MTR : Sustainability Report 2020

About this update from Mtr Corporation Limited

Sustainability Report 2020 NEW CORPORATE STRATEGY In mid-2020, we formulated a visionary new Corporate Strategy to support our future growth and deliver shareholder and stakeholder value by emphasising innovation and sustainability. Our Corporate Strategy, "Transforming the Future", establishes clear business and social goals under a robust environmental, social and governance framework, driving the sustainability of our business and creating healthy, long-term, symbiotic relationships with the communities where we operate. With the purpose to "keep cities moving", our Corporate Strategy defines a more fit-for-future organisation with a strengthened Hong Kong core, steady growth in Mainland China and International outreach and powerful new growth engines - our three strategic pillars as our strategy to stay competitive in a fast-changing business environment. Our new Corporate Strategy also sees the embedding of MTR's Social Objectives into our operation and management approaches. Our aspiration is to KEEP CITIES MOVING SUSTAINABLY By committing to managing our business sustainably with best-in-class governance, we aim to help individuals and communities thrive, while contributing to the fight against climate change. HONG KONG CORE 3 Strategic Pillars MAINLAND CHINA NEW GROWTH AND INTERNATIONAL ENGINE BUSINESS (MC&IB) Attain full potential of Hong Kong core business Expand into new hubs and new products across MC&IB, maintaining a steady growth Invest in new technologies and mobility services to reinforce our core for long-term growth SOCIAL INCLUSION GREENHOUSE GAS EMISSIONS providing inclusive mobility and operating a low-carbon transport network promoting greater diversity in our work and further reducing our greenhouse gas environment emissions ADVANCEMENT & OPPORTUNITIES fostering social mobility, empowering individuals and supporting the growth of communities We have already been implementing various initiatives under the three Social Objectives. Icons representing each priority are shown next to the relevant initiatives in this Report. Sustainability Report 2020 New Corporate Strategy 2 CONTENTS Chairman's Message 04 CEO's Message 05 Keep Cities Moving Safely 06 About This Report 11 About MTR 18 Safety First 24 Customer Experience 32 Climate Change and the Environment 39 Inclusion and Our Human Capital 50 Advancing with the Community 56 Responsible Procurement 64 Sustainability Report 2020 Contents 3 CHAIRMAN'S MESSAGE This is our first time to elevate ESG to the level of our corporate strategy, introducing clearly defined social objectives and strengthened governance featuring strong second and third lines of defence. We support social inclusion by ensuring that all individuals regardless of their age, ability or socioeconomic status are accessible to our services. We combat climate change and aim for contributing to a carbon-neutral future by continuously reducing greenhouse gas emissions across our operations. We are also committed to promoting advancement and opportunities to empower our staff, supply chain and communities as we continue to grow and expand our networks. These are common topics of concerns for Hong Kong and, in fact, the many communities we serve. Year 2020 was an unprecedented year to all of us. The COVID-19 pandemic brought commerce to a halt, closed schools and made employees to work from home, substantially reducing daily commutes. Despite this challenging time, our 50,000 employees demonstrated high agility and continued to connect and support communities with caring, innovative and sustainable services whilst safeguarding the safety of our passengers. Our purpose is to "keep cities moving" and we have been doing our best to ensure safe, reliable and affordable transport for our communities. In face of the pandemic, we stepped up cleaning of our trains and railway facilities and deployed innovative sanitisation technologies to safeguard public health. We provided financial aids such as fare rebates for passengers and rental concessions for mall and station tenants. Our Board and Executive Directorate donated HK$4.3 million of their remuneration to nongovernmental and charity organisations to help those in need. In an effort to defend public health and safety, the Corporation donated 100,000 surgical masks at a time when supply was tight. Most importantly, we took care of our staff by providing them with appropriate personal protective equipment and guidance in their daily operations, especially frontline staff facing high foot traffic. The Corporation operates in a fast-changing environment affected by a number of emerging risks and opportunities, where stakeholders are expecting a more robust environmental, social and governance (ESG) regime. In June 2020, the MTR Board completed a strategic review on the Corporation's future development direction. Entitled "Transforming the Future", the strategy charts a path for continuous business growth for the Corporation that is underpinned by a fit-for-future organisation with three strategic pillars. We shall continue to strengthen our core business in Hong Kong, maintain a steady growth of our business on the Mainland of China and international markets, while exploring new growth engines especially in the areas related to smart communities and mobility. ESG principles have always played a key part in our operations and the strategy affirms the further embedding of ESG in guiding and defining the path to our future growth. We believe including social objectives in the core of our business development can help us achieve business sustainability and enhancement as well as fulfilling our corporate responsibility. In August 2020, we issued a Green Bond under our new Sustainable Finance Framework to support the Corporation's sustainable development. The US$1.2 billion 10-year bond was issued to fund projects that conserve energy, protect the environment and enhance and expand low-carbon railway services. It was the largest single tranche green bond for corporates in Asia Pacific. The issuance won Hong Kong's "Best Green Bond" Award and, being at the forefront of raising sustainable financing, the Corporation was also named the "Best Issuer for Sustainable Finance" in Hong Kong in The Asset Triple A Country Awards 2020. Besides, we are delighted to receive the "15 Years Plus Caring Company Logo" from the Hong Kong Council of Social Service in recognition of our persistent care for the community, the environment and our staff. Our long-term success relies on the commitments and dedication of our staff as we transform the Corporation. With the new Corporate Strategy and Social Objectives in place, we will continue to grow alongside our communities and work with our stakeholders to build a more sustainable and inclusive future, making us an internationally-recognised company that connects and grows communities with caring, innovative and sustainable services. Dr Rex Auyeung Pak-kuen Chairman Hong Kong Sustainability Report 2020 Chairman's Message 4 CEO'S MESSAGE future growth and deliver stakeholder value by emphasising innovation and sustainability. Our new Corporate Strategy, "Transforming the Future", establishes clear business priorities and social goals, maintaining competitiveness and driving the sustainability of our business as well as creating healthy, long- term symbiotic relationships with the communities where we operate. The new Corporate Strategy has three core pillars: (1) continue to realise the full potential of our Hong Kong Core business; (2) maintain steady growth on the Mainland of China and international business markets; and (3) explore new growth engines by investing in new technologies and mobility services for long-term growth. In the next decade, we will invest around HK$100 billion to build new railway lines in Hong Kong and develop a new community atop Siu Ho Wan Depot. 2020 was an extraordinary year. As cities were locked down and people's daily lives completely disrupted due to the COVID-19 pandemic, the world also saw some remarkable moves by enterprises and individuals in adapting to the "new normal" with resilience. Nevertheless, there were steep declines in retail, catering, tourism and a number of other industries. Our business has also been greatly affected. Despite the difficult circumstances, our dedicated staff worked unwaveringly to keep cities moving by delivering safe and reliable services and caring for the communities. At the onset of the pandemic, we quickly implemented contingency plans to safeguard the health of our passengers and staff. We increased the frequency and extent of our cleansing routines, enhanced ventilation, employed sanitising robots to disinfect railway stations and trains, and applied technology such as Photo Catalyst Coating and touch-free buttons at passenger lifts to further enhance the hygiene of public-facing facilities at stations. We launched our own face mask production lines to secure a steady supply for our staff. In addition, we offered fare rebates for commuters and rental concessions to most of our mall and station shop tenants. Last year, despite the challenges, we successfully commenced service on Phase 1 of the Tuen Ma Line in Hong Kong, and a number of new lines in the Mainland of China as well as opened The LOHAS - a new attraction for shopping, dining and leisure in Hong Kong. We also made good progress in existing and new projects. In August 2020, we issued a new US$1.2 billion 10-year Green Bond, the largest single-tranche green bond for corporates in Asia-Pacific, to fund railway-related conservation and energy efficiency projects. This year also concluded the Government's inquiry into the issues surrounding the Shatin to Central Link construction works. The findings reconfirm that the new structure of the Hung Hom Station is safe and fit for purpose with the completion of the suitable measures. We will continue to strengthen our management process to provide the high quality services expected by our stakeholders. For the long-term prospects of the Corporation, we recently formulated a visionary new Corporate Strategy to support our Reflecting on our commitment to long-term growth in response to societal needs, we have redefined our Social Objectives under the new Corporate Strategy, which include three priority areas: fostering social inclusion, reducing greenhouse gas emissions and providing opportunities to empower people and communities. We could manifest inclusion with services that are accessible to all regardless of age or ability. We will also provide convenient, efficient tr ansport in a lo w ca rbon ma nner an d nu rture yo ung generations and local enterprises to grow and thrive. Moving forward, we will continue to work towards the future development of the city's transport and urban infrastructure. We have already embarked upon a consultancy study to help us develop a long-term carbon reduction roadmap and, to this end, to launch a comprehensive programme in 2021. We are devoted to making our network a low carbon transport option connecting the communities. This is very much in line with the Government's pledge to make Hong Kong a carbon neutral city by 2050. The challenges imposed by COVID-19 have continued much longer than we all expected. As we look to the next year with hope and optimism, I am confident to keep the cities we serve moving safely and sustainably with our new Corporate Strategy and Social Objectives and with the support of our 50,000 agile and resilient colleagues worldwide. Dr Jacob Kam Chak-pui Chief Executive Officer Hong Kong Sustainability Report 2020 CEO's Message 5 KEEP CITIES MOVING SAFELY The Coronavirus Disease 2019 ("COVID-19") outbreak has been a difficult time for all of us. As we worked tirelessly to keep the city moving, our thoughts remained with those who have been hit by the pandemic. Through these difficult times, we never ceased to be inspired by the outpouring of support, compassion and kindness from the people of Hong Kong. Together, we are united in fighting the virus. MTR Corporation Limited ("MTR" or the "Corporation") has held the safety and the health of our customers, employees and contractors as our top priority throughout our response to this pandemic. Amidst the uncertainties surrounding COVID-19, we understand the concerns and anxiety of our partners and stakeholders, and