Operated since April 1973, The Hong Kong Housing Authority (HA) is a statutory body established under the Housing Ordinance (Chapter 283). With the Housing Department acting as its executive arm, the HA supports the Transport and Housing Bureau in developing and implementing a public housing programme which seeks to achieve the Government’s housing policy objective of providing subsidised public housing to families who cannot afford local private rental housing.

Our Vision, Mission and Core Values

Our Vision

To help all families in need gain access to adequate and affordable housing.

Our Mission

• Toprovideaffordablequalityhousing,management,maintenanceandotherhousingrelated services to meet the needs of our customers in a proactive and caring manner;

• Toensurecost-effectiveand rationaluseofpublic resources inservicedeliveryandallocation of housing assistance in an open and equitable manner; and

• Tomaintainacompetent,dedicatedandperformance-orientedteam.

HA Logo

Our Vision, Mission and Core Values

Our Role and Services

Human Resources

Support and Participation

Significant Aspects

Governance Structure and Management Approaches

Core Values

With an aim to provide stable and affordable public rental housing (PRH) for low income families, and to maintain the balance in different sustainability aspects in providing better living environments and livelihood to our tenants, we strive to provide quality homes to ourtenantsthatareenvironment-friendlyandpeople-oriented.Wecommittoincorporatingsustainable considerations in planning and implementing our housing development and managementprogrammetoachieveenvironment-friendliness,cost-effectivenessanduser-friendliness. We also optimise our available resources for PRH production and enhance constructionsafetytoprotectthewell-beingofourbusinesspartners.Ourstrategiesandprioritiesonvarioussustainabilityaspectsarewelldefinedandhighlightedbelow:

Our Strategy for Sustainable Housing

To achieve sustainable development in public housing which balances environment, social and economic needs with a view to attaining healthy living, sustainable construction and enhancement of the total urban environment.

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Our Priority in Environmental Sustainability

The HA is committed to properly managing and reducing consumption of resources in our daily operations, especially in relation to waste reduction and energy use. We are also committed tointroducingenvironment-friendlymethodstofurtherreduceoverallenvironmentalimpactsarising from, and as well as in our planning, development, management and maintenance processes.

Our Priority in Social Sustainability

Corporate Social Responsibility has already become an integral part of our corporate policy and daily work. The HA prioritised public housing to those who are in need. We are also committed to providing a safe, hygienic and affordable living environment to our tenants making public housing estates a better and comfortable place to live. In addition, we seek to become a role model in providing a safe and healthy working environment for our business partners who are involved with public housing development and management services. We endeavourtoenhancesocialcohesion,fosterthewell-beingofthesocietyasawhole,andencourage Corporate Social Responsibility along the supply chain.

Our Priority in Economic Sustainability

TheHAiscommittedtoadoptingcost-effectiveandeconomically-viableapproachesinallaspects of our public housing programme. These can be achieved through a number of measures, including optimisation of the HA’s resources, prevention of the abuses of public housing and extension of the useful life of our existing buildings.

The HA’s operations in relation to each of the sustainability aspects, which are grouped accordingtothesub-headingsofthereport,aredepictedbelow:

Health and Hygiene

•Biodiversity

•Energy and Carbon Emissions

•Financial Performance

•Housing Rent Policy

•Resource Optimisation

•Safety Performance

•Air Quality

•Noise Control

•Green Materials

•Control of Hazardous Materials

•Estate Greening and

Landscaping

•Green Activities

•Water Conservation

•Waste Management

•Micro-climate Studies

•Staff Development and Participation

•Operation with Cost-Effectiveness

•Engaging Various Parties

•Enhancing Estate Management and Services

•Sustainable Living Environment

Environment

Social Economic

Our Role and Services

The Housing Authority (HA) is responsible for formulating housing development strategies and overseeing strategic planning and implementation of the public housing programme in Hong Kong. We plan, design, construct, manage and maintain different types of public housing, including public rental housing estates, interim housing estates, and transit centres.Wealsoownandoperatesomeflattedfactories,ancillarycommercialandothernon-domesticfacilities.

