPCS’ Values Promotion

The Champion Group organised activities to promote our values:

Caring/Respect/Excellence/Adaptability/Teamwork/Ethics. The varieties of the

activities ranged from management team serving staff in the canteen (Manager

Service Day) and CPCS arranged an open day for staff families and friends to

visit CPCS (CPCS Tour Visit). In addition, CPCS has participated in Hong

Kong International Airport Master Plan 2030 quiz competition.

3. Performance Management and Development

Development Centre

A 2-day Development Centre was conducted in May helping senior

supervisor staff to assess their strengths and weaknesses. Personal

Development Plan was developed by the participants with advice from

their department head.

Performance Management System Training

The Performance Management System (PMS) for supervisory and

frontline staff was revamped. Briefings and training classes were

organised. The assessment criteria of PMS system are

competency-based. Appraisers were reminded on the importance of

the process which is equally important to the result. Appraisers and

appraisees are to keep close communication in the process.

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WE Project Plan for 2012

In 2012, building on the foundation laid in 2010 and 2011; the focus of “WE

Project” will be to identify our competitive advantages with a main theme to

promote one of our values – “teamwork”.

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Corporate Social

Responsibility

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Corporate Social Responsibility

CPCS fosters good relationship with the community where we are in and

support its total growth with respect to people’s culture and heritage.

CPCS has been awarded as a Caring

Company since 2004.

CSR Initiatives in 2011

1. Employment Opportunities

In 2011, we organised 16 recruitment activities in Tung Chung in providing job

opportunities to the local community. More than 100 new joiners living in

Tung Chung joined us.

2. Community Service

Our volunteer team formed in 2005. Currently, we have 100 members coming

from different departments. The team’s focus is to serve our neighbours in

Tung Chung.

In 2011, the team organised activities for

seniors and deprived families who are

living in Tung Chung. The volunteer team

arranged visit to Health Farm on a White

Valentine’s Day; to celebration wedding

anniversary for couples who have been

married for more than 33 years or more.

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CPCS volunteer team enjoyed their day out with the elderly and made a simple

lunch for the outing.

3. Cash and Food Donation

The Company encourages staff to extend our care to those in need through

making donations and gifts.

In 2011, CPCS and staff members made donations in various forms:

Cash donation to Oxfam

Donation to Red Cross for the tragedies in Japan

Earthquake and Tsunami.

HK Community Chest - The Green Day & Dress

Special Day

Donation to Orbis, UNICEF

Hong Kong Round Table through joining CX’s -

HK Grand Prix Pedal Kart Race

Food Donation to the People’s Food Bank

Blood Donation to HK Red Cross

Donate books to Swire Properties Community

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In 2011, CPCS also sponsored food to the

following charity events:

Ngong Ping Charity Walk

HK Grand Prix Pedal Kart Race

Airport visit of rehabilitation schools.

Staff Engagement

To enhance staff loyalty, happiness and well being, CPCS has arranged

various activities for staff to take part.

1. Pre-retirement Workshop

For the retirees to be well prepared for their

retirement and for the ease to cope with

psychological and social challenges, CPCS invited

consultants to provide a workshop for those who

were interested. The workshop included topics of

financial planning, health and nutrition.

2. CPCS Tour Visit

In 2011, CPCS has organized an event for our

colleagues to bring their family or friends to visit the

facility. The tour included a lunch tasting of the freshly

cooked in-flight meals. Staff family members found it

particularly fascinating seeing how in-flight meals are

produced and have gained an enjoyable insight of the

working environment of their family members.

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3. Sports and Recreation Ceremony

For staff to have a balanced work-life and have fun outside of work place, our

Sports and Recreation (S&R) team has formed various sports clubs and

activities throughout 2011. There were bowling, table tennis, badminton and

golf competitions. Activities such as barbeque where staff can also bring along

their friends and families; festive parties such as Christmas party and Spring

dinner were also arranged last year.

CSR Plan for 2012

In 2012, we will continuously extend our recruitment activities in Tung Chung

and the neighbouring districts to offer job opportunities to support the local

community.

At the same time, we will work with NGOs in Tung Chung to provide volunteer

services in the community. In order to encourage staff to embrace the caring

culture, we will recruit more members to join our volunteer team to participate

in the community activities. We are committed to build a connected community

through care and love.

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Sustainable Purchase &

Supply Chain Engagement

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Sustainable Purchase & Supply Chain Engagement

CPCS preaches to our supply chain on our conviction in sustainable

development. We favour suppliers who champion our sustainable

development policy.

Our Green purchase practice was developed since the implementation of ISO

14001 EMS in 1996.

Initiatives in 2011 and onwards

1. Research on Sustainable Seafood

Our purchasing team has dedicated time into sourcing for Sustainable Seafood.