the enormous changes the pandemic has brought to their daily routines. It has taken a toll on every one of us. As a leading mass transit carrier, MTR is committed to operating a safe and hygienic railway network despite the challenges of the pandemic. Our Health and Hygiene Committee ("HHC") has been monitoring the COVID-19 situation closely and formulated response measures to tackle and mitigate its impact on our operations in Hong Kong. To track the development of the outbreak closely, we established an Infectious Disease Management Team ("IDMT") in accordance with our Corporate Infectious Disease Business Continuity Plan to direct rapid responses across business functions and monitor COVID-19 cases. Led by two Directors, IDMT also helped develop timely internal responses such as human resources policies, case management, rules for entry to premises and special work arrangements to ensure business continuity. MTR has a strong sense of togetherness and responsibility to the communities where we operate. We are committed to serving the people of Hong Kong and will continue to act swiftly in response to the latest developments and follow the advice of healthcare authorities and experts as we continue to keep our cities moving safely. FIGHTING THE VIRUS Our focus is to keep our operations safe and hygienic. This is an important foundation for us to continue to deliver a reliable and efficient service to the communities we serve. Aside from stepping up the frequency of our cleansing and disinfection procedures, we have implemented a wide range of measures at our stations and on trains to safeguard our passengers during their daily journey with us. At our stations, we have increased filter cleansing and air intake frequency for better air flow and ventilation as well as set up multiple sanitisation points for our passengers to practise hand hygiene. We have also installed contactless proximity sensor buttons in more than 100 lifts across our stations and facilities to reduce indirect physical contact. At our properties, we have stepped up cleansing and disinfection of escalators, lifts, and other common facilities and provided hand sanitisers for visitors and shoppers. We have also requested all frontline staff on duty, including stations and property management, to always wear surgical masks and suitable personal protective equipment and check their body temperature daily before reporting to work. Disinfection points have been set up in all stations Sustainability Report 2020 Keep Cities Moving Safely 6 Inside our train compartments, we have deployed a new "Vapourised Hydrogen Peroxide Robot" ("VHP Robot") to conduct deep cleansing and decontamination as required. The VHP Robot releases a hydrogen peroxide spray which thoroughly cleans all surfaces and penetrates areas which cannot be reached by the cleaning crews. This innovative technology was made possible through collaborative efforts between the Corporation and a local biotechnology company. VHP Robot has been deployed to conduct deep cleansing in our trains SUPPORTING THE COMMUNITY At the onset of the pandemic outbreak in early 2020, everyone took proactive measures to protect themselves against potential airborne transmission. With supply chain disruptions, the stock of face masks in Hong Kong and around the world quickly dwindled and many individuals, organisations and even our government partners encountered difficulties in acquiring enough face masks for a sustained period of time. After securing enough supply for our own employees, we donated 100,000 face masks to vulnerable members of the community through the Hong Kong Council of Social Service ("HKCSS") in February 2020. We donated 100,000 face masks to vulnerable members of the community Funded by the renumerations of Board Members and Executive Directors, about HK$4.3 million was donated to six charity organisations including Food Angel, Gingko House Love Project, Heep Hong Society, Hong Kong Family Welfare Society ("HKFWS"), ImpactHK and The Community Chest of Hong Kong to provide more than 40,000 hot meals and food coupons, as well as temporary shelters and learning support for over 50,000 beneficiaries. COVID-19 spread across the world and caused severe social and economic impacts. As a responsible corporate citizen, MTR launched a range of special relief measures to support our passengers and tenants. We offered fare rebates to passengers and provided rent relief for our tenants at MTR stations and MTR Malls, particularly those of small to medium operation scale. Besides the relief measures, many of our staff are eager to support the community and those in need. Volunteers from the Corporation's More Time Reaching Community Scheme have organised various volunteer activities to help those more vulnerable to the impacts of the pandemic. Our volunteers partnered with HKCSS and several non-governmental organisations ("NGOs") to offer a helping hand and ease the burden for some low-income households and the elderly. Our volunteers donated, packed and delivered food packs and other pandemic supplies to 13 NGOs across the city. Volunteers from the Corporation's More Time Reaching Community Scheme offered a helping hand to those in need The social gathering restrictions have affected us in different ways. In response to school closures, many charity organisations have launched support programmes to minimise the impact on students. MTR has reached out to give our full support to these organisations through donations and staff volunteers. To assist children with their home learning, we helped pack and We worked with Heep Hong Society to pack learning kits for students with special educational needs Sustainability Report 2020 Keep Cities Moving Safely 7 deliver learning kits to students with special educational needs and donated e-learning devices to students from low-income families. From August to September 2020, the Corporation donated 200 tablet devices to low-income families through HKFWS. Volunteers from the Corporation's More Time Reaching Community Scheme together with HKFWS distributed these tablets to children at family service centres and schools across Hong Kong. Our volunteers also assisted Heep Hong Society in packing learning kits for students with special educational needs. Aside from these learning materials, we also donated hundreds of MTR Board Game sets through the People On Board Social Enterprise and various NGO partners to bring some joy into homes. To support and express our gratitude to healthcare workers at the forefront of the fight against the pandemic, the Corporation has been providing free Airport Express tickets to on-duty healthcare workers since March 2020 for their travel between the Community Treatment Facility near AsiaWorld-Expo Station and the urban centres. In September 2020, we organised the "Keep Hong Kong Moving" Drawing Activity and invited children from Caritas Hong Kong, Heep Hong Society, Hong Chi Association, and HKFWS to express their creativity, love and encouragement through their drawings. Almost 50 children's drawings were displayed at various MTR stations from mid-October to late-November 2020, bringing positive energy to passengers and encouraging them to fight the pandemic together. To facilitate the Government's Enhanced Laboratory Surveillance Programme for the public to easily access the COVID-19 testing service, vending machines to dispense COVID-19 specimen collection packs were set up at 20 MTR stations. We implemented social distancing at the collection points and installed UV light air purifiers at locations near the vending machines to provide extra protection for passengers. Cleansing and disinfection of the relevant stations were enhanced considering the increase in foot traffic. OVERSEAS HIGHLIGHTS MTR Nordic MTR Nordic has supported Stockholm City Mission through yearly donations of cash found across the commuting system since 2011, donating a total of SEK 222,972 (over HK$200,000) in 2020. Recognising the increasing need for financial support under the pandemic, MTR Nordic donated another SEK 300,000 (over HK$280,000), amounting to an ultimate financial contribution of SEK 522,972 (over HK$490,000) to Stockholm City Mission in 2020. Metro Trains Melbourne Metro Trains Melbourne has supported the community through Metro Cares Community Grants, and 30 grants of A $1,500 (over HK$8,000) each were provided for grassroots community organisations in March 2020. An additional five grants of A$5,000 (over HK$ 29,000) were provided for charities supporting the COVID-19 response in November 2020. About 50 drawings collected from community partners were displayed at MTR stations to bring positive energy to passengers Sustainability Report 2020 Keep Cities Moving Safely 8 CARING FOR OUR STAFF AND CONTRACTORS As a responsible employer, we strive to protect jobs and be resilient in ensuring our business sustainability. In view of the prolonged difficult business environment, we have exercised prudent financial management and proactive cost containment measures to maintain our fiscal health. We are proud of our employees who are dedicated to keeping our business and our cities moving despite this difficult time. To safeguard their health and put passengers at ease amid the pandemic, we have provided sufficient and appropriate personal protective equipment for them and implemented a range of precautionary measures in our workplace. In addition to stepping up the cleansing routines in our offices, we have provided all staff with surgical masks, reminded them to maintain good personal hygiene and required them to check their body temperature before reporting to work every day. Staff are required to consult a doctor promptly if they feel unwell. We have also set up designated temperature screening stations at the entrance of our office buildings to better monitor the health status of employees and individuals who enter our premises. A strict visitor policy is applied to reduce the number of visits to an essential minimum. Hand sanitiser dispensers have been installed in public areas to make hand disinfection an easy routine when their hands do not have visible soil and are far from washing facilities. In response to the Government's call to minimise social contact, we have adopted split team or work from home arrangements for office staff. For frontline staff, additional laundry allowances were granted encouraging colleagues to wash their uniforms more often to maintain a higher level of personal hygiene. Since the outbreak, we have stayed in close communication with our employees to provide them with situation updates and useful health advice, and to address concerns from staff bodies. As a result of the multi-pronged measures, only a small number of confirmed COVID-19 cases were recorded among employees. The Corporation promptly disinfected workplaces and proactively arranged for identified close contacts to stay home for the government's follow-up actions. The Corporation has established a prudent case reporting and management process to minimise the risk of virus transmission in the workplace. The HHC, with assistance from the department or section's Infectious Disease Response Coordinators, regularly updated our employees on the latest COVID-19 situation, the measures undertaken by the Corporation, and other information that helps our employees protect themselves. As our fight against COVID-19 persisted, we sought to secure a reliable source of face masks for our employees without heightening the demand in the market. In September, MTR launched a face mask production line at Siu Ho Wan Depot, with a production capacity of over 300,000 masks per month. Each MTR face mask is made with nanofibers developed by experts at the Hong Kong Polytechnic University and have passed laboratory tests meeting ASTM Level 2 protection connoting a high protection efficiency. The cleanroom for face mask production was certified to meet Class 8 sterilisation requirements under the ISO 14644-1 international standard, MTR launched a face mask production line at Siu Ho Wan Depot to secure a reliable source of face masks for employees which covers specifications on air cleanliness in cleanrooms and other associated controlled environments. Our popular mascot "T-Chai" has been embossed on the face masks along with the phrase "Keep HK Moving" to encourage us to look ahead through this challenging time. To increase face mask