Housing Stock and Production

Currently, we are providing quality public rental housing (PRH) for around two million people in Hong Kong. In 2010/11, we continued our efforts and completed construction of a total of13700newflatsinsevenestatesincludingChoiTakandChoiFookatKwunTong,YanOn at Ma On Shan, Shin Ming at Tseung Kwan O, Kwai Luen at Kwai Chung, Shatin Pass at Tsz Wan Shan, and Hung Hom Estate. The completion of these new estates brought our housingstocktoaround708000PRHflatsin200estatesandcourtsacrosstheterritoryasat March 2011. Our housing stock will further increase by around 15 000 units annually to meet the housing needs of the local population that are currently under planning, design and constructioninthenextfiveyears.

Choi Tak Estate ChoiFookEstate

Hung Hom Estate

YanOnEstate

Shatin Pass Estate Shin Ming Estate

Kwai Luen Estate

Infrastructure

By the end of March 2011, we have awarded six foundation contracts and six new building contracts.

When planning, designing and developing PRH estates, we consider the necessity to include associated infrastructure facilities such as footbridges, landscape areas, car parks, public transport terminals/hubs, community centres, social welfare facilities, education facilities and commercial facilities. These facilities are located in, or adjacent to, one or more PRH estates, thus providing a convenient meeting point and socialising space as well as a sustainable living environment to our tenants.

Commercial Properties

During the year, we completed a number of new retail premises, adding 7 500 square metres retailareatoourportfolio.AsattheendofMarch2011,ourtotalnon-domesticstockincludes:

• around168700squaremetresofretailandcommercialspace

• around27000carparkingspaces

• around209000squaremetresoffactorypremises

• around2103300squaremetresofcommunity,educationandwelfarefacilities

• around42500squaremetresofmiscellaneousspaces

Human Resources

Staff Resources

AttheendofMarch2011,wehad8437staff,including7567civilservantsand870contractstaff, representing a slight decrease of 0.25% from the previous year.

ContractPermanent/Civil Servants

Male

Female

Itisimportanttoretainthebeststaffsoastomaintaincontinuity,efficiencyandsustainabilityin our operations. To resolve various management and staff issues due to the differing employment conditions of civil service and contract staff,we launched theMulti-facetedManpowerStrategyin2008.Thestrategyenablesustoadjuststaffingintaketosuitourbusinessneedsandofferstaffbenefitssuchasclearpromotionopportunitiesandgreaterjob security. In 2010/11, we recruited around 370 new staff, both to civil service posts and on a contract basis. We have also converted 115 contract staff posts into civil service positions which represents an increase of 1.5% in the establishment of civil service posts. Additionally, we adopted regular employment terms to our contract staff to retain professionals of high calibre by offering continuous contracts to enhance their job security and foster a greater sense of belonging.

Male

Female

Male

Female

Staff Appointment

As a government agency, our staff appointment strictly follows requirements stipulated in the Basic Law. According to Article 99 of the Basic Law, new recruits to the Civil Service on or after 1 July 1997 must be permanent local residents.

AllseniorofficersinHousingDepartment(atD2rankandabove)arepermanentHongKongresidents. They are civil servants and their appointments are governed by the Civil Service Regulations and subject to the approval of the Public Service Commission.

Staff Remuneration and Benefits

Depending on the terms of employment and job grades, remuneration of our staff follows either the civil service pay scales or contract pay bands. It will be adjusted annually after going through their respective annual pay adjustment exercises and considering the staff performance. In general, civil servants may receive one increment annually in their respectiverankscalesandthecontractstaffmayalsobegrantedaone-offmeritpaymentannuallybasedontheirperformancewhichwouldbeassessedthrougha3-tierperformanceappraisal system to ensure a fair and comprehensive review on individual’s performance.