In the market, there are different suppliers putting forth different claims about

the sustainability of their products. Our research focus was to find the reliable

world standards about sustainable seafood. Meanwhile, our team continues to

recommend our customers to change from wild catch seafood to farmed

sources.

2. Sourcing Environmental Products

One of our procurement objectives is to replace existing products with

environmental products. By phase, we have replaced our top used paper

materials such as hand paper towel, printed matters and paper with FSC paper.

Our business name cards used to be made up of 70% FSC paper is now

printed on 100% FSC paper. The team also started to source environmentally

friendly plastic products such as: biodegradable plastic bag and biodegradable

plastic wrapping film.

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To reduce carbon footprint, we aim to source more locally rather than from

overseas.

3. Preparing Suppliers for the Minimum Wage Law

CPCS shall continue to pro-actively work with our contractors on minimum

wage trend and act appropriately upon new changes.

Action Plan for 2012

1. Renew Sustainable Development Policy for Suppliers

One of our initiatives is to revise our Supplier Corporate Social Responsibility

Code of Conduct into a more comprehensive Sustainable Development -

Supplier Code of Conduct. Guidelines and preference would be set for

suppliers to support CPCS sustainable development.

2. Sourcing For Sustainable Products

We look forward to expand our search for sustainable products. We would

continue to work with our suppliers to narrow the price gap between the

sustainable products and the standard products, so that customers are more

willing to adopt the sustainable products soon.

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Attachment

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Attachment 1

Clean Air Charter – the commitment of CPCS

1. Operate by a recognised world class standard on emission of air pollutants,

even if it is not required to do so here.

Commitment of CPCS: Diesel used by highloaders and boilers are the

major sources of direct emissions produced by CPCS. Currently, all the

new highloaders purchased comply with Euro 4 standard. All trucks

undergo regular checks to ensure the engine is operating normally to

prevent incomplete burning of fuel. Emissions from CPCS’s boiler are

monitored by tests to ensure the combustion is normal. CPCS only uses

ultra-low sulphur diesel.

2. Use continuous emission monitors (CEMs) at significant sources.

Commitment of CPCS: The exhaust fumes of highloaders are being

checked during maintenance.

3. Publish information on energy and fuel use, as well as total emissions of air

pollutants annually and timely, if emissions are significant.

Commitment of CPCS: Our fuel consumption is reported in one of the

data that is being collected in CPCS including our sister companies in our

current EHS data collection regime.

4. Undertake to adopt energy-efficient measures in their operations.

Commitment of CPCS: A number of projects have been done to reduce

the energy as well as fuel needed for our operations. For example:

a. Energy efficient light tubes are being used to reduce the use of

electricity i.e. indirect emission

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b. Demand control ventilation system installed in canteen to adjust the

air con according to people traffic to reduce electricity consumption

c. Steam recovery system installed to recover unused steam to preheat

water to reduce diesel consumption

d. Reflective jackets installed in light box to reduce the number of light

tubes needed and thus to reducing the use of electricity

5. Identify and encourage business measures to be taken on days when air

pollution is high.

Commitment of CPCS: We have found this technically challenging to

implement as CPCS has no control on the flight schedule and thus

production of inflight meals, but CPCS will try every single effort to reduce

emissions at all times.

6. Share air quality of business with others.

Commitment of CPCS: We will share this information through CPCS

Annual Environmental Report.

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Attachment 2

Occupational Health and Safety Policy

All operations of CPCS will be carried out in a manner that safeguards the

health and safety of all our stakeholders where it is reasonably practicable.

We will comply with applicable Hong Kong legislation as well as other

requirements to which the Company subscribes; every effort will be made

to achieve continuous performance improvement throughout our

operations.

OH&S considerations are integrated into the Company’s business

processes and are given due weight with other business considerations.

The Management will provide full support to the Safety Committee in the

implementation of OH&S policies, rules and practices that are reasonably

practicable with emphasis on risk identification, risk assessment and risk

control.

We will have systems in place to educate and train employees regarding

their responsibilities in relation to OH&S. Line managers are responsible for

ensuring that employees and associates are competent in and aware of all

applicable OH & S practices.

We require all sub-contractors and suppliers working within our premises to

observe our safety practices.

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The SD Committee, which is chaired by our Chief Executive Officer, provides

management support as well as adequate financial and physical resources in

the implementation of this policy.

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Attachment 3

Business Partnerships Policy

CPCS preaches to our supply chain on our conviction in sustainable

development. We favour suppliers who champion our sustainable

development policy.

1. We identify the first layer key suppliers and communicate to them our

sustainable development policy and request for cooperation.

2. We conduct a survey to the first layer key suppliers on their compliance and

willingness to comply to our sustainable development policy.

3. We reflect the policy requirements in the supplier audits.

4. We evaluate the current performance of the first layer keys suppliers as

reflected in the supplier audits and survey exercise.

5. Based on the evaluation results, we consider taking appropriate actions

accordingly.