production, the Corporation has launched a second production line at the end of 2020. The Corporation supports the Construction Industry Council and Hong Kong Construction Association's initiative urging the construction industry to implement compulsory COVID-19 testing. We have requested contractors working at MTR construction sites to participate in this testing initiative and require all site staff to present negative COVID-19 test results from within the past 14 days before entering construction sites. Moreover, MTR staff who work on MTR or external construction sites for more than 2 hours a day (either at single site or at multiple sites in aggregate) are also required to take a COVID-19 test 14 days prior to entering the construction sites. We have also stipulated other control measures to mitigate the risk of transmission at our construction sites including: Body temperatures are measured before workers enter the site; Mandatory facemasks on construction sites; Hand sanitation stations are available for all workers; Area designated for lunch are set up to maintain social distancing; Talks and briefings are conducted outdoors as much as possible; and Contact tracing is implemented for confirmed and suspected cases to mitigate the risk of transmission. Sustainability Report 2020 Keep Cities Moving Safely 9 OVERSEAS HIGHLIGHTS MTR ELIZABETH LINE During the pandemic, MTR Elizabeth line worked in partnership with our recognised Trade Unions on matters affecting health and safety, wellbeing, illness and the annual leave arrangements of our staff. Working groups have been set up with our union representatives and colleagues from across our business to provide suggestions and recommendations for employee wellbeing focusing on potentially vulnerable colleagues. In view of the uncertainty amidst the pandemic, MTR Elizabeth line has developed a Wellbeing Strategy in response to COVID-19 to guide our approach to adapting our workplace to this challenging time. At our stations and trains, we increased the frequency of our deep cleansing procedures with a focus on high volume touchpoints such as handrails, gate lines and lift buttons and introduced a Hygiene Steward Team to our daily cleansing regime. Social distancing measures were also implemented across our operations. For instance, signage and floor markings were used to reinforce the 2-metre social distancing interval, and our colleagues were trained to interact with customers with minimal contact to maintain social distancing. All frontline colleagues were also provided with appropriate personal protective equipment including gloves, aprons, hand sanitisers and face masks. Internally, we provided each colleague with a personal face mask together with 30 interchangeable filters. The masks are sustainable, reusable, and most importantly, proven to be safe. This initiative assisted employees in adapting to the new normal whilst being mindful of our impact on the environment. All frontline colleagues were provided with appropriate personal protective equipment Staff at Headquarters were requested to work from home ("WFH") and were provided with suitable IT equipment. All employees working from home were also advised to assess their seating arrangements and to take standing breaks at regular intervals to prevent muscular-skeletal injuries. In view of the "new normal", we have committed to a review of our flexible working policy and family friendly policy, as some of our staff have indicated their preferences for WFH arrangements after the pandemic to better support their families. Aside from physical health, MTR Elizabeth line has also placed a heavy emphasis on ensuring the mental and emotional wellbeing of our employees. Through Yammer, an online portal for staff communication, we have provided regular updates to our colleagues and engaged them in quizzes and competitions to keep morale high. To check on the wellbeing of our colleagues and to foster a supportive environment, managers have been encouraged to arrange regular one-on-one conversations with their teams either through telephone calls, video calls or in person whilst social distancing. Moreover, two online modules on mental health were launched in April 2020 through our learning management station to provide better support. We recognise the financial impacts the pandemic may have brought about on our colleagues and their families. To help ease the burden, we organised two virtual seminars on financial health for colleagues. We also arranged experienced personal bankers to conduct a 30-minute personal Financial Health Check for colleagues in need. Each colleague was provided with a personal face mask and interchangeable filters Sustainability Report 2020 Keep Cities Moving Safely 10 ABOUT THIS REPORT Materiality Assessment HKEx and GRI Compliant On MTR Sustainability Website: Read our Management Approach ʯ Reporting Framework ʯ Stakeholder Engagement ʯ Materiality Assessment On MTR Corporate Website: ʯ MTR Financial Highlights and Annual UN Sustainable Reports Development Goals In This Chapter: GRI: 102-40,102-42,102-43,102-44, 102-46,102-47,102-49,102-50,102-53, 102-54,102-56 Sustainability Report 2020 About this Report 11 We take a combined approach to provide effective and transparent disclosure of our sustainability journey. Long standing information such as our sustainability strategy, management approach and frameworks, and on-going efforts that remain relevant are available on the Sustainability Website (the "Website"). Annual updates on sustainability-related highlights, initiatives, performance and challenges are found in our annual Sustainability Report (the "Report"). The Website and the Report together communicate how material sustainability issues are managed as an integral part of our business. They complement information available from other publicly accessible sources such as our Annual Report . For a complete list of disclosures and sources, please refer to our Hong Kong Stock Exchange and GRI Content Indices for Sustainability Reporting Guidelines. This year, with our purpose to keep cities moving sustainably, we redefined our Social Objectives to further align our efforts with three priority areas, namely 1) Social Inclusion, 2) Greenhouse Gas Emissions and 3) Advancement & Opportunities. Please refer to the About MTR section for more details. We value your feedback on our sustainability performance and disclosures. Please send us your views and comments to [email protected] or via MTR website . REPORTING FRAMEWORKS As a publicly listed corporation, MTR abides by the listing rules of Hong Kong Exchanges and Clearing Limited ("HKEx") including Appendix 27 Environmental, Social and Governance Reporting Guide ("ESG Guide"). Our disclosure is in accordance with the Global Reporting Initiative ("GRI") Standards: Core option and also makes reference to internationally recognised reporting guidelines such as the United Nations Sustainable Development Goals ("SDGs"), the International Association of Public Transport ("UITP") Sustainability Charter Reporting Guide 1.0 and ISO 26000 Guidance on Social Responsibility. We also disclose climate-related information in line with the framework recommended by the Taskforce for Climate-related Financial Disclosures ("TCFD"). As a global citizen, we leverage our expertise and resources to contribute to the global sustainable development agenda. We have identified and notified the SDG Secretariat of our overall support for SDGs 8 (Decent Work and Economic Growth), 9 (Industry, Innovation, and Infrastructure) and 11 (Sustainable Cities and Communities) as those most relevant to the development of sustainable urban infrastructure in our operating locations. We also support a number of other SDGs through our diverse operations. Our efforts to support different SDGs are shown in this Report. This Report also presents our response to the following three megatrends that bring along both opportunities and challenges to our operations: System Resilience for Ageing Digital Climate Population Transformation Change About MTR - Social Objectives About MTR - Social Objectives Customer Experience - Greenhouse Gas Emissions - Social Inclusion - Our Railway Operations - Climate Change and the Customer Experience Smart Mobility Environment - Climate Change - Our Railway Operations Please refer to our Website for details on our disclosure approach, reporting frameworks, SDGs commitments and the three megatrends. Sustainability Report 2020 About this Report 12 REPORT SCOPE The Report discloses details of issues material to the Corporation covering the period from 1 January to 31 December 2020. Headquartered in Hong Kong, the Corporation has extensive railway-related projects and operations internationally with a presence in the United Kingdom, Australia, Sweden, Macao and the Mainland of China. MTR's property development and management services are based in Hong Kong and the Mainland of China. The scope of this Report has been expanded to include our operations in Sydney and Macao, and includes data from all operations, including wholly or majority-owned subsidiaries where the Corporation exercises management control. However, quantitative data from Macao is not disclosed in this Report as the Corporation is not the sole owner of the data under the O&M service contract with the client in Macao. Subject to the disclosure arrangement which will be reviewed from time to time, we may include such data in future reports. Please refer to the Performance Metrics section for our performance data. Key quantitative data disclosed in this Report has been independently assured by Ernst & Young Advisory Services Limited. Please refer to the independent assurance report for details. Our Annual Report provides further details on our operations in Hong Kong and worldwide. Please also refer to the sustainability reports of our overseas subsidiaries, MTR Nordic and Metro Trains Melbourne , for more details on their performance and latest initiatives. MTR's Value Chain MTR STAKEHOLDER ENGAGEMENT Our ongoing and two-way stakeholder engagement process enables us to gather views, priorities and expectations from a wide range of stakeholders along our value chain. Through different engagement channels, we identify possible risks and opportunities, balance different interests and make informed decisions. We also leverage this opportunity to gain valuable feedback on our initiatives in pursuit of operational excellence. For details on our stakeholder list, engagement approach and engagement channels, please refer to our Website . Services for • Customers (incl. passengers & shoppers) Services for • Tenants in managed properties • Station retailers • Advertisers Planning Construction Operations • Tenants in shopping malls • Other service providers Suppliers of goods & services Consultancy services Contractors & developers Sustainability Report 2020 About this Report 13 EXTERNAL REVIEW PANEL Every year, we invite professionals in sustainability fields to provide advice on our reporting approach and strategy, and to review the content of our Website and Report. Their valuable feedback helps us enhance the quality of our sustainability disclosures. Members of this year's External Review Panel include: Shirlee Algire Mike Kilburn Robert Gibson Executive Manager, Former Head of Sustainability, Fellow, Civic Exchange and Sustainability, Airport Authority Hong Kong Adjunct Professor, Hong Kong Jockey Club Hong Kong University of Science and Technology Calvin Lee Kwan Agnes Tai SK Wu Head - Sustainability Director, Risk Manager, Link REIT Great Glory Investment Alliance Construction Corporation Materials Limited MATERIALITY ASSESSMENT To identify issues which are material to MTR's economic, environmental and social aspects, or substantively influential to the assessments and decisions of our stakeholders, we conduct an annual materiality assessment following a four-step approach to identify material issues which indicate the shared 3 concerns of the Corporation and our stakeholder groups. For details on our materiality assessment methodology, please refer to our Website . 