Staff also enjoys various fringe benefits with respect to their rank levels and terms ofemployment.Thesebenefitsincludemedicalanddentaltreatment,housingbenefits,annualleaves,retirementbenefits,passageandeducationallowances.

Staff Integrity

Inplanningandmanaging the territory-widepublichousingprogramme,wearecautiousabout maintaining high standards of integrity and conduct within our operations. We strictly follow the government and departmental guidelines including those provided by Civil Service Bureau and our departmental staff circulars which lay down the internal guidelines and requirementsforthedeclarationofprivateinvestments,avoidanceofconflictofinterest,andacceptanceofadvantagesandbenefits.

We also follow internal circulars to deal with attempted bribe, allegations of corruption and Independent Commission Against Corruption’s (ICAC) referrals. To enhance staff awareness,wehavearrangedanti-corruption’sbriefingstoallnewrecruitsaspartoftheirinduction programme and integrity reinforcement seminars for existing staff. In 2010/11, over2700staffattendedvariousanti-corruptioncourses.

We are fully committed to complying with all anti-corruption legislation. There was noconviction case reported during the year.

Human Rights

People are the most important asset in HA. We provide equal opportunities and fair treatment in terms of remuneration, fringe benefits, promotion and compensation among our over 8 000 staff without discriminating individual’s gender, ethnicity, age and movement ability. We fully comply with all the employment related legislation including prohibition of child labour and forced labour.

Our staff have the freedom to join staff association/working groups. In 2010/11, there were a total of 33 numbers of staff association/working groups and five DepartmentalConsultative Committees in the Housing Department. We believe that a close relationship and communication between the management and staff are essential to build a dynamic and committed workforce. Through staff associations/working groups and Departmental ConsultativeCommitteesaswellasourbi-weeklypublication,the“HousingDimensions”,we have created effective communication links with staff to exchange views and enhance transparency on departmental initiatives of mutual concerns.

Support and Participation

The HA plays an advisory role to provide professional advice on various public housing issues to the government, while the Housing Department realises our public housing programme. Dealing with local public housing matters, we maintain close working relationships with all other relevant government departments. In terms of social participation, we fully support community voluntary initiatives to demonstrate our commitment to sustainable development. For instance, we have participated in theGreenCarnivalorganisedbytheGreenCouncil,theHongKongFlowerShoworganisedbythe Leisure and Cultural Services Department, and the E&M Safety Campaign organised by the Electrical and Mechanical Services Department.

Significant Aspects

The HA is primarily involved in building construction and estate management and maintenance. Our activities will inevitably create certain environmental, health, safety and social impacts to the community. To minimise, manage and control potential risks arising from our daily operations, we have introduced a series of initiatives for achieving sustainability in the environmental,socialandeconomicaspectsthroughtheadoptionofasystematic“plan-do-check-act”approach.Toprovidetimelyandeffectiveresponsestomeettheever-changinghousing needs of the public, our senior management has frequently reviewed public and stakeholders’ concerns through internal management meetings and customer satisfaction surveys.

Wehaveidentifiedmajorpotentialsustainabilityaspectsrelatedtoouroperationsandtheyareprovidedbelow:

Office Operation

Management and

Maintenance of PRH

Construction Work

Demolition Work

Significant Environmental Aspects

Air Quality P P P P

Biodiversity P

Control of Hazardous Materials P P P P

Energy and Carbon Emissions P P P

Estate Greening and Landscaping P P

Green Activities P P P

Green Materials P P P

Micro-climateStudies P

Noise Control P P P

Waste Management P P P P

Water Conservation P P P P

Significant Social Aspects

Engaging Various Parties P P P P

Enhancing Estate Management and Services

P

Health and Hygiene P P P P

Safety Performance P P P P

Staff Development and Participation P

Community Harmony P P

Significant Economic Aspects

FinancialPerformance P P P P

Housing Rent Policy P

OperationwithCost-Effectiveness P P P P

Resources Optimisation P P P

Governance Structure and Management Approaches

Our Governance Structure

In the Housing Authority (HA), apart from theChairmanandVice-chairman,therearetwo official members and 26 non-officialmembers. Appointments are made by the ChiefExecutive.Allnon-officialmembersare appointed ad personam.

