Management & Policy
Sustainability Framework and Structure
At Prosperity REIT, we believe that corporate responsibility is as equally important as maximizing financial returns for our shareholders. Therefore, we have established a three-layer ESG governance structure to ensure effective ESG governance and management of Prosperity REIT.
To achieve our financial goals, we understand the importance of mitigating business risks through effective risk management. A standardised Enterprise Risk Management (“ERM”) system that aligns with our parent group was implemented and maintained. The ERM, consisting of risk governance, risk infrastructure and supervision of risk ownership, provides transparent structures of responsibility and accountability to aid risk management.
Regular Risk Management Reporting and Controls at Prosperity REIT
The Audit Committee and the Board of the REIT Manager receives bi-annual reports of our REIT level risk profile, with highlights on changes in risk assessment, quantitative and qualitative factors impacting inherent risk levels, and the effectiveness of mitigating controls for residual risks.
Asset level risk assessment controls have been maintained and key ESG risks have been identified on a property level, with topics including but not limited to:
Supply Chain Management
We are committed to identifying and addressing environmental and social risks in our supply chain.
We comply with the Prevention of Bribery Ordinance (Cap. 201) and maintain an absolute zero-tolerance stance on all forms of misconduct including corruption, fraud, bribery, money-laundering and anti-competition, as well as any non-compliance of ESG laws and regulations. During the Reporting Year, there was no allegation of any forms of misconduct. Compliance framework consisting of coherent policies, checklists and trainings are in place to keep track of regulatory requirement mechanisms and manage compliance risks.