1 2 Our materiality assessment process Identification of Sustainability Reporting Issues Importance to the Corporation Based on the Enterprise Risk Management System 4 Importance to Stakeholders Based on Stakeholder Endorsement by Engagement the Corporate Responsibility Steering Committee Sustainability Report 2020 About this Report 14 MATERIALITY MATRIX Our materiality assessment results are presented in the following matrix. interests HIGH 8 12 External 22 10 1 9 36 20 2 31 25 3 6 24 26 4 11 5 34 35 33 37 32 16 23 19 27 7 18 29 15 17 21 28 14 30 LOW 13 LOW HIGH Internal assessment on importance to business The top right quadrant lists out highly material issues, while the least material issues are shown at the bottom left. The results were commented by the External Review Panel and have been validated by the Corporate Responsibility Steering Committee. This year through our internal assessment, the importance of item 36 "Community health" to our business increased given the pandemic. It also increased for item 16 "Diversity and equal opportunity" and item 33 "Employment creation and skills development" in line with our commitment to our new social objectives to foster social inclusion and promote advancement and opportunities in the communities we serve. Sustainability Report 2020 GOVERNANCE Organisational governance structure and process Fair operating practices (Ethical dealings with other organisations) Anti-corruption Responsible political involvement Fair competition CUSTOMERS Fair marketing (factual and unbiased information & fair contractual practices) Customer education Customers' health & safety Sustainable products & services Customer service, support, and complaint handling Customer data protection & privacy Access to essential services (incl avoidance of service disruption) III. EMPLOYEES Human rights risks assessment Human rights risk issues Human rights grievances mechanism Diversity and equal opportunity Fundamental principles & rights at work Protection of civil & political rights of staff Employment practices Conditions of work & social protection Staff consultation and engagement (incl freedom of association and collective bargaining) Employee and contractor health & safety Employee development & training IV. ENVIRONMENT Prevention of pollution (air, water & waste) Sustainable resource use (resource efficiency & water use) Climate change Biodiversity V. SUPPLY CHAIN Supply chain human rights risk Promoting social responsibility in the value chain VI. COMMUNITY Payment from government / tax payment Community involvement and development (engagement) Education and culture Employment creation and skills development Technology development and access Wealth and income creation Community health Community investment About this Report 15 SDGs, Highly Material Issues and Our Responses We also take the SDGs into account as part of our materiality assessment process to align our business strategies and disclosures with global sustainability priorities. The linkages between our three committed SDGs, other SDGs which we support through our diverse operations, our highly material issues and associated responses are illustrated below. Cross Referencing SDGs to Highly Material Issues, and to Sections of the Report covering these Issues Highly Material Issues Sustainable products and services Customer health and safety Employee and contractor safety Conditions of work and social protection Customer education Customer service, support and complaint handling Biodiversity Climate Change Prevention of pollution Sustainable resource use Diversity and equal opportunity Access to essential services Community involvement and development Committed Sustainble Other Sustainble Development Goals Development Goals • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Sustainability Report 2020 About this Report 16 Cross Referencing SDGs to Highly Material Issues, and to Sections of the Report covering these Issues Highly Material Issues Sustainable products and services Customer health and safety Employee and contractor safety Conditions of work and social protection Customer education Customer service, support and complaint handling Biodiversity Climate Change Prevention of pollution Sustainable resource use Diversity and equal opportunity Access to essential services Community involvement and development Sections of the Report covering the Highly Material Issues and the SDGs About MTR section Customer Climate Inclusion and Our Advancing with Responsible on Financial Safety First Change and the Experience Human Capital the Community Procurement Sustainability Environment • • • • • • • • • • • • • • • • • • • Sustainability Report 2020 About this Report 17 ABOUT MTR Corporate Governance Social Sustainable Objectives Finance Hong Kong 1975 262.6km Location of Headquarters Year of Establishment Hong Kong total railway route length On MTR Sustainability Website: Read our Management Approach Corporate Governance Risk Management Financial Sustainability Sustainable Investment Our Policies and Guidelines Board Diversity Policy Code of Conduct Corporate Responsibility Policy MTR Modern Slavery and Human Trafficking Statement Sustainable Finance Framework Whistle-blowing Policy In this Chapter: GRI: 102-1,102-2,102-3,102-4,102-5,102-6,102-7,102-11,102-16,102-18,201-1,205-3,206-1 HKEx KPI: GD-A1,GD-A2,GD-B7, B7.2, B7.3 GD-B1,GD-B8 Sustainability Report 2020 About MTR 18 Our vision is to be an internationally-recognised company that connects and grows communities Performance in Sustainability Indices As a listed corporation, MTR's sustainability performance is assessed by leading independent ESG ratings agencies including: with caring, innovative and sustainable services. Corporate governance and fair operating practices are highly material issues to MTR. Our robust governance structure is the foundation which enables the Corporation to achieve our business objectives in a fair and ethical manner. Sound governance of sustainability issues promotes proper management of, and resilience, against related risks. OUR BUSINESS AT A GLANCE Dow Jones Sustainability Indices ("DJSI") - MTR has been a constituent of the DJSI Asia Pacific since 2013 and was once again included in The Sustainability Yearbook 2021, which includes the top 15% of companies for each industry that achieved a score within 30% of their industry's top performing company. MSCI ESG Leaders Indexes - On a scale of AAA-CCC, MTR has consistently achieved an AAA rating in the MSCI ESG Ratings assessment since 2015. 5th Hong Kong Business Sustainability Index ("HKBSI") - Organised by the Chinese University of Hong Kong ("CUHK"), the HKBSI aims at charting the ongoing development and performance of Hang Seng Index constituent companies on business sustainability. MTR ranked #5 in the index in 2020. 1st Greater Bay Area Business Sustainability Index ("GBABSI") - Launched by CUHK in 2020, the GBABSI covers Hong Kong listed companies with operations in the Greater Bay Area eligible for southbound trading under the Stock Connect scheme. MTR ranked #3 in the index in 2020. MTR is a world-class operator of sustainable rail transport services headquartered in Hong Kong Special Administrative Region and listed on the Hong Kong Stock Exchange (SEHK: 66). The Corporation mainly focuses on the construction and operation of mass transit passenger railways in Hong Kong, the Mainland of China, Macao, Australia, Sweden and the United Kingdom. Given the impacts of COVID-19, in 2020, our railway networks carried 8.2 million passenger journeys worldwide every weekday. In Hong Kong and the Mainland of China, our business portfolio also includes station commercial businesses, development and sale of residential and commercial properties in partnership with property developers and provision of property management services. The Corporation also took action to fill a gap in rail-related expertise in the market through the MTR Academy which provides high quality programmes covering railway management and engineering. For details on our businesses, railway networks and future extensions, please refer to our Annual Report . Sustainability Report 2020 Disclaimer FTSE4Good Index Series - MTR has been a constituent of this index since 2002. CDP - MTR has once again received a B score in the climate change assessment this year, where the regional average for Asia is a D score. ISS ESG Corporate Rating - MTR achieved a "Prime Status" indicating that our ESG performance fulfils ISS' demanding ESG requirements for our sector. CORPORATE GOVERNANCE Robust and sound governance are the foundations of a successful business. MTR's Board of Directors works with the Executive Committee to develop corporate strategies to ensure the Corporation prudently manages the interests of our varied stakeholders. In terms of sustainability, the Chairman of the Board leads the Board-level Corporate Responsibility Committee which provides strategic guidance and reviews the Corporation's corporate responsibility practices and performance. The implementation of sustainability initiatives across MTR's divisions is the responsibility of the management level Corporate Responsibility Steering Committee ("CoRSC") which is chaired by the Corporate Affairs Director and includes Members of the Executive Directorate and other colleagues representing our major business units. Please refer to our Annual Report for more details on corporate governance. About MTR 19 Ethics and Integrity Fair, open and honest competition forms an important component of our ethics in business relationships. The Corporation has put in place measures to ensure compliance with competition regulations and to solidify our commitment to a high standard of business ethics and integrity across our operations. Our Code of Conduct clearly sets the expectations of ethical behaviours along with cautionary warnings relating to open and fair competition. In all works involving the bidding for work and partnering with suppliers or customers, we follow the applicable laws concerning competition in each jurisdiction we operate. Reflecting our focus on integrity, the Corporation's Code of Conduct provides guidance for ethical business practices and behaviours. All employees are required to complete mandatory computer-based training ("CBT") programmes to ensure thorough understanding of the Code of Conduct and relevant legislations. New recruits must complete the same mandatory CBT programmes within three months of joining the Corporation and they are briefed on the Code of Conduct as part of the corporate induction workshop. In addition to the mandatory CBT programmes, we organise regular staff awareness programmes and seminars featuring speakers from the Hong Kong Independent Commission Against Corruption ("ICAC") to clarify key sections of the Prevention of Bribery Ordinance and explain the most current anti- corruption measures. The Learning and Development Department organised the following webinars related to ethics and integrity this year to boost internal awareness and refresh knowledge: Titles Purposes Speakers "Understanding the Prevention of Bribery Strengthen anti-corruption awareness Hong Kong Independent Commission Ordinance and Code of Conduct" Against Corruption "Understanding the Personal Data Improve awareness of the proper handling Hong Kong Office of the Privacy (Privacy) Ordinance" of personal data Commissioner for Personal Data "Preventing and Handling Reinforce the understanding of sexual Hong Kong Equal Opportunities Sexual Harassment" harassment and relevant ordinances Commission "Understanding Anti-discrimination Strengthen the awareness of the four Hong Kong Equal Opportunities Ordinance in Hong Kong" discrimination ordinances on sex, disability, Commission family status and race As at 31 December 2020, our staff has attended anti-corruption training through corporate induction workshops and a webinar, contributing to a total of 260 hours in 2020. Should any internal or external parties suspect any unethical or improper behaviours, our Whistle-blowing Policy provides a clear and confidential mechanism to raise concerns. In 2020, the Whistle-blowing Panel evaluated 256 cases. Of those cases, 215 did not meet the definition of "whistle-blowing". Investigations of 32 instances were completed resulting in 2 substantiated cases, 4 partially substantiated cases and 26 unsubstantiated cases. As at 31 December 2020, 9 incidents are still under investigation. Appropriate follow-up actions have been taken by management in response to the substantiated and partially substantiated cases. Risk Management Our Enterprise Risk Management ("ERM") Framework provides a clear view of the significant risks we