The HA maintains an intimate relationship with the Government in the provision of public housing services. The Secretary for TransportandHousingassumestheofficeof Chairman of the HA, while the Director ofHousingassumesthatofVice-chairman.

Managing the development and implementation of a public housing programme for approximately 30% of the Hong Kong population, the HA has formed six standing committees toformulate,administerandoverseepoliciesinspecifiedareasincludingbuilding,commercialproperties,finance,strategicplanning,subsidisedhousingandtenders. Sub-committeesand ad hoc committees will also be formed when needed. Details of our governance structure and the terms of reference of respective committees are provided in our website.

The Housing Department, acting as the executive arm of the HA, assists in the implementation ofhousingrelatedpoliciesdefinedbytheHA’sstandingcommittees.TheHousingDepartmentis headed by the Permanent Secretary for Transport and Housing (Housing), who also assumestheofficeoftheDirectorofHousing.TheHousingDepartmenthasfouroperationdivisions, namely Strategy, Development & Construction, Estate Management and Corporate Services to support the implementation of HA’s policies in housing strategies, overall housing development, construction and estate management. The Housing Department’s organisation can be found in our website.

The HA Headquarters

The Housing Department Environmental, Health and Safety Committee (HDEHSC) is responsible for the development and formulation of policy direction on environmental, health, safety (EHS) and sustainability aspects within the Housing Department. It is further supportedbythefollowingthreesub-committeestoaddressdifferentsustainabilityissues:

• The Housing Department Environmental Sub-committee – assists the HDEHSC inoverseeing the progress and performance of environmental initiatives and action plans in the Department.

• TheHousingDepartmentOccupationalSafetyandHealthSub-committee– assiststhe HDEHSC in overseeing the occupational safety and health of the employees at their workplace.

• The Housing Department Site Safety Sub-committee – assists the HDEHSC inoverseeing site safety management measures for works contracts.

Our Management Approaches

To provide clear direction on sustainability commitment and approach, our management has establishedandendorsedvariouspoliciesinspecificareastogoverntheoperationsandlaydown framework for continual improvement. These policies, both at departmental level and divisional level, have been widely communicated to and fully supported by our staff, services providers, materials providers and contractors.

Policies at Departmental Level

Environmental Policy

• Topromotehealthylivingandagreenenvironment;

• Todevelopastrategicframeworkandimplementenvironmentalmanagementforthepromotion of sustainable development;

• Tostrictlycomplywithandfullyimplementallrelevantenvironmentallegislationandregulations;

• To address environmental concerns and incorporate environmental initiatives inplanning and design, construction and demolition, marketing and estate management activities;

• Tominimiseenvironmental impactsfromouroperations(air,dust,noise,wasteandwater) on residents and the public;

• Todevelopprocurementpoliciestominimisetheuseofresourcesandachievecost-effectiveness;

• Topromoteenvironmental awarenessandparticipationamong staff, residents andcontractors through education and publicity programmes; and

• Toreviewandseekcontinualimprovementontheimplementationofanenvironmentalmanagement system.

Safety Policy

• Toprovide information on safety and health criteria in new projects and maintenance operations for contractors, the public and other key stakeholders;

• Tomake safety and health performance one of the critical considerations in tender selection for all new and existing building projects;

• To build up a safety profile of contractors for continuous assessment of safetyperformance;

• Tomonitorcontractor’ssafetyperformancebyindependentandin-houseassessment;

• Towork through partnership by incorporation of contractors’ input in respect of safe construction technology and equipment; and

• Topromote safety and health issues particularly related to HA projects to enhance the safety and health of all persons involved.

For staff members, we encourage them to use green products and services wherepracticable and economically viable. All staff members are required to observe our internal Environmental Procurement Policy whenever products and services are purchased.

