Message from the CEO

Frank Walschot

Chief Executive Officer

Sustainable Development is embedded within the HAECO Group’s strategic objectives. We are committed to contribute to building a better, greener world for our current and future generations and to continually strive to be leaders and innovators of sustainability within in our industry. I am delighted to share with you HAECO Group’s Sustainable Development report for 2019 and a summary of performance across the key areas of our Sustainable Development Strategy.

Social Performance

Safety

People Safety is always our top priority. To further improve our safety culture and performance, our operating companies have developed platforms to promote the proactive reporting of hazards in our workplace. We extended our ‘Olympic weightlifting’ manual handling programme to Group companies in Xiamen and the United States after a successful pilot in Hong Kong. The commitment of all our staff helped us create a safer working environment and our safety performance has continued to improve. In 2019, our lost time injury rate dropped by 13.9% and our lost day rate reduced by 10.6%.

Quality

As a responsible company, the quality of our products and services is paramount. Our quality management system is designed to ensure continued delivery of safe products in compliance with all aviation and regulatory requirements. We also have a well-established independent audit programme to ensure the highest standards of maintenance practices and airworthiness.

Development of our People

We have been investing in staff development and we feel that this is key to our continued success. In 2019, our permanent staff attended over 759,000 hours of training on both technical and soft skills, which is equivalent to 53 training hours per employee. We also care about the well-being of our staff and have arranged various leisure activities to support both their physical and mental health. We encourage and advocate equal opportunities in our workplace, and we want our staff to continually develop their careers with us.

Community

A thriving community is the foundation of a thriving business. We are particularly focused on the welfare of children and youth, disadvantaged groups, and the protection of the environment. In 2019, we invested over HK$3.2million to support initiatives with various community organisations, and our staff, their families and friends contributed more than 2,300 hours of volunteer service.

Environmental Performance

Environment

We have been taking action to ensure we sustain a thriving operating environment for the future. Our ‘phase change material’ thermal storage chiller system started operating in Hong Kong, reducing our electricity demand and energy consumption. Our new maintenance hangar in the United States received LEED certification - this helps save 25% of energy costs compared to a similarly sized, traditional facility. In Xiamen, we generated renewable energy equivalent to the energy used in 150 homes per year. These initiatives, combined with many other environmental projects across the Group, have contributed to an overall 6.9% reduction in our greenhouse gas emissions compared with that in our base year of 2015. In addition, we also started to provide water efficient ‘dry wash services’ to our customers in Hong Kong, and HAECO Xiamen have installed control systems to minimise waster waste during aircraft washing. In 2020, we will be working on defining more ambitious 2030 environmental targets.

Sustainable Materials and Supply Chain Management

We identified key materials required to support our operations and established sourcing policies to guide our selection of products. We pick our suppliers carefully and value those who share our sustainability goals. Our suppliers are required to follow our Supplier Code of Conduct and relevant standards on environmental protection, health and safety and labour use. We reinforce compliance through regular assessments and site audits.

Economic Performance and our Commitment to a Sustainable Future

Our business in 2019 remained solid despite some challenges we had to overcome. We will continue to improve on our services and ensure our customers see the HAECO Group as their MRO partner of choice for all aircraft engineering and maintenance needs, as well as for our shared value in creating a sustainable future.

Amid the current global pandemic, 2020 will be very challenging; not only to our business, but also to the global economy and the health of every citizen. Every one of us should stay focused on health and remain vigilant in this fight. It will be important for us to maintain our business continuity and reassess our business risks and opportunities for the future.

We remain very confident in the long-term prospects for our business and there are several exciting projects in the pipeline. One of note is HAECO Xiamen’s plans to relocate its operations to a new facility at Xiamen’s new Xiang’an International Airport, due to open in 2024.

Over the next year, we will progress on our journey of setting sustainability targets for 2030 in accordance with the United Nations Sustainability Development Goals. We will continue to maintain our promise of providing excellent products and services to our customers, while playing our part in contributing to a thriving environment and community.



Frank Walschot

Chief Executive Officer
July 2020