may face. The holistic approach to risk management identifies and evaluates enterprise risks (including sustainability risks). The sustainability risks identified through our framework are mapped against relevant ESG issues under ISO 26000 and are subsequently assessed to determine the level of materiality. Matters Relating to the Shatin to Central Link Construction In mid-2018, there were allegations concerning workmanship and timely reporting of certain construction matters relating to three stations of the Shatin to Central Link ("SCL"), in particular regarding the construction of the Hung Hom Station Extension works. The Corporation has taken the matter seriously, with immediate actions made to investigate the issues and findings reported to the Government. The Corporation reserves its position against relevant contractors. The Corporation has given its full cooperation to the Commission of Inquiry into the Construction Works at and near the Hung Hom Extension under the SCL Project set up by the Government in June 2018. The Commission has made a clear determination in its Final Report released on 12 May 2020 that the relevant structures at and near the Hung Hom Station Extension are safe and fit for purpose with the completion of the suitable measures, which were completed in mid-2020. The Commission had identified in both its Interim and Final Reports a number of inadequacies in respect of the construction process and made recommendations on the Corporation's project management practices. Many of these recommendations are in line with those of the review conducted by the Capital Works Committee of the MTR Corporation's Board and have already been incorporated into the Corporation's standard practices. The Corporation notes the Commission also found that elements of the construction works were not executed in accordance with the contract. These issues would be resolved in accordance with the terms of the relevant contracts. Quality and safety of our railway projects has always been the Corporation's top priority. Moving forward, we will continue to ensure that high safety standards are maintained at all times. A feature article about the SCL construction matters can be found on our Sustainability Website. Sustainability Report 2020 About MTR 20 SOCIAL OBJECTIVES A New Strategy for Sustainable Growth In July 2020, the MTR Board endorsed our new corporate strategy "Transforming the Future" to prepare the Corporation for the future. While our core values remain unchanged, we rewired our purpose to "keep cities moving" to address ever-evolving social and environmental needs. Through our low-carbon transportation network and property developments, we enable cities and their people to move forward and make progress. We are committed to embedding ESG into our business and operations to create long term value for all of our stakeholders - our customers, our investors, our employees, our supply chain and the community. Our new corporate strategy builds on three strategic pillars: HONG KONG CORE 3 Strategic Pillars Attain full potential of Hong Kong core business Expand into new hubs and new products across MC&IB, maintaining a steady growth Invest in new technologies and mobility services to reinforce our core for long-term growth MAINLAND CHINA NEW GROWTH AND INTERNATIONAL ENGINE BUSINESS (MC&IB) Sustainability Report 2020 About MTR 21 Under the new corporate strategy, we have set forth three priority areas to advance our social objectives: (1) providing inclusive mobility and promoting greater diversity and inclusion in our workforce, (2) operating a low-carbon transport network and continuing to reduce GHG emissions, and (3) fostering social mobility and enhancing the skills and innovative capacity of our future generations. MTR's new Social Objectives reflect our commitment to leverage the Corporation's scale and expertise in benefitting the people and communities we serve. SOCIAL INCLUSION MTR aims to foster social inclusion, promote equality and make a positive impact on the communities we serve. Our railway system and properties are accessible for all, including the elderly, those with disabilities, people travelling with infants or toddlers and anyone who might need a barrier-free access from time to time. Internally, we actively promote equal opportunities and create a diverse and inclusive work environment. For more information about our efforts to promote social inclusion, please refer to the Customer Experience , Inclusion and Our Human Capital and Advancing with the Community sections in this Report. GREENHOUSE GAS EMISSIONS MTR offers a low carbon solution connecting the communities we serve. As an operator of a reliable, efficient and environmentally friendly transportation system, we are committed to managing our environmental and carbon footprint to help transit Hong Kong to a carbon neutral city. Through the years, we have incorporated energy efficiency measures into the design, planning, construction and operation of our railway network and properties. We have set targets to reduce electricity consumption in our heavy rail and investment property portfolio and contributed to the global effort to reduce GHG emissions. For more information about our efforts to combat climate change, please refer to the Climate Change and the Environment section in this Report. ADVANCEMENT & OPPORTUNITIES MTR aspires to contribute to social mobility and advancement by connecting our communities with opportunities. To upskill our communities, we focus on future skills and innovation through emerging technologies and collaborations with local schools and universities. We also support the personal and professional development of our staff. Working with a wide range of suppliers and business partners, we are committed to providing growth opportunities for local enterprises in the cities where we operate, particularly through our supply chain practices. For more information about our efforts to enable social mobility and advancement, please refer to the Inclusion and Our Human Capital , Advancing with the Community and Responsible Procurement sections in this Report. We have already been implementing various initiatives under the three Social Objectives. Icons representing each priority are shown next to the relevant initiatives in this Report. Sustainability Report 2020 About MTR 22 FINANCIAL SUSTAINABILITY Economic Value Generated and Distributed Long term financial sustainability is central to the maintenance and upgrades of our assets and the delivery of quality services. MTR's income is primarily generated from fares and supplemented by revenue generated from properties and other services. We follow a transparent Fare Adjustment Mechanism for fair and objective annual-fare adjustments which ensure affordable services for all passengers. Supplementing our fare revenue is the capital generated from our "Rail plus Property" ("R+P") model. At the heart of this model are the seamless links between our property developments and railway networks which enable us to capture additional economic opportunities. Funds generated from the property developments are used to partially support railway operations and new rail lines. The economic value we create is shared with our diverse stakeholders including suppliers, employees, lenders, shareholders, Government and the community. Our Annual Report provides detailed information on our financial performance. Sustainable Finance Since 2016, MTR has raised more than HK$23 billion through sustainable finance arrangements which are a key part of our financing strategy to fund railway asset replacements, energy efficiency improvements, railway service enhancements and nature conservation projects. This year, a new Sustainable Finance Framework was established and we reaffirmed our commitment to sustainable finance with the successful issuance of a US$1.2 billion green bond - the largest single tranche green bond for corporates in Asia Pacific. The issuance won Hong Kong's "Best Green Bond" Award and, being at the forefront of raising sustainable financing, the Corporation was also named the "Best Issuer for Sustainable Finance" in Hong Kong in The Asset Triple A Country Awards 2020. Value Added And Distribution Statement in 2020 (HK$ million) Economic Value Generated Economic Value Distributed Revenue from Hong Kong Employees Transport Operations Staff Costs 3 15,138 11,896 Maintenance, Existing Hong Kong Revenue from Hong Kong Renewal and Upgrade Station Commercial Businesses Expenditure on Railway System 3,269 Existing Hong Kong 10,985 Railway System Revenue from Hong Suppliers & Business Kong Property Rental and Other Operating Partners Management Businesses Costs 4 16,905 5,054 49,655 Fixed & Variable KCRC Revenue from Mainland Annual Payments 988 of China and International Subsidiaries 21,428 Interest & Finance Lenders 701 Costs 5 Revenue from Other Businesses 1 1,499 Taxes 6 Governments 1,258 Profit from Hong Kong Property HKSAR Government Development 2 6,509 Ordinary Dividends 5,700 Other Shareholders Economic Value Retained from 1,881 3,923 Prior Years and Reinvested in 2020 Community Community Investment 7 22 Total: 53,578 Total: 53,578 Notes: Includes share of profit of associates and joint venture. Before taking into account staff costs of HK$18 million. Excludes staff costs related to Hong Kong railway system maintenance of HK$2,430 million, capitalised for asset creation of HK$1,412 million and recoverable of HK$596 million. For simplicity reason, other operating costs include interest income, netted with non-controlling interests. Excludes operating costs related to Hong Kong railway system maintenance of HK$2,424 million. Excludes interest expenses capitalised for asset creation of HK$360 million. Represents current tax and excludes deferred tax for the year. Includes donations, sponsorships and other community engagement contributions, and excludes in-kind donations of HK$20 million given. In addition, there were (i) ongoing fare concessions and promotions of HK$1,710 million, (ii) MTR's share of additional fare promotions offered to our Hong Kong passengers (including 20% rebate on every Octopus trip and HK$100 discounts on MTR City Saver and Monthly Pass Extras), and (iii) rental concessions granted to station and mall tenants that have not been accounted for in this amount. Sustainability Report 2020 About MTR 23 SAFETY FIRST Customer Building Safety Safety Awareness Staff and Contractor Safety -53% - 80% -67% Number of customer and public injuries Number of customer and public injuries Number of customer and public injuries on our Hong Kong heavy rail network on our Hong Kong light rail network on our Hong Kong buses On MTR Sustainability Website: Read our Management Approach Safety First Our Policies and Guidelines Corporate Safety Policy In this Chapter: GRI: 403-1,403-2,403-4,403-5,403-9,416-1 HKEx KPI: GD-B2,GD-B6, B2.1, B2.2, B2.3, B8.1, B8.2 SDG: Sustainability Report 2020 Safety First 24 The health and safety of our customers, employees, and contractors are among the Corporation's most material issues. Given our primary business nature as railway operators, our commitment to safe services is resolute. We have taken the necessary precautions to manage safety risks to our customers, employees and contractors throughout our operations. MANAGING SAFETY We embrace a culture which prioritises safety as the prime responsibility of all MTR employees. Our enhanced Corporate Safety Policy, along with MTR's Corporate Safety Governance Framework, outline our safety management approach and objectives. This approach to safety is supported by the Corporate Safety Management Model, which lays down appropriate safety management processes across eight core elements to constitute an effective and robust system bespoke to our operations. We also formulate a Corporate Strategic Safety Plan every four years, which helps address the safety challenges faced by the Corporation. Our Corporate Strategic Safety Plan 2017-2020 will expire soon, we are in the process of preparing a new four-year plan listing out our aspirations, goals and focus areas to guide our safety practices and drive safety improvements across all our business areas in Hong Kong, Mainland China and abroad. CUSTOMER SAFETY Our top priority has always been the health and safety of our customers, the public, our staff, and contractors. From the onset of the COVID-19 outbreak, a