Chairman's Message

CHAIRMAN'S MESSAGE

I am very pleased to present the MTR's second Corporate Sustainability Report for the year 2002.

Our stakeholders in Hong Kong and worldwide expect us to maintain the best practices and highest standards that we have set for ourselves. In our sustainability reporting we can detail our economic, environmental and social contributions towards maintaining MTR's vision as Hong Kong's Fast Track to a World Class City. For the second year running, MTR's sustainability reporting follows the international best practice guidelines prepared by the Global Reporting Initiative.

Last year we demonstrated how the relationship between MTR's stakeholders and Core Values of Respect, Value and Service embedded the concept of sustainability in the Corporation. This year we are reporting on how sustainability is implemented through our risk management techniques. The Corporation must seek new avenues for continued growth through diversification into international consultancy and tourist projects in Hong Kong. Risk management is an important tool supporting that growth.

We set ambitious sustainability targets last year, and I am pleased to report we have met the challenges. We have posted our Code of Conduct on the Internet and have delivered training to staff on its implementation. We have also achieved ISO14001-certification for the Environmental Management System covering our railway operation and construction activities.

This year MTR has implemented a Corporate Sustainability Policy, established a Corporate Sustainability Co-ordinating Committee and appointed a Sustainability Development Manger.

Click to view larger image of Tung Cable Car Project Contract Signing Ceremony

We could not have achieved these results without the dedication and commitment of our employees. Each one's commitment to excellence in sustaining MTR's Core Values is critical to the growth of the Corporation. Our main sustainability efforts next year will be targeted on applying sustainability principles to the Tung Chung Cable Car Project and continuing to seek economic benefits from ISO14001 certification.

Our efforts have been rewarded locally and globally. The Hong Kong Association of Chartered Certified Accountants awarded MTR their first Environmental Reporting Award. As a consequence of our sustainability reporting, MTR is now included in both the Dow Jones Sustainability Index and the FTSE4Good Global Index. MTR is the only Hong Kong listed Company to have achieved this distinction.

In addition, MTR has signed and is participating in the World Economic Forum Corporate Citizenship Initiative. We have also been instrumental in launching the Charter for Sustainable Development, an initiative of the Union of International Transport Providers, which will influence transport companies in 80 countries.

This sustainability report represents our latest contribution to the continual dialogue with you and the other members of our society whose lives we touch. We welcome your thoughts and ideas on how MTR can continue to provide Hong Kong's Fast Track to a World Class City.

Jack CK So, Chairman
Hong Kong, April 2003