Formaterialsprovidersandcontractors,weworkandcommunicatewith themclosely toensure that they fully understand our sustainability requirements. We check the compliance status through a robust and effective monitoring system to gauge their performance.

In terms of procurement, we strictly follow the Government Procurement Agreement of the World Trade Organisation and HA’s procurement policies and instructions. We offer equal opportunities without prejudice to materials providers’ geographical location to ensure a fair, open, equitable and ethical purchasing process.

Environmental Procurement Policy

• Toidentifysignificantenvironmentalimpactsofmaterialsandservicesinuse;

• Topurchasematerials,goodsandservicestospecificationsthatarecompliantwithrelevant environmental legislation;

• To include environmental considerations in our purchasing decisions so that, iftechnically acceptable and economically viable, lower environmental-impact goodsare purchased;

• To assess the environmental commitment of suppliers, contractors and servicesuppliers as part of the tender evaluation process, and to reward the best environmental performers;

• To require contractors and service providers (where appropriate) to produceEnvironmental Management Plans in their bids for work, and to evaluate the evidence of implementation as part of the supervision of the works;

• Toprovidefeedbackandadvice,andfacilitate trainingtokeysuppliers,contractorsand service providers on environmental performance and improvement opportunities;

• Toensureallstaff,aswellassuppliers,contractorsandserviceprovidersareawareof, and act in accordance with, the Environmental Procurement Policy and contribute to the HA’s environmental objectives; and

• Toestablishsystems,targetsandactionplansforeffectiveenvironmentalprocurementand regular reporting on performance.

Policies at Divisional Level

The Development and Construction Division (DCD) of the Housing Department has already establishedandmaintainedanISO14001EnvironmentalManagementSystem(EMS)tobettercontrolthesignificantenvironmentalaspectsinrelationtoitsoperations,activitiesandservices, as well as ISO 9001 Quality Management System to assure quality services and productswithsignificanteconomicimpactonsustainability.

To further improve the existing environmental management system, the whole works section and three public rental housing estates (Lai On, Oi Man and Sun Tin Wai) of the Estate ManagementDivisionarepreparing for ISO14001certificationbymid-2012,with further40 estates bymid-2012. TheCorporate ServicesDivision also targets to complete thecertificationbyend2012.

In addition, DCD has proactively established its divisional social responsibility policy and energypolicyinaccordancewithISO26000andISO50001standardsrespectively.Thesepolicies have been developed with reference to the HA’s Vision, Mission and Core Values to provideframeworkonmanagementofDCD’ssocialissuesandareaswithsignificantenergyuse.

Social Responsibility Policy

DCD recognises social responsibility as an integral part of our long established caring value. Social responsibility is the way we have done and will continue in our approaches andpractices.Weaffirmourcommitmentinadoptingandpractisingthefollowingprinciplesofsocialresponsibility:

• Beaccountableforourimpactsonsocietyandtheenvironment;

• Betransparentinourdecisionsandactivitiesthatimpactonsocietyandtheenvironment;

• Beethicalintermsofhonesty,equityandintegrity;

• Beconsciousofandrespecttheinterestsofourstakeholdersandrespondtotheirexpressed concerns;

• Berespectfultotheruleoflawandinternationalnormsofbehaviourforenvironmental or social safeguards; and

• Berespectfulandsupportivetohumanrightswithparticularregardtodiscrimination,grievance resolution, and rights at work.

Energy Policy

In moving towards our goal of sustainable operations in meeting the customer and community expectations, DCD recognises the importance of energy management in the provisionofaffordablequalityhousing.Tothisend,weaffirmourcommitmentto:

• continual improvement in energy performance;

• ensure the availability of information and necessary resources to achieve objectives and targets; and

• comply with applicable legal requirements and other requirements to which we subscribethatrelatetoourenergyuse,consumptionandefficiency.

Inaddition,wesupport thepurchaseofenergy-efficientproductsandservices,and thedesign for energy performance improvement.