wide range of preventative measures have been implemented to ensure the sanitary conditions of our trains, stations and facilities. For more details of our COVID-19 response, please refer to Keep Cities Moving Safely in this Report. Besides protecting our customers from the potential risks associated with COVID-19, we continue to stress the importance of operational safety throughout all levels of the Corporation. We work to instil an uncompromising safety-first culture within MTR and provide our staff with proper training to ensure they have the knowledge and skills to conduct their daily duties with passenger safety in mind. We are conscious that potential situations outside of our control may occur on our premises. Our frontline staff are provided the necessary preparations to be able to react calmly and swiftly to manage the situation. For instance, our Corporate Security Department launched a campaign aimed at strengthening our internal security awareness and teaching our staff proper handling procedures when responding to incidents of security implications. The two-month campaign, concluding in June 2020, taught colleagues an invaluable three-step action process - Monitor Anomalies, Think Security and React Calmly which helps provide a mental framework to handle potentially stressful situations. The campaign included an interactive video game simulating incidents with potential security implications, giving participants a chance to practice the three-step action process. Through two security scenarios - suspicious objects at a station or suspicious persons in a depot - participants are required to resolve the situation by undergoing a series of critical decision-making sequences. This game helps better prepare colleagues to handle unexpected incidents which may occur. OVERSEAS HIGHLIGHTS MTR Nordic MTR Nordic has provided security training for new staff members annually, and all staff are required to attend a refresher training course every four years. Following enforcement of the new EU safety regulation, EU 2018/762 (CSM-CA), which sets out common requirements for safety management systems throughout the European Union, we have enhanced our existing safety management system to ensure compliance with the new requirements.. MTR (Macau) A "Macao Ready Go! Local Tours" Depot Visit campaign was held to raise passengers' awareness on railway operations and safety. MTR (Shenzhen) MTR (Shenzhen) conducted a Pre-Operations Safety Assessment and Operations and Maintenance Readiness Assessment to provide a higher level of assurance on the safety and operations readiness upon opening of the Shenzhen Line 4 Phase 3 in October 2020. The assessment was a collaborative effort of colleagues from Operations Division in Hong Kong and other Mainland China hubs. Sustainability Report 2020 Safety First 25 OVERSEAS HIGHLIGHTS MTR Nordic We work to ensure customer safety goes beyond their time as passengers on our railway networks. At MTR Nordic, we have continued to work with local municipalities and other relevant stakeholders to conduct Safety Walks around our stations. These Safety Walks help us safeguard the physical wellbeing of our customers. By inspecting the physical areas around our station premises, we can better understand the potential hazards in our surroundings and implement proper corrective measures. For instance, we have identified and improved dimly lit areas or difficult terrain blocked by foliage to ensure clear walking paths for our travellers. In addition to several Safety Walks organised by external stakeholders, MTR Nordic conducted a total of 15 Safety Walks in 2020 with around 10 to 20 participants at each Safety Walk. We continue to conduct Safety Walks around our stations to safeguard the physical wellbeing of our customers A LIGHT RAIL DERAILMENT INCIDENT On 29 August 2020, a Light Rail Vehicle ("LRV") on Route 610 running from Tuen Mun Ferry Pier Stop to Yuen Long Stop derailed while approaching Siu Hong Stop platform. Service diversion was triggered immediately. All 20 passengers on board disembarked in a safe and orderly manner and no injuries resulted from the incident. Repair works, inspections and safety checks were conducted after passenger service at midnight and service resumed with normal operations the next day after satisfactory assessment of the railway. An Investigation Panel ("IP") comprising external experts and senior representatives from the Operations Division and Engineering Division was established to identify the root cause and make recommendations to prevent future recurrence. The IP concluded that localised gauge widening arising from a side-worn switch blade resulted in unfavourable wheel/rail interaction which led to the derailment. The IP also Road and Track Safety We are committed to keeping our railway systems reliable and safe. Through our digital transformation journey, we continue to look into innovative and smarter ways to collect data, enhance our railway operations and conduct timely maintenance works. In January 2020, the Corporation officially opened the Data Studio at Fo Tan Railway House, marking an era of Smart Maintenance for our railway network. The Data Studio acts as a centralised hub for collecting, integrating and analysing a large array of asset data from our railway systems, asset condition monitoring applications and maintenance activities. The analysis and application of such data enables us to implement Predictive and Prescriptive Maintenance alongside Maintenance Optimisation to further enhance our railway reliability and productivity, whilst keeping our assets well-maintained for the safety of our passengers. To improve our road safety, MTR's Bus Operation Training Unit has worked diligently to develop a tailor-made training programme to enhance the defensive driving skills of our MTR Bus Captains, improving their responsiveness in the case of unexpected circumstances and adverse road conditions. We equip our Bus Captains with the necessary skills to better protect the physical wellbeing of our passengers as well as themselves. The training programme puts an emphasis on behind-the-wheel training in a controlled environment at our Hung Shui Kiu Bus Depot, covering various unexpected situations which may arise on the road. This form of training allows our Bus Captains to experience a more accurate and realistic simulation of road conditions to help reduce the risk of accidents. In addition to defensive driving skills, the training programme also covers emergency procedures such as the proper use of fire extinguishers and passenger evacuations. Given the positive feedback received, the Corporation plans to provide similar classroom defensive driving training for Light Rail Train Captains and for Light Rail and Bus colleagues who operate corporate emergency vehicles in Northwest New Territories. concluded that Light Rail maintenance personnel had carried out track maintenance work in accordance with internal procedures. The Corporation has implemented a number of enhancement measures recommended by the IP, including installation of a real time dynamic track performance monitoring system in LRVs, increased frequency of rail lubrication at wheel/rail interfaces, and establishing a high level steering group to monitor the progress of enhancement works. Sustainability Report 2020 Safety First 26 INCIDENTS ON THE EAST RAIL LINE We experienced some challenges while testing the new signalling system on the East Rail Line ("EAL") during non- traffic hours in May 2020 and on the eventual postponement of the planned Mixed Fleet Operation ("MFO") of the EAL in September 2020. Signalling Incidents Three incidents had occurred on the EAL on 23 and 25 May 2020 during non-traffic hours. The Corporation has conducted a full investigation of the incidents and has subsequently submitted a report on the findings which have been reviewed and accepted by the Government. The first incident involved a display system grey-out in the Operations Control Centre ("OCC"). The incident was due to the activation of a data logging function in the Signalling Automatic Train Supervision Subsystem. Since the data logging function would not be used in the normal service operation, it would not pose any safety impact on our railway operations. The second incident involved the shutdown of the interlocking system caused by the simultaneous manual shutdown of two out of the four safety computers. The investigation report concluded that this was a procedural error, as our normal operating procedures would call for sequential shutdown, therefore it would not pose any safety impact on our railway operations. The third incident involved a test train proceeding in the wrong direction and passing a red signal. The incident was attributed to human errors. All subsequent trains following the incident train were safely directed to avoid further incident by the Automatic Train Protection Subsystem which was activated during the non-traffic hour movement. The investigation report concluded that all three incidents were related to human or procedural errors, however they caused no safety impact on passengers or railway operations. As a precautionary measure, a number of enhancement measures have been implemented to strengthen the operational understanding of all relevant staff and contractors. We also enhanced relevant procedures for operation of the new EAL signalling system. Postponement of MFO On 11 September 2020, the Corporation announced a postponement of the commissioning of the new signalling system and roll-out of the MFO of the EAL originally scheduled for 12 September 2020. The decision was made after conducting a final review of the new system prior to service commencement, where there had been a software issue that could potentially cause deviation of trains from their intended route. Though train deviations were only observed during analysis of logfiles during testing/simulation and the probability of occurrence was considered remote, the Corporation did not overlook the issue and identified that as a Route Recall issue. The contractor has resolved the issue by upgrading the software and stopping the new software module. The postponement of the commencement of MFO to address the software issue was a precautionary measure to better ensure smooth and reliable operations of the new signalling system. Although the public has not experienced any disruption of the EAL service due to the deferment of MFO, the incident has raised public concerns about the process of communication within the Corporation and its interaction with the Government. On 13 September, the Corporation announced the establishment of an IP to look into the Corporation's communication and reporting mechanisms internally and externally to relevant Government departments. In parallel with the investigation from the IP, the Corporation also conducted a formal and comprehensive technical investigation on the new signalling system and MFO, the results of which were reviewed and validated by the IP. The Corporation submitted the findings prepared by the IP to the Transport and Housing Bureau on 21 January 2021. The Corporation acknowledges and accepts the findings of the IP which concluded that the issue concerned is not an issue of safety but of service reliability. The Corporation has accepted and implemented the recommendations made in the IP Report. The EAL's new signalling system and nine-car trains were commissioned successfully on 6 February 2021, after the satisfactory completion of all relevant testing and approvals from the Government. Sustainability Report 2020 Safety First 27 Our transport operations in Hong Kong continued to maintain world-leading safety performance in 2020. We work tirelessly to meet our safety targets and ensure our passengers' safety on our networks. The number of customer and public injuries on our heavy rail network, light rail network and buses dropped significantly by 53%, 80% and 67% respectively in 2020 compared to 2019. To maintain performance standards, we continue to benchmark our heavy rail network in Hong Kong with overseas counterparts through the CoMET Benchmarking platform against 30 top-level indicators, which includes Safety Security. Please refer to Performance Benchmarking on our Sustainability Website for further information. Number of Customer and Public Injuries Requiring Hospitalisation in Hong Kong Heavy Rail Light Rail Bus 2018 83 12 1 2019 62 10 6 2020 29 2 2 Customer and Public Safety - Fatalities in Hong Kong Number of Injuries Requiring Hospitalisation per 100 Million Passenger Journeys in Hong Kong 2018 2019 2020 Heavy Rail Target 9.26 8.56 7.60 Performance 4.60 3.67 2.51 Light Rail Target 13.66 13.08 11.67 Performance 6.69 6.41 1.79 Bus Heavy Rail Light Rail Bus 2018 0 0 0 2019 0 0 0 2020 1 1 0 Customer and Public Safety - Fatalities for Operating Locations Other Than Hong Kong Target 6.88 6.88 6.85 Performance 1.57 9.52 3.99 Shenzhen Metro Melbourne Sydney Metro Stockholm Metro MTRX Stockholm TfL Rail/ Metropolitan Line 4 North West Line Pendeltåg Elizabeth line Rail Services Target 0 0 0 0 0 0 0 Performance 0 0 0 0 0 1 0 Number of Injuries per Million Passenger Journeys for Operating Locations Other Than Hong Kong Shenzhen Metro Melbourne Sydney Metro Stockholm Metro MTRX Stockholm TfL Rail/ Metropolitan Line 4 North West Line Pendeltåg Elizabeth line Rail Services Target 1.42 2.00 1.40 1.00 19.00 1.00 4.21 Performance 0.89 1.41 2.73 0.88 16.14 0.62 5.30 Sustainability Report 2020 Safety First 28 BUILDING SAFETY AWARENESS IN THE COMMUNITY Our efforts to maintain a reliable and safe railway system extend beyond our own operations into the communities we serve. We seek to raise safety awareness throughout the community to ensure co-operation and support from our passengers in keeping our railways safe. It is important to impart key information about safety and security to our passengers so that they understand how to work with us to maintain safety and security within our premises. In our published safety booklet, Travel Safely Every Day in the MTR , we cover a wide range of safety-related topics including, general safety regulations, safe use of station facilities, train safety, proper use of emergency equipment, emergency evacuation procedures and MTR security guidelines. The information has been presented with colourful illustrations, photos and short captions to help capture reader attention and to ensure the information is easily understood. We have developed a set of new posters featuring "T Chai", our new ambassador, to display in our stations as a part of our safety campaign during typhoon season. Furthermore, any breaking information important for the wellbeing of our passengers would be disseminated in a timely manner via the MTR Mobile app, MTR website, official MTR Facebook page, public announcements and special notices within stations to allow passengers to better plan their safe journeys. OVERSEAS HIGHLIGHTS MTR NORDIC As a key player in the fabric of the community, MTR Nordic appreciates the importance of caring for and enhancing the areas in and around our stations. One key focus area of our community building efforts are safety and crime prevention around our stations. MTR STAFF AND CONTRACTOR SAFETY Staff Safety Initiatives The Corporation has long been a proponent of the 5S Safety Principles as a practical management tool to help keep our workplace clean, tidy and safe. These principles are effective to prevent occupational injuries and mitigate potential hazards in our workplace. To reinforce the ideals and the mind-set behind the 5S Principles among our Apprentices, Technician Associates and Operations Division staff, we launched an internal 5S competition in which participating teams were tasked with using the 5S techniques in a practical setting. Each team applied these principles along with their ingenuity to enhance stock and equipment storage facilities so as to improve the overall safety and tidiness of the workplace. A panel of judges and line managers subsequently evaluated each improved facility to determine which team best applied these principles to their workplace. Best examples from the winning teams were shared with other colleagues to follow suit. We published "Travel Safely Every Day in the MTR" safety booklet to raise passenger awareness Despite our best efforts, conditions during adverse weather events may be unpredictable and can pose a safety risk to our customers and members of the community. In addition to the measures we have implemented at our stations during these adverse weather events, we also issued safety reminders and special bulletins detailing MTR's special service arrangements. Nordic is an active partner in crime prevention councils in all the municipalities where we have stations. Through this collaborative effort, we aim to better cooperate with relevant municipal partners to discuss potential problems and mitigation solutions. In 2020, MTR Nordic has participated in more than 50 such council meetings where crime prevention, security and safety have been discussed. Sustain Sort (Seiri) (Shitsuke) 5S Safety Standardise Principles Set in Order (Seiketsu) (Seiton) Shine (Seiso) We apply 5S Safety Principles to keep our workplace clean, tidy and safe Sustainability Report 2020 Safety First 29 Safety initiatives and efforts of our staff and contractors were given commendation and recognition in the annual Safety Hero Award as part of the Corporate Safety Month. In the 2020 programme, a competition "Innovative Ways to Live Out Zero Harm" also rewarded our staff and staff of subsidiaries and associates both within and outside Hong Kong on initiatives and innovative ideas for improving safety, health and hygiene in their work. Since the outbreak of COVID-19, we have adopted a wide range of measures in the workplace to safeguard our staff and contractors against the disease. Please refer to Keep Cities Moving Safely in this Report for more details. Occupational Safety and Health Awards 7TH BEST PROPERTY SAFETY MANAGEMENT AWARD Best Property Management Award Occupational Safety & Health Council Awards Award Level Property Best Property Management Award Gold ELEMENTS in Occupational Safety & Health Best Safety Enhancement Programme Gold The PAVILIA BAY Best Property Management Award Gold Telford Plaza - Resident's RMAA Works Safety Enhancement Award Best Property Contractor in Occupational Safety & Health Gold The Palazzo (Waihong Environmental Services Ltd) The category of Non-public Work Gold LOHAS P10 - New works of the 26th Considerate Contractors Site Award Scheme We treat every case of staff injury with utmost seriousness and care. We have investigated every injury and put in place remedial and preventive measures as far as reasonably practicable. At the corporate level, we have continued to organise programmes to enhance safety awareness and uphold our safety-first culture across all operations. For our frontline staff, monthly site-based safety sharing sessions were arranged to share both safety observations and lessons learned from previous accidents. We have also implemented general housekeeping and conditions guidelines at our contractor sites, which are enforced through site inspections, to augment the workplace conditions and to mitigate environment-related hazards. Lost Time Injuries for Staff The staff injury rate in 2020 was lower than that in the previous year in Corporate Support Functions, Operations Division, and Projects Division. In Property Division, its staff injury rate in 2020 was higher than that in the previous year but it remained at a low level and met the target. We continue to carefully monitor staff injuries across our operations and work to eliminate potential hazards as much as practicable. Slip, trip and fall, assault and struck by object are examples of the major contributors to staff injuries. To further mitigate workplace hazards, we have conducted specific safety inspection training schemes for line departments and VR classes on hazard identification to enhance safety awareness and uphold our safety-first culture throughout the Corporation. Operations Division also launched a series of safety video episodes to promote the importance of safety compliance, risk management, housekeeping as well as other relevant topics. Lost Time Injuries per 100,000 man-hours in Hong Kong 2018 2019 2020 Corporate Support Functions 0.16 0.20 0.04 Operations Division 0.38 0.65 0.43 Projects Division 0.00 0.16 0.04 Property Division 0.00 0.04 0.16 Note: Lost time injury means a worked-related injury results in medical sick leave for 1 day or more. Sustainability Report 2020 Safety First 30 Contractor Safety Initiatives We implemented various safety initiatives in Hong Kong to protect the safety and health of our contractors including direct engagements with construction site workers through training, workplace campaigns, mentoring and a variety of communication initiatives. To echo the Construction Industry Council's "LIFE FIRST" Campaign, a "LIFE FIRST - WE Safe" campaign was launched in August 2020 with a series of programmes to enhance the safety awareness of our contractors and raise safety standards on site. To further enhance safety knowledge, we organised the Millionaire Safety Quiz Competition and activities to assemble and engage MTR staff, contractors and workers via safety quizzes, whilst the "Don't Walk By" programme continued to encourage our contractor workers to speak up on safety issues. These engagement channels help us uphold the highest safety levels and standards to ensure that contractors are aligned with MTR's Safety Policy and safety-first culture. Our continual commitment to improve safety standards and contractor safety include the provision of welfare facilities and proper care for workers to prevent site accidents, maintain a zero-accident work environment and comply with legal requirements. Furthermore, our Safety Charter emphasises the importance of construction site safety and close collaboration between all stakeholders including the Government, developers, contractors and frontline workers who play important roles in promoting our safety-first culture. In 2020, we continued to achieve zero fatalities in our construction projects in Hong Kong. We have also met all safety targets for contractor staff lost time injury frequency rates for all business areas in Hong Kong. Apart from the safety promotion activities described above, Projects Division held a Quality, Safety, Environmental & Stakeholder Engagement Awards Ceremony in July 2020 to recognise the efforts of our construction contractors with outstanding safety performance and achievements. Safety Performance on Construction Site Hong Kong project 2018 2019 2020 construction fatalities Staff Fatalities 0 0 0 Contractor Fatalities 0 0 0 Lost Time Injuries [1] per 100,000 man-hours for Contactors in Hong Kong 2018 [2] 2019 [2] 2020 Corporate Support Functions 0.74 0.62 0.32 Operations Railway 0.26 0.25 0.24 Projects Construction - 0.23 0.26 0.49 Railway Extension Projects Projects Construction - Network Improvement 0.06 0.00 0.00 Projects Property Development and 0.02 0.05 0.03 Investment Projects Investment Property 0.03 0.18 0.21 Management Property 0.11 0.18 0.19 Note: Lost time injury means a worked-related injury results in medical sick leave for 1 day or more. Before 2020, reportable accidents per 100,000 man-hours was used to measure the safety performance of contractors in Hong Kong. OVERSEAS HIGHLIGHTS Metro Trains Melbourne Metro Trains Melbourne has developed a Zero Harm Behaviour Framework to enhance safety leadership and culture and implemented a Critical Risk Management Programme as part of our Zero Harm Roadmap. The programme focuses on management and mitigation of 12 critical risks which could result in a fatality or cause serious injury. Our Infrastructure team recently implemented the use of drones to inspect external structures and areas at height, avoiding the need for employees and contractors to work at heights which minimises risk. MTR (Macau) A wide range of measures are in place to ensure that our safety performance meets government requirements and internal targets. Safety Inspections were carried out to identify potential hazards, ensure the compliance with local statutory and regulations, monitor local statutory standards and internal safety management procedures, and ensure that corrective actions are taken appropriately. Our staff and contractors are equipped with knowledge to work safely through safety training. Critical Task Safety Inspections were conducted to ensure a safe system of work for high-risk activities at the workplace, such as lifting operations, chemical handling, working at height and operating loadshifting machinery. Sustainability Report 2020 Safety First 31 CUSTOMER EXPERIENCE Asset and System Upgrades Enabling Accessibility Smart Mobility 99.9% 1.23 million 23 + Passenger journeys on-time Monthly active users of Interchange stations with breastfeeding in Hong Kong MTR Mobile in Hong Kong and/or babycare facilities in Hong Kong On MTR Sustainability Website: Read our Management Approach Customer Experience Our Policies and Guidelines Customer Service Pledge Caring for our Customers with Special Needs Booklet In this Chapter: HKEx KPI: B6.1, B6.4 SDG: Sustainability Report 2020 Customer Experience 32 We interface with a diverse set of customers every day as they access our services, therefore, ensuring quality customer experiences that meet their needs is at the core of our business. In addition to providing a safe, comfortable and efficient transport network, community development, sustainable services, and customer education remains highly material issues for MTR. TRAIN SERVICE PERFORMANCE We aspire to go beyond the requirements set out in our Operating Agreement with the Government by setting ambitious internal targets. We are glad to report the attainment of a passenger journeys on time rate of 99.9% again this year, which is among the best performance figures for rail operators world-wide. While we work to prevent incidents, we experienced eight service disruptions caused by factors within our control which lasted more than 31 minutes in 2020. In all these cases, we conducted thorough investigations and implemented appropriate measures to avoid recurrence and improve our recovery response. For continuous improvement, we regularly engage our customers to measure their level of satisfaction and report relevant findings in the Service Quality Index and the Fare Index. Please refer to the Annual Report for the latest results. We also benchmark the performance of our heavy rail network in Hong Kong against overseas peers through the CoMET Benchmarking platform ENABLING ACCESSIBILITY At MTR, we make every effort to create a seamless and inclusive transportation network. Over the past few years, we have undertaken a number of improvement works to provide fit-for-purpose and easy-access facilities in our stations, trains and properties for the elderly, passengers with disabilities and those in need. These facilities include the provision of additional escalators, external lifts, stair lifts, wide gates, wheelchair aids, portable ramps, accessible toilets for mobility impaired passengers; and braille signs, tactile station layout maps, guide paths and dynamic route maps for visually impaired passengers. Multi-purpose spaces are also designated within train compartments for the convenience of wheelchair users and persons with special needs. To enable wheelchair users to easily board and alight our LRVs, we trialled the use of a Board Easy Mat at Goodview Garden Stop. After a successful trial run, we plan to install these mats at 24 more Light Rail platforms by Q1 2021. To support hearing impaired passengers along their journeys, our customer service centres are equipped with induction loops for the benefit of passengers with hearing aids. Important service information is also broadcast visually via digital panels in our stations and trains. For those with poor eye-sight, we have begun replacing key signage at station exits, lifts and washrooms with giant pictograms to make navigating our facilities much easier. For those with mobility concerns, walking through our stations may pose difficulties, as such we have installed seats where operationally safe and feasible to provide comfortable rest stops along our platforms and long walkways. When planning for future extensions and property development projects, we follow our barrier-free design principles as far as practicable. Currently, every MTR station and Light Rail stop has at least one barrier-free access point and all MTR buses are wheelchair accessible. Details of our barrier-free facilities are available on the MTR website and MTR Mobile app. Since 2012, we have been supporting the Government's "Public Transport Fare Concession Scheme for the Elderly and Eligible Persons with Disabilities" to offer concessionary fares to senior citizens and eligible individuals with disabilities. In addition, we maintain open dialogue with representatives of disabled stakeholders in Hong Kong on a semi-annual basis. This enables us to better accommodate their needs when planning our new railway or station improvement projects. For example, we partnered with the Hong Kong Guide Dogs Association to introduce a special permit for guide dog users who travel on our railway networks. Watch this video to learn how we support visually impaired passengers. which includes 30 top-level indicators across six categories: Growth, Learning and Innovation, Financial, Customer, Internal Processes, Safety and Security, and Environment. Please refer to our Performance Metrics section for further information We use Board Easy Mat to enable wheelchair users to easily board and alight our LRVs Sustainability Report 2020 Customer Experience 33 Training sessions for employees under the Communication Access Symbol Accreditation programme to strengthen their capability to cater for passengers with communication difficulties OUR INCLUSIVE SERVICES Our commitment to promote social inclusion on our network is supported by our professional services and enhanced facilities. In addition to various age-friendly initiatives such as lifts, giant signage and additional seats, we provided interactive training for our station staff to deepen their understanding of the difficulties faced by elderly passengers. "I remember we had to wear an age simulation suit in the training to imitate elderly people with mobility difficulties. It helped us understand how they feel and what we can do to support them better. Since then, I have been more mindful of the needs of the elderly and offered my help in a proactive and patient manner." Starting November 2019, MTR stations with a relatively higher flow of elderly passengers have been equipped with special alphabet cards in the Customer Service Centre. Colleagues can use the cards to better communicate with elderly passengers to avoid miscommunication, such as mishearing similar sounding letters like "B" and "D". Watch this video to know more about our efforts to promote social inclusion. We have provided interactive training for our station Using special alphabet cards in the Customer Service staff to deepen their understanding of the difficulties Centre to better communicate with elderly passengers faced by elderly passengers OVERSEAS HIGHLIGHTS Metro Trains Melbourne Metro Trains Melbourne has long been supporting MTR's commitment to make its network more accessible. Metro Trains Melbourne's Accessibility Reference Group convenes at least quarterly, bringing together passengers with lived experience and representatives of disability support organisations to provide advice and guidance to help us improve accessibility. Metro Trains Melbourne has rolled out a Communication Access Symbol Accreditation programme where a total of 300 training sessions were delivered to more than 2,500 employees with an aim to strengthen their capability to cater for passengers with communication difficulties. A series of digital tools are also being introduced to assist passengers in need in planning their journey. These include introducing virtual tours in eight of the busiest stations, developing a visual story for passengers with autism and formulating Station Accessibility Features Guides. Introducing virtual tours in stations to assist passengers in planning their journey Sustainability Report 2020 Customer Experience 34 OUR RAILWAY OPERATIONS As our railway operations are closely linked to the daily lives of our customers, we strive to ensure that every ride with MTR is a pleasant and amiable journey. In 2020, our Operating Quality Assurance Working Group launched a campaign under the taglines "Do it right at the first time", "Comply with Rules and Procedures" and "Pay attention to details", to provide colleagues with an easy guide to further enhance our service quality. Our people-oriented services have been well recognised by different organisations: Awards Organisations Award Level Hong Kong Service Awards 2020 East Week Magazine Public Transportation Award (16th consecutive year) IDC Digital Transformation Awards 2020 International Data Corporation 2020 Hong Kong Digital Transformer HKIM Market Leadership 2019/ 2020 Hong Kong Institute of Marketing Hong Kong Power Brand Award Sing Tao Service Awards 2019 Sing Tao Daily Public Transportation Service Award (14th consecutive year) Elite Awards 2019 Ming Pao Weekly Public Transportation Award - Bronze Award SUPPORTING OUR HKDSE CANDIDATES We closely monitor our daily ridership and adjust train services when necessary to meet passenger demand. During the Hong Kong Diploma of Secondary Education Examination ("HKDSE") period, we arranged about 30 extra train trips per day to facilitate a smooth travel journey for the candidates. To show our support and cheer on the candidates, our station colleagues, artists and disc jockeys broadcast heartfelt and encouraging messages at stations. Asset and System Upgrades To enhance passenger comfort, we have heavily invested in our train fleet upgrade requisitioning 93 new heavy rail 8-car trains and 40 new LRVs to replace older assets and expand the size of the Light Rail fleet. As at December 2020, 11 new heavy rail 8-car trains and 10 new LRVs have been delivered to Hong Kong and will undergo stringent testing before commissioning. Two new LRVs commenced service on 17 November 2020, connecting different stops around Northwest New Territories. The new heavy rail trains are equipped with an advanced operating system with a number of new features, including dynamic route maps and double branched handrails, while the new LRVs are equipped with energy-efficient lighting. We are trialling solar photovoltaic ("PV") panels on one of our new generation LRVs to explore opportunities to make renewable energy more viable in our railway operations. We will review the effectiveness of the trial and consider possible expansion of this initiative. In response to the expected increase in patronage, an extensive signalling system replacement project for seven urban lines is underway to increase overall passenger capacity by providing more frequent train services. Testing has commenced on the Tsuen Wan Line during non-traffic hours and is expected to be completed by 2023. Details of the project can be found in the Annual Report . OVERSEAS HIGHLIGHTS Metro Trains Melbourne As part of the Comeng fleet train refresh initiative, the Comeng Technical Team rearranged and reupholstered the seating, installed LED lighting fixtures, and outfitted new grab poles and handle straps in existing trains. There is also new digital signage on the front of trains to better display destination information. The final phase, which is nearing completion, will upgrade the passenger information system, equipping carriages with digital displays tracking the train's journey in real- time. Sustainability Report 2020 Customer Experience 35 Smart Mobility In a fast-moving world, digital technology brings in new opportunities to enable a more convenient and personalised customer experience. In May 2020, we transformed our MTR Mobile into an all-in-one integrated app which provides users with real-time service status updates, MTR route suggestions as well as different lifestyle promotions and updates in MTR Malls. A new loyalty programme has been rolled out where users can earn "MTR Points" from daily travel, shopping and dining at designated MTR malls and shops, and redeem them for free rides and other rewards. Furthermore, a range of in-app functions have been enhanced, including the extension of the "Next Train" function to our Light Rail network and the introduction of "Macy", our new virtual ambassador providing interactive chatbot services using artificial intelligence ("AI") technology. A brand-new QR code payment service will be launched at all 93 heavy rail stations (except Airport Express stations) in 2021, which enables passengers to travel with greater ease using diversified and flexible payment options. Facilities Upgrades We have adopted a number of enhancements to our station facilities over the past few...

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